Dow Inc (DOW) AI Stock Analysis

• Market Cap: $16.95B
• Dividend Yield: 10%
• Average Volume (3M): 17.12M
• Price to Earnings (P/E): 75.9
• Beta (1Y): 0.93
• Revenue Growth: -2.82%
• EPS Growth: -186.41%
• Country: US
• Employees: 36,000
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals
• EPS (TTM): -0.42
• Shares Outstanding: 708,844,200
• 10 Day Avg. Volume: 11,522,392
• 30 Day Avg. Volume: 17,119,166
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.09
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 11.43
• Enterprise Value/Ebitda: 10.84
• 1Y Price Target: $27.57
• Price Target Upside: 12.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

• Rating: 48 Neutral
• Price Target: $24.50 ▲(0.00% Upside)

Dow Inc's overall stock score reflects significant financial challenges with declining revenues and profitability. While strategic partnerships and cost-saving measures provide some positive outlook, the negative P/E ratio and recent dividend cut highlight ongoing risks. Technical indicators and corporate events offer mixed signals, contributing to a cautious outlook.

Positive Factors

Balance Sheet Improvement

The sale largely completes the actions management has been targeting to strengthen the company's balance sheet.

Financial Strategy

Dow has cut its dividend to a more manageable level, strengthening its cash flow profile.

Negative Factors

Asset Utilization Concerns

Continued capacity additions in China for the next few years are expected to weigh on asset utilizations of many relevant DOW commodities.

Earnings Pressure

2025/26 is turning out to be increasingly challenging as DOW's earnings baseline moves lower and pressure to maintain its dividend rises.

Free Cash Flow Shortfall

The macro remains uncertain, and forecasts show a shortfall in free cash flow to fund DOW's capex program and dividend payout.

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 a diverse array of chemical products and materials. Its key revenue streams come from the Packaging & Specialty Plastics segment, which provides high-demand products like films and resins for the packaging industry; the Industrial Intermediates & Infrastructure segment, which supplies chemicals used in construction and automotive applications; and the Performance Materials & Coatings segment, which offers advanced materials for various applications. The company benefits from significant partnerships with other industry leaders, allowing it to expand its market reach and enhance product offerings. Additionally, fluctuations in raw material prices and global demand for its products significantly influence its earnings, as does the company's focus on innovation and sustainability initiatives to meet evolving market needs.

Dow Inc Financial Statement Overview

Summary

Dow Inc is facing financial headwinds with declining revenues and profitability. The income statement shows a negative net profit margin and declining gross profit margin. The balance sheet is moderately leveraged, but negative cash flows and profitability pose significant risks.

Income Statement

Dow Inc's income statement reflects a challenging period with declining revenue and profitability. The TTM data shows a negative net profit margin of -2.35%, indicating losses. Revenue has decreased by 1.9% compared to the previous period. Gross profit margin has also declined to 7.79%, down from 10.72% in the previous year. These figures suggest pressure on both top-line growth and cost management.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.05 in the TTM, indicating a balanced approach to leveraging. However, the return on equity is negative at -5.63%, reflecting the company's recent losses. The equity ratio stands at 29.21%, suggesting a reasonable level of equity financing relative to total assets.

Cash Flow

Cash flow analysis reveals significant challenges, with a negative free cash flow of -$1.74 billion in the TTM. The free cash flow to net income ratio is -1.41, indicating cash outflows relative to net losses. Operating cash flow is positive but has decreased significantly, impacting liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.82B	42.96B	44.62B	56.90B	54.97B	38.54B
Gross Profit	3.10B	4.46B	4.97B	7.86B	10.39B	4.81B
EBITDA	3.27B	5.25B	4.00B	9.50B	11.68B	5.54B
Net Income	-981.00M	1.12B	589.00M	4.58B	6.31B	1.23B
Balance Sheet
Total Assets	58.99B	57.31B	57.97B	60.60B	62.99B	61.47B
Cash, Cash Equivalents and Short-Term Investments	2.40B	2.19B	2.99B	3.89B	2.99B	5.10B
Total Debt	18.10B	17.64B	16.45B	16.71B	16.14B	19.04B
Total Liabilities	40.40B	39.46B	38.86B	39.36B	44.25B	48.47B
Stockholders Equity	17.23B	17.36B	18.61B	20.72B	18.16B	12.44B
Cash Flow
Free Cash Flow	-1.74B	-151.00M	2.72B	5.42B	4.68B	4.84B
Operating Cash Flow	1.24B	2.91B	5.20B	7.47B	7.01B	6.23B
Investing Cash Flow	-2.56B	-2.37B	-2.93B	-2.97B	-2.91B	-841.00M
Financing Cash Flow	302.00M	-1.17B	-3.12B	-3.36B	-6.07B	-2.76B

Dow Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOW, the sentiment is Positive. The current price of 24.5 is above the 20-day moving average (MA) of 23.42, below the 50-day MA of 25.12, and below the 200-day MA of 31.72, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 53.13 is Neutral, neither overbought nor oversold. The STOCH value of 44.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DOW.

Dow Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASIX	73 Outperform	$564.80M	7.29	9.85%	3.02%	1.31%	796.76%
Sector *	62 Neutral	$10.28B	6.21	0.76%	2.84%	3.10%	-36.03%
HUN	59 Neutral	$1.92B	―	-10.43%	9.07%	-1.56%	-259.58%
DOW	48 Neutral	$16.95B	75.91	-5.59%	10.00%	-2.82%	-186.41%
CE	47 Neutral	$5.08B	6.84	-25.69%	1.70%	-5.83%	-183.85%
BAK	46 Neutral	$1.38B	―	-8638.28%	―	-3.33%	44.37%
TROX	45 Neutral	$662.63M	―	-14.11%	9.49%	0.20%	-292.54%

Dow Inc Corporate Events

Dow Inc Completes Sale of 9% Stake in Diamond

On September 2, 2025, Dow Inc. announced the completion of the sale of an additional 9% equity stake in Diamond Infrastructure Solutions to Macquarie Asset Management, increasing Macquarie’s stake to 49%. This transaction brought Dow an additional $540 million, totaling approximately $3 billion in proceeds. The expanded partnership with Macquarie is expected to enhance Dow’s strategic positioning and operational control over Diamond Infrastructure Solutions, which provides services across sectors like energy and infrastructure. Recent collaborations, such as hosting a CO2 transformation facility and exploring solar energy projects, highlight Diamond’s innovative initiatives.

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.

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.