DOW INC (DOW) Fundamental Analysis & Valuation

NYSE:DOW • US2605571031

Current stock price

36.28 USD
-0.37 (-1.01%)
Last:

This DOW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. DOW Profitability Analysis

1.1 Basic Checks

  • DOW had negative earnings in the past year.
  • In the past year DOW had a positive cash flow from operations.
  • Of the past 5 years DOW 4 years were profitable.
  • In the past 5 years DOW always reported a positive cash flow from operatings.
DOW Yearly Net Income VS EBIT VS OCF VS FCFDOW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B -5B

1.2 Ratios

  • DOW's Return On Assets of -4.50% is on the low side compared to the rest of the industry. DOW is outperformed by 66.27% of its industry peers.
  • Looking at the Return On Equity, with a value of -16.45%, DOW is doing worse than 67.47% of the companies in the same industry.
  • DOW has a Return On Invested Capital of 0.37%. This is in the lower half of the industry: DOW underperforms 74.70% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for DOW is below the industry average of 6.51%.
Industry RankSector Rank
ROA -4.5%
ROE -16.45%
ROIC 0.37%
ROA(3y)-0.53%
ROA(5y)3.18%
ROE(3y)-2.33%
ROE(5y)9.92%
ROIC(3y)2.3%
ROIC(5y)5.48%
DOW Yearly ROA, ROE, ROICDOW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30

1.3 Margins

  • Looking at the Operating Margin, with a value of 0.61%, DOW is doing worse than 73.49% of the companies in the same industry.
  • In the last couple of years the Operating Margin of DOW has declined.
  • DOW's Gross Margin of 6.47% is on the low side compared to the rest of the industry. DOW is outperformed by 89.16% of its industry peers.
  • DOW's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 0.61%
PM (TTM) N/A
GM 6.47%
OM growth 3Y-60.65%
OM growth 5Y-38.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-24.53%
GM growth 5Y-13.71%
DOW Yearly Profit, Operating, Gross MarginsDOW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10 15 20

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2

2. DOW Health Analysis

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 has been increased 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.
DOW Yearly Shares OutstandingDOW Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
DOW Yearly Total Debt VS Total AssetsDOW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B

2.2 Solvency

  • Based on the Altman-Z score of 1.65, we must say that DOW is in the distress zone and has some risk of bankruptcy.
  • DOW has a Altman-Z score of 1.65. This is comparable to the rest of the industry: DOW outperforms 40.96% of its industry peers.
  • A Debt/Equity ratio of 1.12 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 1.12, DOW is doing worse than 68.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.12
Debt/FCF N/A
Altman-Z 1.65
ROIC/WACC0.03
WACC11.3%
DOW Yearly LT Debt VS Equity VS FCFDOW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B

2.3 Liquidity

  • DOW has a Current Ratio of 1.97. This is a normal value and indicates that DOW is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.97, DOW perfoms like the industry average, outperforming 50.60% of the companies in the same industry.
  • A Quick Ratio of 1.25 indicates that DOW should not have too much problems paying its short term obligations.
  • DOW's Quick ratio of 1.25 is in line compared to the rest of the industry. DOW outperforms 50.60% of its industry peers.
Industry RankSector Rank
Current Ratio 1.97
Quick Ratio 1.25
DOW Yearly Current Assets VS Current LiabilitesDOW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. DOW Growth Analysis

3.1 Past

  • DOW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -154.39%.
  • DOW shows a decrease in Revenue. In the last year, the revenue decreased by -6.97%.
  • Measured over the past years, DOW shows a small growth in Revenue. The Revenue has been growing by 0.73% on average per year.
EPS 1Y (TTM)-154.39%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-2605.91%
Revenue 1Y (TTM)-6.97%
Revenue growth 3Y-11.11%
Revenue growth 5Y0.73%
Sales Q2Q%-9.08%

3.2 Future

  • DOW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.21% yearly.
  • Based on estimates for the next years, DOW will show a small growth in Revenue. The Revenue will grow by 2.29% on average per year.
EPS Next Y68.4%
EPS Next 2Y61.3%
EPS Next 3Y47.72%
EPS Next 5Y46.21%
Revenue Next Year0.21%
Revenue Next 2Y1.88%
Revenue Next 3Y1.79%
Revenue Next 5Y2.29%

3.3 Evolution

  • 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.
DOW Yearly Revenue VS EstimatesDOW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B 50B
DOW Yearly EPS VS EstimatesDOW Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 4 6 8

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1

4. DOW Valuation Analysis

4.1 Price/Earnings Ratio

  • DOW reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • Also next year DOW is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
DOW Price Earnings VS Forward Price EarningsDOW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -50 -100

4.2 Price Multiples

  • DOW's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.2
DOW Per share dataDOW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40 50

4.3 Compensation for Growth

  • DOW's earnings are expected to grow with 47.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y61.3%
EPS Next 3Y47.72%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. DOW Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.73%, DOW has a reasonable but not impressive dividend return.
  • DOW's Dividend Yield is rather good when compared to the industry average which is at 2.12. DOW pays more dividend than 87.95% of the companies in the same industry.
  • DOW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 3.73%

