Dow Inc (DOW) AI Stock Analysis

• Market Cap: $16.53B
• Dividend Yield: 9.11%
• Average Volume (3M): 12.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: -5.25%
• EPS Growth: -208.14%
• Country: US
• Employees: 36,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.19
• Shares Outstanding: 710,767,400
• 10 Day Avg. Volume: 12,472,242
• 30 Day Avg. Volume: 12,283,116
• PEG Ratio: 0.28
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.66
• P/FCF Ratio: -187.04
• Enterprise Value/Market Cap: 1.88
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 11.06
• Enterprise Value/Ebitda: 10.43
• 1Y Price Target: $25.79
• Price Target Upside: 11.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15
• EPS Forecast (FY): -0.98
• Revenue Forecast (FY): $40.05B

• Rating: 49 Neutral
• Price Target: $22.00 ▼(-4.51% Downside)

Dow Inc's overall stock score is primarily impacted by its financial performance challenges, including declining revenue and profitability, high leverage, and cash flow constraints. Technical analysis indicates a bearish trend, while valuation is mixed with a high dividend yield but negative P/E ratio. The earnings call provides some optimism with strategic initiatives, but ongoing economic uncertainties and pricing pressures remain significant risks.

Positive Factors

Strategic Divestitures and Partnerships

Strategic divestitures and partnerships enhance Dow's financial flexibility and focus on core operations, supporting long-term growth and stability.

Cost Savings Initiatives

Cost-saving initiatives are crucial for improving operational efficiency and profitability, providing a buffer against market volatility and economic pressures.

Cash Flow Improvement

Improved cash flow from operations strengthens Dow's ability to invest in growth opportunities and manage debt, enhancing long-term financial health.

Negative Factors

Declining Revenue

Declining revenue and profitability indicate challenges in maintaining market share and pricing power, potentially impacting long-term competitive positioning.

High Leverage

High leverage can limit financial flexibility and increase risk, particularly in volatile markets, necessitating careful debt management to ensure stability.

Cash Flow Constraints

Declining free cash flow highlights challenges in cash generation, which can constrain investment in growth initiatives and debt servicing capabilities.

Dow Inc Business Overview & Revenue Model

Company Description

Dow Inc. is a leading materials science company headquartered in Midland, Michigan. It operates through three main business segments: Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings. Dow's core products include a wide range of chemical, plastic, and agricultural products that serve various industries such as packaging, transportation, construction, and consumer goods. The company focuses on innovation and sustainability, providing solutions that enhance performance and reduce environmental impact.

How the Company Makes Money

Dow generates revenue primarily through the sale of its diverse range of chemical and material products. The company operates with a revenue model based on manufacturing and distributing high-performance materials across multiple sectors. Key revenue streams include the production of polyethylene and polypropylene in the Packaging & Specialty Plastics segment, which serves the booming packaging industry. Additionally, the Industrial Intermediates & Infrastructure segment contributes significantly through the sale of chemicals and materials used in construction and automotive applications. Dow also benefits from long-term supply agreements and strategic partnerships with major companies across various industries, enhancing its market reach and stability. Factors contributing to its earnings include global demand for sustainable products, efficient manufacturing processes, and a strong focus on R&D for innovative solutions.

Dow Inc Financial Statement Overview

Summary

Dow Inc faces significant financial challenges, with declining revenue, profitability, and cash flow. The company is experiencing pressure on margins and high leverage, impacting its financial health. Strategic measures are needed to enhance operational efficiency, manage debt levels, and improve cash flow to stabilize its financial position.

Income Statement

Dow Inc's income statement shows declining revenue and profitability. The TTM data indicates a negative net profit margin of -2.77%, reflecting a challenging period with a significant net loss. Gross profit margin has decreased to 6.88% from higher levels in previous years. Revenue growth has been negative, with a decline of 2.17% in the TTM. The EBIT and EBITDA margins have also contracted, indicating pressure on operational efficiency.

Balance Sheet

The balance sheet reveals a moderate financial position with a debt-to-equity ratio of 1.12, indicating a relatively high leverage. Stockholders' equity has decreased, impacting the equity ratio. Return on equity is negative at -6.58% in the TTM, reflecting the net loss. The company needs to manage its leverage and improve profitability to strengthen its balance sheet.

Cash Flow

Cash flow analysis shows a decline in free cash flow, with a negative growth rate of -35.63% in the TTM. The operating cash flow to net income ratio is low at 0.15, indicating challenges in converting income into cash. The free cash flow to net income ratio is also negative, highlighting cash flow constraints. Improving cash generation is crucial for financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.91B	42.96B	44.62B	56.90B	54.97B	38.54B
Gross Profit	2.81B	4.46B	4.97B	7.86B	10.39B	4.81B
EBITDA	2.98B	5.25B	4.00B	9.50B	11.68B	5.54B
Net Income	-1.13B	1.12B	589.00M	4.58B	6.31B	1.23B
Balance Sheet
Total Assets	60.99B	57.31B	57.97B	60.60B	62.99B	61.47B
Cash, Cash Equivalents and Short-Term Investments	4.61B	2.57B	2.99B	3.89B	2.99B	5.10B
Total Debt	19.63B	17.64B	16.45B	16.71B	16.14B	19.04B
Total Liabilities	41.93B	39.46B	38.86B	39.36B	44.25B	48.47B
Stockholders Equity	17.54B	17.36B	18.61B	20.72B	18.16B	12.44B
Cash Flow
Free Cash Flow	-1.12B	-151.00M	2.72B	5.42B	4.68B	4.84B
Operating Cash Flow	1.56B	2.91B	5.20B	7.47B	7.01B	6.23B
Investing Cash Flow	-1.86B	-2.37B	-2.93B	-2.97B	-2.91B	-841.00M
Financing Cash Flow	1.99B	-1.17B	-3.12B	-3.36B	-6.07B	-2.76B

Dow Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOW, the sentiment is Neutral. The current price of 23.04 is below the 20-day moving average (MA) of 23.32, above the 50-day MA of 22.72, and below the 200-day MA of 25.80, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 51.41 is Neutral, neither overbought nor oversold. The STOCH value of 23.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DOW.

Dow Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ASIX	59 Neutral	$444.87M	8.61	6.62%	3.86%	-5.05%	35.01%
CE	57 Neutral	$4.63B	-1.50	-54.74%	0.28%	-7.34%	-382.79%
TROX	57 Neutral	$691.29M	-2.13	-18.65%	7.85%	-7.81%	-334.15%
HUN	54 Neutral	$1.75B	-5.55	-10.65%	8.31%	-3.46%	-191.77%
DOW	49 Neutral	$16.53B	-14.39	-6.39%	9.11%	-5.25%	-208.14%
BAK	47 Neutral	$1.13B	-1.24	―	―	-10.68%	36.31%

Dow Inc Corporate Events

Dow Inc Completes $1.4 Billion Notes Offering

On September 3, 2025, Dow Inc. entered into an Underwriting Agreement with several underwriters to issue and sell $1.4 billion in notes, consisting of $750 million in 4.800% Notes due 2031 and $650 million in 5.650% Notes due 2036. The offering was completed on September 8, 2025, under an Indenture dated July 26, 2019, with The Bank of New York Mellon Trust Company, N.A. serving as trustee. This financial move is part of Dow’s ongoing strategy to manage its capital structure and support its operational and strategic objectives.