DOW INC (DOW) Stock Fundamental Analysis
USA - NYSE:DOW - US2605571031 - Common Stock
21.63 USD
-0.26 (-1.19%)
21.67 USD
+0.04 (+0.18%)
DOW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. Both the profitability and financial health of DOW have multiple concerns. While showing a medium growth rate, DOW is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
DOW had positive earnings in the past year.
DOW had a positive operating cash flow in the past year.
Each year in the past 5 years DOW has been profitable.
Each year in the past 5 years DOW had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -1.69%, DOW is not doing good in the industry: 66.27% of the companies in the same industry are doing better.
DOW has a Return On Equity of -5.77%. This is in the lower half of the industry: DOW underperforms 66.27% of its industry peers.
With a Return On Invested Capital value of 1.18%, DOW is not doing good in the industry: 74.70% 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 6.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.69% | ||
| ROE | -5.77% | ||
| ROIC | 1.18% |
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
In the last couple of years the Profit Margin of DOW has declined.
Looking at the Operating Margin, with a value of 1.83%, DOW is doing worse than 71.08% of the companies in the same industry.
DOW's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 7.93%, DOW is doing worse than 84.34% of the companies in the same industry.
In the last couple of years the Gross Margin of DOW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.83% | ||
| PM (TTM) | N/A | ||
| GM | 7.93% |
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.
The number of shares outstanding for DOW has been reduced compared to 5 years ago.
The debt/assets ratio for DOW is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.57, we must say that DOW is in the distress zone and has some risk of bankruptcy.
DOW has a Altman-Z score of 1.57. This is in the lower half of the industry: DOW underperforms 63.86% of its industry peers.
DOW has a Debt/Equity ratio of 0.95. This is a neutral value indicating DOW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.95, DOW is not doing good in the industry: 67.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.57 |
ROIC/WACC0.15
WACC7.98%
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.
Looking at the Current ratio, with a value of 1.69, DOW is doing worse than 62.65% of the companies in the same industry.
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
Looking at the last year, DOW shows a decrease in Revenue. The Revenue has decreased by -2.82% in the last 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
DOW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.05% yearly.
Based on estimates for the next years, DOW will show a small growth in Revenue. The Revenue will grow by 0.25% on average per year.
EPS Next Y-157.21%
EPS Next 2Y-77.54%
EPS Next 3Y-9.2%
EPS Next 5Y21.05%
Revenue Next Year-5.24%
Revenue Next 2Y-1.23%
Revenue Next 3Y0.46%
Revenue Next 5Y0.25%
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
Based on the Price/Earnings ratio of 309.00, the valuation of DOW can be described as expensive.
69.88% of the companies in the same industry are cheaper than DOW, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.69. DOW is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 250.86, DOW can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, DOW is valued a bit more expensive than 71.08% of the companies in the same industry.
DOW is valuated expensively when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 309 | ||
| Fwd PE | 250.86 |
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 69.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.06 |
4.3 Compensation for Growth
A cheap valuation may be justified as DOW's earnings are expected to decrease with -9.20% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-77.54%
EPS Next 3Y-9.2%
5. Dividend
5.1 Amount
DOW has a Yearly Dividend Yield of 6.39%, which is a nice return.
Compared to an average industry Dividend Yield of 3.76, DOW pays a better dividend. On top of this DOW pays more dividend than 87.95% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, DOW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.39% |
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
DOW has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-198.39%
EPS Next 2Y-77.54%
EPS Next 3Y-9.2%
21.63
-0.26 (-1.19%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners69.17%
Inst Owner Change-0.49%
Ins Owners0.14%
Ins Owner Change0%
Market Cap15.33B
Analysts64.62
Price Target28.71 (32.73%)
Short Float %3.98%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.39% |
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)0%
PT rev (3m)-19.99%
EPS NQ rev (1m)-1.53%
EPS NQ rev (3m)-581.17%
EPS NY rev (1m)-6.07%
EPS NY rev (3m)-1656.92%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)-3.19%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 309 | ||
| Fwd PE | 250.86 | ||
| P/S | 0.37 | ||
| P/FCF | N/A | ||
| P/OCF | 12.41 | ||
| P/B | 0.89 | ||
| P/tB | 2.21 | ||
| EV/EBITDA | 8.06 |
EPS(TTM)0.07
EY0.32%
EPS(NY)0.09
Fwd EY0.4%
FCF(TTM)-2.28
FCFYN/A
OCF(TTM)1.74
OCFY8.05%
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 | 1.58% | ||
| ROIC | 1.18% | ||
| ROICexc | 1.24% | ||
| ROICexgc | 1.6% | ||
| OM | 1.83% | ||
| PM (TTM) | N/A | ||
| GM | 7.93% | ||
| 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 | 4.44 | ||
| Cap/Depr | 97.27% | ||
| Cap/Sales | 6.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 33.43% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 1.57 |
F-Score2
WACC7.98%
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-157.21%
EPS Next 2Y-77.54%
EPS Next 3Y-9.2%
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-5.24%
Revenue Next 2Y-1.23%
Revenue Next 3Y0.46%
Revenue Next 5Y0.25%
EBIT growth 1Y-61.04%
EBIT growth 3Y-37.72%
EBIT growth 5Y-11.56%
EBIT Next Year24.07%
EBIT Next 3Y26.38%
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%