NYSE:DOW

Stock Analysis Report

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Market Cap

US$45.9b

Last Updated

2021/08/01 22:32 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


Snowflake Analysis

Good value with proven track record and pays a dividend.


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 less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DOW's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.4%

DOW

1.9%

US Chemicals

-0.4%

US Market


1 Year Return

51.4%

DOW

35.3%

US Chemicals

35.9%

US Market

Return vs Industry: DOW exceeded the US Chemicals industry which returned 35.3% over the past year.

Return vs Market: DOW exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

DOWIndustryMarket
7 Day3.4%1.9%-0.4%
30 Day-2.1%0.4%-0.3%
90 Day-3.7%-1.4%3.1%
1 Year59.0%51.4%37.9%35.3%38.0%35.9%
3 Yearn/a42.2%21.3%62.9%52.7%
5 Yearn/a98.4%59.7%121.3%96.9%

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

Valuation

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

39.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DOW ($62.16) is trading below our estimate of fair value ($103.24)

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 (11.3x) compared to the US Chemicals industry average (25x).

PE vs Market: DOW is good value based on its PE Ratio (11.3x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: DOW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DOW's PB Ratio (3x) is in line with the US Chemicals industry average.


Future Growth

How is Dow forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-14.5%

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 (-14.5% per year).

Earnings vs Market: DOW's earnings are forecast to decline over the next 3 years (-14.5% 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 (-1.7% per year).

High Growth Revenue: DOW's revenue is forecast to decline over the next 3 years (-1.7% 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 (22.1%)


Past Performance

How has Dow performed over the past 5 years?

5.2%

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 grown by 5.2% 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 (28.2%).


Return on Equity

High ROE: DOW's Return on Equity (25.9%) is considered high.


Financial Health

How is Dow's financial position?


Financial Position Analysis

Short Term Liabilities: DOW's short term assets ($20.4B) exceed its short term liabilities ($12.3B).

Long Term Liabilities: DOW's short term assets ($20.4B) do not cover its long term liabilities ($33.3B).


Debt to Equity History and Analysis

Debt Level: DOW's debt to equity ratio (94.8%) 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 (33.4%).

Interest Coverage: DOW's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet


Dividend

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

4.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DOW's dividend (4.5%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: DOW's dividend (4.5%) is in the top 25% of dividend payers in the US market (3.55%)


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 reasonable payout ratio (51%), DOW's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DOW's dividends in 3 years are forecast to be covered by earnings (50.7% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Jim Fitterling (59 yo)

2.92yrs

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 ($USD22.21M) is above average for companies of similar size in the US market ($USD11.20M).

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 (2.3 years average tenure).


Board Members

Experienced Board: DOW's board of directors are not considered experienced ( 1.3 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: 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$45.908b
  • Shares outstanding: 738.54m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:32
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.