DUPONT DE NEMOURS INC (DD)
US26614N1028 - Common Stock
We assign a fundamental rating of 4 out of 10 to DD. DD was compared to 84 industry peers in the Chemicals industry. Both the profitability and the financial health of DD get a neutral evaluation. Nothing too spectacular is happening here. DD is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
DD had positive earnings in the past year.
In the past year DD had a positive cash flow from operations.
DD had positive earnings in 4 of the past 5 years.
Each year in the past 5 years DD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DD (0.94%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 1.51%, DD is doing worse than 60.71% of the companies in the same industry.
DD has a Return On Invested Capital of 3.54%. This is comparable to the rest of the industry: DD outperforms 47.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DD is below the industry average of 6.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 1.51% | ||
| ROIC | 3.54% |
ROA(3y)9.81%
ROA(5y)5.2%
ROE(3y)16.1%
ROE(5y)8.37%
ROIC(3y)3.62%
ROIC(5y)3%
1.3 Margins
Looking at the Profit Margin, with a value of 2.96%, DD is in line with its industry, outperforming 46.43% of the companies in the same industry.
In the last couple of years the Profit Margin of DD has declined.
DD has a better Operating Margin (14.01%) than 78.57% of its industry peers.
DD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.15%, DD is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
DD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.01% | ||
| PM (TTM) | 2.96% | ||
| GM | 35.15% |
OM growth 3Y2.24%
OM growth 5Y7.68%
PM growth 3YN/A
PM growth 5Y-27.03%
GM growth 3Y-1.34%
GM growth 5Y1.68%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DD is destroying value.
Compared to 1 year ago, DD has less shares outstanding
The number of shares outstanding for DD has been reduced compared to 5 years ago.
The debt/assets ratio for DD is higher compared to a year ago.
2.2 Solvency
DD has an Altman-Z score of 1.13. This is a bad value and indicates that DD is not financially healthy and even has some risk of bankruptcy.
DD's Altman-Z score of 1.13 is on the low side compared to the rest of the industry. DD is outperformed by 71.43% of its industry peers.
The Debt to FCF ratio of DD is 5.36, which is a neutral value as it means it would take DD, 5.36 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.36, DD is doing good in the industry, outperforming 65.48% of the companies in the same industry.
DD has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
DD's Debt to Equity ratio of 0.33 is fine compared to the rest of the industry. DD outperforms 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 5.36 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.45
WACC7.86%
2.3 Liquidity
DD has a Current Ratio of 2.33. This indicates that DD is financially healthy and has no problem in meeting its short term obligations.
DD has a Current ratio (2.33) which is comparable to the rest of the industry.
DD has a Quick Ratio of 1.61. This is a normal value and indicates that DD is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.61, DD perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.00% over the past year.
DD shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.35% yearly.
Looking at the last year, DD shows a decrease in Revenue. The Revenue has decreased by -6.11% in the last year.
DD shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -11.79% yearly.
EPS 1Y (TTM)0%
EPS 3Y1.08%
EPS 5Y-22.35%
EPS Q2Q%-5.95%
Revenue 1Y (TTM)-6.11%
Revenue growth 3Y2.74%
Revenue growth 5Y-11.79%
Sales Q2Q%-2.88%
3.2 Future
Based on estimates for the next years, DD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.88% on average per year.
The Revenue is expected to grow by 4.52% on average over the next years.
EPS Next Y7.36%
EPS Next 2Y12.14%
EPS Next 3Y12.45%
EPS Next 5Y8.88%
Revenue Next Year1.25%
Revenue Next 2Y3.16%
Revenue Next 3Y4.01%
Revenue Next 5Y4.52%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.25, the valuation of DD can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of DD is on the same level as its industry peers.
DD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.42, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.22, which indicates a rather expensive current valuation of DD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DD is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of DD to the average of the S&P500 Index (20.02), we can say DD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.25 | ||
| Fwd PE | 18.22 |
4.2 Price Multiples
DD's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as DD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.96 | ||
| EV/EBITDA | 13.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DD's earnings are expected to grow with 12.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.16
PEG (5Y)N/A
EPS Next 2Y12.14%
EPS Next 3Y12.45%
5. Dividend
5.1 Amount
DD has a Yearly Dividend Yield of 1.90%.
Compared to an average industry Dividend Yield of 3.13, DD pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.39, DD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
The dividend of DD decreases each year by -20.30%.
DD has been paying a dividend for at least 10 years, so it has a reliable track record.
DD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-20.3%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
181.69% of the earnings are spent on dividend by DD. This is not a sustainable payout ratio.
DP181.69%
EPS Next 2Y12.14%
EPS Next 3Y12.45%
DUPONT DE NEMOURS INC
NYSE:DD (6/17/2024, 10:01:59 AM)
79.74
+0.08 (+0.1%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap33.34B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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 | 23.25 | ||
| Fwd PE | 18.22 | ||
| 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)3.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 1.51% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.01% | ||
| PM (TTM) | 2.96% | ||
| GM | 35.15% | ||
| 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 Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.33 | ||
| Quick Ratio | 1.61 | ||
| 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)0%
EPS 3Y1.08%
EPS 5Y
EPS Q2Q%
EPS Next Y7.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.11%
Revenue growth 3Y2.74%
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