DOW INC (DOW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DOW - US2605571031 - Common Stock
23.07 USD
+0.23 (+1.01%)
23.09 USD
+0.02 (+0.09%)
We assign a fundamental rating of 3 out of 10 to DOW. DOW was compared to 83 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.
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
DOW's Return On Assets of -1.88% is on the low side compared to the rest of the industry. DOW is outperformed by 60.24% of its industry peers.
DOW has a worse Return On Equity (-6.53%) than 61.45% of its industry peers.
DOW has a worse Return On Invested Capital (0.77%) than 73.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DOW is in line with the industry average of 5.95%.
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 72.29% 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 85.54% of its industry peers.
In the last couple of years the Gross Margin of DOW has declined.
| 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.
Compared to 1 year ago, DOW has about the same amount of shares outstanding.
DOW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DOW is higher compared to a year ago.
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 60.24% 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 65.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.54 |
ROIC/WACC0.1
WACC8.09%
2.3 Liquidity
DOW has a Current Ratio of 1.94. This is a normal value and indicates that DOW is financially healthy and should not expect problems in meeting 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.
DOW's Quick ratio of 1.28 is in line compared to the rest of the industry. DOW outperforms 50.60% of its industry peers.
| 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%.
DOW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.01% yearly.
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
Based on estimates for the next years, DOW will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.41% on average per year.
The Revenue is expected to grow by 0.11% on average over the next years.
EPS Next Y-156.46%
EPS Next 2Y-44.12%
EPS Next 3Y-24.16%
EPS Next 5Y19.41%
Revenue Next Year-7.09%
Revenue Next 2Y-2.43%
Revenue Next 3Y-0.43%
Revenue Next 5Y0.11%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.
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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DOW indicates a somewhat cheap valuation: DOW is cheaper than 66.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.74 |
4.3 Compensation for Growth
A cheap valuation may be justified as DOW's earnings are expected to decrease with -24.16% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-44.12%
EPS Next 3Y-24.16%
5. Dividend
5.1 Amount
DOW has a Yearly Dividend Yield of 5.70%, which is a nice return.
DOW's Dividend Yield is rather good when compared to the industry average which is at 2.66. DOW pays more dividend than 89.16% of the companies in the same industry.
DOW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
5.2 History
DOW has been paying a dividend for at least 10 years, so it has a reliable track record.
DOW has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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-44.12%
EPS Next 3Y-24.16%
23.07
+0.23 (+1.01%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners68.02%
Inst Owner Change-1.07%
Ins Owners0.14%
Ins Owner Change-1.36%
Market Cap16.40B
Revenue(TTM)40.91B
Net Income(TTM)-1.15B
Analysts64.62
Price Target28.14 (21.98%)
Short Float %4.87%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
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)0.2%
PT rev (3m)-2%
EPS NQ rev (1m)-2.96%
EPS NQ rev (3m)-13.96%
EPS NY rev (1m)-0.77%
EPS NY rev (3m)-4.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.4 | ||
| P/FCF | N/A | ||
| P/OCF | 10.5 | ||
| P/B | 0.93 | ||
| P/tB | 2.24 | ||
| EV/EBITDA | 8.74 |
EPS(TTM)-0.59
EYN/A
EPS(NY)-0.13
Fwd EYN/A
FCF(TTM)-1.57
FCFYN/A
OCF(TTM)2.2
OCFY9.53%
SpS57.56
BVpS24.68
TBVpS10.28
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
WACC8.09%
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-156.46%
EPS Next 2Y-44.12%
EPS Next 3Y-24.16%
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-7.09%
Revenue Next 2Y-2.43%
Revenue Next 3Y-0.43%
Revenue Next 5Y0.11%
EBIT growth 1Y-71.94%
EBIT growth 3Y-37.72%
EBIT growth 5Y-11.56%
EBIT Next Year26.46%
EBIT Next 3Y22.16%
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.