Dow Inc (DOW) AI Stock Analysis

• Market Cap: $16.40B
• Dividend Yield: 11.04%
• Average Volume (3M): 13.10M
• Price to Earnings (P/E): 75.9
• Beta (1Y): 0.90
• Revenue Growth: -2.82%
• EPS Growth: -186.41%
• Country: US
• Employees: 36,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.42
• Shares Outstanding: 708,844,200
• 10 Day Avg. Volume: 14,977,227
• 30 Day Avg. Volume: 13,100,010
• 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: 2.16
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 11.43
• Enterprise Value/Ebitda: 10.84
• 1Y Price Target: $27.23
• Price Target Upside: 22.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

• Rating: 46 Neutral
• Price Target: $23.50 ▲(5.86% Upside)

Dow Inc's overall stock score is primarily impacted by its financial performance and valuation. The company faces significant financial challenges with declining revenues and profitability, which are reflected in its negative P/E ratio. Technical analysis shows mixed signals, with the stock trading below key moving averages. Despite a high dividend yield, the recent dividend cut indicates caution amid industry downturns.

Positive Factors

Strategic Partnerships

This partnership provides significant cash influx, enhancing Dow's financial flexibility and supporting long-term strategic initiatives.

Cost Saving Initiatives

Cost-saving measures improve operational efficiency, potentially enhancing margins and profitability over the long term.

New Growth Projects

These projects are expected to support earnings growth, indicating Dow's commitment to expanding its production capacity and market presence.

Negative Factors

Declining Financial Performance

Persistent declines in sales and EBITDA reflect ongoing challenges in market demand, impacting Dow's revenue and profitability outlook.

Dividend Reduction

The dividend cut signals caution and financial strain, potentially affecting investor confidence and long-term shareholder returns.

Global Economic Uncertainty

Economic uncertainties and geopolitical tensions may continue to suppress demand, challenging Dow's growth prospects and market stability.

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 decreased revenue. The balance sheet is moderately leveraged, but negative cash flows and profitability pose 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: Negative
• Last Price: 22.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 22.2 is below the 20-day moving average (MA) of 23.92, below the 50-day MA of 23.89, and below the 200-day MA of 30.42, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 43.54 is Neutral, neither overbought nor oversold. The STOCH value of 10.99 is Positive, 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
ASIX	70 Outperform	526.41M	6.91	9.39%	3.35%	1.31%	796.76%
HUN	54 Neutral	1.65B	-4.94	-11.39%	11.25%	-1.56%	-259.58%
TROX	50 Neutral	699.09M	-2.47	-15188.34%	10.90%	0.20%	-292.54%
DOW	46 Neutral	$16.40B	75.91	-5.59%	11.04%	-2.82%	-186.41%
CE	45 Neutral	4.64B	-2.70	-30.71%	1.98%	-5.83%	-183.85%
BAK	44 Neutral	1.31B	-1.22	236.72%	―	-3.33%	44.37%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

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.

The most recent analyst rating on (DOW) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Dow Inc stock, see the DOW Stock Forecast page.