DOW INC (2OY.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:2OY - US2605571031 - Common Stock
23 EUR
-0.3 (-1.29%)
Taking everything into account, 2OY scores 3 out of 10 in our fundamental rating. 2OY was compared to 71 industry peers in the Chemicals industry. Both the profitability and financial health of 2OY have multiple concerns. 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 has reported negative net income.
- In the past year 2OY had a positive cash flow from operations.
- 2OY had positive earnings in each of the past 5 years.
- Each year in the past 5 years 2OY had a positive operating cash flow.
1.2 Ratios
- 2OY's Return On Assets of -1.88% is on the low side compared to the rest of the industry. 2OY is outperformed by 76.06% of its industry peers.
- 2OY's Return On Equity of -6.53% is on the low side compared to the rest of the industry. 2OY is outperformed by 78.87% of its industry peers.
- With a Return On Invested Capital value of 0.77%, 2OY is not doing good in the industry: 69.01% of the companies in the same industry are doing better.
- 2OY had an Average Return On Invested Capital over the past 3 years of 4.98%. This is below the industry average of 7.19%.
- The 3 year average ROIC (4.98%) for 2OY is well above the current ROIC(0.77%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.88% | ||
| ROE | -6.53% | ||
| ROIC | 0.77% |
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's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 1.28%, 2OY is doing worse than 70.42% of the companies in the same industry.
- In the last couple of years the Operating Margin of 2OY has declined.
- Looking at the Gross Margin, with a value of 7.27%, 2OY is doing worse than 87.32% of the companies in the same industry.
- In the last couple of years the Gross Margin of 2OY has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.28% | ||
| PM (TTM) | N/A | ||
| GM | 7.27% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 2OY is destroying value.
- 2OY has about the same amout of shares outstanding than it did 1 year ago.
- 2OY has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for 2OY is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.58, we must say that 2OY is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.58, 2OY is not doing good in the industry: 77.46% of the companies in the same industry are doing better.
- 2OY has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
- 2OY's Debt to Equity ratio of 1.02 is on the low side compared to the rest of the industry. 2OY is outperformed by 80.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.58 |
ROIC/WACC0.08
WACC10.15%
2.3 Liquidity
- 2OY has a Current Ratio of 1.94. 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 (1.94) is better than 64.79% of its industry peers.
- 2OY has a Quick Ratio of 1.28. This is a normal value and indicates that 2OY is financially healthy and should not expect problems in meeting its short term obligations.
- 2OY has a better Quick ratio (1.28) than 66.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
- 2OY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -127.57%.
- The earnings per share for 2OY have been decreasing by -12.16% on average. This is quite bad
- The Revenue has decreased by -5.25% in the past year.
- Measured over the past years, 2OY shows a small growth in Revenue. The Revenue has been growing by 0.01% on average per year.
EPS 1Y (TTM)-127.57%
EPS 3Y-42.47%
EPS 5Y-12.16%
EPS Q2Q%-140.43%
Revenue 1Y (TTM)-5.25%
Revenue growth 3Y-7.88%
Revenue growth 5Y0.01%
Sales Q2Q%-8.33%
3.2 Future
- 2OY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.41% yearly.
- The Revenue is expected to grow by 0.11% on average over the next years.
EPS Next Y-160.36%
EPS Next 2Y-46.32%
EPS Next 3Y-30.98%
EPS Next 5Y19.41%
Revenue Next Year-7.18%
Revenue Next 2Y-2.67%
Revenue Next 3Y-0.57%
Revenue Next 5Y0.11%
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
- 2OY reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for 2OY. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- 63.38% 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 | 9.73 |
4.3 Compensation for Growth
- A cheap valuation may be justified as 2OY's earnings are expected to decrease with -30.98% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-46.32%
EPS Next 3Y-30.98%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.94%, 2OY is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.45, 2OY pays a better dividend. On top of this 2OY pays more dividend than 85.92% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 2OY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
- 2OY has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-151.18%
EPS Next 2Y-46.32%
EPS Next 3Y-30.98%
DOW INC / 2OY.DE FAQ
Can you provide the ChartMill fundamental rating for DOW INC?
ChartMill assigns a fundamental rating of 3 / 10 to 2OY.DE.
What is the valuation status of DOW INC (2OY.DE) stock?
ChartMill assigns a valuation rating of 1 / 10 to DOW INC (2OY.DE). This can be considered as Overvalued.
How profitable is DOW INC (2OY.DE) stock?
DOW INC (2OY.DE) has a profitability rating of 2 / 10.
What is the earnings growth outlook for DOW INC?
The Earnings per Share (EPS) of DOW INC (2OY.DE) is expected to decline by -160.36% in the next year.
Can you provide the dividend sustainability for 2OY stock?
The dividend rating of DOW INC (2OY.DE) is 5 / 10 and the dividend payout ratio is -151.18%.