Market Cap
US$50.9b
Last Updated
2021/05/13 23:45 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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Fair value with mediocre 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: DOW's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-1.4%
DOW
-1.3%
US Chemicals
-2.8%
US Market
1 Year Return
103.2%
DOW
67.6%
US Chemicals
49.0%
US Market
Return vs Industry: DOW exceeded the US Chemicals industry which returned 66.4% over the past year.
Return vs Market: DOW exceeded the US Market which returned 49.4% over the past year.
Shareholder returns
| DOW | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.4% | -1.3% | -2.8% |
| 30 Day | 7.5% | 5.0% | -2.6% |
| 90 Day | 17.1% | 11.8% | -1.5% |
| 1 Year | 115.0%103.2% | 71.1%67.6% | 51.5%49.0% |
| 3 Year | n/a | 46.4%24.2% | 58.2%48.3% |
| 5 Year | n/a | 110.8%69.4% | 123.8%98.9% |
Long-Term 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
Is There An Opportunity With Dow Inc.'s (NYSE:DOW) 24% Undervaluation?3 weeks ago | Simply Wall St
Looking For Steady Income For Your Dividend Portfolio? Is Dow Inc. (NYSE:DOW) A Good Fit?1 month ago | Simply Wall St
Does Dow (NYSE:DOW) Have A Healthy Balance Sheet?Valuation
Is Dow undervalued compared to its fair value and its price relative to the market?
25.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DOW ($68.08) is trading below our estimate of fair value ($91.49)
Significantly Below Fair Value: DOW is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DOW is good value based on its PE Ratio (25.7x) compared to the US Chemicals industry average (27x).
PE vs Market: DOW is poor value based on its PE Ratio (25.7x) compared to the US market (19.5x).
Price to Earnings Growth Ratio
PEG Ratio: DOW is poor value based on its PEG Ratio (5x)
Price to Book Ratio
PB vs Industry: DOW is overvalued based on its PB Ratio (3.6x) compared to the US Chemicals industry average (2.8x).
Future Growth
How is Dow forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
5.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DOW's forecast earnings growth (5.2% per year) is above the savings rate (2%).
Earnings vs Market: DOW's earnings (5.2% per year) are forecast to grow slower than the US market (14.7% per year).
High Growth Earnings: DOW's earnings are forecast to grow, but not significantly.
Revenue vs Market: DOW's revenue (1.9% per year) is forecast to grow slower than the US market (9% per year).
High Growth Revenue: DOW's revenue (1.9% 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 high in 3 years time (22.7%)
Past Performance
How has Dow performed over the past 5 years?
-15.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DOW has high quality earnings.
Growing Profit Margin: DOW became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: DOW's earnings have declined by 15.2% per year over the past 5 years.
Accelerating Growth: DOW has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: DOW has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (1.6%).
Return on Equity
High ROE: DOW's Return on Equity (14%) is considered low.
Financial Health
How is Dow's financial position?
Financial Position Analysis
Short Term Liabilities: DOW's short term assets ($19.2B) exceed its short term liabilities ($11.4B).
Long Term Liabilities: DOW's short term assets ($19.2B) do not cover its long term liabilities ($34.5B).
Debt to Equity History and Analysis
Debt Level: DOW's debt to equity ratio (112.8%) 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 (28.6%).
Interest Coverage: DOW's interest payments on its debt are well covered by EBIT (3.8x coverage).
Balance Sheet
Dividend
What is Dow current dividend yield, its reliability and sustainability?
4.11%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: DOW's dividend (4.11%) is higher than the bottom 25% of dividend payers in the US market (1.28%).
High Dividend: DOW's dividend (4.11%) is in the top 25% of dividend payers in the US market (3.48%)
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 2 years, and since then payments have not increased.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (105.7%), DOW's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DOW's dividends in 3 years are forecast to be covered by earnings (57.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.1yrs
Average management tenure
CEO
Jim Fitterling (58 yo)
2.75yrs
Tenure
US$22,211,256
Compensation
Mr. James R. Fitterling, also known as Jim, serves as an Independent Director at 3M Company since February 5, 2021. He has been Chief Executive Officer of The Dow Chemical Company since July 1, 2018 and ha...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD22.21M) is above average for companies of similar size in the US market ($USD11.15M).
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 (2.1 years average tenure).
Board Members
Experienced Board: DOW's board of directors are not considered experienced ( 1.1 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: Insufficient data to determine if 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$50.855b
- Shares outstanding: 746.99m
- Website: https://www.dow.com
Number of Employees
Location
- Dow Inc.
- 2211 H.H. Dow Way
- Midland
- Michigan
- 48674
- United States
Listings
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 La...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/13 23:45 |
| End of Day Share Price | 2021/05/13 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.