Dow Inc. provides various materials science solutions for packaging, infrastructure, mobility, and consumer applications in the United States, Canada, Europe, the Middle East, Africa, India, the Asia Pacific, and Latin America.
Dow Inc. provides various materials science solutions for packaging, infrastructure, mobility, and consumer applications in the United States, Canada, Europe, the Middle East, Africa, India, the Asia Pacific, and Latin America. It operates through Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings segments. The Packaging & Specialty Plastics segment provides ethylene, and propylene and aromatics products; and polyethylene, polyolefin elastomers, ethylene vinyl acetate, and ethylene propylene diene monomer rubbers.
Dow Fundamentals Summary
How do Dow's earnings and revenue compare to its market cap?
Is DOW undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6
Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for DOW?
Other financial metrics that can be useful for relative valuation.
The above table shows the n/a ratio for DOW. This is calculated by dividing DOW's market cap by their current
preferred multiple.
What is DOW's n/a Ratio?
n/a Ratio
0x
n/a
n/a
Market Cap
US$40.23b
DOW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Price-To-Earnings vs Industry: DOW is good value based on its Price-To-Earnings Ratio (6.1x) compared to the US Chemicals industry average (17x)
Price to Earnings Ratio vs Fair Ratio
What is DOW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
DOW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio
6.1x
Fair PE Ratio
13.3x
Price-To-Earnings vs Fair Ratio: DOW is good value based on its Price-To-Earnings Ratio (6.1x) compared to the estimated Fair Price-To-Earnings Ratio (13.3x).
Share Price vs Fair Value
What is the Fair Price of DOW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: DOW ($56.02) is trading below our estimate of fair value ($104.79)
Significantly Below Fair Value: DOW is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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Future Growth
How is Dow forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
Future Growth Score
1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
-10.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DOW's earnings are forecast to decline over the next 3 years (-10.7% per year).
Earnings vs Market: DOW's earnings are forecast to decline over the next 3 years (-10.7% per year).
High Growth Earnings: DOW's earnings are forecast to decline over the next 3 years.
Revenue vs Market: DOW's revenue is expected to decline over the next 3 years (-2.6% per year).
High Growth Revenue: DOW's revenue is forecast to decline over the next 3 years (-2.6% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DOW's Return on Equity is forecast to be high in 3 years time (23.3%)
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Past Performance
How has Dow performed over the past 5 years?
Past Performance Score
6/6
Past Performance Score 6/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
54.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DOW has high quality earnings.
Growing Profit Margin: DOW's current net profit margins (11%) are higher than last year (8.8%).
Past Earnings Growth Analysis
Earnings Trend: DOW has become profitable over the past 5 years, growing earnings by 54.3% per year.
Accelerating Growth: DOW's earnings growth over the past year (62%) exceeds its 5-year average (54.3% per year).
Earnings vs Industry: DOW earnings growth over the past year (62%) exceeded the Chemicals industry 20.9%.
Return on Equity
High ROE: DOW's Return on Equity (34.3%) is considered high.
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Financial Health
How is Dow's financial position?
Financial Health Score
3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: DOW's short term assets ($21.8B) exceed its short term liabilities ($13.3B).
Long Term Liabilities: DOW's short term assets ($21.8B) do not cover its long term liabilities ($29.3B).
Debt to Equity History and Analysis
Debt Level: DOW's net debt to equity ratio (52.2%) is considered high.
Reducing Debt: Insufficient data to determine if DOW's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: DOW's debt is well covered by operating cash flow (67.9%).
Interest Coverage: DOW's interest payments on its debt are well covered by EBIT (15x coverage).
Balance Sheet
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Dividend
What is Dow current dividend yield, its reliability and sustainability?
Dividend Score
4/6
Dividend Score 4/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
5.00%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: DOW's dividend (5%) is higher than the bottom 25% of dividend payers in the US market (1.48%).
High Dividend: DOW's dividend (5%) is in the top 25% of dividend payers in the US market (3.99%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, DOW has been paying a dividend for less than 10 years.
Growing Dividend: DOW has only been paying a dividend for 3 years, and since then payments have not increased.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (31.1%), DOW's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (32.2%), DOW's dividend payments are well covered by cash flows.
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Management
How experienced are the management team and are they aligned to shareholders interests?
3.7yrs
Average management tenure
CEO
Jim Fitterling (60 yo)
4yrs
Tenure
US$24,858,892
Compensation
Mr. James R. Fitterling, also known as Jim, serves as an Independent Director at 3M Company since February 5, 2021. He has been Chief Executive Officer of The Dow Chemical Company since July 1, 2018 and ha...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD24.86M) is above average for companies of similar size in the US market ($USD12.88M).
Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: DOW's management team is considered experienced (3.7 years average tenure).
Board Members
Experienced Board: DOW's board of directors are considered experienced (3.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: DOW insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Dow Inc.'s employee growth, exchange listings and data sources
All financial data provided by Standard & Poor's Capital IQ.
Data
Last Updated (UTC time)
Company Analysis
2022/08/18 00:00
End of Day Share Price
2022/08/18 00:00
Earnings
2022/06/30
Annual Earnings
2021/12/31
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.