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Dow Inc
(NYSE:DOW)
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Rating:52Neutral
Price Target:
$28.00
▼(-21.35% Downside)
Action:Reiterated
Date:04/26/26
The score is held down primarily by weak current financial performance—losses and negative free cash flow—despite a workable balance sheet. Technicals are moderately supportive and the dividend yield is attractive, while earnings-call guidance points to a potential near-term EBITDA rebound driven by pricing and cost actions but with elevated uncertainty from disruptions and input-cost pressure.
Positive Factors
Strong Liquidity Position
Sizable immediate liquidity and cash balances provide durable financial flexibility to fund operations, capex and the Transform program through cyclical downturns. No substantive maturities until 2029 and improved working capital reduce near-term refinancing risk.
Negative Factors
Negative Free Cash Flow & Losses
Negative free cash flow alongside net losses signals weakened cash conversion that constrains reinvestment, debt paydown and dividend support if sustained. Structural FCF weakness reduces optionality to execute growth or weather prolonged cyclical downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Liquidity Position
Sizable immediate liquidity and cash balances provide durable financial flexibility to fund operations, capex and the Transform program through cyclical downturns. No substantive maturities until 2029 and improved working capital reduce near-term refinancing risk.
Read all positive factors
Dow Inc Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much revenue each business segment contributes, highlighting which areas are driving growth and which may need strategic adjustments.
Shows how much revenue each business segment contributes, highlighting which areas are driving growth and which may need strategic adjustments.
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The Fly
The FlyDow Inc (DOW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.97B
Dividend Yield9.17%
Average Volume (3M)11.09M
Price to Earnings (P/E)―
Beta (1Y)0.64
Revenue Growth-7.74%
EPS Growth-1093.11%
CountryUS
Employees36,000
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)-3.99
Shares Outstanding720,741,460
10 Day Avg. Volume12,348,571
30 Day Avg. Volume11,089,664
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.04
Price to Sales (P/S)0.42
P/FCF Ratio-11.50
Enterprise Value/Market Cap1.95
Enterprise Value/Revenue0.99
Enterprise Value/Gross Profit16.09
Enterprise Value/Ebitda46.36
Forecast
1Y Price Target
$36.83Price Target Upside3.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)3.04
Revenue Forecast (FY)$44.96B
Dow Inc Business Overview & Revenue Model
Company Description
Dow Inc. is a global leader in materials science, delivering diverse solutions for key industries such as packaging, infrastructure development, mobility, and consumer products. The company's reach extends across numerous regions, including the Un...
How the Company Makes Money
Dow primarily makes money by producing large-scale chemical and polymer materials and selling them to business customers under supply agreements and spot/market-based transactions. Revenue is generated mainly from (1) Performance Materials & Coati...
Dow Inc Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call balanced significant near-term challenges stemming from unprecedented Middle East-related supply disruptions and higher input costs with clear signs of operational resilience and multiple offsetting actions. Management reported solid Q1 financials (3% sequential volume growth, $9.8B sales, $873M EBITDA), meaningful in-quarter cost savings (~$193M), strong liquidity (~$14B), and a confident Q2 guide (~$12B revenue, ~$2B EBITDA) driven by accelerating polyethylene pricing and self-help initiatives (Transform to Outperform and cost programs). Key negatives include substantial global supply and logistics impacts (roughly half of ethylene/PE supply affected), an 8% decline in I&I sales, and Sadara-related equity losses and ongoing cash commitments. Overall, management framed the outlook as poised for upside, with pricing and asset advantages likely to drive margin recovery over coming quarters despite material uncertainty.Positive Updates
Solid First-Quarter Financials
Net sales of $9.8 billion and operating EBITDA of $873 million in Q1 FY2026; 3% sequential volume growth; approximately $193 million of period cost savings delivered in the quarter.
Negative Updates
Material Supply Disruption from Middle East Conflict
Management estimated roughly 20% of global oil capacity offline and approximately half of global ethylene and polyethylene supply either offline, constrained, or impacted; transit through Strait of Hormuz significantly impaired, creating prolonged logistics constraints and uncertainty (management cites a recovery window of roughly 6 to 18 months).
Read all updates
Q1-2026 Updates
Positive
Negative
Solid First-Quarter Financials
Net sales of $9.8 billion and operating EBITDA of $873 million in Q1 FY2026; 3% sequential volume growth; approximately $193 million of period cost savings delivered in the quarter.
