Dow Inc
Exchange: NYSESector: Basic MaterialsIndustry: Chemicals
Dow (NYSE: DOW) combines global breadth, asset integration and scale, focused innovation and leading business positions to achieve profitable growth. The Company’s ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company. Dow’s portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure and consumer care. Dow operates 109 manufacturing sites in 31 countries and employs approximately 36,500 people. Dow delivered sales of approximately $43 billion in 2019. References to Dow or the Company mean Dow Inc. and its subsidiaries.
Did you know?
A large-cap company with a $29.4B market cap.
Current Price
$41.40
+1.74%Profile
Valuation (TTM)
Market Cap$29.43B
P/E-11.22
EV$41.83B
P/B1.84
Shares Out710.77M
P/Sales0.74
Revenue$39.97B
EV/EBITDA44.80
Dow Inc (DOW) Stock Analysis
GoodMoat Analysis
Dow Inc appears to be a mature, cyclical chemical company currently facing significant financial headwinds, with negative profitability and free cash flow. Based on the GoodMoat framework, it fails the initial Moat & Quality Gate, indicating a lack of durable competitive advantages and fundamental strength for a value investor's criteria.
Read full analysis
Dow Inc is a major player in the global chemicals industry, producing materials used in packaging, infrastructure, and consumer care. Applying the GoodMoat framework, the company shows significant challenges. In Section 1 (Moat Identification), the data suggests a low score. While it may have some advantages from scale and vertical integration, these are not translating into durable profitability in the current cycle, and the negative metrics across the board make a score of 5+ unlikely. More critically, the Section 2 (Quality Indicators) are overwhelmingly weak: the company is not GAAP profitable (EPS of -$3.7), has negative free cash flow yield (-5.8%), a negative Return on Equity (-16.4%), and carries substantial debt (Debt/Equity of 1.22). Revenue is also declining YoY (-9.1%). This profile fails the 'Moat & Quality Gate' in Section 6 (Decision Framework), as the business lacks the fundamental strength required for further valuation analysis. The 5.29% dividend yield may attract income seekers, but the negative FCF raises questions about its sustainability. For a value investor focused on durable moats and financial health, Dow's current state, characterized by cyclical downturn pressures, makes it an unfavourable candidate without a clear near-term path to restoring high returns on capital. Analysis based on data as of 2024-05-15.
Market Cap$29.43B
Current Price$41.40
P/E Ratio-11.22
Forward P/E—
PEG Ratio-0.00
EPS$-3.70
Book Value$22.52
P/B Ratio1.84
DOW Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 15.8B
Revenue
43.0B
FY19
38.5B
FY20
55.0B
FY21
56.9B
FY22
44.6B
FY23
43.0B
FY24
40.0B
FY25
Net Income
—
FY19
1.2B
FY20
6.3B
FY21
4.6B
FY22
589M
FY23
1.1B
FY24
—
FY25
DOW 52-Week Range
$20.05
$41.87
50-Day MA: $33.29200-Day MA: $26.11
Did you know?
Pays a 5.06% dividend yield.
Dow Inc (DOW) Financial Summary
Dow Inc (DOW) is a Basic Materials company in the Chemicals industry, listed on NYSE. The stock currently trades at $41.40 with a market capitalization of $29.43B.
Key valuation metrics include a P/E ratio of -11.22, price-to-book ratio of 1.84, and EPS of $-3.70. The company reports a profit margin of -6.6% and return on equity of -16.4%.
DOW Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $29.43B |
| P/E Ratio | -11.22 |
| EPS | $-3.70 |
| P/B Ratio | 1.84 |
| P/S Ratio | 0.74 |
| EV/EBITDA | 44.80 |
| Dividend Yield | 5.06% |
| Profit Margin | -6.6% |
| Return on Equity | -16.4% |
| Debt/Equity | 1.22 |
DOW Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $42.95B | $-1.36B |
| FY20 | $38.54B | $1.23B |
| FY21 | $54.97B | $6.31B |
| FY22 | $56.90B | $4.58B |
| FY23 | $44.62B | $589.00M |
| FY24 | $42.96B | $1.12B |
| FY25 | $39.97B | $-2.62B |
DOW Quality Indicators
Dow Inc maintains a profit margin of -6.6% and an operating margin of -3.9%. Return on equity stands at -16.4%. The current ratio is 1.97. Debt-to-equity ratio is 1.22.
About Dow Inc
Dow (NYSE: DOW) combines global breadth, asset integration and scale, focused innovation and leading business positions to achieve profitable growth. The Company’s ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company. Dow’s portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure and consumer care. Dow operates 109 manufacturing sites in 31 countries and employs approximately 36,500 people. Dow delivered sales of approximately $43 billion in 2019. References to Dow or the Company mean Dow Inc. and its subsidiaries.
DOW Free Cash Flow
Dow Inc generated $-1.64B in trailing twelve-month free cash flow, representing an FCF yield of -5.59%. This low FCF yield may reflect heavy reinvestment or growth spending.
DOW Shares Outstanding
Dow Inc has 0.71 billion shares outstanding at a share price of $41.40, giving it a market capitalization of $29.43B.