Dow, Inc. (DOW) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Avantor, Inc.

Dow, Inc.

Westlake Corp.

Why is Dow, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate -20.35% of over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 1,235 MM
PRE-TAX PROFIT(Q) At USD 101 MM has Fallen at -62.73%
ROCE(HY) Lowest at -5.59%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -40.77%, its profits have fallen by -59.1%
At the current price, the company has a high dividend yield of 711.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -40.77% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Dow, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dow, Inc.

11.33%

-1.14

49.12%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.73%

EBIT Growth (5y)

-33.93%

EBIT to Interest (avg)

5.48

Debt to EBITDA (avg)

2.13

Net Debt to Equity (avg)

0.89

Sales to Capital Employed (avg)

1.25

Tax Ratio

51.99%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

75.86%

ROCE (avg)

13.16%

ROE (avg)

17.45%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.89

EV to EBIT

133.85

EV to EBITDA

13.73

EV to Capital Employed

1.49

EV to Sales

1.09

PEG Ratio

Dividend Yield

4.08%

ROCE (Latest)

1.11%

ROE (Latest)

-1.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-30What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 2,065 MM

ROCE(HY)

Lowest at -17.85%

INTEREST COVERAGE RATIO(Q)

Lowest at 318.81

RAW MATERIAL COST(Y)

Grown by 13.04% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 98.26 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.46 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.39 times

DIVIDEND PER SHARE(HY)

Lowest at USD 5.39

OPERATING PROFIT(Q)

Lowest at USD 695 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.1 %

PRE-TAX PROFIT(Q)

Lowest at USD -513 MM

NET PROFIT(Q)

Lowest at USD -658 MM

Here's what is not working for Dow, Inc.

Pre-Tax Profit

At USD -513 MM has Fallen at -711.07%

over average net sales of the previous four periods of USD -63.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -658 MM has Fallen at -600%

over average net sales of the previous four periods of USD -94 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 2,065 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Lowest at 318.81

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at USD 695 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 7.1 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -513 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -658 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 98.26 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 5.46 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.39 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at USD 5.39

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Raw Material Cost

Grown by 13.04% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales