DOW INC (DOW) Stock Fundamental Analysis
USA - NYSE:DOW - US2605571031 - Common Stock
22.305 USD
+0.2 (+0.93%)
Taking everything into account, DOW scores 3 out of 10 in our fundamental rating. DOW was compared to 82 industry peers in the Chemicals industry. DOW has a bad profitability rating. Also its financial health evaluation is rather negative. DOW is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DOW has reported negative net income.
In the past year DOW had a positive cash flow from operations.
DOW had positive earnings in each of the past 5 years.
In the past 5 years DOW always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -1.88%, DOW is not doing good in the industry: 64.63% of the companies in the same industry are doing better.
DOW has a Return On Equity of -6.53%. This is in the lower half of the industry: DOW underperforms 65.85% of its industry peers.
DOW has a worse Return On Invested Capital (0.77%) than 75.61% of its industry peers.
DOW had an Average Return On Invested Capital over the past 3 years of 4.98%. This is in line with the industry average of 6.12%.
The last Return On Invested Capital (0.77%) for DOW is well below the 3 year average (4.98%), which needs to be investigated, but indicates that DOW had better years and this may not be a problem.
| 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
DOW's Profit Margin has declined in the last couple of years.
The Operating Margin of DOW (1.28%) is worse than 75.61% of its industry peers.
In the last couple of years the Operating Margin of DOW has declined.
DOW has a worse Gross Margin (7.27%) than 86.59% of its industry peers.
DOW's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DOW is destroying value.
Compared to 1 year ago, DOW has about the same amount of shares outstanding.
Compared to 5 years ago, DOW has less shares outstanding
DOW has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.53, we must say that DOW is in the distress zone and has some risk of bankruptcy.
DOW's Altman-Z score of 1.53 is on the low side compared to the rest of the industry. DOW is outperformed by 62.20% of its industry peers.
A Debt/Equity ratio of 1.02 is on the high side and indicates that DOW has dependencies on debt financing.
DOW has a Debt to Equity ratio of 1.02. This is in the lower half of the industry: DOW underperforms 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.53 |
ROIC/WACC0.1
WACC7.96%
2.3 Liquidity
A Current Ratio of 1.94 indicates that DOW should not have too much problems paying its short term obligations.
DOW has a Current ratio (1.94) which is in line with its industry peers.
A Quick Ratio of 1.28 indicates that DOW should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.28, DOW perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The earnings per share for DOW have decreased strongly by -127.57% in the last year.
Measured over the past years, DOW shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.16% on average per year.
DOW shows a decrease in Revenue. In the last year, the revenue decreased by -5.25%.
Measured over the past years, DOW 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
DOW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.41% yearly.
Based on estimates for the next years, DOW will show a small growth in Revenue. The Revenue will grow by 0.11% on average per year.
EPS Next Y-156.03%
EPS Next 2Y-44.17%
EPS Next 3Y-23.81%
EPS Next 5Y19.41%
Revenue Next Year-7.1%
Revenue Next 2Y-2.4%
Revenue Next 3Y-0.36%
Revenue Next 5Y0.11%
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
DOW reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year DOW is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOW is valued a bit cheaper than the industry average as 64.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.58 |
4.3 Compensation for Growth
A cheap valuation may be justified as DOW's earnings are expected to decrease with -23.81% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-44.17%
EPS Next 3Y-23.81%
5. Dividend
5.1 Amount
DOW has a Yearly Dividend Yield of 6.30%, which is a nice return.
DOW's Dividend Yield is rather good when compared to the industry average which is at 3.97. DOW pays more dividend than 89.02% of the companies in the same industry.
DOW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.3% |
5.2 History
DOW has paid a dividend for at least 10 years, which is a reliable track record.
As DOW did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
The earnings of DOW are negative and hence is the payout ratio. DOW will probably not be able to sustain this dividend level.
