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DOW INC (1DOW.MI) Stock Fundamental Analysis

BIT:1DOW - Euronext Milan - US2605571031 - Common Stock - Currency: EUR

26.8  -11.65 (-30.3%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to 1DOW. 1DOW was compared to 69 industry peers in the Chemicals industry. 1DOW has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1DOW has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

1DOW had positive earnings in the past year.
In the past year 1DOW had a positive cash flow from operations.
Of the past 5 years 1DOW 4 years were profitable.
1DOW had a positive operating cash flow in each of the past 5 years.
1DOW.MI Yearly Net Income VS EBIT VS OCF VS FCF1DOW.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B

1.2 Ratios

1DOW has a Return On Assets (1.77%) which is in line with its industry peers.
The Return On Equity of 1DOW (5.75%) is better than 60.87% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.93%, 1DOW is in line with its industry, outperforming 53.62% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1DOW is in line with the industry average of 6.66%.
The last Return On Invested Capital (2.93%) for 1DOW is well below the 3 year average (8.04%), which needs to be investigated, but indicates that 1DOW had better years and this may not be a problem.
Industry RankSector 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%
1DOW.MI Yearly ROA, ROE, ROIC1DOW.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30

1.3 Margins

The Profit Margin of 1DOW (2.44%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of 1DOW has declined.
Looking at the Operating Margin, with a value of 4.33%, 1DOW is in line with its industry, outperforming 52.17% of the companies in the same industry.
In the last couple of years the Operating Margin of 1DOW has declined.
1DOW has a worse Gross Margin (10.76%) than 76.81% of its industry peers.
In the last couple of years the Gross Margin of 1DOW has declined.
Industry RankSector 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%
1DOW.MI Yearly Profit, Operating, Gross Margins1DOW.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15 20

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1DOW is destroying value.
Compared to 1 year ago, 1DOW has less shares outstanding
The number of shares outstanding for 1DOW has been reduced compared to 5 years ago.
1DOW has a worse debt/assets ratio than last year.
1DOW.MI Yearly Shares Outstanding1DOW.MI Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 200M 400M 600M
1DOW.MI Yearly Total Debt VS Total Assets1DOW.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 20B 40B 60B 80B

2.2 Solvency

1DOW has an Altman-Z score of 1.80. This is a bad value and indicates that 1DOW is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.80, 1DOW is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
1DOW has a debt to FCF ratio of 20.13. This is a negative value and a sign of low solvency as 1DOW would need 20.13 years to pay back of all of its debts.
1DOW has a Debt to FCF ratio of 20.13. This is comparable to the rest of the industry: 1DOW outperforms 50.72% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that 1DOW is somewhat dependend on debt financing.
The Debt to Equity ratio of 1DOW (0.89) is worse than 72.46% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 20.13
Altman-Z 1.8
ROIC/WACC0.35
WACC8.3%
1DOW.MI Yearly LT Debt VS Equity VS FCF1DOW.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 0 10B 20B 30B

2.3 Liquidity

A Current Ratio of 1.66 indicates that 1DOW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.66, 1DOW is in line with its industry, outperforming 49.28% of the companies in the same industry.
1DOW has a Quick Ratio of 1.04. This is a normal value and indicates that 1DOW is financially healthy and should not expect problems in meeting its short term obligations.
1DOW has a Quick ratio (1.04) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.66
Quick Ratio 1.04
1DOW.MI Yearly Current Assets VS Current Liabilites1DOW.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 10B 20B 30B

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3

3. Growth

3.1 Past

The earnings per share for 1DOW have decreased by -5.73% in the last year.
The earnings per share for 1DOW have been decreasing by -33.37% on average. This is quite bad
1DOW shows a decrease in Revenue. In the last year, the revenue decreased by -5.84%.
The Revenue has been decreasing by -2.09% on average over the past years.
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

The Earnings Per Share is expected to grow by 22.19% on average over the next years. This is a very strong growth
1DOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.51% yearly.
EPS Next Y-7.78%
EPS Next 2Y15.77%
EPS Next 3Y20.15%
EPS Next 5Y22.19%
Revenue Next Year-3.07%
Revenue Next 2Y-0.14%
Revenue Next 3Y1.25%
Revenue Next 5Y2.51%

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.
1DOW.MI Yearly Revenue VS Estimates1DOW.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 10B 20B 30B 40B 50B
1DOW.MI Yearly EPS VS Estimates1DOW.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8

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6

4. Valuation

4.1 Price/Earnings Ratio

1DOW is valuated correctly with a Price/Earnings ratio of 14.49.
78.26% of the companies in the same industry are more expensive than 1DOW, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1DOW to the average of the S&P500 Index (26.32), we can say 1DOW is valued slightly cheaper.
With a Price/Forward Earnings ratio of 10.33, the valuation of 1DOW can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1DOW indicates a rather cheap valuation: 1DOW is cheaper than 88.41% of the companies listed in the same industry.
1DOW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.19.
Industry RankSector Rank
PE 14.49
Fwd PE 10.33
1DOW.MI Price Earnings VS Forward Price Earnings1DOW.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, 1DOW is valued a bit cheaper than 76.81% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1DOW indicates a somewhat cheap valuation: 1DOW is cheaper than 60.87% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 26.37
EV/EBITDA 7.55
1DOW.MI Per share data1DOW.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