Read all positive updates
Company Guidance
Dow guided second-quarter revenue of about $12 billion and EBITDA of roughly $2 billion, a sequential improvement from Q1 (Q1 net sales $9.8 billion, operating EBITDA $873 million, and 3% sequential volume growth) driven by pricing gains, expanding margins, higher asset utilization, seasonal demand and cost reductions that more than offset higher feedstock/energy and planned maintenance; the Q2 guide includes about $0.26 per pound of integrated margin improvement (April price action of $0.30/lb is included, May’s $0.20/lb is not and would be upside). Management reiterated near-term self-help targets—Transform to Outperform is expected to deliver at least $2 billion of near-term EBITDA improvement (≈2/3 productivity, 1/3 growth), $1.1 billion of in‑year savings ($600M remaining from 2025 program plus $500M from Transform), a $400M H2 ramp, and other specifics such as a first‑site $80M run‑rate gain—while highlighting strong liquidity (~$14 billion total liquidity, >$4 billion cash on hand), no substantive maturities until 2029, and a >$300 million Y/Y working‑capital improvement in Q1.Dow Inc Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
52
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 39.33B | 39.97B | 42.96B | 44.62B | 56.90B | 54.97B |
| Gross Profit | 2.42B | 2.40B | 4.46B | 4.97B | 7.86B | 10.39B |
| EBITDA | 840.00M | 1.19B | 5.25B | 4.00B | 9.50B | 11.68B |
| Net Income | -2.76B | -2.62B | 1.12B | 589.00M | 4.58B | 6.31B |
Balance Sheet | ||||||
| Total Assets | 59.78B | 58.54B | 57.31B | 57.97B | 60.60B | 62.99B |
| Cash, Cash Equivalents and Short-Term Investments | 4.11B | 3.82B | 2.57B | 2.99B | 3.89B | 2.99B |
| Total Debt | 19.63B | 19.60B | 17.64B | 16.45B | 16.71B | 16.14B |
| Total Liabilities | 43.02B | 41.02B | 39.46B | 38.86B | 39.36B | 44.25B |
| Stockholders Equity | 15.25B | 16.01B | 17.36B | 18.61B | 20.72B | 18.16B |
Cash Flow | ||||||
| Free Cash Flow | -1.40B | -1.45B | -151.00M | 2.72B | 5.42B | 5.51B |
| Operating Cash Flow | 2.81B | 1.03B | 2.91B | 5.20B | 7.47B | 7.01B |
| Investing Cash Flow | -3.12B | 817.00M | -2.37B | -2.93B | -2.97B | -2.91B |
| Financing Cash Flow | 5.14B | -435.00M | -1.17B | -3.12B | -3.36B | -6.07B |
Dow Inc Technical Analysis
Negative
35.60
Price Trends
34.92
Negative
35.14
Negative
29.33
Negative
Market Momentum
-2.15
Positive
24.78
Positive
8.97
Positive
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 35.6 is above the 20-day moving average (MA) of 31.36, above the 50-day MA of 34.92, and above the 200-day MA of 29.33, indicating a bearish trend. The MACD of -2.15 indicates Positive momentum. The RSI at 24.78 is Positive, neither overbought nor oversold. The STOCH value of 8.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DOW.
Dow Inc Risk Analysis
Dow Inc disclosed 15 risk factors in its most recent earnings report. Dow Inc 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
Dow Inc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $1.88B | -5.76 | -11.76% | 8.44% | -4.74% | -149.27% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
52 Neutral | $19.97B | -6.95 | -16.73% | 9.17% | -7.74% | -1093.11% | |
51 Neutral | $5.23B | -4.77 | -25.26% | 0.29% | -5.63% | 34.29% | |
51 Neutral | $547.00M | 52.03 | 1.28% | 3.81% | -0.63% | -87.72% | |
47 Neutral | $990.64M | -2.13 | -31.25% | 8.27% | -4.02% | -206.93% | |
42 Neutral | $895.81M | -0.69 | 142.56% | ― | -13.10% | -0.68% |
* Basic Materials Sector Average
DOW
Dow Inc
27.71
1.60
6.11%
CE
Celanese
47.68
-10.29
-17.75%
BAK
Braskem SA
2.45
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-27.73%
HUN
Huntsman
10.82
0.63
6.16%
TROX
TRONOX
6.21
1.21
24.08%
ASIX
AdvanSix
20.29
-3.47
-14.61%
Dow Inc Corporate Events
Executive/Board ChangesDividendsShareholder Meetings
Dow Names Karen S. Carter as New CEO
Positive
Apr 14, 2026
Dow Inc. announced that its board appointed longtime executive Karen S. Carter as chief executive officer effective July 1, 2026, succeeding Jim Fitterling, who will transition to executive chair and remain on the board until at least the 2027 ann...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.