DOW INC (DOW) Stock Fundamental Analysis
USA - NYSE:DOW - US2605571031 - Common Stock
23.11 USD
+0.93 (+4.19%)
23.07 USD
-0.04 (-0.17%)
We assign a fundamental rating of 3 out of 10 to DOW. 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. While showing a medium growth rate, DOW is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year DOW has reported negative net income.
DOW had a positive operating cash flow in the past year.
DOW had positive earnings in each of the past 5 years.
Each year in the past 5 years DOW had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.88%, DOW is doing worse than 64.63% of the companies in the same industry.
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 6.13%.
The 3 year average ROIC (4.98%) for DOW 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
DOW's Profit Margin has declined in the last couple of years.
DOW's Operating Margin of 1.28% is on the low side compared to the rest of the industry. DOW is outperformed by 75.61% of its industry peers.
In the last couple of years the Operating Margin of DOW has declined.
Looking at the Gross Margin, with a value of 7.27%, DOW is doing worse than 86.59% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DOW is destroying value.
The number of shares outstanding for DOW remains at a similar level compared to 1 year ago.
DOW has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DOW has a worse debt to assets ratio.
2.2 Solvency
DOW has an Altman-Z score of 1.54. This is a bad value and indicates that DOW is not financially healthy and even has some risk of bankruptcy.
DOW's Altman-Z score of 1.54 is on the low side compared to the rest of the industry. DOW is outperformed by 60.98% of its industry peers.
DOW has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
DOW has a worse Debt to Equity ratio (1.02) than 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.54 |
ROIC/WACC0.1
WACC7.98%
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 comparable to the rest of the industry.
DOW has a Quick Ratio of 1.28. This is a normal value and indicates that DOW is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of DOW (1.28) is comparable to the rest of the 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.
The earnings per share for DOW have been decreasing by -12.16% on average. This is quite bad
Looking at the last year, DOW shows a decrease in Revenue. The Revenue has decreased by -5.25% in the last year.
The Revenue has been growing slightly by 0.01% on average over the past years.
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
The Earnings Per Share is expected to grow by 19.41% on average over the next years. This is quite good.
DOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.11% yearly.
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.
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 negative for DOW. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for DOW. No positive earnings are expected for the next year.
| 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 64.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.79 |
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 3.95. DOW pays more dividend than 89.02% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, DOW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.3% |
5.2 History
DOW has been paying a dividend for at least 10 years, so it has 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%
23.11
+0.93 (+4.19%)
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 Cap16.38B
Revenue(TTM)40.91B
Net Income(TTM)-1.15B
Analysts64.62
Price Target28.08 (21.51%)
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 | 0.4 | ||
| P/FCF | N/A | ||
| P/OCF | 10.49 | ||
| P/B | 0.93 | ||
| P/tB | 2.24 | ||
| EV/EBITDA | 8.79 |
EPS(TTM)-0.59
EYN/A
EPS(NY)-0.13
Fwd EYN/A
FCF(TTM)-1.57
FCFYN/A
OCF(TTM)2.2
OCFY9.54%
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 | 1.54 |
F-Score3
WACC7.98%
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.