DUPONT DE NEMOURS INC (DD)
US26614N1028 - Common Stock
Overall DD gets a fundamental rating of 5 out of 10. We evaluated DD against 86 industry peers in the Chemicals industry. DD scores excellent on profitability, but there are some minor concerns on its financial health. DD is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DD was profitable.
DD had a positive operating cash flow in the past year.
Of the past 5 years DD 4 years were profitable.
Each year in the past 5 years DD had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.57%, DD belongs to the best of the industry, outperforming 90.70% of the companies in the same industry.
DD's Return On Equity of 18.06% is amongst the best of the industry. DD outperforms 80.23% of its industry peers.
DD's Return On Invested Capital of 4.05% is in line compared to the rest of the industry. DD outperforms 41.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DD is below the industry average of 8.14%.
The last Return On Invested Capital (4.05%) for DD is above the 3 year average (3.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.57% | ||
| ROE | 18.06% | ||
| ROIC | 4.05% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)3.28%
ROIC(5y)2.96%
1.3 Margins
The Profit Margin of DD (37.65%) is better than 96.51% of its industry peers.
In the last couple of years the Profit Margin of DD has grown nicely.
The Operating Margin of DD (15.28%) is better than 70.93% of its industry peers.
In the last couple of years the Operating Margin of DD has grown nicely.
DD has a Gross Margin of 34.92%. This is in the better half of the industry: DD outperforms 72.09% of its industry peers.
DD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.28% | ||
| PM | 37.65% | ||
| GM | 34.92% |
OM growth 3Y6.64%
OM growth 5YN/A
PM growth 3Y169.22%
PM growth 5Y35.64%
GM growth 3Y0.76%
GM growth 5Y14.38%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DD is destroying value.
The number of shares outstanding for DD has been reduced compared to 1 year ago.
Compared to 5 years ago, DD has less shares outstanding
DD has a better debt/assets ratio than last year.
2.2 Solvency
DD has an Altman-Z score of 1.33. This is a bad value and indicates that DD is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.33, DD is doing worse than 75.58% of the companies in the same industry.
The Debt to FCF ratio of DD is 28.94, which is on the high side as it means it would take DD, 28.94 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DD (28.94) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.30 indicates that DD is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.30, DD is doing good in the industry, outperforming 70.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 28.94 | ||
| Altman-Z | 1.33 |
ROIC/WACC1.6
WACC9.07%
2.3 Liquidity
DD has a Current Ratio of 2.98. This indicates that DD is financially healthy and has no problem in meeting its short term obligations.
DD has a Current ratio of 2.98. This is in the better half of the industry: DD outperforms 70.93% of its industry peers.
DD has a Quick Ratio of 2.35. This indicates that DD is financially healthy and has no problem in meeting its short term obligations.
DD has a Quick ratio of 2.35. This is amongst the best in the industry. DD outperforms 80.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.35 |
3. Growth
3.1 Past
The earnings per share for DD have decreased strongly by -13.49% in the last year.
Measured over the past years, DD shows a very strong growth in Earnings Per Share. The EPS has been growing by 40.45% on average per year.
Looking at the last year, DD shows a decrease in Revenue. The Revenue has decreased by -3.90% in the last year.
DD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.21% yearly.
EPS 1Y-13.49%
EPS 3Y-14.21%
EPS 5Y40.45%
EPS growth Q2Q-3.41%
Revenue growth 1Y-3.9%
Revenue growth 3Y-15.42%
Revenue growth 5Y2.21%
Revenue growth Q2Q-6.86%
3.2 Future
Based on estimates for the next years, DD will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.08% on average per year.
DD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.13% yearly.
EPS Next Y4.73%
EPS Next 2Y12.43%
EPS Next 3Y12.98%
EPS Next 5Y11.08%
Revenue Next Year-4.17%
Revenue Next 2Y0.97%
Revenue Next 3Y2.19%
Revenue Next 5Y3.13%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
The Price/Earnings ratio is 21.58, which indicates a rather expensive current valuation of DD.
Based on the Price/Earnings ratio, DD is valued a bit more expensive than 60.47% of the companies in the same industry.
When comparing the Price/Earnings ratio of DD to the average of the S&P500 Index (25.92), we can say DD is valued inline with the index average.
With a Price/Forward Earnings ratio of 17.02, DD is valued on the expensive side.
DD's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of DD to the average of the S&P500 Index (19.00), we can say DD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.58 | ||
| Fwd PE | 17.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DD is on the same level as its industry peers.
DD's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. DD is more expensive than 62.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 120.71 | ||
| EV/EBITDA | 12.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of DD may justify a higher PE ratio.
A more expensive valuation may be justified as DD's earnings are expected to grow with 12.98% in the coming years.
PEG (NY)4.56
PEG (5Y)0.53
EPS Next 2Y12.43%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.98%, DD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.67, DD pays a bit more dividend than its industry peers.