1DOW's earnings are expected to grow with 20.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y15.77%
EPS Next 3Y20.15%

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5

5. Dividend

5.1 Amount

1DOW has a Yearly Dividend Yield of 6.75%, which is a nice return.
1DOW's Dividend Yield is rather good when compared to the industry average which is at 3.00. 1DOW pays more dividend than 97.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, 1DOW pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.75%

5.2 History

Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A

5.3 Sustainability

1DOW pays out 186.79% of its income as dividend. This is not a sustainable payout ratio.
DP186.79%
EPS Next 2Y15.77%
EPS Next 3Y20.15%
1DOW.MI Yearly Income VS Free CF VS Dividend1DOW.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B
1DOW.MI Dividend Payout.1DOW.MI Dividend Payout, showing the Payout Ratio.1DOW.MI Dividend Payout.PayoutRetained Earnings

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DOW INC

BIT:1DOW (6/11/2025, 7:00:00 PM)

26.8

-11.65 (-30.3%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)10-24 2024-10-24/bmo
Earnings (Next)01-30 2025-01-30/bmo
Inst Owners70.66%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap18.76B
Analysts67.41
Price Target50.79 (89.51%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.75%
Yearly Dividend2.8
Dividend Growth(5Y)N/A
DP186.79%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.99%
Min EPS beat(2)-5.89%
Max EPS beat(2)1.91%
EPS beat(4)3
Avg EPS beat(4)6.04%
Min EPS beat(4)-5.89%
Max EPS beat(4)22.54%
EPS beat(8)6
Avg EPS beat(8)9.21%
EPS beat(12)10
Avg EPS beat(12)8.31%
EPS beat(16)14
Avg EPS beat(16)9.42%
Revenue beat(2)1
Avg Revenue beat(2)-0.32%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)1.19%
Revenue beat(4)2
Avg Revenue beat(4)0%
Min Revenue beat(4)-1.83%
Max Revenue beat(4)1.43%
Revenue beat(8)5
Avg Revenue beat(8)0.5%
Revenue beat(12)7
Avg Revenue beat(12)1.15%
Revenue beat(16)11
Avg Revenue beat(16)2.1%
PT rev (1m)-5.65%
PT rev (3m)N/A
EPS NQ rev (1m)-2.04%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.68%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 14.49
Fwd PE 10.33
P/S 0.5
P/FCF 26.37
P/OCF 5.78
P/B 1.19
P/tB 2.79
EV/EBITDA 7.55
EPS(TTM)1.85
EY6.9%
EPS(NY)2.6
Fwd EY9.68%
FCF(TTM)1.02
FCFY3.79%
OCF(TTM)4.64
OCFY17.31%
SpS53.32
BVpS22.61
TBVpS9.62
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.77%
ROE 5.75%
ROCE 3.85%
ROIC 2.93%
ROICexc 3.11%
ROICexgc 4.04%
OM 4.33%
PM (TTM) 2.44%
GM 10.76%
FCFM 1.91%
ROA(3y)6.16%
ROA(5y)3.64%
ROE(3y)19.89%
ROE(5y)11.88%
ROIC(3y)8.04%
ROIC(5y)6.66%
ROICexc(3y)8.62%
ROICexc(5y)7.15%
ROICexgc(3y)11.41%
ROICexgc(5y)9.54%
ROCE(3y)10.6%
ROCE(5y)8.79%
ROICexcg growth 3Y-7.66%
ROICexcg growth 5Y-10.48%
ROICexc growth 3Y-6.32%
ROICexc growth 5Y-11.02%
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%
F-Score4
Asset Turnover0.73
Health
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 20.13
Debt/EBITDA 3.48
Cap/Depr 104.75%
Cap/Sales 6.79%
Interest Coverage 250
Cash Conversion 80.41%
Profit Quality 78.23%
Current Ratio 1.66
Quick Ratio 1.04
Altman-Z 1.8
F-Score4
WACC8.3%
ROIC/WACC0.35
Cap/Depr(3y)78.03%
Cap/Depr(5y)68.98%
Cap/Sales(3y)4.17%
Cap/Sales(5y)4.07%
Profit Quality(3y)230.22%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.73%
EPS 3Y10.95%
EPS 5Y-33.37%
EPS Q2Q%-2.08%
EPS Next Y-7.78%
EPS Next 2Y15.77%
EPS Next 3Y20.15%
EPS Next 5Y22.19%
Revenue 1Y (TTM)-5.84%
Revenue growth 3Y5%
Revenue growth 5Y-2.09%
Sales Q2Q%1.39%
Revenue Next Year-3.07%
Revenue Next 2Y-0.14%
Revenue Next 3Y1.25%
Revenue Next 5Y2.51%
EBIT growth 1Y-20.11%
EBIT growth 3Y-6.55%
EBIT growth 5Y-17.45%
EBIT Next Year96.69%
EBIT Next 3Y35.3%
EBIT Next 5Y24.17%
FCF growth 1Y-85.27%
FCF growth 3Y-17.08%
FCF growth 5Y5.8%
OCF growth 1Y-52.89%
OCF growth 3Y-5.85%
OCF growth 5Y4.08%