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DuPont de Nemours (DD)
NYSE:DD
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DuPont de Nemours
(NYSE:DD)70Outperform
Positive Factors
Earnings
DuPont de Nemours, Inc. reported a strong DecQ24 Operating EBITDA of $807M, surpassing expectations.
Market Growth
Robust Semi and IC volume growth, solid growth in Water and a recovery in HC businesses all sets DD on firm footing for a solid year ahead.
Negative Factors
Market Concerns
Fears have arisen that a slowdown in autos/consumer electronics and FX headwinds could drive a miss and/or hurt the guide.
DuPont de Nemours (DD) vs. S&P 500 (SPY)
Market Cap
$32.48B
Dividend Yield1.96%
Average Volume (3M)2.55M
Price to Earnings (P/E)46.5
Beta (1Y)0.80
Revenue Growth2.64%
EPS Growth80.37%
CountryUS
Employees24,000
SectorBasic Materials
Sector Strength56
IndustryChemicals
Share Statistics
EPS (TTM)1.67
Shares Outstanding418,049,130
10 Day Avg. Volume2,560,240
30 Day Avg. Volume2,548,887
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)N/A
Price to Sales (P/S)3.04
Price to Cash Flow (P/CF)16.70
P/FCF Ratio28.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$98.33Price Target Upside23.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
DuPont de Nemours Business Overview & Revenue Model
Company DescriptionDelaware-based DuPont de Nemours, Inc., which is commonly known as DuPont, is a multi-industry specialty solutions company and provides specialty materials, chemicals, and agricultural products in the United States, Canada, Asia Pacific, Latin America, Europe, the Middle East, and Africa. The company was formed by the merger of Dow Chemical and E. I. du Pont de Nemours and Company on August 31, 2017. It operates through the following segments: Electronics & Imaging; Nutrition & Biosciences; Transportation & Industrial; Safety & Construction, and Non-Core.
How the Company Makes MoneyDuPont makes money through the sale of its diverse portfolio of products and solutions across various industries. The company's revenue model is primarily based on the production and sale of specialty chemicals and advanced materials, which are integral to manufacturing processes in electronics, automotive, and construction industries. Key revenue streams include the Electronics & Industrial segment, which supplies essential materials for semiconductors and other electronics; and the Water & Protection segment, which provides filtration technologies and protective materials. DuPont also engages in strategic partnerships and collaborations that enhance its product offerings and market reach. Additionally, the company invests heavily in research and development to innovate and sustain its competitive edge in the market.
DuPont de Nemours Financial Statement Overview
Summary
DuPont exhibits positive trends in cash flow and equity management, with significant improvements in net profitability. However, the negative EBIT and EBITDA margins in 2024 pose operational risks. The company needs to address revenue stability and operational efficiency to enhance its financial strength further.Income Statement
DuPont's revenue has seen fluctuations with a recent decline of 5% from 2022 to 2023, but a slight recovery of 2.6% in 2024. The gross profit margin for 2024 is notably high at 100% due to matching revenue and gross profit figures, indicating an accounting anomaly. Net profit margin improved significantly to 6.3% in 2024 from 3.5% in 2023, showing enhanced profitability. However, the negative EBIT and EBITDA margins in 2024 point to operational challenges.65
Positive
Balance Sheet
DuPont maintains a strong equity base with an equity ratio of 63.7% in 2024, indicating stability. The debt-to-equity ratio decreased to 0.31 in 2024 from 0.34 in 2023, reflecting effective debt management. However, the declining total assets over the years highlight potential concerns about asset utilization or strategic divestments.70
Positive
Cash Flow
Operating cash flow improved to $2.32 billion in 2024, a positive indicator of operational efficiency. The free cash flow grew by 10.8% from 2023 to 2024, supporting liquidity. The free cash flow to net income ratio is robust at 2.24, suggesting strong cash generation relative to accounting profit.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 12.39B | 12.07B | 13.02B | 12.57B | 20.40B | Gross Profit |
| 4.51B | 4.23B | 4.62B | 4.59B | 6.88B | EBIT |
| -40.00M | 1.71B | 2.29B | 2.10B | 2.53B | EBITDA |
| 2.75B | 2.05B | 3.19B | 3.01B | -201.00M | Net Income Common Stockholders |
| 778.00M | 423.00M | 1.06B | 1.18B | -2.87B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.86B | 2.39B | 4.96B | 2.01B | 2.54B | Total Assets |
| 36.64B | 38.55B | 41.40B | 45.71B | 70.90B | Total Debt |
| 7.17B | 8.29B | 8.07B | 10.78B | 21.81B | Net Debt |
| 5.32B | 5.48B | 4.41B | 8.77B | 19.27B | Total Liabilities |
| 12.84B | 13.83B | 14.45B | 18.66B | 31.83B | Stockholders Equity |
| 23.35B | 24.28B | 26.50B | 26.43B | 38.50B |
| Cash Flow | Free Cash Flow | |||
| 1.74B | 1.57B | -155.00M | -956.00M | 2.83B | Operating Cash Flow |
| 2.32B | 1.92B | 588.00M | 2.28B | 4.09B | Investing Cash Flow |
| -920.00M | 139.00M | 8.92B | -2.40B | -202.00M | Financing Cash Flow |
| -1.85B | -2.99B | -7.67B | -6.51B | 3.24B |
DuPont de Nemours Technical Analysis
Negative
79.48
Price Trends
77.67
Positive
80.18
Negative
80.16
Negative
Market Momentum
0.48
Positive
49.75
Neutral
17.22
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DD, the sentiment is Negative. The current price of 79.48 is below the 20-day moving average (MA) of 80.27, above the 50-day MA of 77.67, and below the 200-day MA of 80.16, indicating a neutral trend. The MACD of 0.48 indicates Positive momentum. The RSI at 49.75 is Neutral, neither overbought nor oversold. The STOCH value of 17.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DD.
