NYSE:DOW

Stock Analysis Report

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.


Snowflake Analysis

Reasonable 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-16.3%

DOW

-13.1%

US Chemicals

-11.2%

US Market


1 Year Return

n/a

DOW

-17.5%

US Chemicals

4.1%

US Market

Return vs Industry: Insufficient data to determine how DOW performed against the US Chemicals industry.

Return vs Market: Insufficient data to determine how DOW performed against the US Market.


Shareholder returns

DOWIndustryMarket
7 Day-16.3%-13.1%-11.2%
30 Day-16.6%-11.0%-9.5%
90 Day-24.3%-13.1%-5.4%
1 Yearn/a-5.8%-17.5%6.2%4.1%
3 Yearn/a10.9%-10.5%30.3%21.9%
5 Yearn/a22.3%-4.2%55.0%38.0%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DOW ($40.41) is trading below our estimate of fair value ($89.7)

Significantly Below Fair Value: DOW is trading below fair value by more than 20%.


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 (1.8x).


Next Steps

Future Growth

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

39.6%

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 (1.7%).

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 (2.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: DOW's revenue (2.3% 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 (22.5%)


Next Steps

Past Performance

How has Dow performed over the past 5 years?

-44.7%

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 -44.7% 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 (-15.9%).


Return on Equity

High ROE: DOW has a negative Return on Equity (-12.18%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dow's financial position?


Financial Position Analysis

Short Term Liabilities: DOW's short term assets ($16.8B) exceed its short term liabilities ($10.7B).

Long Term Liabilities: DOW's short term assets ($16.8B) do not cover its long term liabilities ($35.8B).


Debt to Equity History and Analysis

Debt Level: DOW's debt to equity ratio (119.8%) is considered high.

Reducing Debt: Insufficient data to determine if DOW's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: DOW has a high level of physical assets or inventory.

Debt Coverage by Assets: DOW's debt is not covered by short term assets (assets are 1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DOW has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: DOW has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

6.93%

Current Dividend Yield


Dividend Yield vs Market

company6.9%marketbottom25%1.6%markettop25%4.1%industryaverage2.6%forecastin3Years7.3%

Current dividend yield vs market & industry

Notable Dividend: DOW's dividend (6.93%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: DOW's dividend (6.93%) is in the top 25% of dividend payers in the US market (4.13%)


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 forecast to be covered by earnings (63% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Jim Fitterling (57yo)

1.5yrs

Tenure

US$8,471,338

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 serves as Director of Dow Inc. since August 30, 20 ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD8.47M) is about average for companies of similar size in the US market ($USD10.84M).

Compensation vs Earnings: Insufficient data to compare Jim's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
James Fitterling
CEO & Director1.5yrsUS$8.47m0.021% $6.3m
Howard Ungerleider
President & CFO1.5yrsUS$11.99m0.017% $5.0m
Peter Holicki
Senior Vice President of Operations0yrsUS$3.07m0.0082% $2.5m
Attiganal Sreeram
Senior VP of R&D and Chief Technology Officer0.8yrsUS$4.48m0.011% $3.3m
Amy Wilson
General Counsel & Corporate Secretary0.8yrsUS$3.79m0.00082% $245.8k
Melanie Kalmar
Corporate Vice President0yrsno datano data
Neal Sheorey
Vice President of Investor Relations0yrsno datano data
Torsten Kraef
Senior Vice President of Corporate Development0yrsno datano data
Karen Carter
Chief Human Resources Officer & Chief Inclusion Officer0.8yrsno data0.00069% $206.8k
Jack Broodo
President of Feedstocks & Energy4yrsno datano data

1.2yrs

Average Tenure

51yo

Average Age

Experienced Management: DOW's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James Fitterling
CEO & Director1.5yrsUS$8.47m0.021% $6.3m
Jeffrey Fettig
Non-Executive Chairman0.8yrsno data0.0061% $1.8m
Ruth Shaw
Director0.8yrsno data0.0020% $608.4k
Daniel Yohannes
Director0.8yrsno data0.00023% $68.9k
Richard Davis
Director0.8yrsno data0.0013% $401.6k
Wesley Bush
Director0.8yrsno data0.00076% $227.8k
Jacqueline Barton
Director0.8yrsno data0.0023% $701.3k
James Bell
Director0.9yrsno data0.00099% $296.7k
Ajaypal Banga
Director0.8yrsno data0.00079% $236.8k
Jacqueline C. Hinman
Director0.8yrsno data0.00010% $30.0k

0.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: DOW's board of directors are not considered experienced ( 0.8 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 bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: DOW only recently listed within the past 12 months, with total shares outstanding growing by -0.6% 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$29.971b
  • Shares outstanding: 741.68m
  • 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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/29 02:49
End of Day Share Price2020/02/28 00:00
Earnings2019/12/31
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.