DOW INC (DOW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DOW - US2605571031 - Common Stock
23.91 USD
+0.71 (+3.06%)
23.96 USD
+0.05 (+0.21%)
DOW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 81 industry peers in the Chemicals industry. Both the profitability and financial health of DOW have multiple concerns. DOW is valied quite expensively at the moment, while 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.
Each year in the past 5 years DOW has been profitable.
DOW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DOW has a worse Return On Assets (-1.88%) than 61.73% of its industry peers.
DOW has a Return On Equity of -6.53%. This is in the lower half of the industry: DOW underperforms 62.96% of its industry peers.
DOW's Return On Invested Capital of 0.77% is on the low side compared to the rest of the industry. DOW is outperformed by 76.54% 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 6.07%.
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.
Looking at the Operating Margin, with a value of 1.28%, DOW is doing worse than 75.31% of the companies in the same industry.
DOW's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 7.27%, DOW is not doing good in the industry: 87.65% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DOW is destroying value.
The number of shares outstanding for DOW remains at a similar level compared to 1 year ago.
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
Based on the Altman-Z score of 1.55, we must say that DOW is in the distress zone and has some risk of bankruptcy.
DOW has a worse Altman-Z score (1.55) than 60.49% 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.
Looking at the Debt to Equity ratio, with a value of 1.02, DOW is doing worse than 65.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.55 |
ROIC/WACC0.1
WACC8.04%
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 of 1.94. This is comparable to the rest of the industry: DOW outperforms 45.68% of its industry peers.
A Quick Ratio of 1.28 indicates that DOW should not have too much problems paying its short term obligations.
DOW has a Quick ratio (1.28) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
DOW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -127.57%.
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.
Looking at the last year, DOW shows a decrease in Revenue. The Revenue has decreased by -5.25% 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)-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-156.03%
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
64.20% of the companies in the same industry are more expensive than DOW, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.95 |
4.3 Compensation for Growth
DOW's earnings are expected to decrease with -23.81% in the coming years. This may justify a cheaper valuation.
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 6.68%, which is a nice return.
Compared to an average industry Dividend Yield of 4.16, DOW pays a better dividend. On top of this DOW pays more dividend than 87.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, DOW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
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
DOW has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-151.18%
EPS Next 2Y-44.17%
EPS Next 3Y-23.81%
23.91
+0.71 (+3.06%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners69.17%
Inst Owner Change-1.48%
Ins Owners0.14%
Ins Owner Change-1.06%
Market Cap16.95B
Revenue(TTM)40.91B
Net Income(TTM)-1.15B
Analysts64.62
Price Target28.25 (18.15%)
Short Float %4.26%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
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)-1.61%
PT rev (3m)-5.67%
EPS NQ rev (1m)12.88%
EPS NQ rev (3m)-31.97%
EPS NY rev (1m)9.93%
EPS NY rev (3m)-3.88%
Revenue NQ rev (1m)-6.82%
Revenue NQ rev (3m)-7.13%
Revenue NY rev (1m)-1.97%
Revenue NY rev (3m)-2.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.41 | ||
| P/FCF | N/A | ||
| P/OCF | 10.85 | ||
| P/B | 0.97 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | 8.95 |
EPS(TTM)-0.59
EYN/A
EPS(NY)-0.13
Fwd EYN/A
FCF(TTM)-1.57
FCFYN/A
OCF(TTM)2.2
OCFY9.22%
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 | 1.55 |
F-Score3
WACC8.04%
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.