DOW INC (2OY.DE) Stock Fundamental Analysis
FRA:2OY - Deutsche Boerse Ag - US2605571031 - Common Stock - Currency: EUR
Taking everything into account, 2OY scores 3 out of 10 in our fundamental rating. 2OY was compared to 61 industry peers in the Chemicals industry. There are concerns on the financial health of 2OY while its profitability can be described as average. While showing a medium growth rate, 2OY is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year 2OY was profitable.
2OY had a positive operating cash flow in the past year.
2OY had positive earnings in each of the past 5 years.
Each year in the past 5 years 2OY had a positive operating cash flow.
1.2 Ratios
2OY has a better Return On Assets (1.93%) than 63.49% of its industry peers.
Looking at the Return On Equity, with a value of 6.36%, 2OY is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
2OY's Return On Invested Capital of 3.03% is in line compared to the rest of the industry. 2OY outperforms 58.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 2OY is in line with the industry average of 6.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 6.36% | ||
| ROIC | 3.03% |
ROA(3y)3.48%
ROA(5y)4.48%
ROE(3y)10.49%
ROE(5y)15.16%
ROIC(3y)4.98%
ROIC(5y)6.12%
1.3 Margins
2OY has a Profit Margin of 2.57%. This is in the better half of the industry: 2OY outperforms 61.90% of its industry peers.
2OY's Profit Margin has declined in the last couple of years.
2OY has a Operating Margin (4.43%) which is in line with its industry peers.
In the last couple of years the Operating Margin of 2OY has declined.
2OY's Gross Margin of 10.72% is on the low side compared to the rest of the industry. 2OY is outperformed by 73.02% of its industry peers.
In the last couple of years the Gross Margin of 2OY has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.43% | ||
| PM (TTM) | 2.57% | ||
| GM | 10.72% |
OM growth 3Y-32.39%
OM growth 5Y-11.56%
PM growth 3Y-39.18%
PM growth 5YN/A
GM growth 3Y-18.23%
GM growth 5Y-6.06%
2. Health
2.1 Basic Checks
2OY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, 2OY has about the same amount of shares outstanding.
Compared to 5 years ago, 2OY has less shares outstanding
Compared to 1 year ago, 2OY has a worse debt to assets ratio.
2.2 Solvency
2OY has an Altman-Z score of 1.90. This is not the best score and indicates that 2OY is in the grey zone with still only limited risk for bankruptcy at the moment.
2OY's Altman-Z score of 1.90 is on the low side compared to the rest of the industry. 2OY is outperformed by 60.32% of its industry peers.
A Debt/Equity ratio of 0.91 indicates that 2OY is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.91, 2OY is doing worse than 74.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.9 |
ROIC/WACC0.36
WACC8.32%
2.3 Liquidity
A Current Ratio of 1.61 indicates that 2OY should not have too much problems paying its short term obligations.
2OY has a Current ratio of 1.61. This is comparable to the rest of the industry: 2OY outperforms 41.27% of its industry peers.
A Quick Ratio of 0.98 indicates that 2OY may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.98, 2OY is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
2OY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.66%.
The earnings per share for 2OY have been decreasing by -12.16% on average. This is quite bad
The Revenue has decreased by -3.72% in the past year.
Measured over the past years, 2OY shows a small growth in Revenue. The Revenue has been growing by 0.01% on average per year.
EPS 1Y (TTM)-23.66%
EPS 3Y-42.47%
EPS 5Y-12.16%
EPS Q2Q%-100%
Revenue 1Y (TTM)-3.72%
Revenue growth 3Y-7.88%
Revenue growth 5Y0.01%
Sales Q2Q%-2.03%
3.2 Future
2OY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.43% yearly.
The Revenue is expected to grow by 3.96% on average over the next years.
EPS Next Y5.37%
EPS Next 2Y23.47%
EPS Next 3Y24.79%
EPS Next 5Y37.43%
Revenue Next Year0%
Revenue Next 2Y2.19%
Revenue Next 3Y2.63%
Revenue Next 5Y3.96%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.63, the valuation of 2OY can be described as rather expensive.
69.84% of the companies in the same industry are more expensive than 2OY, based on the Price/Earnings ratio.
2OY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.35.
A Price/Forward Earnings ratio of 20.59 indicates a rather expensive valuation of 2OY.
2OY's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of 2OY to the average of the S&P500 Index (22.10), we can say 2OY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.63 | ||
| Fwd PE | 20.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 2OY indicates a somewhat cheap valuation: 2OY is cheaper than 73.02% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 2OY does not grow enough to justify the current Price/Earnings ratio.
2OY's earnings are expected to grow with 24.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.03
PEG (5Y)N/A
EPS Next 2Y23.47%
EPS Next 3Y24.79%
5. Dividend
5.1 Amount
2OY has a Yearly Dividend Yield of 7.48%, which is a nice return.
