NYSE:DD

Stock Analysis Report

Executive Summary

DuPont de Nemours, Inc. provides technology-based materials, ingredients, and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa.

Rewards

Trading at 29.7% below its fair value

Earnings are forecast to grow 38.51% per year

Became profitable this year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Very undervalued with adequate balance sheet.


Similar Companies

Sherwin-Williams

NYSE:SHW

Share Price & News

How has DuPont de Nemours's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.3%

DD

1.5%

US Chemicals

1.2%

US Market


1 Year Return

-63.5%

DD

0.8%

US Chemicals

24.2%

US Market

Return vs Industry: DD underperformed the US Chemicals industry which returned 1.6% over the past year.

Return vs Market: DD underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

DDIndustryMarket
7 Day2.3%1.5%1.2%
30 Day-3.1%0.3%3.5%
90 Day-7.6%6.8%11.7%
1 Year-20.9%-63.5%16.3%0.8%26.9%24.2%
3 Year-21.6%-65.6%34.5%8.9%53.0%43.2%
5 Year13.6%-53.5%50.5%18.5%75.3%56.0%

Price Volatility Vs. Market

How volatile is DuPont de Nemours's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is DuPont de Nemours undervalued compared to its fair value and its price relative to the market?

28.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DD ($60.17) is trading below our estimate of fair value ($85.6)

Significantly Below Fair Value: DD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DD is good value based on its PE Ratio (15.2x) compared to the Chemicals industry average (20.8x).

PE vs Market: DD is good value based on its PE Ratio (15.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: DD is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: DD is good value based on its PB Ratio (1.1x) compared to the US Chemicals industry average (2.2x).


Next Steps

Future Growth

How is DuPont de Nemours forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

36.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DD's forecast earnings growth (38.5% per year) is above the savings rate (1.7%).

Earnings vs Market: DD's earnings (38.5% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DD's revenue is expected to decline over the next 3 years (-2.5% per year).

High Growth Revenue: DD's revenue is forecast to decline over the next 3 years (-2.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DD's Return on Equity is forecast to be low in 3 years time (6.8%).


Next Steps

Past Performance

How has DuPont de Nemours performed over the past 5 years?

-19.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DD has a large one-off loss of $5.2B impacting its September 30 2019 financial results.

Growing Profit Margin: DD became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: DD's earnings have declined by -19.4% per year over the past 5 years.

Accelerating Growth: DD has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: DD has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (-17%).


Return on Equity

High ROE: DD's Return on Equity (7.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is DuPont de Nemours's financial position?


Financial Position Analysis

Short Term Liabilities: DD's short term assets ($10.7B) exceed its short term liabilities ($6.6B).

Long Term Liabilities: DD's short term assets ($10.7B) do not cover its long term liabilities ($21.6B).


Debt to Equity History and Analysis

Debt Level: DD's debt to equity ratio (41.9%) is considered high.

Reducing Debt: DD's debt to equity ratio has reduced from 73.7% to 41.9% over the past 5 years.

Debt Coverage: DD's debt is well covered by operating cash flow (33.7%).

Interest Coverage: DD's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet

Inventory Level: DD has a high level of physical assets or inventory.

Debt Coverage by Assets: DD's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is DuPont de Nemours's current dividend yield, its reliability and sustainability?

1.95%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: DD's dividend (1.99%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: DD's dividend (1.99%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: DD's dividend payments have been volatile in the past 10 years.

Growing Dividend: DD's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.7%), DD's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DD's dividends in 3 years are forecast to be well covered by earnings (31.2% payout ratio).


Next Steps

Management

What is the CEO of DuPont de Nemours's salary, the management and board of directors tenure and is there insider trading?

0.7yrs

Average management tenure


CEO

Marc Doyle (49yo)

0.6yrs

Tenure

US$6,037,545

Compensation

Mr. Marc C. Doyle has been Chief Executive Officer and Director of DuPont de Nemours, Inc. since June 1, 2019. Mr. Doyle served as Chief Operating Officer of Specialty Products Division at DuPont de Nemour ...


CEO Compensation Analysis

Compensation vs Market: Marc's total compensation ($USD6.04M) is below average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: Insufficient data to compare Marc's compensation with company performance.


