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 65 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
2OY had positive earnings in the past year.
2OY had a positive operating cash flow in the past year.
2OY had positive earnings in each of the past 5 years.
2OY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
2OY has a Return On Assets (0.49%) which is in line with its industry peers.
The Return On Equity of 2OY (1.67%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.21%, 2OY is in line with its industry, outperforming 47.69% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 2OY is in line with the industry average of 6.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.49% | ||
| ROE | 1.67% | ||
| ROIC | 2.21% |
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 (0.66%) which is comparable to the rest of the industry.
2OY's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.25%, 2OY is in line with its industry, outperforming 47.69% of the companies in the same industry.
In the last couple of years the Operating Margin of 2OY has declined.
2OY has a worse Gross Margin (9.38%) than 80.00% of its industry peers.
2OY's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.25% | ||
| PM (TTM) | 0.66% | ||
| GM | 9.38% |
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%
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 has been increased compared to 1 year ago.
The number of shares outstanding for 2OY has been reduced compared to 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 1.71. This is a bad value and indicates that 2OY is not financially healthy and even has some risk of bankruptcy.
2OY has a worse Altman-Z score (1.71) than 69.23% of its industry peers.
2OY has a Debt/Equity ratio of 0.96. This is a neutral value indicating 2OY is somewhat dependend on debt financing.
2OY's Debt to Equity ratio of 0.96 is on the low side compared to the rest of the industry. 2OY is outperformed by 75.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.71 |
ROIC/WACC0.26
WACC8.36%
2.3 Liquidity
A Current Ratio of 1.54 indicates that 2OY should not have too much problems paying its short term obligations.
2OY's Current ratio of 1.54 is in line compared to the rest of the industry. 2OY outperforms 41.54% of its industry peers.
2OY has a Quick Ratio of 1.54. 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 0.90. This is in the lower half of the industry: 2OY underperforms 70.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The earnings per share for 2OY have decreased strongly by -47.30% in the last year.
The earnings per share for 2OY have been decreasing by -12.16% on average. This is quite bad
The Revenue has decreased by -2.08% in the past year.
2OY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.01% yearly.
EPS 1Y (TTM)-47.3%
EPS 3Y-42.47%
EPS 5Y-12.16%
EPS Q2Q%-96.43%
Revenue 1Y (TTM)-2.08%
Revenue growth 3Y-7.88%
Revenue growth 5Y0.01%
Sales Q2Q%-3.1%
3.2 Future
Based on estimates for the next years, 2OY will show a very strong growth in Earnings Per Share. The EPS will grow by 34.80% on average per year.
The Revenue is expected to grow by 3.41% on average over the next years.
EPS Next Y-78.34%
EPS Next 2Y-12.73%
EPS Next 3Y5.66%
EPS Next 5Y34.8%
Revenue Next Year-3%
Revenue Next 2Y-0.15%
Revenue Next 3Y0.9%
Revenue Next 5Y3.41%
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
The Price/Earnings ratio is 23.33, which indicates a rather expensive current valuation of 2OY.
Compared to the rest of the industry, the Price/Earnings ratio of 2OY is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.29. 2OY is around the same levels.
2OY is valuated rather expensively with a Price/Forward Earnings ratio of 20.87.
2OY's Price/Forward Earnings ratio is in line with the industry average.
2OY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.17.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.33 | ||
| Fwd PE | 20.87 |
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 73.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.73%
EPS Next 3Y5.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.73%, 2OY is a good candidate for dividend investing.
In the last 3 months the price of 2OY has falen by -30.37%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
2OY's Dividend Yield is rather good when compared to the industry average which is at 3.09. 2OY pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 2OY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.73% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
700.00% of the earnings are spent on dividend by 2OY. This is not a sustainable payout ratio.
DP700%
EPS Next 2Y-12.73%
EPS Next 3Y5.66%
FRA:2OY (6/2/2025, 7:00:00 PM)
23.8
-0.7 (-2.86%)
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 Cap16.82B
Analysts65.19
Price Target34.31 (44.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.73% |
Yearly Dividend2.47
Dividend Growth(5Y)N/A
DP700%
Div Incr Years0
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)100.93%
Min EPS beat(2)-100%
Max EPS beat(2)301.86%
EPS beat(4)2
Avg EPS beat(4)49.47%
Min EPS beat(4)-100%
Max EPS beat(4)301.86%
EPS beat(8)6
Avg EPS beat(8)29.87%
EPS beat(12)9
Avg EPS beat(12)23.71%
EPS beat(16)13
Avg EPS beat(16)19.87%
Revenue beat(2)1
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)0.85%
Revenue beat(4)2
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)1.19%
Revenue beat(8)5
Avg Revenue beat(8)0.21%
Revenue beat(12)7
Avg Revenue beat(12)0.78%
Revenue beat(16)10
Avg Revenue beat(16)1.29%
PT rev (1m)-6.34%
PT rev (3m)-26.2%
EPS NQ rev (1m)-33%
EPS NQ rev (3m)-99.47%
EPS NY rev (1m)-74.73%
EPS NY rev (3m)-79.45%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-4.86%
Revenue NY rev (1m)-2.69%
Revenue NY rev (3m)-3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.33 | ||
| Fwd PE | 20.87 | ||
| P/S | 0.45 | ||
| P/FCF | N/A | ||
| P/OCF | 7.56 | ||
| P/B | 1.14 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | 8 |
EPS(TTM)1.02
EY4.29%
EPS(NY)1.14
Fwd EY4.79%
FCF(TTM)-0.46
FCFYN/A
OCF(TTM)3.15
OCFY13.23%
SpS52.81
BVpS20.8
TBVpS8.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.49% | ||
| ROE | 1.67% | ||
| ROCE | 2.95% | ||
| ROIC | 2.21% | ||
| ROICexc | 2.28% | ||
| ROICexgc | 2.94% | ||
| OM | 3.25% | ||
| PM (TTM) | 0.66% | ||
| GM | 9.38% | ||
| 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 Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.76 | ||
| Cap/Depr | 100.8% | ||
| Cap/Sales | 6.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 1.71 |
F-Score5
WACC8.36%
ROIC/WACC0.26
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)-47.3%
EPS 3Y-42.47%
EPS 5Y-12.16%
EPS Q2Q%-96.43%
EPS Next Y-78.34%
EPS Next 2Y-12.73%
EPS Next 3Y5.66%
EPS Next 5Y34.8%
Revenue 1Y (TTM)-2.08%
Revenue growth 3Y-7.88%
Revenue growth 5Y0.01%
Sales Q2Q%-3.1%
Revenue Next Year-3%
Revenue Next 2Y-0.15%
Revenue Next 3Y0.9%
Revenue Next 5Y3.41%
EBIT growth 1Y-35.66%
EBIT growth 3Y-37.72%
EBIT growth 5Y-11.56%
EBIT Next Year61.84%
EBIT Next 3Y31.76%
EBIT Next 5Y35.51%
FCF growth 1Y-108.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-60.34%
OCF growth 3Y-25.36%
OCF growth 5Y-13.25%