NYSE:DOW

Stock Analysis Report

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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


Snowflake Analysis

Moderate growth potential second-rate dividend payer.


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 +/- 6% a week.

Volatility Over Time: DOW's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-5.2%

DOW

0.6%

US Chemicals

1.3%

US Market


1 Year Return

-0.3%

DOW

16.4%

US Chemicals

21.0%

US Market

Return vs Industry: DOW underperformed the US Chemicals industry which returned 16.3% over the past year.

Return vs Market: DOW underperformed the US Market which returned 20.9% over the past year.


Shareholder returns

DOWIndustryMarket
7 Day-5.2%0.6%1.3%
30 Day16.5%14.5%12.1%
90 Day12.1%9.4%4.8%
1 Year6.1%-0.3%19.1%16.4%23.7%21.0%
3 Yearn/a23.2%0.3%46.6%36.8%
5 Yearn/a79.3%37.3%94.6%73.2%

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

Valuation

Is Dow undervalued compared to its fair value and its price relative to the market?

16.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DOW ($53.01) is trading below our estimate of fair value ($63.7)

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 US 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 (3.2x) compared to the US Chemicals industry average (2.2x).


Next Steps

Future Growth

How is Dow forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

41.1%

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 (4.2% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: DOW's revenue (4.2% 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 (19.4%).


Next Steps

Past Performance

How has Dow performed over the past 5 years?

-58.8%

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 58.8% 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 (-16.3%).


Return on Equity

High ROE: DOW has a negative Return on Equity (-17.55%), 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 ($17.8B) exceed its short term liabilities ($10.2B).

Long Term Liabilities: DOW's short term assets ($17.8B) do not cover its long term liabilities ($36.8B).


Debt to Equity History and Analysis

Debt Level: DOW's debt to equity ratio (132.7%) 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 (38.1%).

Interest Coverage: DOW is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Dow current dividend yield, its reliability and sustainability?

5.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DOW's dividend (5.28%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: DOW's dividend (5.28%) is in the top 25% of dividend payers in the US market (4.08%)


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: DOW is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: DOW's dividends in 3 years are forecast to be covered by earnings (85.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Jim Fitterling (58 yo)

2.25yrs

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 ($USD15.88M) is above average for companies of similar size in the US market ($USD10.83M).

Compensation vs Earnings: Jim's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
James Fitterling
CEO & Chairman2.25yrsUS$15.88m0.023%
$ 9.0m
Howard Ungerleider
President & CFO2.25yrsUS$6.23m0.012%
$ 4.5m
Attiganal Sreeram
Senior VP of R&D and Chief Technology Officer1.58yrsUS$5.11m0.010%
$ 4.0m
Amy Wilson
General Counsel & Corporate Secretary1.58yrsUS$4.53m0.00073%
$ 287.0k
John Sampson
Senior Vice President of Operations0.083yrno datano data
Melanie Kalmar
Corporate Vice Presidentno datano datano data
Colleen Kay
Vice President of Investor Relations0.83yrno datano data
Torsten Kraef
Senior Vice President of Corporate Developmentno datano datano data
Karen Carter
Chief Human Resources Officer & Chief Inclusion Officer1.58yrsno data0.00059%
$ 232.0k
Jack Broodo
President of Feedstocks & Energy4.75yrsno datano data
Neil Carr
President of Europeno datano datano data
Diego Donoso
President of Packaging & Specialty Plasticsno datano data0.0024%
$ 951.6k

1.6yrs

Average Tenure

52yo

Average Age

Experienced Management: DOW's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James Fitterling
CEO & Chairman2.25yrsUS$15.88m0.023%
$ 9.0m
Jeffrey Fettig
Lead Independent Director0.58yrUS$590.53k0.0092%
$ 3.6m
Daniel Yohannes
Independent Director2.83yrsUS$308.03k0.00023%
$ 90.4k
Richard Davis
Independent Director5.83yrsUS$308.03k0.0013%
$ 526.9k
Wesley Bush
Independent Director2.83yrsUS$308.03k0.0035%
$ 1.4m
Jacqueline Barton
Independent Director27.83yrsUS$328.03k0.0023%
$ 920.1k
Samuel Allen
Independent Director1.25yrsUS$185.81k0.00018%
$ 70.8k
James Bell
Independent Director15.83yrsUS$343.84k0.00099%
$ 389.3k
Gaurdie Banister
Independent Director0.25yrno data0.00048%
$ 188.7k
Ajaypal Banga
Independent Director7.83yrsUS$308.03k0.00079%
$ 310.6k
Jacqueline C. Hinman
Independent Director2.83yrsUS$308.03k0.00010%
$ 39.3k
Jill Wyant
Independent Director0.58yrno datano data

2.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: DOW's board of directors are not considered experienced ( 2.8 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 only sold shares 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$39.320b
  • Shares outstanding: 741.75m
  • Website: https://www.dow.com

Number of Employees


Location

  • Dow Inc.
  • 2211 H.H. Dow Way
  • Midland
  • Michigan
  • 48674
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DOWNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2019
DOW1 *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 2019
2OYBST (Boerse-Stuttgart)YesCommon StockDEEURApr 2019
DOWWBAG (Wiener Boerse AG)YesCommon StockATEURApr 2019
0A1SLSE (London Stock Exchange)YesCommon StockGBEURApr 2019
2OYDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2019
DOWBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDApr 2019
D1OW34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COM NPVBRBRLOct 2020

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 00:22
End of Day Share Price2020/11/30 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.