Management Age and Tenure

0.7yrs

Average Tenure

53yo

Average Age

Experienced Management: DD's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Age and Tenure

0.6yrs

Average Tenure

55.5yo

Average Age

Experienced Board: DD's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$14,60326 Jun 19
Lamberto Andreotti
EntityIndividual
Shares118.33
Max PriceUS$210.56

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Edward Breen (63yo)

    Executive Chairman

    • Tenure: 0.8yrs
    • Compensation: US$18.68m
  • Darrell Ford (54yo)

    Senior VP & Chief Human Resources officer

    • Tenure: 1.2yrs
  • Erik Hoover

    Chief Compliance Officer

    • Marc Doyle (49yo)

      CEO & Director

      • Tenure: 0.6yrs
      • Compensation: US$6.04m
    • Jeanmarie Desmond (53yo)

      Executive VP & CFO

      • Tenure: 0.8yrs
    • Daryl Roberts

      Senior VP and Chief Operations & Engineering Officer

      • Lori Koch

        Vice President Investor Relations and Corporate FP&A

        • Michael Goss (43yo)

          VP, Controller & Principal Accounting Officer

          • Tenure: 0.6yrs
        • Alexa Dembek

          Senior VP and Chief Technology & Sustainability Officer

          • Steven Larrabee

            Chief Information Officer & Senior VP


            Board Members

            • Sandy Cutler (68yo)

              Lead Independent Director

              • Compensation: US$314.46k
            • Edward Breen (63yo)

              Executive Chairman

              • Tenure: 0.8yrs
              • Compensation: US$18.68m
            • Raj Gupta (74yo)

              Independent Director

              • Tenure: 0.6yrs
            • Ray Milchovich (69yo)

              Independent Director

              • Tenure: 0.6yrs
              • Compensation: US$295.14k
            • Steven Sterin (47yo)

              Independent Director

              • Tenure: 0.6yrs
            • Thère du Pont (52yo)

              Independent Director

              • Tenure: 0.6yrs
            • Ruby Chandy (57yo)

              Independent Director

              • Tenure: 0.6yrs
            • Terrence Curtin (51yo)

              Independent Director

              • Tenure: 0.6yrs
            • Marc Doyle (49yo)

              CEO & Director

              • Tenure: 0.6yrs
              • Compensation: US$6.04m
            • Frank Clyburn (54yo)

              Independent Director

              • Tenure: 0.6yrs

            Company Information

            DuPont de Nemours, Inc.'s company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: DuPont de Nemours, Inc.
            • Ticker: DD
            • Exchange: NYSE
            • Founded: 1805
            • Industry: Specialty Chemicals
            • Sector: Materials
            • Market Cap: US$45.604b
            • Shares outstanding: 740.81m
            • Website: https://www.dupont.com

            Number of Employees


            Location

            • DuPont de Nemours, Inc.
            • 974 Centre Road
            • Wilmington
            • Delaware
            • 19805
            • United States

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            DDNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
            DD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
            6D81DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
            DDPNWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
            6D81ETLX (Eurotlx)YesCommon StockITEURJan 1968
            DDNB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD0.01BRBRLJul 2018

            Biography

            DuPont de Nemours, Inc. provides technology-based materials, ingredients, and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. The company provide Electronics & Imaging segment supplies materials to manufacture photovoltaics and solar cells; materials and printing systems to the advanced printing industry; and materials and solutions for the fabrication of semiconductors and integrated circuits addressing front-end and back-end of the manufacturing process. This segment also provides permanent and process chemistries for the fabrication of printed circuit boards to include laminates and substrates, electroless, and electrolytic metallization solutions, as well as patterning solutions, and materials and metallization processes for metal finishing, decorative, and industrial applications. In addition, it offers various materials to manufacture rigid and flexible displays for liquid crystal displays, advanced-matrix organic light emitting diode, and quantum dot applications. The company provide Nutrition & Biosciences segment producesspecialty ingredients; and provides various solutions for food and beverage, dietary supplements, and pharmaceutical markets, as well as to animal nutrition, biofuels, textiles, cleaning, personal care, fertilizers, and oil and gas industries. It also provide Transportation & Advanced Polymers segment provides engineering resins, adhesives, lubricants, and parts to engineers and designers in the transportation, electronics, healthcare, industrial, and consumer end-markets. The company in Safety & Construction segment provides engineered products and integrated systems for construction, worker safety, energy, oil and gas, transportation, medical device, and water purification and separation industries. The company was formerly known as DowDuPont Inc. and changed its name to DuPont de Nemours, Inc. in June 2019. DuPont de Nemours, Inc. was founded in 1805 is based in Wilmington, Delaware. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/21 01:02
            End of Day Share Price2020/01/17 00:00
            Earnings2019/09/30
            Annual Earnings2018/12/31


            Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.