DOW INC (DOW) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:DOW • US2605571031
27.55 USD
+0.39 (+1.44%)
At close: Jan 30, 2026
27.5975 USD
+0.05 (+0.17%)
After Hours: 1/30/2026, 8:04:00 PM
Overall DOW gets a fundamental rating of 2 out of 10. We evaluated DOW against 83 industry peers in the Chemicals industry. DOW may be in some trouble as it scores bad on both profitability and health. DOW is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- DOW had negative earnings in the past year.
- DOW had a positive operating cash flow in the past year.
- Of the past 5 years DOW 4 years were profitable.
- DOW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- DOW has a Return On Assets of -1.88%. This is in the lower half of the industry: DOW underperforms 62.65% of its industry peers.
- The Return On Equity of DOW (-6.53%) is worse than 63.86% of its industry peers.
- With a Return On Invested Capital value of 0.77%, DOW is not doing good in the industry: 74.70% of the companies in the same industry are doing better.
- DOW had an Average Return On Invested Capital over the past 3 years of 4.98%. This is in line with the industry average of 6.11%.
- 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.
- With a Operating Margin value of 1.28%, DOW is not doing good in the industry: 73.49% of the companies in the same industry are doing better.
- DOW's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 7.27%, DOW is doing worse than 87.95% of the companies in the same industry.
- DOW's Gross Margin has declined in the last couple of years.
| 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.
- There is no outstanding debt for DOW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- DOW has an Altman-Z score of 1.58. This is a bad value and indicates that DOW is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of DOW (1.58) is worse than 63.86% of its industry peers.
- DOW has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.02, DOW is doing worse than 68.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.58 |
ROIC/WACC0.07
WACC10.68%
2.3 Liquidity
- A Current Ratio of 1.94 indicates that DOW should not have too much problems paying its short term obligations.
- DOW's Current ratio of 1.94 is in line compared to the rest of the industry. DOW outperforms 49.40% 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 comparable to the rest of the industry.
| 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 -154.39% in the last year.
EPS 1Y (TTM)-154.39%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-9.08%
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 59.45% on average per year.
- DOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.02% yearly.
EPS Next Y74.07%
EPS Next 2Y61.38%
EPS Next 3Y72.32%
EPS Next 5Y59.45%
Revenue Next Year2.05%
Revenue Next 2Y2.91%
Revenue Next 3Y1.3%
Revenue Next 5Y2.02%
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for DOW. In the last year negative earnings were reported.
- Also next year DOW is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| 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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.73 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as DOW's earnings are expected to grow with 72.32% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y61.38%
EPS Next 3Y72.32%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.08%, DOW is a good candidate for dividend investing.
- DOW's Dividend Yield is rather good when compared to the industry average which is at 2.27. DOW pays more dividend than 90.36% of the companies in the same industry.
- DOW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
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 2Y61.38%
EPS Next 3Y72.32%
DOW INC / DOW FAQ
What is the ChartMill fundamental rating of DOW INC (DOW) stock?
ChartMill assigns a fundamental rating of 2 / 10 to DOW.
What is the valuation status of DOW INC (DOW) stock?
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 2 / 10.
What is the financial health of DOW INC (DOW) stock?
The financial health rating of DOW INC (DOW) is 2 / 10.
Is the dividend of DOW INC sustainable?
The dividend rating of DOW INC (DOW) is 6 / 10 and the dividend payout ratio is -151.18%.