Dow Inc.
DOW
Plastic Materials, Synth Resins & Nonvulcan Elastomers
Mkt Cap
$40.81BPE
34.07Debt
$16.29BCash
$3.753BEV
$53.35BFCF
$2.772BP/E Ratio
34.07Debt
$16.29BCash
$3.753BEV
$53.35BFCF
$2.772BCharts data: {"Earnings":[{"time":"2016-12-30","value":3978000000},{"time":"2017-12-30","value":465000000},{"time":"2018-12-30","value":4641000000},{"time":"2019-12-30","value":-1359000000},{"time":"2020-12-30","value":1225000000},{"time":"2021-12-30","value":6311000000},{"time":"2022-12-30","value":4582000000},{"time":"2023-12-30","value":589000000}],"Sales":[{"time":"2016-12-30","value":36264000000},{"time":"2017-12-30","value":43730000000},{"time":"2018-12-30","value":49604000000},{"time":"2019-12-30","value":42951000000},{"time":"2020-12-30","value":38542000000},{"time":"2021-12-30","value":54968000000},{"time":"2022-12-30","value":56902000000},{"time":"2023-12-30","value":44622000000}],"Net Margins":[{"time":"2016-12-30","value":0.10969556585043018},{"time":"2017-12-30","value":0.010633432426252},{"time":"2018-12-30","value":0.09356100314490767},{"time":"2019-12-30","value":-0.03164070685199413},{"time":"2020-12-30","value":0.031783508899382494},{"time":"2021-12-30","value":0.11481225440256149},{"time":"2022-12-30","value":0.08052441038979298},{"time":"2023-12-30","value":0.013199766931110215}],"Assets":[{"time":"2017-12-30","value":85852000000},{"time":"2018-12-30","value":77378000000},{"time":"2019-12-30","value":60524000000},{"time":"2020-12-30","value":61470000000},{"time":"2021-12-30","value":62990000000},{"time":"2022-12-30","value":60603000000},{"time":"2023-12-30","value":57967000000}],"Stockholders Equity":[{"time":"2016-12-30","value":27229000000},{"time":"2017-12-30","value":32701000000},{"time":"2018-12-30","value":27969000000},{"time":"2019-12-30","value":14094000000},{"time":"2020-12-30","value":13005000000},{"time":"2021-12-30","value":18739000000},{"time":"2022-12-30","value":21247000000},{"time":"2023-12-30","value":19108000000}],"ROE":[{"time":"2016-12-30","value":0.14609423776121047},{"time":"2017-12-30","value":0.014219748631540319},{"time":"2018-12-30","value":0.1659337123243591},{"time":"2019-12-30","value":-0.09642401021711366},{"time":"2020-12-30","value":0.09419454056132257},{"time":"2021-12-30","value":0.3367842467580981},{"time":"2022-12-30","value":0.21565397467877817},{"time":"2023-12-30","value":0.03082478543018631}],"ROA":[{"time":"2017-12-30","value":0.0027605646927270186},{"time":"2018-12-30","value":0.04845046395616325},{"time":"2019-12-30","value":-0.020603396999537373},{"time":"2020-12-30","value":0.03369123149503823},{"time":"2021-12-30","value":0.12930623908556912},{"time":"2022-12-30","value":0.10049007474877482},{"time":"2023-12-30","value":0.011316783687270343}]}
Dow Inc., through its subsidiaries, engages in the provision of various materials science solutions for packaging, infrastructure, mobility, and consumer applications 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 & Coatings segments. The Packaging & Specialty Plastics segment provides ethylene, and propylene and aromatics products; and polyethylene, polyolefin elastomers, ethylene vinyl acetate, and ethylene propylene diene monomer rubbers for mobility and transportation, consumer, wire and cable, and construction end-markets. The Industrial Intermediates & Infrastructure segment offers purified ethylene and propylene oxides, ethylene and ethanol amines, 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, 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; and silicon metal, siloxanes, and intermediates used as key materials in manufacturing differentiated downstream silicone products. 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.
DCF
Discounted Cash Flow Valuation of Dow Inc.
Value
Growth
%
%
Discount
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%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $2.772B | $2.919B | $3.072B | $3.232B | $3.4B | $3.576B | $3.759B | $3.95B | $4.15B | $4.359B | $4.577B | $45.77B |
| DCF | $2.538B | $2.323B | $2.125B | $1.944B | $1.778B | $1.625B | $1.485B | $1.357B | $1.239B | $1.131B | $11.31B | |
| Value | $28.86B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 5%
Earnings Stability -46%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 11% | 1.1% | 9.4% | -3.2% | 3.2% | 11% | 8.1% | 1.3% | 2.8% |
| ROA | - | 0.28% | 4.8% | -2.1% | 3.4% | 13% | 10% | 1.1% | 2.1% |
| ROE | 15% | 1.4% | 17% | -9.6% | 9.4% | 34% | 22% | 3.1% | 6.3% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +5.04%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.05%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +5.04%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +0.78%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +12.45%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +1.44%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | -2.75 | 9.22 | 4.28 | 3.48 | 2.65 | 2.72 | 5.29 | 5.88 | |
| Debt Equity | - | 0.65 | 0.71 | 1.21 | 1.34 | 0.79 | 0.73 | 0.79 | 0.86 | |
| MIN | ||||||||||
| Graham Stability | - | - | - | -45% | 98% | 100% | 100% | 15% | -45% | |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 5.88.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.72.
What is the Graham’s Stability?
Graham’s Stability measure stands at -0.45.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 3% | -2.1% | 5% | -22% | -3.2% |
| Net Income | -24% | -34% | -22% | -87% | -62% |
| Stockholders Equity | -4.9% | -7.3% | 14% | -10% | 2.1% |
| FCF | - | 5.6% | -17% | -50% | -29% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is -2.09%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -3.23%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -33.82%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -61.73%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is -7.34%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +2.1%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +5.6%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -29.1%.