DUPONT DE NEMOURS INC (DD) Stock Fundamental Analysis
NYSE:DD - New York Stock Exchange, Inc. - US26614N1028 - Common Stock
We assign a fundamental rating of 5 out of 10 to DD. DD was compared to 85 industry peers in the Chemicals industry. DD has only an average score on both its financial health and profitability. DD has a correct valuation and a medium growth rate.
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.
In the past 5 years DD always reported a positive cash flow from operatings.
1.2 Ratios
DD has a Return On Assets (2.13%) which is in line with its industry peers.
DD has a Return On Equity (3.30%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.80%, DD is in line with its industry, outperforming 45.78% of the companies in the same industry.
DD had an Average Return On Invested Capital over the past 3 years of 3.62%. This is below the industry average of 6.57%.
The 3 year average ROIC (3.62%) for DD is below the current ROIC(3.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.13% | ||
| ROE | 3.3% | ||
| ROIC | 3.8% |
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
With a decent Profit Margin value of 6.55%, DD is doing good in the industry, outperforming 69.88% 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 (14.71%) than 80.72% of its industry peers.
In the last couple of years the Operating Margin of DD has grown nicely.
DD has a better Gross Margin (36.40%) than 72.29% of its industry peers.
In the last couple of years the Gross Margin of DD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.71% | ||
| PM (TTM) | 6.55% | ||
| GM | 36.4% |
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.
The number of shares outstanding for DD has been reduced compared to 1 year ago.
DD has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DD is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.21, we must say that DD is in the distress zone and has some risk of bankruptcy.
DD has a Altman-Z score of 1.21. This is in the lower half of the industry: DD underperforms 75.90% of its industry peers.
The Debt to FCF ratio of DD is 5.63, which is a neutral value as it means it would take DD, 5.63 years of fcf income to pay off all of its debts.
DD has a Debt to FCF ratio of 5.63. This is in the better half of the industry: DD outperforms 67.47% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that DD is not too dependend on debt financing.
DD's Debt to Equity ratio of 0.30 is fine compared to the rest of the industry. DD outperforms 72.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 5.63 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.46
WACC8.31%
2.3 Liquidity
A Current Ratio of 2.28 indicates that DD has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.28, DD is in line with its industry, outperforming 55.42% of the companies in the same industry.
A Quick Ratio of 1.49 indicates that DD should not have too much problems paying its short term obligations.
The Quick ratio of DD (1.49) is better than 60.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
DD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.86%, which is quite good.
The earnings per share for DD have been decreasing by -22.35% on average. This is quite bad
Looking at the last year, DD shows a decrease in Revenue. The Revenue has decreased by -0.67% in the last year.
Measured over the past years, DD shows a very negative growth in Revenue. The Revenue has been decreasing by -11.79% on average per year.
EPS 1Y (TTM)8.86%
EPS 3Y1.08%
EPS 5Y-22.35%
EPS Q2Q%28.26%
Revenue 1Y (TTM)-0.67%
Revenue growth 3Y2.74%
Revenue growth 5Y-11.79%
Sales Q2Q%4.38%
3.2 Future
DD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.79% yearly.
Based on estimates for the next years, DD will show a small growth in Revenue. The Revenue will grow by 5.25% on average per year.
EPS Next Y15.97%
EPS Next 2Y14.06%
EPS Next 3Y13.25%
EPS Next 5Y9.79%
Revenue Next Year2.25%
Revenue Next 2Y3.66%
Revenue Next 3Y4.14%
Revenue Next 5Y5.25%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.37, the valuation of DD can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as DD.
Compared to an average S&P500 Price/Earnings ratio of 28.19, DD is valued a bit cheaper.
DD is valuated rather expensively with a Price/Forward Earnings ratio of 17.15.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DD is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 24.37. DD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.37 | ||
| Fwd PE | 17.15 |
4.2 Price Multiples
DD's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as DD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.46 | ||
| EV/EBITDA | 12.73 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of DD may justify a higher PE ratio.
DD's earnings are expected to grow with 13.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.28
PEG (5Y)N/A
EPS Next 2Y14.06%
EPS Next 3Y13.25%
5. Dividend
5.1 Amount
DD has a Yearly Dividend Yield of 1.98%.
DD's Dividend Yield is a higher than the industry average which is at 3.26.
Compared to an average S&P500 Dividend Yield of 2.28, DD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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 Years3
Div Non Decr Years4
5.3 Sustainability
79.10% of the earnings are spent on dividend by DD. This is not a sustainable payout ratio.
