Market Cap
US$28.7b
Last Updated
2020/05/29 05:55 UTC
Data Sources
Company Financials +
Executive Summary
Dow Inc. provides various materials science solutions for consumer care, infrastructure, and packaging markets in the United States, Canada, Europe, the Middle East, Africa, India, the Asia Pacific, and Latin America.
Rewards
Risk Analysis
Dividend of 7.23% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Moderate growth potential with imperfect balance sheet.
Similar Companies
Share Price & News
How has Dow's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: DOW's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
7.2%
DOW
4.8%
US Chemicals
2.7%
US Market
1 Year Return
-17.2%
DOW
-1.7%
US Chemicals
9.1%
US Market
Return vs Industry: DOW underperformed the US Chemicals industry which returned -1.7% over the past year.
Return vs Market: DOW underperformed the US Market which returned 9.1% over the past year.
Shareholder returns
| DOW | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.2% | 4.8% | 2.7% |
| 30 Day | 3.3% | 6.8% | 4.5% |
| 90 Day | -4.2% | 4.4% | 2.3% |
| 1 Year | -11.8%-17.2% | 4.2%-1.7% | 11.5%9.1% |
| 3 Year | n/a | 12.6%-8.2% | 30.6%22.0% |
| 5 Year | n/a | 27.0%-1.2% | 57.2%39.5% |
Price Volatility Vs. Market
How volatile is Dow's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Why You Should Leave Dow Inc.'s (NYSE:DOW) Upcoming Dividend On The Shelf3 weeks ago | Simply Wall St
Are Investors Undervaluing Dow Inc. (NYSE:DOW) By 35%?1 month ago | Simply Wall St
Something To Consider Before Buying Dow Inc. (NYSE:DOW) For The 8.9% DividendValuation
Is Dow undervalued compared to its fair value and its price relative to the market?
18.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DOW ($38.71) is trading below our estimate of fair value ($47.72)
Significantly Below Fair Value: DOW is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: DOW is unprofitable, so we can't compare its PE Ratio to the Chemicals industry average.
PE vs Market: DOW is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate DOW's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: DOW is overvalued based on its PB Ratio (2.2x) compared to the US Chemicals industry average (1.9x).
Next Steps
Future Growth
How is Dow forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
30.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DOW is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).
Earnings vs Market: DOW is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: DOW's is expected to become profitable in the next 3 years.
Revenue vs Market: DOW's revenue (2.9% per year) is forecast to grow slower than the US market (8.8% per year).
High Growth Revenue: DOW's revenue (2.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DOW's Return on Equity is forecast to be low in 3 years time (14.3%).
Next Steps
Past Performance
How has Dow performed over the past 5 years?
-51.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DOW is currently unprofitable.
Growing Profit Margin: DOW is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: DOW is unprofitable, and losses have increased over the past 5 years at a rate of -51.7% per year.
Accelerating Growth: Unable to compare DOW's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: DOW is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-11.3%).
Return on Equity
High ROE: DOW has a negative Return on Equity (-12%), as it is currently unprofitable.
Next Steps
Financial Health
How is Dow's financial position?
Financial Position Analysis
Short Term Liabilities: DOW's short term assets ($18.1B) exceed its short term liabilities ($11.1B).
Long Term Liabilities: DOW's short term assets ($18.1B) do not cover its long term liabilities ($36.1B).
Debt to Equity History and Analysis
Debt Level: DOW's debt to equity ratio (130.9%) 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 (32.8%).
Interest Coverage: DOW is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is Dow's current dividend yield, its reliability and sustainability?
7.23%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DOW's dividend (7.23%) is higher than the bottom 25% of dividend payers in the US market (1.69%).
High Dividend: DOW's dividend (7.23%) is in the top 25% of dividend payers in the US market (4.48%)
Stability and Growth of Payments
Stable Dividend: Too early to tell whether DOW's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if DOW's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: DOW is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: DOW's dividends in 3 years are not forecast to be well covered by earnings (109.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.1yrs
Average management tenure
CEO
Jim Fitterling (57yo)
1.75yrs
Tenure
US$15,878,639
Compensation
Mr. James R. Fitterling, also known as Jim, has been Chief Executive Officer of The Dow Chemical Company since July 1, 2018 and serves as its Director. He has been Chairman of Dow Inc since April 9, 2020. ...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD15.88M) is above average for companies of similar size in the US market ($USD11.65M).