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
DOW Yearly Dividends per shareDOW Yearly Dividends per shareYearly Dividends per share 2016 2017 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • The earnings of DOW are negative and hence is the payout ratio. DOW will probably not be able to sustain this dividend level.
DP-56.57%
EPS Next 2Y61.3%
EPS Next 3Y47.72%
DOW Yearly Income VS Free CF VS DividendDOW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B -5B

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DOW Fundamentals: All Metrics, Ratios and Statistics

DOW INC

NYSE:DOW (3/23/2026, 9:34:10 AM)

36.28

-0.37 (-1.01%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)01-29
Earnings (Next)04-23
Inst Owners70.38%
Inst Owner Change13.46%
Ins Owners0.15%
Ins Owner Change11.61%
Market Cap26.11B
Revenue(TTM)39.97B
Net Income(TTM)-2.63B
Analysts56.43
Price Target29.29 (-19.27%)
Short Float %3.74%
Short Ratio1.91
Dividend
Industry RankSector Rank
Dividend Yield 3.73%
Yearly Dividend2.1
Dividend Growth(5Y)N/A
DP-56.57%
Div Incr Years0
Div Non Decr Years5
Ex-Date02-27
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)31.59%
Min EPS beat(2)27.48%
Max EPS beat(2)35.71%
EPS beat(4)3
Avg EPS beat(4)56.68%
Min EPS beat(4)-138.3%
Max EPS beat(4)301.86%
EPS beat(8)5
Avg EPS beat(8)18.16%
EPS beat(12)9
Avg EPS beat(12)18.45%
EPS beat(16)12
Avg EPS beat(16)13.88%
Revenue beat(2)0
Avg Revenue beat(2)-2.23%
Min Revenue beat(2)-3.44%
Max Revenue beat(2)-1.01%
Revenue beat(4)1
Avg Revenue beat(4)-1.46%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)0.85%
Revenue beat(8)2
Avg Revenue beat(8)-1.16%
Revenue beat(12)6
Avg Revenue beat(12)-0.14%
Revenue beat(16)8
Avg Revenue beat(16)0.41%
PT rev (1m)-0.44%
PT rev (3m)4.1%
EPS NQ rev (1m)3.35%
EPS NQ rev (3m)-83.74%
EPS NY rev (1m)-7.86%
EPS NY rev (3m)-123.32%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-8.61%
Revenue NY rev (1m)1.39%
Revenue NY rev (3m)-2.29%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.65
P/FCF N/A
P/OCF 25.3
P/B 1.63
P/tB 3.99
EV/EBITDA 13.2
EPS(TTM)-0.93
EYN/A
EPS(NY)-0.29
Fwd EYN/A
FCF(TTM)-2.07
FCFYN/A
OCF(TTM)1.43
OCFY3.95%
SpS55.54
BVpS22.25
TBVpS9.09
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -4.5%
ROE -16.45%
ROCE 0.49%
ROIC 0.37%
ROICexc 0.4%
ROICexgc 0.51%
OM 0.61%
PM (TTM) N/A
GM 6.47%
FCFM N/A
ROA(3y)-0.53%
ROA(5y)3.18%
ROE(3y)-2.33%
ROE(5y)9.92%
ROIC(3y)2.3%
ROIC(5y)5.48%
ROICexc(3y)2.44%
ROICexc(5y)5.86%
ROICexgc(3y)3.18%
ROICexgc(5y)7.73%
ROCE(3y)3.08%
ROCE(5y)7.33%
ROICexgc growth 3Y-65.51%
ROICexgc growth 5Y-38.65%
ROICexc growth 3Y-64.99%
ROICexc growth 5Y-37.63%
OM growth 3Y-60.65%
OM growth 5Y-38.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-24.53%
GM growth 5Y-13.71%
F-Score3
Asset Turnover0.68
Health
Industry RankSector Rank
Debt/Equity 1.12
Debt/FCF N/A
Debt/EBITDA 5.83
Cap/Depr 88.89%
Cap/Sales 6.3%
Interest Coverage 0.26
Cash Conversion 33.53%
Profit Quality N/A
Current Ratio 1.97
Quick Ratio 1.25
Altman-Z 1.65
F-Score3
WACC11.3%
ROIC/WACC0.03
Cap/Depr(3y)93.66%
Cap/Depr(5y)84.91%
Cap/Sales(3y)6.15%
Cap/Sales(5y)5.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-154.39%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-2605.91%
EPS Next Y68.4%
EPS Next 2Y61.3%
EPS Next 3Y47.72%
EPS Next 5Y46.21%
Revenue 1Y (TTM)-6.97%
Revenue growth 3Y-11.11%
Revenue growth 5Y0.73%
Sales Q2Q%-9.08%
Revenue Next Year0.21%
Revenue Next 2Y1.88%
Revenue Next 3Y1.79%
Revenue Next 5Y2.29%
EBIT growth 1Y-87.19%
EBIT growth 3Y-65.02%
EBIT growth 5Y-37.57%
EBIT Next Year897.3%
EBIT Next 3Y142.91%
EBIT Next 5Y82.97%
FCF growth 1Y-5619.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-64.58%
OCF growth 3Y-48.32%
OCF growth 5Y-30.19%

DOW INC / DOW Fundamental Analysis 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 5 / 10 and the dividend payout ratio is -56.57%.