DUPONT DE NEMOURS INC (DD) Stock Fundamental Analysis
NYSE:DD - New York Stock Exchange, Inc. - US26614N1028 - Common Stock - Currency: USD
DD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
DD had positive earnings in the past year.
DD had a positive operating cash flow in the past year.
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
DD has a Return On Assets (-0.21%) which is in line with its industry peers.
DD has a Return On Equity of -0.33%. This is comparable to the rest of the industry: DD outperforms 48.24% of its industry peers.
With a Return On Invested Capital value of 4.51%, DD perfoms like the industry average, outperforming 50.59% of the companies in the same industry.
DD had an Average Return On Invested Capital over the past 3 years of 3.52%. This is below the industry average of 6.72%.
The 3 year average ROIC (3.52%) for DD is below the current ROIC(4.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.21% | ||
| ROE | -0.33% | ||
| ROIC | 4.51% |
ROA(3y)5.74%
ROA(5y)5.44%
ROE(3y)8.95%
ROE(5y)8.73%
ROIC(3y)3.52%
ROIC(5y)3.04%
1.3 Margins
DD's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.31%, DD belongs to the top of the industry, outperforming 84.71% of the companies in the same industry.
In the last couple of years the Operating Margin of DD has grown nicely.
Looking at the Gross Margin, with a value of 37.26%, DD is in the better half of the industry, outperforming 77.65% of the companies in the same industry.
In the last couple of years the Gross Margin of DD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.31% | ||
| PM (TTM) | N/A | ||
| GM | 37.26% |
OM growth 3Y0.59%
OM growth 5Y3.81%
PM growth 3Y-52.04%
PM growth 5Y12.01%
GM growth 3Y0.02%
GM growth 5Y0.86%
2. Health
2.1 Basic Checks
DD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DD has less shares outstanding than it did 1 year ago.
DD has less shares outstanding than it did 5 years ago.
DD has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that DD is in the distress zone and has some risk of bankruptcy.
DD has a Altman-Z score of 1.04. This is in the lower half of the industry: DD underperforms 77.65% of its industry peers.
The Debt to FCF ratio of DD is 6.43, which is on the high side as it means it would take DD, 6.43 years of fcf income to pay off all of its debts.
DD has a Debt to FCF ratio of 6.43. This is in the better half of the industry: DD outperforms 71.76% of its industry peers.
DD has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.23, DD is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 6.43 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.54
WACC8.33%
2.3 Liquidity
A Current Ratio of 1.40 indicates that DD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.40, DD is doing worse than 72.94% of the companies in the same industry.
DD has a Quick Ratio of 1.40. This is a bad value and indicates that DD is not financially healthy enough and could expect problems in meeting its short term obligations.
DD has a Quick ratio of 0.91. This is in the lower half of the industry: DD underperforms 69.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.66% over the past year.
DD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.50% yearly.
The Revenue has been growing slightly by 4.51% in the past year.
Measured over the past years, DD shows a decrease in Revenue. The Revenue has been decreasing by -4.31% on average per year.
EPS 1Y (TTM)25.66%
EPS 3Y-1.04%
EPS 5Y-5.5%
EPS Q2Q%30.38%
Revenue 1Y (TTM)4.51%
Revenue growth 3Y-0.48%
Revenue growth 5Y-4.31%
Sales Q2Q%4.61%
3.2 Future
The Earnings Per Share is expected to grow by 8.20% on average over the next years. This is quite good.
DD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.21% yearly.
EPS Next Y8.18%
EPS Next 2Y8.69%
EPS Next 3Y9.37%
EPS Next 5Y8.2%
Revenue Next Year3.41%
Revenue Next 2Y3.91%
Revenue Next 3Y4.3%
Revenue Next 5Y4.21%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 16.84, the valuation of DD can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of DD indicates a somewhat cheap valuation: DD is cheaper than 61.18% of the companies listed in the same industry.
DD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.10, the valuation of DD can be described as correct.
DD's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.28. DD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 15.1 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DD.
61.18% of the companies in the same industry are more expensive than DD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.25 | ||
| EV/EBITDA | 10.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DD does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of DD may justify a higher PE ratio.
PEG (NY)2.06
PEG (5Y)N/A
EPS Next 2Y8.69%
EPS Next 3Y9.37%
5. Dividend
5.1 Amount
DD has a Yearly Dividend Yield of 2.28%. Purely for dividend investing, there may be better candidates out there.
DD's Dividend Yield is a higher than the industry average which is at 3.75.
Compared to an average S&P500 Dividend Yield of 2.40, DD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
5.2 History
The dividend of DD decreases each year by -33.98%.
