Dow Inc (DOW) AI Stock Analysis

• Market Cap: $17.72B
• Dividend Yield: 10.98%
• Average Volume (3M): 14.38M
• Price to Earnings (P/E): 75.9
• Beta (1Y): 0.87
• Revenue Growth: -2.82%
• EPS Growth: -186.06%
• Country: US
• Employees: 36,000
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals
• EPS (TTM): -0.42
• Shares Outstanding: 706,861,760
• 10 Day Avg. Volume: 16,345,318
• 30 Day Avg. Volume: 14,381,159
• PEG Ratio: 0.04
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -29.72
• Enterprise Value/Market Cap: 1.90
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 15.00
• Enterprise Value/Ebitda: 1.31
• 1Y Price Target: $28.29
• Price Target Upside: 10.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 59 Neutral
• Price Target: $26.00 ▲(1.92%Upside)

Dow Inc.'s overall stock score reflects mixed financial performance and bearish technical indicators. The company's strategic initiatives and favorable legal outcomes offer some positives, but declining sales, a significant dividend cut, and a challenging macroeconomic environment weigh heavily on the score.

Positive Factors

Financial Flexibility

Dow has several one-time cash inflows that will help support the dividend even if operating cash is negative, including significant proceeds from asset sales and divestitures.

Valuation

Valuation presents a clearly positive upside-downside skew for those willing to look out 12+ months and underwrite macro improvement.

Negative Factors

Dividend Concerns

Investors worry that if the macroeconomic environment does not improve, another dividend cut may be warranted despite the recent cut.

Earnings Performance

DOW reported lower than expected adjusted EBITDA, which came in below both Bloomberg consensus and last year's figures.

Market Outlook

The possibility of a positive fundamental inflection appears challenging, particularly with current global operating rates for polyethylene, Dow's key product, at decade lows.

Dow Inc Business Overview & Revenue Model

Company Description

Dow Inc. provides 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. The Industrial Intermediates & Infrastructure segment offers ethylene oxides, propylene oxides, 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; performance silicones and specialty materials; and silicone feedstocks and intermediates. 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.

How the Company Makes Money

Dow Inc. generates revenue primarily through the production and sale of its diverse portfolio of chemical and material products. The company's revenue streams are largely driven by its three major operating segments: Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings. In the Packaging & Specialty Plastics segment, Dow supplies polymers and materials used in packaging, consumer goods, and transportation. The Industrial Intermediates & Infrastructure segment focuses on providing chemicals and materials for construction, automotive, and industrial applications. The Performance Materials & Coatings segment offers products used in coatings, adhesives, and sealants. Dow also benefits from strategic partnerships and collaborations that enhance its market reach and technological capabilities, contributing to its earnings.

Dow Inc Financial Statement Overview

Summary

Dow Inc. exhibits strong gross and EBIT margins but faces challenges with declining revenue and net profit margins. The balance sheet is stable with moderate leverage, but the equity position needs strengthening. Cash flow management shows slight improvement, reflecting mixed financial performance.

Income Statement

Dow Inc.'s income statement shows a significant fluctuation in revenue and profitability. The TTM (Trailing-Twelve-Months) gross profit margin is strong at 32.28%, but the net profit margin is relatively low at 1.45%. Revenue growth has been negative, declining by 5.91% from 2024 to TTM. Despite a strong EBIT margin of 26.31%, the EBITDA margin is weaker at 9.23%, indicating high depreciation and amortization expenses. Overall, while the company has strong gross margins, the declining revenue and net profit margins suggest challenges in maintaining profitability.

Balance Sheet

The balance sheet of Dow Inc. indicates stability with a moderate debt-to-equity ratio of 1.04 and an equity ratio of 30.08% in the TTM period. The company maintains a solid return on equity (ROE) of 3.57%, which is comparatively low, reflecting pressure on profitability. Total assets are substantial, but the equity position has weakened over time. Despite high leverage, the company manages to maintain an acceptable equity ratio, highlighting a balanced approach to financing.