Compared to an average industry Dividend Yield of 2.89, 2OY pays a better dividend. On top of this 2OY pays more dividend than 98.41% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, 2OY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.48% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
2OY pays out 178.08% of its income as dividend. This is not a sustainable payout ratio.
DP178.08%
EPS Next 2Y23.47%
EPS Next 3Y24.79%
FRA:2OY (3/7/2025, 7:00:00 PM)
34.18
-0.27 (-0.77%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners68.11%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap24.12B
Analysts68.46
Price Target45.17 (32.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.48% |
Yearly Dividend2.58
Dividend Growth(5Y)N/A
DP178.08%
Div Incr Years0
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-49.05%
Min EPS beat(2)-100%
Max EPS beat(2)1.91%
EPS beat(4)2
Avg EPS beat(4)-20.36%
Min EPS beat(4)-100%
Max EPS beat(4)22.54%
EPS beat(8)6
Avg EPS beat(8)-0.67%
EPS beat(12)9
Avg EPS beat(12)-0.39%
EPS beat(16)13
Avg EPS beat(16)1.94%
Revenue beat(2)1
Avg Revenue beat(2)-0.4%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)1.19%
Revenue beat(4)1
Avg Revenue beat(4)-0.85%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)1.19%
Revenue beat(8)5
Avg Revenue beat(8)0.53%
Revenue beat(12)7
Avg Revenue beat(12)1.03%
Revenue beat(16)10
Avg Revenue beat(16)1.62%
PT rev (1m)-2.83%
PT rev (3m)-16.54%
EPS NQ rev (1m)-34.54%
EPS NQ rev (3m)-86.6%
EPS NY rev (1m)-31.24%
EPS NY rev (3m)-42.21%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)-6.24%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-4.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.63 | ||
| Fwd PE | 20.59 | ||
| P/S | 0.61 | ||
| P/FCF | N/A | ||
| P/OCF | 8.99 | ||
| P/B | 1.51 | ||
| P/tB | 3.7 | ||
| EV/EBITDA | 8.38 |
EPS(TTM)1.58
EY4.62%
EPS(NY)1.66
Fwd EY4.86%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)3.8
OCFY11.13%
SpS56.07
BVpS22.65
TBVpS9.23
PEG (NY)4.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 6.36% | ||
| ROCE | 4.05% | ||
| ROIC | 3.03% | ||
| ROICexc | 3.18% | ||
| ROICexgc | 4.12% | ||
| OM | 4.43% | ||
| PM (TTM) | 2.57% | ||
| GM | 10.72% | ||
| FCFM | N/A |
ROA(3y)3.48%
ROA(5y)4.48%
ROE(3y)10.49%
ROE(5y)15.16%
ROIC(3y)4.98%
ROIC(5y)6.12%
ROICexc(3y)5.34%
ROICexc(5y)6.58%
ROICexgc(3y)7.02%
ROICexgc(5y)8.73%
ROCE(3y)6.67%
ROCE(5y)8.19%
ROICexcg growth 3Y-37.36%
ROICexcg growth 5Y-11.15%
ROICexc growth 3Y-36.83%
ROICexc growth 5Y-10.38%
OM growth 3Y-32.39%
OM growth 5Y-11.56%
PM growth 3Y-39.18%
PM growth 5YN/A
GM growth 3Y-18.23%
GM growth 5Y-6.06%
F-Score5
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.3 | ||
| Cap/Depr | 101.59% | ||
| Cap/Sales | 6.84% | ||
| Interest Coverage | 2.15 | ||
| Cash Conversion | 60.72% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.9 |
F-Score5
WACC8.32%
ROIC/WACC0.36
Cap/Depr(3y)86.15%
Cap/Depr(5y)75.88%
Cap/Sales(3y)5.12%
Cap/Sales(5y)4.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-23.66%
EPS 3Y-42.47%
EPS 5Y-12.16%
EPS Q2Q%-100%
EPS Next Y5.37%
EPS Next 2Y23.47%
EPS Next 3Y24.79%
EPS Next 5Y37.43%
Revenue 1Y (TTM)-3.72%
Revenue growth 3Y-7.88%
Revenue growth 5Y0.01%
Sales Q2Q%-2.03%
Revenue Next Year0%
Revenue Next 2Y2.19%
Revenue Next 3Y2.63%
Revenue Next 5Y3.96%
EBIT growth 1Y-9.29%
EBIT growth 3Y-37.72%
EBIT growth 5Y-11.56%
EBIT Next Year118.32%
EBIT Next 3Y40.61%
EBIT Next 5Y34.19%
FCF growth 1Y-100.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-43.92%
OCF growth 3Y-25.36%
OCF growth 5Y-13.25%