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. While showing a medium growth rate, DOW is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year DOW was profitable.
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
The Return On Assets of DOW (0.49%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 1.67%, DOW is in line with its industry, outperforming 47.06% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.21%, DOW is doing worse than 70.59% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DOW is below the industry average of 7.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.49% | ||
| ROE | 1.67% | ||
| ROIC | 2.21% |
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
The Profit Margin of DOW (0.66%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DOW has declined.
The Operating Margin of DOW (3.25%) is worse than 70.59% of its industry peers.
In the last couple of years the Operating Margin of DOW has declined.
DOW has a worse Gross Margin (9.38%) 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 | 3.25% | ||
| PM (TTM) | 0.66% | ||
| GM | 9.38% |
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%
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.
The number of shares outstanding for DOW has been reduced compared to 5 years ago.
DOW has a worse debt/assets ratio than last year.
2.2 Solvency
DOW has an Altman-Z score of 1.74. This is a bad value and indicates that DOW is not financially healthy and even has some risk of bankruptcy.
DOW's Altman-Z score of 1.74 is in line compared to the rest of the industry. DOW outperforms 43.53% of its industry peers.
DOW has a Debt/Equity ratio of 0.96. This is a neutral value indicating DOW is somewhat dependend on debt financing.
DOW has a worse Debt to Equity ratio (0.96) than 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.74 |
ROIC/WACC0.26
WACC8.4%
2.3 Liquidity
DOW has a Current Ratio of 1.54. This is a normal value and indicates that DOW is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DOW (1.54) is worse than 62.35% of its industry peers.
DOW has a Quick Ratio of 1.54. This is a bad value and indicates that DOW is not financially healthy enough and could expect problems in meeting its short term obligations.
DOW's Quick ratio of 0.90 is on the low side compared to the rest of the industry. DOW is outperformed by 67.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The earnings per share for DOW have decreased strongly by -47.30% 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.
DOW shows a decrease in Revenue. In the last year, the revenue decreased by -2.08%.
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)-47.3%
EPS 3Y-42.47%
EPS 5Y-12.16%
EPS Q2Q%-96.43%
Revenue 1Y (TTM)-2.08%
Revenue growth 3Y-7.88%
Revenue growth 5Y0.01%
Sales Q2Q%-3.1%
3.2 Future
The Earnings Per Share is expected to grow by 34.80% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.41% on average over the next years.
EPS Next Y-78.34%
EPS Next 2Y-12.73%
EPS Next 3Y5.66%
EPS Next 5Y34.8%
Revenue Next Year-3%
Revenue Next 2Y-0.15%
Revenue Next 3Y0.9%
Revenue Next 5Y3.41%
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
With a Price/Earnings ratio of 25.46, DOW can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as DOW.
Compared to an average S&P500 Price/Earnings ratio of 26.60, DOW is valued at the same level.
Based on the Price/Forward Earnings ratio of 22.88, the valuation of DOW can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DOW indicates a slightly more expensive valuation: DOW is more expensive than 60.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DOW to the average of the S&P500 Index (22.43), we can say DOW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.46 | ||
| Fwd PE | 22.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOW is valued a bit cheaper than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.49 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.73%
EPS Next 3Y5.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.36%, DOW is a good candidate for dividend investing.
In the last 3 months the price of DOW has falen by -24.60%. 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 3.70, DOW pays a better dividend. On top of this DOW pays more dividend than 95.29% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, DOW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.36% |
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
700.00% of the earnings are spent on dividend by DOW. This is not a sustainable payout ratio.
DP700%
EPS Next 2Y-12.73%
EPS Next 3Y5.66%
29.79
-0.32 (-1.06%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners68.11%
Inst Owner Change0.37%
Ins Owners0.14%
Ins Owner Change14.29%
Market Cap21.06B
Analysts65.19
Price Target38.2 (28.23%)
Short Float %4.04%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.36% |
Yearly Dividend2.8
Dividend Growth(5Y)N/A
DP700%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)100.93%
Min EPS beat(2)-100%
Max EPS beat(2)301.86%
EPS beat(4)2
Avg EPS beat(4)49.47%
Min EPS beat(4)-100%
Max EPS beat(4)301.86%
EPS beat(8)6
Avg EPS beat(8)29.87%
EPS beat(12)9
Avg EPS beat(12)23.71%
EPS beat(16)13
Avg EPS beat(16)19.87%
Revenue beat(2)1
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)0.85%
Revenue beat(4)2
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)1.19%
Revenue beat(8)5
Avg Revenue beat(8)0.21%
Revenue beat(12)7
Avg Revenue beat(12)0.78%
Revenue beat(16)10
Avg Revenue beat(16)1.29%
PT rev (1m)-17.69%
PT rev (3m)-22.4%
EPS NQ rev (1m)-99.34%
EPS NQ rev (3m)-99.47%
EPS NY rev (1m)-74.73%
EPS NY rev (3m)-79.45%
Revenue NQ rev (1m)-4.26%
Revenue NQ rev (3m)-4.86%
Revenue NY rev (1m)-2.31%
Revenue NY rev (3m)-3.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.46 | ||
| Fwd PE | 22.88 | ||
| P/S | 0.49 | ||
| P/FCF | N/A | ||
| P/OCF | 8.29 | ||
| P/B | 1.25 | ||
| P/tB | 3.23 | ||
| EV/EBITDA | 8.49 |
EPS(TTM)1.17
EY3.93%
EPS(NY)1.3
Fwd EY4.37%
FCF(TTM)-0.52
FCFYN/A
OCF(TTM)3.59
OCFY12.07%
SpS60.31
BVpS23.75
TBVpS9.22
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.49% | ||
| ROE | 1.67% | ||
| ROCE | 2.95% | ||
| ROIC | 2.21% | ||
| ROICexc | 2.28% | ||
| ROICexgc | 2.94% | ||
| OM | 3.25% | ||
| PM (TTM) | 0.66% | ||
| GM | 9.38% | ||
| 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-Score5
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.76 | ||
| Cap/Depr | 100.8% | ||
| Cap/Sales | 6.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 1.74 |
F-Score5
WACC8.4%
ROIC/WACC0.26
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)-47.3%
EPS 3Y-42.47%
EPS 5Y-12.16%
EPS Q2Q%-96.43%
EPS Next Y-78.34%
EPS Next 2Y-12.73%
EPS Next 3Y5.66%
EPS Next 5Y34.8%
Revenue 1Y (TTM)-2.08%
Revenue growth 3Y-7.88%
Revenue growth 5Y0.01%
Sales Q2Q%-3.1%
Revenue Next Year-3%
Revenue Next 2Y-0.15%
Revenue Next 3Y0.9%
Revenue Next 5Y3.41%
EBIT growth 1Y-35.66%
EBIT growth 3Y-37.72%
EBIT growth 5Y-11.56%
EBIT Next Year102.9%
EBIT Next 3Y37.19%
EBIT Next 5Y35.51%
FCF growth 1Y-108.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-60.34%
OCF growth 3Y-25.36%
OCF growth 5Y-13.25%