Cash Flow

Dow Inc.'s cash flow metrics reflect mixed performance. The TTM free cash flow has improved compared to the previous year, indicating better cash management. However, the free cash flow growth rate from 2023 to TTM is 3.64%, showing only slight improvement. The operating cash flow to net income ratio is strong at 3.97, suggesting efficient cash conversion from earnings. The free cash flow to net income ratio is positive at 0.16, indicating some cash is being retained despite low net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.96B	44.62B	56.90B	54.97B	38.54B
Gross Profit	4.61B	5.06B	8.56B	10.78B	5.20B
EBITDA	5.30B	4.00B	9.50B	11.68B	5.54B
Net Income	1.12B	589.00M	4.58B	6.31B	1.23B
Balance Sheet
Total Assets	57.31B	57.97B	60.60B	62.99B	61.47B
Cash, Cash Equivalents and Short-Term Investments	2.57B	4.29B	4.88B	3.23B	5.15B
Total Debt	17.64B	16.45B	16.71B	16.14B	19.04B
Total Liabilities	39.46B	38.86B	39.36B	44.25B	48.47B
Stockholders Equity	17.36B	18.61B	20.72B	18.16B	12.44B
Cash Flow
Free Cash Flow	-151.00M	2.72B	5.42B	4.68B	4.84B
Operating Cash Flow	2.91B	5.20B	7.47B	7.01B	6.23B
Investing Cash Flow	-2.37B	-2.93B	-2.97B	-2.91B	-841.00M
Financing Cash Flow	-1.17B	-3.12B	-3.36B	-6.07B	-2.76B

Dow Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.51
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 25.51 is below the 20-day moving average (MA) of 28.24, below the 50-day MA of 28.44, and below the 200-day MA of 35.65, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 38.55 is Neutral, neither overbought nor oversold. The STOCH value of 37.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DOW.

Dow Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WLKP	72 Outperform	$775.95M	14.97	10.22%	8.54%	-6.76%	-3.19%
Sector *	63 Neutral	$10.49B	9.49	1.49%	2.70%	2.28%	-33.88%
DOW	59 Neutral	$17.72B	75.91	-5.59%	10.98%	-2.82%	-186.06%
CE	56 Neutral	$6.25B	6.84	-26.94%	2.56%	-5.98%	-183.27%
TROX	54 Neutral	$890.56M	―	-8.44%	8.59%	4.15%	57.25%
HUN	53 Neutral	$1.89B	―	-4.46%	9.19%	0.02%	-43.65%
BAK	42 Neutral	$1.32B	―	-8638.28%	―	0.81%	-34.74%

Dow Inc Corporate Events

Dow Inc Restructures European Operations Amid Market Challenges

On June 30, 2025, Dow Inc.’s Board of Directors approved a series of restructuring actions aimed at optimizing the company’s global asset footprint, particularly focusing on its European operations. These actions, which include the shutdown of three upstream assets in Europe, are part of a strategic review to enhance competitiveness and profitability amid challenging market dynamics. The restructuring will result in charges ranging from $630 million to $790 million and is expected to improve operating EBITDA starting in 2026, with full benefits realized by 2029. Approximately 800 roles will be affected, and the company plans to engage local stakeholders in compliance with relevant processes.

The most recent analyst rating on (DOW) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Dow Inc stock, see the DOW Stock Forecast page.

Dow Inc Wins CAD $1.62 Billion Court Ruling

On June 11, 2025, Dow Inc. announced that the Court of King’s Bench of Alberta, Canada, ordered NOVA Chemicals Corporation to pay CAD $1.620 billion (approximately USD $1.2 billion) to Dow subsidiaries for damages related to their jointly-owned ethylene asset in Joffre, Alberta. This judgment, which is subject to appeal, is in addition to a previous CAD $1.43 billion payment made by NOVA to Dow in 2019, following a 2018 decision that found NOVA had breached contractual obligations by not operating the asset at full capacity since 2001.

The most recent analyst rating on (DOW) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Dow Inc stock, see the DOW Stock Forecast page.

Dow Inc Sells 40% Stake in Diamond Infrastructure

On May 1, 2025, Dow Inc. completed the sale of a 40% equity stake in Diamond Infrastructure Solutions to a fund managed by Macquarie Asset Management. This strategic partnership, which could increase Macquarie’s stake to 49%, is expected to generate up to $3 billion in proceeds for Dow, supporting its capital allocation strategy. The transaction is part of Dow’s efforts to unlock value from non-core assets and improve its balance sheet, while maintaining control over Diamond to ensure operational safety and reliability in the U.S. Gulf Coast.