Compensation vs Earnings: Jim's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Chairman | 1.75yrs | US$15.88m | 0.021% $6.0m | |
| President & CFO | 1.75yrs | US$6.23m | 0.011% $3.2m | |
| Senior Vice President of Operations | 0.25yr | US$4.16m | 0.0059% $1.7m | |
| Senior VP of R&D and Chief Technology Officer | 1.08yrs | US$5.11m | 0.0098% $2.8m | |
| General Counsel & Corporate Secretary | 1.08yrs | US$4.53m | 0.00073% $209.3k | |
| Corporate Vice President | no data | no data | no data | |
| Vice President of Investor Relations | 0.33yr | no data | no data | |
| Senior Vice President of Corporate Development | no data | no data | no data | |
| Chief Human Resources Officer & Chief Inclusion Officer | 1.08yrs | no data | 0.00060% $172.0k | |
| President of Feedstocks & Energy | 4.25yrs | no data | no data |
1.1yrs
Average Tenure
51yo
Average Age
Experienced Management: DOW's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Chairman | 1.75yrs | US$15.88m | 0.021% $6.0m | |
| Lead Independent Director | 0.083yr | US$590.53k | 0.0092% $2.6m | |
| Independent Director | 2.33yrs | US$308.03k | 0.00023% $65.9k | |
| Independent Director | 5.33yrs | US$308.03k | 0.0013% $384.2k | |
| Independent Director | 2.33yrs | US$308.03k | 0.0035% $1.0m | |
| Independent Director | 27.33yrs | US$328.03k | 0.0023% $671.0k | |
| Independent Director | 0.75yr | US$185.81k | 0.00018% $51.6k | |
| Independent Director | 15.33yrs | US$343.84k | 0.0010% $286.7k | |
| Independent Director | 7.33yrs | US$308.03k | 0.00079% $226.5k | |
| Independent Director | 2.33yrs | US$308.03k | 0.00010% $28.7k |
2.3yrs
Average Tenure
61.5yo
Average Age
Experienced Board: DOW's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Dow Inc.
- Ticker: DOW
- Exchange: NYSE
- Founded: 2018
- Industry: Commodity Chemicals
- Sector: Materials
- Market Cap: US$28.674b
- Shares outstanding: 740.73m
- Website: https://www.dow.com
Number of Employees
Location
- Dow Inc.
- 2211 H.H. Dow Way
- Midland
- Michigan
- 48674
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DOW | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Apr 2019 |
| DOW1 * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Apr 2019 |
| 2OY | BST (Boerse-Stuttgart) | Yes | Common Stock | DE | EUR | Apr 2019 |
| DOW | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Apr 2019 |
| 0A1S | LSE (London Stock Exchange) | Yes | Common Stock | GB | EUR | Apr 2019 |
| 2OY | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 2019 |
Biography
Dow Inc. provides various materials science solutions for consumer care, infrastructure, and packaging markets 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 and Coatings segments. The Packaging & Specialty Plastics segment provides ethylene, and propylene and aromatic products; and polyethylene, polyolefin elastomers, ethylene vinyl acetate, and ethylene propylene diene monomer rubbers. The Industrial Intermediates & Infrastructure segment offers ethylene oxides, propylene oxide, propylene glycol and polyether polyols, aromatic isocyanates and polyurethane systems, coatings, adhesives, sealants, elastomers, and composites. This segment also provides caustic soda, and ethylene dichloride and vinyl chloride monomers; and cellulose ethers, redispersible latex powders, silicones, and acrylic emulsions. The Performance Materials and Coatings segment provides architectural paints and coatings, and industrial coatings that are used in maintenance and protective industries, wood, metal packaging, traffic markings, thermal paper, and leather; performance monomers and silicones; standalone silicones; and home and personal care solutions. It also engages in property and casualty insurance, as well as reinsurance business. Dow Inc. was incorporated in 2018 and is headquartered in Midland, Michigan.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/29 05:55 |
| End of Day Share Price | 2020/05/28 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.