DOW INC (DOW) Stock Fundamental Analysis
NYSE:DOW - New York Stock Exchange, Inc. - US2605571031 - Common Stock - Currency: USD
Taking everything into account, DOW scores 3 out of 10 in our fundamental rating. DOW was compared to 85 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 was profitable.
DOW had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of -1.69%, DOW is doing worse than 63.53% of the companies in the same industry.
DOW's Return On Equity of -5.77% is on the low side compared to the rest of the industry. DOW is outperformed by 63.53% of its industry peers.
DOW has a worse Return On Invested Capital (1.24%) than 70.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DOW is in line with the industry average of 6.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.69% | ||
| ROE | -5.77% | ||
| ROIC | 1.24% |
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 has a Operating Margin of 1.93%. This is in the lower half of the industry: DOW underperforms 69.41% of its industry peers.
DOW's Operating Margin has declined in the last couple of years.
DOW has a worse Gross Margin (8.03%) than 83.53% of its industry peers.
In the last couple of years the Gross Margin of DOW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.93% | ||
| PM (TTM) | N/A | ||
| GM | 8.03% |
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
DOW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DOW has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, DOW has less shares outstanding
DOW has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.56, we must say that DOW is in the distress zone and has some risk of bankruptcy.
DOW has a Altman-Z score of 1.56. This is in the lower half of the industry: DOW underperforms 65.88% 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.
DOW has a worse Debt to Equity ratio (0.95) than 67.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.56 |
ROIC/WACC0.15
WACC8.44%
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 61.18% of the companies in the same industry.
DOW has a Quick Ratio of 1.05. 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 worse Quick ratio (1.05) than 61.18% of its industry peers.
| 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.
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.
The Revenue has decreased by -2.82% in the past year.
Measured over the past years, DOW shows a small growth in Revenue. The Revenue has been growing by 0.01% on average per year.
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 22.45% on average per year.
DOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.26% yearly.
EPS Next Y-96.33%
EPS Next 2Y-24.66%
EPS Next 3Y-0.67%
EPS Next 5Y22.45%
Revenue Next Year-4.79%
Revenue Next 2Y-0.99%
Revenue Next 3Y0.52%
Revenue Next 5Y1.26%
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
A Price/Earnings ratio of 298.14 indicates a quite expensive valuation of DOW.
Based on the Price/Earnings ratio, DOW is valued a bit more expensive than the industry average as 68.24% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.41, DOW is valued quite expensively.
The Price/Forward Earnings ratio is 21.50, which indicates a rather expensive current valuation of DOW.
The rest of the industry has a similar Price/Forward Earnings ratio as DOW.
When comparing the Price/Forward Earnings ratio of DOW to the average of the S&P500 Index (33.87), we can say DOW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 298.14 | ||
| Fwd PE | 21.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOW is valued a bit cheaper than the industry average as 72.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.84 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-24.66%
EPS Next 3Y-0.67%
5. Dividend
5.1 Amount
DOW has a Yearly Dividend Yield of 6.48%, which is a nice return.
In the last 3 months the price of DOW has falen by -30.87%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.76, DOW pays a better dividend. On top of this DOW pays more dividend than 89.41% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, DOW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.48% |
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-24.66%
EPS Next 3Y-0.67%
20.87
-0.35 (-1.65%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners67.51%
Inst Owner Change-0.24%
Ins Owners0.14%
Ins Owner Change14.28%
Market Cap14.79B
Analysts55.86
Price Target31.87 (52.71%)
Short Float %4.48%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.48% |
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)-16.77%
PT rev (3m)-16.58%
EPS NQ rev (1m)-525.3%
EPS NQ rev (3m)-140.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-95.71%
Revenue NQ rev (1m)-3.42%
Revenue NQ rev (3m)-8.07%
Revenue NY rev (1m)-1.48%
Revenue NY rev (3m)-1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 298.14 | ||
| Fwd PE | 21.5 | ||
| P/S | 0.35 | ||
| P/FCF | N/A | ||
| P/OCF | 11.98 | ||
| P/B | 0.86 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 7.84 |
EPS(TTM)0.07
EY0.34%
EPS(NY)0.97
Fwd EY4.65%
FCF(TTM)-2.28
FCFYN/A
OCF(TTM)1.74
OCFY8.35%
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 | 1.66% | ||
| ROIC | 1.24% | ||
| ROICexc | 1.31% | ||
| ROICexgc | 1.68% | ||
| OM | 1.93% | ||
| PM (TTM) | N/A | ||
| GM | 8.03% | ||
| 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 | 4.39 | ||
| Cap/Depr | 97.27% | ||
| Cap/Sales | 6.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 33.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 1.56 |
F-Score2
WACC8.44%
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-96.33%
EPS Next 2Y-24.66%
EPS Next 3Y-0.67%
EPS Next 5Y22.45%
Revenue 1Y (TTM)-2.82%
Revenue growth 3Y-7.88%
Revenue growth 5Y0.01%
Sales Q2Q%-7.43%
Revenue Next Year-4.79%
Revenue Next 2Y-0.99%
Revenue Next 3Y0.52%
Revenue Next 5Y1.26%
EBIT growth 1Y-58.9%
EBIT growth 3Y-37.72%
EBIT growth 5Y-11.56%
EBIT Next Year26.11%
EBIT Next 3Y26.93%
EBIT Next 5Y24.7%
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%