DOW INC (DOW) Stock Fundamental Analysis
NYSE:DOW - US2605571031 - Common Stock
23.835 USD
-0.57 (-2.36%)
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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
DOW had positive earnings in the past year.
In the past year DOW had a positive cash flow from operations.
In the past 5 years DOW has always been profitable.
Each year in the past 5 years DOW had a positive operating cash flow.
1.2 Ratios
DOW has a Return On Assets of -1.69%. This is in the lower half of the industry: DOW underperforms 65.06% of its industry peers.
DOW has a worse Return On Equity (-5.77%) than 65.06% of its industry peers.
With a Return On Invested Capital value of 1.27%, DOW is not doing good in the industry: 71.08% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for DOW is in line with the industry average of 6.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.69% | ||
| ROE | -5.77% | ||
| ROIC | 1.27% |
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 (1.97%) is worse than 71.08% of its industry peers.
In the last couple of years the Operating Margin of DOW has declined.
DOW has a Gross Margin of 8.07%. This is amonst the worse of the industry: DOW underperforms 84.34% of its industry peers.
DOW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.97% | ||
| PM (TTM) | N/A | ||
| GM | 8.07% |
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
Compared to 1 year ago, DOW has a worse debt to assets ratio.
2.2 Solvency
DOW has an Altman-Z score of 1.60. This is a bad value and indicates that DOW is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.60, DOW is not doing good in the industry: 65.06% of the companies in the same industry are doing better.
DOW has a Debt/Equity ratio of 0.95. This is a neutral value indicating DOW is somewhat dependend on debt financing.
DOW has a worse Debt to Equity ratio (0.95) than 67.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.6 |
ROIC/WACC0.15
WACC8.41%
2.3 Liquidity
DOW has a Current Ratio of 1.69. 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 Current ratio of 1.69 is on the low side compared to the rest of the industry. DOW is outperformed by 62.65% of its industry peers.
A Quick Ratio of 1.05 indicates that DOW should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.05, DOW is doing worse than 62.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The earnings per share for DOW have decreased strongly by -96.74% in the last year.
The earnings per share for DOW have been decreasing by -12.16% on average. This is quite bad
The Revenue has decreased by -2.82% in the past year.
DOW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.01% yearly.
EPS 1Y (TTM)-96.74%
EPS 3Y-42.47%
EPS 5Y-12.16%
EPS Q2Q%-161.76%
Revenue 1Y (TTM)-2.82%
Revenue growth 3Y-7.88%
Revenue growth 5Y0.01%
Sales Q2Q%-7.43%
3.2 Future
Based on estimates for the next years, DOW will show a very strong growth in Earnings Per Share. The EPS will grow by 21.05% on average per year.
The Revenue is expected to grow by 0.25% on average over the next years.
EPS Next Y-153.94%
EPS Next 2Y-62.16%
EPS Next 3Y-6.26%
EPS Next 5Y21.05%
Revenue Next Year-5.17%
Revenue Next 2Y-1.16%
Revenue Next 3Y0.53%
Revenue Next 5Y0.25%
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.
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
Based on the Price/Earnings ratio of 340.50, the valuation of DOW can be described as expensive.
Based on the Price/Earnings ratio, DOW is valued a bit more expensive than the industry average as 69.88% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of DOW to the average of the S&P500 Index (26.90), we can say DOW is valued expensively.
With a Price/Forward Earnings ratio of 97.33, DOW can be considered very expensive at the moment.
DOW's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. DOW is more expensive than 68.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.52. DOW is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 340.5 | ||
| Fwd PE | 97.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOW is valued a bit cheaper than 72.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.41 |
4.3 Compensation for Growth
A cheap valuation may be justified as DOW's earnings are expected to decrease with -6.26% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-62.16%
EPS Next 3Y-6.26%
5. Dividend
5.1 Amount
DOW has a Yearly Dividend Yield of 5.70%, which is a nice return.