DuPont de Nemours Risk Analysis
DuPont de Nemours disclosed 24 risk factors in its most recent earnings report. DuPont de Nemours reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DuPont de Nemours Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $10.72B | 12.13 | 15.66% | 3.45% | 1.91% | 2.94% | |
70 Outperform | $32.48B | 46.48 | 3.33% | 1.96% | 2.64% | 80.37% | |
67 Neutral | $67.93B | 17.73 | 22.98% | 2.32% | -3.12% | 64.53% | |
65 Neutral | $24.80B | 18.32 | 20.29% | 2.46% | -4.59% | 11.09% | |
58 Neutral | $25.07B | 22.75 | 6.14% | 7.86% | -3.72% | 91.57% | |
56 Neutral | $23.74B | 17.67 | 10.91% | 7.17% | -1.46% | -36.00% | |
47 Neutral | $2.64B | -4.00 | -31.55% | 3.33% | 2.93% | -29.90% |
* Basic Materials Sector Average
Performance Comparison
DD
DuPont de Nemours
79.48
10.51
15.24%
APD
Air Products and Chemicals
311.58
74.78
31.58%
EMN
Eastman Chemical
97.73
13.49
16.01%
LYB
LyondellBasell
76.21
-19.45
-20.33%
PPG
PPG Industries
114.09
-23.01
-16.78%
DOW
Dow Inc
37.78
-15.79
-29.48%
DuPont de Nemours Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: 4.74% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with significant growth in key segments like Electronics and Water. However, there are notable challenges including price pressures, ongoing destocking in Kalrez, and expected headwinds in the automotive segment. The strategic spin-off of the Electronics business is positioned as a positive future move.Highlights
Strong Overall Financial Performance
Fourth quarter sales grew 7%, with operating EBITDA of $807 million increasing 13% year-over-year. Operating EBITDA margin expanded 140 basis points, and adjusted EPS grew 30% from the prior year.
Electronics and Industrial Solutions Growth
Electronics and Industrial Solutions segment saw double-digit organic sales growth, driven by semiconductor demand and AI technology applications. Organic sales growth of 10% in E&I, with a 21% increase in operating EBITDA.
Water Segment Growth
Water Solutions achieved an 11% year-over-year increase in sales, with a 4% sequential lift, driven by broad-based volume recovery.
Strategic Spin-off of Electronics Business
DuPont plans to spin off its Electronics business by November 1st, 2025, with a focus on creating a leading pure-play electronics company.
AI-Related Sales Growth
AI-related sales grew 30%, contributing over $300 million, with ongoing expectations for growth as a key driver in the Electronics segment.
Lowlights
Price Headwinds
DuPont expects a 1% price headwind in 2025 compared to 2024, balancing against inflation and absorption tailwinds.
Challenges in Automotive Segment
Automotive segment within IndustrialCo faces headwinds due to expected lower builds in Q1 2025 compared to Q4 2024.
Ongoing Destocking in Kalrez
Kalrez business has not yet returned to normal growth levels, with expectations for stabilization by mid-2025.
Currency and Pricing Impact
Anticipated currency headwinds of about 1.5% in Q1 2025 and about 1% for the full year.
Company Guidance
During the DuPont Fourth Quarter 2024 Earnings Conference Call, the company provided guidance and insights into their financial performance and future expectations. DuPont reported a 7% increase in fourth-quarter sales, with double-digit organic growth in Electronics & Industrial (E&I) and a 6% growth in Water & Treatment (W&T). Operating EBITDA rose by 13% year-over-year to $807 million, with a margin expansion of 140 basis points to 26.1%. Adjusted EPS grew by 30% to $1.13. Full-year volume growth was 2%, with the fourth quarter contributing an 8% rise. The company achieved a 17% growth in adjusted EPS, with a transaction-adjusted free cash flow conversion of 105%. For 2025, DuPont targets mid-single-digit organic sales growth, with a continued focus on operational excellence and portfolio management. They anticipate net sales of $12.8 billion to $12.9 billion, operating EBITDA of $3.325 billion to $3.375 billion, and adjusted EPS of $4.30 to $4.40 per share. The Electronics business spin-off is expected by November 1, 2025.DuPont de Nemours Corporate Events
Executive/Board Changes
DuPont Appoints Kurt B. McMaken to Board
Positive
Feb 21, 2025
On February 21, 2025, DuPont de Nemours announced the appointment of Kurt B. McMaken to its Board of Directors, effective immediately. McMaken, an independent director as per NYSE standards, will serve on the Audit and Nomination and Governance Committees. His extensive experience in finance and strategic planning, particularly in the manufacturing sector, is expected to bolster DuPont’s growth and value creation strategies.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.