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. While 2OY is still in line with the averages on profitability rating, there are concerns on its financial health. 2OY is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 2OY was profitable.
2OY had a positive operating cash flow in the past year.
Each year in the past 5 years 2OY has been profitable.
2OY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
2OY has a Return On Assets (1.93%) which is comparable to the rest of the industry.
The Return On Equity of 2OY (6.36%) is better than 62.30% of its industry peers.
2OY has a Return On Invested Capital (3.03%) which is comparable to the rest of the industry.
2OY had an Average Return On Invested Capital over the past 3 years of 4.98%. This is in line with the industry average of 6.81%.
| 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
The Profit Margin of 2OY (2.57%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of 2OY has declined.
2OY has a Operating Margin (4.43%) which is comparable to the rest of the industry.
2OY's Operating Margin has declined in the last couple of years.
2OY's Gross Margin of 10.72% is on the low side compared to the rest of the industry. 2OY is outperformed by 73.77% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 2OY is destroying value.
The number of shares outstanding for 2OY remains at a similar level compared to 1 year ago.
2OY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 2OY has a worse debt to assets ratio.
2.2 Solvency
2OY has an Altman-Z score of 1.82. 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.
Looking at the Altman-Z score, with a value of 1.82, 2OY is doing worse than 60.66% of the companies in the same industry.
A Debt/Equity ratio of 0.91 indicates that 2OY is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.91, 2OY is not doing good in the industry: 73.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.82 |
ROIC/WACC0.37
WACC8.18%
2.3 Liquidity
2OY has a Current Ratio of 1.61. This is a normal value and indicates that 2OY is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 2OY (1.61) is comparable to the rest of the industry.
2OY has a Quick Ratio of 1.61. This is a bad value and indicates that 2OY is not financially healthy enough and could expect problems in meeting its short term obligations.
2OY has a Quick ratio of 0.98. This is comparable to the rest of the industry: 2OY outperforms 49.18% of its industry peers.
| 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%.
2OY shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.16% yearly.
2OY shows a decrease in Revenue. In the last year, the revenue decreased by -3.72%.
2OY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.01% yearly.
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 34.80% yearly.
The Revenue is expected to grow by 3.41% on average over the next years.
EPS Next Y-14.3%
EPS Next 2Y13.11%
EPS Next 3Y17.92%
EPS Next 5Y34.8%
Revenue Next Year-0.71%
Revenue Next 2Y1.69%
Revenue Next 3Y2.22%
Revenue Next 5Y3.41%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 17.33 indicates a rather expensive valuation of 2OY.
Compared to the rest of the industry, the Price/Earnings ratio of 2OY indicates a somewhat cheap valuation: 2OY is cheaper than 70.49% of the companies listed in the same industry.
2OY is valuated rather cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.18 indicates a rather expensive valuation of 2OY.
2OY's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of 2OY to the average of the S&P500 Index (21.38), we can say 2OY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.33 | ||
| Fwd PE | 20.18 |
4.2 Price Multiples
73.77% of the companies in the same industry are more expensive than 2OY, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.29 |
4.3 Compensation for Growth
A more expensive valuation may be justified as 2OY's earnings are expected to grow with 17.92% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.11%
EPS Next 3Y17.92%
5. Dividend
5.1 Amount
2OY has a Yearly Dividend Yield of 9.41%, which is a nice return.
In the last 3 months the price of 2OY has falen by -34.38%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.25, 2OY pays a better dividend. On top of this 2OY pays more dividend than 100.00% of the companies listed in the same industry.
2OY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.41% |
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 2Y13.11%
EPS Next 3Y17.92%
FRA:2OY (4/25/2025, 7:00:00 PM)
26
-0.1 (-0.38%)
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 Cap18.35B
Analysts67.69
Price Target36.63 (40.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.41% |
Yearly Dividend2.46
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)-5.49%
PT rev (3m)-15.96%
EPS NQ rev (1m)-112.54%
EPS NQ rev (3m)-101.64%
EPS NY rev (1m)-18.67%
EPS NY rev (3m)-51.19%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-6.81%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-4.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.33 | ||
| Fwd PE | 20.18 | ||
| P/S | 0.49 | ||
| P/FCF | N/A | ||
| P/OCF | 7.16 | ||
| P/B | 1.2 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | 7.29 |
EPS(TTM)1.5
EY5.77%
EPS(NY)1.29
Fwd EY4.95%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)3.63
OCFY13.96%
SpS53.51
BVpS21.62
TBVpS8.8
PEG (NY)N/A
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 | 1.82 |
F-Score5
WACC8.18%
ROIC/WACC0.37
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 Y-14.3%
EPS Next 2Y13.11%
EPS Next 3Y17.92%
EPS Next 5Y34.8%
Revenue 1Y (TTM)-3.72%
Revenue growth 3Y-7.88%
Revenue growth 5Y0.01%
Sales Q2Q%-2.03%
Revenue Next Year-0.71%
Revenue Next 2Y1.69%
Revenue Next 3Y2.22%
Revenue Next 5Y3.41%
EBIT growth 1Y-9.29%
EBIT growth 3Y-37.72%
EBIT growth 5Y-11.56%
EBIT Next Year102.9%
EBIT Next 3Y37.19%
EBIT Next 5Y35.51%
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%