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)-33.98%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
DD has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-864%
EPS Next 2Y8.69%
EPS Next 3Y9.37%
72.6
+1.69 (+2.38%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners73.2%
Inst Owner Change-0.5%
Ins Owners0.09%
Ins Owner Change3.56%
Market Cap30.38B
Analysts81.54
Price Target88.6 (22.04%)
Short Float %1.04%
Short Ratio1.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
Yearly Dividend1.5
Dividend Growth(5Y)-33.98%
DP-864%
Div Incr Years3
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.49%
Min EPS beat(2)4.98%
Max EPS beat(2)11.99%
EPS beat(4)4
Avg EPS beat(4)9.71%
Min EPS beat(4)4.98%
Max EPS beat(4)11.99%
EPS beat(8)6
Avg EPS beat(8)7.8%
EPS beat(12)10
Avg EPS beat(12)7.42%
EPS beat(16)14
Avg EPS beat(16)7.74%
Revenue beat(2)0
Avg Revenue beat(2)-2.15%
Min Revenue beat(2)-2.15%
Max Revenue beat(2)-2.14%
Revenue beat(4)1
Avg Revenue beat(4)-1.65%
Min Revenue beat(4)-3.27%
Max Revenue beat(4)0.96%
Revenue beat(8)2
Avg Revenue beat(8)-2%
Revenue beat(12)3
Avg Revenue beat(12)-1.6%
Revenue beat(16)3
Avg Revenue beat(16)-5.68%
PT rev (1m)2.44%
PT rev (3m)-1.91%
EPS NQ rev (1m)0.68%
EPS NQ rev (3m)-2.66%
EPS NY rev (1m)0.35%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 15.1 | ||
| P/S | 2.43 | ||
| P/FCF | 27.25 | ||
| P/OCF | 17.5 | ||
| P/B | 1.33 | ||
| P/tB | 18.57 | ||
| EV/EBITDA | 10.43 |
EPS(TTM)4.31
EY5.94%
EPS(NY)4.81
Fwd EY6.62%
FCF(TTM)2.66
FCFY3.67%
OCF(TTM)4.15
OCFY5.71%
SpS29.92
BVpS54.56
TBVpS3.91
PEG (NY)2.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.21% | ||
| ROE | -0.33% | ||
| ROCE | 6.92% | ||
| ROIC | 4.51% | ||
| ROICexc | 4.78% | ||
| ROICexgc | 16.87% | ||
| OM | 17.31% | ||
| PM (TTM) | N/A | ||
| GM | 37.26% | ||
| FCFM | 8.91% |
ROA(3y)5.74%
ROA(5y)5.44%
ROE(3y)8.95%
ROE(5y)8.73%
ROIC(3y)3.52%
ROIC(5y)3.04%
ROICexc(3y)3.85%
ROICexc(5y)3.28%
ROICexgc(3y)12.84%
ROICexgc(5y)9.92%
ROCE(3y)5.39%
ROCE(5y)4.66%
ROICexcg growth 3Y25.22%
ROICexcg growth 5Y11.83%
ROICexc growth 3Y9.23%
ROICexc growth 5Y14.61%
OM growth 3Y0.59%
OM growth 5Y3.81%
PM growth 3Y-52.04%
PM growth 5Y12.01%
GM growth 3Y0.02%
GM growth 5Y0.86%
F-Score5
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 6.43 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 51.92% | ||
| Cap/Sales | 4.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.04 |
F-Score5
WACC8.33%
ROIC/WACC0.54
Cap/Depr(3y)55.14%
Cap/Depr(5y)53.03%
Cap/Sales(3y)5.17%
Cap/Sales(5y)6.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25.66%
EPS 3Y-1.04%
EPS 5Y-5.5%
EPS Q2Q%30.38%
EPS Next Y8.18%
EPS Next 2Y8.69%
EPS Next 3Y9.37%
EPS Next 5Y8.2%
Revenue 1Y (TTM)4.51%
Revenue growth 3Y-0.48%
Revenue growth 5Y-4.31%
Sales Q2Q%4.61%
Revenue Next Year3.41%
Revenue Next 2Y3.91%
Revenue Next 3Y4.3%
Revenue Next 5Y4.21%
EBIT growth 1Y28.13%
EBIT growth 3Y0.11%
EBIT growth 5Y-0.66%
EBIT Next Year29.61%
EBIT Next 3Y14.01%
EBIT Next 5Y11.26%
FCF growth 1Y10236.4%
FCF growth 3Y-3.02%
FCF growth 5YN/A
OCF growth 1Y140.44%
OCF growth 3Y-6.79%
OCF growth 5Y5.56%