DP-151.18%
EPS Next 2Y-44.17%
EPS Next 3Y-23.81%
NYSE:DOW (11/11/2025, 3:40:59 PM)
22.305
+0.2 (+0.93%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners69.17%
Inst Owner Change-2.52%
Ins Owners0.14%
Ins Owner Change-1.06%
Market Cap15.81B
Revenue(TTM)40.91B
Net Income(TTM)-1.15B
Analysts64.62
Price Target28.08 (25.89%)
Short Float %4.26%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.3% |
Yearly Dividend2.8
Dividend Growth(5Y)N/A
DP-151.18%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-51.3%
Min EPS beat(2)-138.3%
Max EPS beat(2)35.71%
EPS beat(4)2
Avg EPS beat(4)24.81%
Min EPS beat(4)-138.3%
Max EPS beat(4)301.86%
EPS beat(8)5
Avg EPS beat(8)15.43%
EPS beat(12)8
Avg EPS beat(12)14.41%
EPS beat(16)12
Avg EPS beat(16)12.44%
Revenue beat(2)0
Avg Revenue beat(2)-2.83%
Min Revenue beat(2)-3.44%
Max Revenue beat(2)-2.23%
Revenue beat(4)1
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)0.85%
Revenue beat(8)3
Avg Revenue beat(8)-0.85%
Revenue beat(12)6
Avg Revenue beat(12)-0.24%
Revenue beat(16)8
Avg Revenue beat(16)0.44%
PT rev (1m)-2.2%
PT rev (3m)-11.88%
EPS NQ rev (1m)-7.37%
EPS NQ rev (3m)-39.58%
EPS NY rev (1m)2.06%
EPS NY rev (3m)-1624.82%
Revenue NQ rev (1m)-6.81%
Revenue NQ rev (3m)-7.11%
Revenue NY rev (1m)-1.96%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.39 | ||
| P/FCF | N/A | ||
| P/OCF | 10.12 | ||
| P/B | 0.9 | ||
| P/tB | 2.16 | ||
| EV/EBITDA | 8.58 |
EPS(TTM)-0.59
EYN/A
EPS(NY)-0.13
Fwd EYN/A
FCF(TTM)-1.57
FCFYN/A
OCF(TTM)2.2
OCFY9.88%
SpS57.72
BVpS24.75
TBVpS10.31
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.88% | ||
| ROE | -6.53% | ||
| ROCE | 1.03% | ||
| ROIC | 0.77% | ||
| ROICexc | 0.85% | ||
| ROICexgc | 1.09% | ||
| OM | 1.28% | ||
| PM (TTM) | N/A | ||
| GM | 7.27% | ||
| 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%
ROICexgc growth 3Y-37.36%
ROICexgc 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-Score3
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.24 | ||
| Cap/Depr | 93.08% | ||
| Cap/Sales | 6.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.91% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 1.53 |
F-Score3
WACC7.96%
ROIC/WACC0.1
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)-127.57%
EPS 3Y-42.47%
EPS 5Y-12.16%
EPS Q2Q%-140.43%
EPS Next Y-156.03%
EPS Next 2Y-44.17%
EPS Next 3Y-23.81%
EPS Next 5Y19.41%
Revenue 1Y (TTM)-5.25%
Revenue growth 3Y-7.88%
Revenue growth 5Y0.01%
Sales Q2Q%-8.33%
Revenue Next Year-7.1%
Revenue Next 2Y-2.4%
Revenue Next 3Y-0.36%
Revenue Next 5Y0.11%
EBIT growth 1Y-71.94%
EBIT growth 3Y-37.72%
EBIT growth 5Y-11.56%
EBIT Next Year24.07%
EBIT Next 3Y26.38%
EBIT Next 5Y23.28%
FCF growth 1Y-132.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-72.2%
OCF growth 3Y-25.36%
OCF growth 5Y-13.25%
DOW INC / DOW FAQ
What is the ChartMill fundamental rating of DOW INC (DOW) stock?
ChartMill assigns a fundamental rating of 3 / 10 to DOW.
Can you provide the valuation status for DOW INC?
ChartMill assigns a valuation rating of 1 / 10 to DOW INC (DOW). This can be considered as Overvalued.
How profitable is DOW INC (DOW) stock?
DOW INC (DOW) has a profitability rating of 3 / 10.
Can you provide the financial health for DOW stock?
The financial health rating of DOW INC (DOW) is 2 / 10.