Compared to an average industry Dividend Yield of 3.44, DOW pays a better dividend. On top of this DOW pays more dividend than 87.95% of the companies listed in the same industry.
DOW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
5.2 History
DOW has paid a dividend for at least 10 years, which is 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-198.39%
EPS Next 2Y-62.16%
EPS Next 3Y-6.26%
NYSE:DOW (9/3/2025, 11:12:05 AM)
23.835
-0.57 (-2.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners67.51%
Inst Owner Change2.51%
Ins Owners0.14%
Ins Owner Change4.72%
Market Cap16.90B
Analysts55.86
Price Target29.95 (25.66%)
Short Float %3.81%
Short Ratio1.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
Yearly Dividend2.8
Dividend Growth(5Y)N/A
DP-198.39%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)81.78%
Min EPS beat(2)-138.3%
Max EPS beat(2)301.86%
EPS beat(4)2
Avg EPS beat(4)16.36%
Min EPS beat(4)-138.3%
Max EPS beat(4)301.86%
EPS beat(8)5
Avg EPS beat(8)11.84%
EPS beat(12)8
Avg EPS beat(12)11.61%
EPS beat(16)12
Avg EPS beat(16)10.6%
Revenue beat(2)1
Avg Revenue beat(2)-0.69%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)0.85%
Revenue beat(4)2
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)1.19%
Revenue beat(8)4
Avg Revenue beat(8)-0.1%
Revenue beat(12)7
Avg Revenue beat(12)0.61%
Revenue beat(16)9
Avg Revenue beat(16)0.83%
PT rev (1m)-16.55%
PT rev (3m)-21.61%
EPS NQ rev (1m)-7.61%
EPS NQ rev (3m)-143.42%
EPS NY rev (1m)-1567.88%
EPS NY rev (3m)-349.04%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-8.05%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 340.5 | ||
| Fwd PE | 97.33 | ||
| P/S | 0.4 | ||
| P/FCF | N/A | ||
| P/OCF | 13.68 | ||
| P/B | 0.98 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 8.41 |
EPS(TTM)0.07
EY0.29%
EPS(NY)0.24
Fwd EY1.03%
FCF(TTM)-2.28
FCFYN/A
OCF(TTM)1.74
OCFY7.31%
SpS59
BVpS24.31
TBVpS9.77
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.69% | ||
| ROE | -5.77% | ||
| ROCE | 1.7% | ||
| ROIC | 1.27% | ||
| ROICexc | 1.34% | ||
| ROICexgc | 1.72% | ||
| OM | 1.97% | ||
| PM (TTM) | N/A | ||
| GM | 8.07% | ||
| 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%
ROICexcg growth 3Y-37.36%
ROICexcg 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-Score2
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.37 | ||
| Cap/Depr | 97.27% | ||
| Cap/Sales | 6.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 32.91% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 1.6 |
F-Score2
WACC8.41%
ROIC/WACC0.15
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)-96.74%
EPS 3Y-42.47%
EPS 5Y-12.16%
EPS Q2Q%-161.76%
EPS Next Y-153.94%
EPS Next 2Y-62.16%
EPS Next 3Y-6.26%
EPS Next 5Y21.05%
Revenue 1Y (TTM)-2.82%
Revenue growth 3Y-7.88%
Revenue growth 5Y0.01%
Sales Q2Q%-7.43%
Revenue Next Year-5.17%
Revenue Next 2Y-1.16%
Revenue Next 3Y0.53%
Revenue Next 5Y0.25%
EBIT growth 1Y-58.03%
EBIT growth 3Y-37.72%
EBIT growth 5Y-11.56%
EBIT Next Year26.11%
EBIT Next 3Y26.93%
EBIT Next 5Y23.48%
FCF growth 1Y-142.05%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-79.07%
OCF growth 3Y-25.36%
OCF growth 5Y-13.25%