DD's Dividend Yield is slightly below the S&P500 average, which is at 2.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
The dividend of DD decreases each year by -15.14%.
DD has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of DD decreased in the last 3 years.
Dividend Growth(5Y)-15.14%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
13.71% of the earnings are spent on dividend by DD. This is a low number and sustainable payout ratio.
DP13.71%
EPS Next 2Y12.43%
EPS Next 3Y12.98%
DUPONT DE NEMOURS INC
NYSE:DD (9/25/2023, 7:04:00 PM)
After market: 73.36 0 (0%)73.36
+0.52 (+0.71%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)08-02 2023-08-02/bmo
Earnings (Next)11-06 2023-11-06/bmo
Inst Owners79.78%
Inst Owner Change7.17%
Ins Owners0.19%
Ins Owner Change11.59%
Market Cap33.68B
Analysts77.86
Price Target84.34 (14.97%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Dividend Growth(5Y)-15.14%
DP13.71%
Div Incr Years1
Div Non Decr Years2
Ex-Date07-28 2023-07-28 (0.36)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.75%
Min EPS beat(2)-0.46%
Max EPS beat(2)1.96%
EPS beat(4)3
Avg EPS beat(4)3.12%
Min EPS beat(4)-0.46%
Max EPS beat(4)10.6%
Revenue beat(2)2
Avg Revenue beat(2)99398.9%
Min Revenue beat(2)99162.1%
Max Revenue beat(2)99635.6%
Revenue beat(4)4
Avg Revenue beat(4)99142.6%
Min Revenue beat(4)97448.7%
Max Revenue beat(4)100324%
PT rev (1m)6.07%
PT rev (3m)6.08%
EPS NQ rev (1m)-1.73%
EPS NQ rev (3m)-11.79%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-7.34%
Revenue NQ rev (1m)-99.9%
Revenue NQ rev (3m)-99.9%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.58 | ||
| Fwd PE | 17.02 | ||
| P/S | 2.69 | ||
| P/FCF | 120.71 | ||
| P/OCF | 33.98 | ||
| P/B | 1.29 | ||
| P/tB | 7.85 | ||
| EV/EBITDA | 12.08 |
EPS(TTM)3.4
EY4.63%
EPS(NY)4.31
Fwd EY5.88%
FCF(TTM)0.61
FCFY0.83%
OCF(TTM)2.16
OCFY2.94%
SpS27.3
BVpS56.91
TBVpS9.35
PEG (NY)4.56
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.57% | ||
| ROE | 18.06% | ||
| ROCE | 5.17% | ||
| ROIC | 4.05% | ||
| ROICexc | 4.67% | ||
| ROICexgc | 14.53% | ||
| OM | 15.28% | ||
| PM | 37.65% | ||
| GM | 34.92% | ||
| FCFM | 2.23% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)3.28%
ROIC(5y)2.96%
ROICexc(3y)3.58%
ROICexc(5y)3.19%
ROICexgc(3y)10.16%
ROICexgc(5y)9.69%
ROCE(3y)4.19%
ROCE(5y)3.81%
ROICexcg growth 3Y0.55%
ROICexcg growth 5YN/A
ROICexc growth 3Y11.26%
ROICexc growth 5YN/A
OM growth 3Y6.64%
OM growth 5YN/A
PM growth 3Y169.22%
PM growth 5Y35.64%
GM growth 3Y0.76%
GM growth 5Y14.38%
F-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 28.94 | ||
| Debt/EBITDA | 2.57 | ||
| Cap/Depr | 63.8% | ||
| Cap/Sales | 5.68% | ||
| Profit Quality | 5.91% | ||
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.35 | ||
| Altman-Z | 1.33 |
F-Score7
WACC9.07%
ROIC/WACC1.6
Cap/Depr(3y)54.22%
Cap/Depr(5y)61.06%
Cap/Sales(3y)6.22%
Cap/Sales(5y)9.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
Growth
EPS 1Y-13.49%
EPS 3Y-14.21%
EPS 5Y40.45%
EPS growth Q2Q-3.41%
EPS Next Y4.73%
EPS Next 2Y12.43%
EPS Next 3Y12.98%
EPS Next 5Y11.08%
Revenue growth 1Y-3.9%
Revenue growth 3Y-15.42%
Revenue growth 5Y2.21%
Revenue growth Q2Q-6.86%
Revenue Next Year-4.17%
Revenue Next 2Y0.97%
Revenue Next 3Y2.19%
Revenue Next 5Y3.13%
EBIT growth 1Y2.24%
EBIT growth 3Y-9.8%
EBIT growth 5YN/A
EBIT Next Year11.16%
EBIT Next 3Y10.75%
EBIT Next 5Y11.21%
FCF growth 1Y-88.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-70.79%
OCF growth 3Y-25.27%
OCF growth 5YN/A