DP79.1%
EPS Next 2Y14.06%
EPS Next 3Y13.25%
DUPONT DE NEMOURS INC
NYSE:DD (1/22/2025, 8:17:28 PM)
Premarket: 77.27 -0.35 (-0.45%)77.62
-0.84 (-1.07%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners72.37%
Inst Owner Change0.05%
Ins Owners0.07%
Ins Owner Change-6.05%
Market Cap32.44B
Analysts77.04
Price Target100.99 (30.11%)
Short Float %1.04%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Yearly Dividend1.47
Dividend Growth(5Y)-20.3%
DP79.1%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.94%
Min EPS beat(2)10.57%
Max EPS beat(2)11.31%
EPS beat(4)3
Avg EPS beat(4)9.98%
Min EPS beat(4)-0.58%
Max EPS beat(4)18.61%
EPS beat(8)6
Avg EPS beat(8)7.25%
EPS beat(12)10
Avg EPS beat(12)8.18%
EPS beat(16)14
Avg EPS beat(16)7.87%
Revenue beat(2)1
Avg Revenue beat(2)-1.16%
Min Revenue beat(2)-3.27%
Max Revenue beat(2)0.96%
Revenue beat(4)2
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-3.94%
Max Revenue beat(4)1.17%
Revenue beat(8)2
Avg Revenue beat(8)-1.8%
Revenue beat(12)3
Avg Revenue beat(12)-3.09%
Revenue beat(16)3
Avg Revenue beat(16)-12.53%
PT rev (1m)1.17%
PT rev (3m)3.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.43%
EPS NY rev (1m)0%
EPS NY rev (3m)3.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.37 | ||
| Fwd PE | 17.15 | ||
| P/S | 2.66 | ||
| P/FCF | 25.46 | ||
| P/OCF | 17.66 | ||
| P/B | 1.34 | ||
| P/tB | 18.38 | ||
| EV/EBITDA | 12.73 |
EPS(TTM)3.81
EY4.91%
EPS(NY)4.53
Fwd EY5.83%
FCF(TTM)3.05
FCFY3.93%
OCF(TTM)4.4
OCFY5.66%
SpS29.17
BVpS57.93
TBVpS4.22
PEG (NY)1.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.13% | ||
| ROE | 3.3% | ||
| ROCE | 5.18% | ||
| ROIC | 3.8% | ||
| ROICexc | 3.98% | ||
| ROICexgc | 12.47% | ||
| OM | 14.71% | ||
| PM (TTM) | 6.55% | ||
| GM | 36.4% | ||
| FCFM | 10.45% |
ROA(3y)9.81%
ROA(5y)5.2%
ROE(3y)16.1%
ROE(5y)8.37%
ROIC(3y)3.62%
ROIC(5y)3%
ROICexc(3y)3.97%
ROICexc(5y)3.23%
ROICexgc(3y)11.63%
ROICexgc(5y)9.67%
ROCE(3y)4.95%
ROCE(5y)4.11%
ROICexcg growth 3Y47.86%
ROICexcg growth 5Y33.08%
ROICexc growth 3Y25.31%
ROICexc growth 5Y19.91%
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%
F-Score8
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 5.63 | ||
| Debt/EBITDA | 2.4 | ||
| Cap/Depr | 47.35% | ||
| Cap/Sales | 4.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.58% | ||
| Profit Quality | 159.45% | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 1.21 |
F-Score8
WACC8.31%
ROIC/WACC0.46
Cap/Depr(3y)59.35%
Cap/Depr(5y)58.8%
Cap/Sales(3y)5.98%
Cap/Sales(5y)8.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.86%
EPS 3Y1.08%
EPS 5Y-22.35%
EPS Q2Q%28.26%
EPS Next Y15.97%
EPS Next 2Y14.06%
EPS Next 3Y13.25%
EPS Next 5Y9.79%
Revenue 1Y (TTM)-0.67%
Revenue growth 3Y2.74%
Revenue growth 5Y-11.79%
Sales Q2Q%4.38%
Revenue Next Year2.25%
Revenue Next 2Y3.66%
Revenue Next 3Y4.14%
Revenue Next 5Y5.25%
EBIT growth 1Y0.28%
EBIT growth 3Y5.04%
EBIT growth 5Y-5.01%
EBIT Next Year36.26%
EBIT Next 3Y16.99%
EBIT Next 5Y13.62%
FCF growth 1Y114.84%
FCF growth 3Y-23.5%
FCF growth 5Y8.4%
OCF growth 1Y37.6%
OCF growth 3Y-22.34%
OCF growth 5Y-16.52%