DOW INC (DOW)
US2605571031 - Common Stock
Overall DOW gets a fundamental rating of 3 out of 10. We evaluated DOW against 84 industry peers in the Chemicals industry. Both the profitability and financial health of DOW have multiple concerns. DOW has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year DOW was profitable.
DOW had a positive operating cash flow in the past year.
DOW had positive earnings in 4 of the past 5 years.
Each year in the past 5 years DOW had a positive operating cash flow.
1.2 Ratios
DOW has a Return On Assets (1.77%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 5.75%, DOW is in line with its industry, outperforming 54.76% of the companies in the same industry.
The Return On Invested Capital of DOW (2.93%) is worse than 63.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DOW is in line with the industry average of 6.50%.
The 3 year average ROIC (8.04%) for DOW is well above the current ROIC(2.93%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 5.75% | ||
| ROIC | 2.93% |
ROA(3y)6.16%
ROA(5y)3.64%
ROE(3y)19.89%
ROE(5y)11.88%
ROIC(3y)8.04%
ROIC(5y)6.66%
1.3 Margins
DOW has a Profit Margin (2.44%) which is comparable to the rest of the industry.
DOW's Profit Margin has declined in the last couple of years.
The Operating Margin of DOW (4.33%) is worse than 65.48% of its industry peers.
In the last couple of years the Operating Margin of DOW has declined.
DOW has a Gross Margin of 10.76%. This is in the lower half of the industry: DOW underperforms 79.76% of its industry peers.
DOW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.33% | ||
| PM (TTM) | 2.44% | ||
| GM | 10.76% |
OM growth 3Y-11%
OM growth 5Y-15.69%
PM growth 3Y-25.68%
PM growth 5Y-32.66%
GM growth 3Y-6.84%
GM growth 5Y-8.65%
2. Health
2.1 Basic Checks
DOW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
DOW has less shares outstanding than it did 1 year ago.
DOW has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DOW has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.93 indicates that DOW is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.93, DOW is in line with its industry, outperforming 53.57% of the companies in the same industry.
DOW has a debt to FCF ratio of 20.13. This is a negative value and a sign of low solvency as DOW would need 20.13 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 20.13, DOW is in line with its industry, outperforming 41.67% of the companies in the same industry.
A Debt/Equity ratio of 0.89 indicates that DOW is somewhat dependend on debt financing.
The Debt to Equity ratio of DOW (0.89) is worse than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 20.13 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.39
WACC7.48%
2.3 Liquidity
DOW has a Current Ratio of 1.66. This is a normal value and indicates that DOW is financially healthy and should not expect problems in meeting its short term obligations.
DOW has a Current ratio of 1.66. This is in the lower half of the industry: DOW underperforms 63.10% of its industry peers.
A Quick Ratio of 1.04 indicates that DOW should not have too much problems paying its short term obligations.
DOW's Quick ratio of 1.04 is on the low side compared to the rest of the industry. DOW is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
DOW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.73%.
Measured over the past years, DOW shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -33.37% on average per year.
The Revenue has decreased by -5.84% in the past year.
Measured over the past years, DOW shows a decrease in Revenue. The Revenue has been decreasing by -2.09% on average per year.
EPS 1Y (TTM)-5.73%
EPS 3Y10.95%
EPS 5Y-33.37%
EPS Q2Q%-2.08%
Revenue 1Y (TTM)-5.84%
Revenue growth 3Y5%
Revenue growth 5Y-2.09%
Sales Q2Q%1.39%
3.2 Future
DOW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.78% yearly.
The Revenue is expected to grow by 3.78% on average over the next years.
EPS Next Y-6.21%
EPS Next 2Y18.44%
EPS Next 3Y22.36%
EPS Next 5Y24.78%
Revenue Next Year-2.76%
Revenue Next 2Y0.58%
Revenue Next 3Y1.65%
Revenue Next 5Y3.78%
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
A Price/Earnings ratio of 20.94 indicates a rather expensive valuation of DOW.
Compared to the rest of the industry, the Price/Earnings ratio of DOW is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.96, DOW is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.26 indicates a correct valuation of DOW.
Based on the Price/Forward Earnings ratio, DOW is valued a bit cheaper than the industry average as 65.48% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DOW to the average of the S&P500 Index (23.82), we can say DOW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.94 | ||
| Fwd PE | 14.26 |
4.2 Price Multiples
65.48% of the companies in the same industry are more expensive than DOW, based on the Enterprise Value to EBITDA ratio.
DOW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.12 | ||
| EV/EBITDA | 9.49 |
4.3 Compensation for Growth
A more expensive valuation may be justified as DOW's earnings are expected to grow with 22.36% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.44%
EPS Next 3Y22.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.28%, DOW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.95, DOW pays a better dividend. On top of this DOW pays more dividend than 92.86% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, DOW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.28% |
5.2 History
DOW has paid a dividend for at least 10 years, which is a reliable track record.
DOW has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
DOW pays out 186.79% of its income as dividend. This is not a sustainable payout ratio.
DP186.79%
EPS Next 2Y18.44%
EPS Next 3Y22.36%
DOW INC
NYSE:DOW (11/21/2024, 6:40:00 PM)
After market: 44.97 +0.16 (+0.36%)44.81
+0.88 (+2%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap31.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.28% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.94 | ||
| Fwd PE | 14.26 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 5.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.33% | ||
| PM (TTM) | 2.44% | ||
| GM | 10.76% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-5.73%
EPS 3Y10.95%
EPS 5Y
EPS Q2Q%
EPS Next Y-6.21%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.84%
Revenue growth 3Y5%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y