Dow: Don't Chase For The Yield, Not Yet
Dow's valuation looks cheap, but tangible book value erosion signals real downside risk if stress persists or losses emerge. Dividend sustainability is in question, as current payouts are funded by de...
Fiscal Year: January - December
Dow Inc. (DOW), listed on the NYSE, has a market capitalization of $. As of Jul 04, 2025, the stock is trading at $28.46 per share, offering investors a clear view of its current market value. Dow Inc. is a prominent player in the industry sector, attracting both institutional and retail investors due to its performance and potential.
With a P/E ratio of 71.46, investors can assess the stock's valuation in comparison to its earnings. A P/E ratio is a crucial indicator for value investors, showing whether the stock is over or undervalued relative to its current earnings. Dow Inc. also offers a dividend yield of 9.75%, making it an attractive option for income-focused investors who seek regular dividends.
Our Discounted Cash Flow (DCF) analysis reveals that Dow Inc. (DOW) may be overvalued compared to its intrinsic worth. However, to see the exact DCF fair value, please Login or Upgrade for access.
The proprietary SS Score for Dow Inc. is a unique metric that analyzes the company's financial health and growth potential. The score takes into account critical factors such as revenue growth, net income, free cash flow (FCF) compound annual growth rate (CAGR), the trend of shares outstanding, and the debt-to-FCF ratio. This helps investors to make a more informed decision, as an undervalued stock might still have poor financial fundamentals.
To view the detailed SS Score for Dow Inc., Login or Upgrade for access.
The Price to Free Cash Flow (P/FCF) ratio for Dow Inc. is 0, offering insights into how much investors are paying for the company's free cash flow. A lower P/FCF ratio typically suggests that the stock is undervalued, while a higher ratio may indicate overvaluation.
In summary, Dow Inc. (DOW) has shown consistent financial performance, as illustrated by the financial charts above, which track its revenue growth, net income, free cash flow, and shares outstanding over the past several years. These metrics provide investors with key insights into the company's past and projected future performance. Investors should use the SS Score alongside the DCF Fair Value to make better-informed decisions about whether to buy or hold the stock.
*This analysis is for informational purposes only and does not constitute investment advice. Always read the company's 10-K filings and do your own research before making any investment decisions.
Whether Dow Inc. (DOW) is a good stock to buy depends on various factors, including its financial health, market conditions, and your investment strategy. Our analysis indicates that the stock may be overvalued compared to its intrinsic value. However, it is important to assess the SS Score and review the company's fundamentals before making any investment decisions.
The fair value of Dow Inc. (DOW) is determined through our Discounted Cash Flow (DCF) analysis. This value represents the intrinsic worth of the stock based on its expected future cash flows. To view the specific fair value, consider subscribing to our service for complete access.
The SS Score is a proprietary financial quality metric that assesses factors such as revenue growth, net income, free cash flow growth, and debt levels. It helps investors evaluate the overall financial health of Dow Inc.. To access the full SS Score, consider upgrading your subscription.
Dow Inc. is a significant player in the industry sector, with a market capitalization of $ and a competitive P/E ratio of 71.46. Investors should compare these metrics with industry peers to gauge whether Dow Inc. is outperforming or underperforming within its sector.
Dow's valuation looks cheap, but tangible book value erosion signals real downside risk if stress persists or losses emerge. Dividend sustainability is in question, as current payouts are funded by de...
Three Fortune 500 Industry Leaders—Energy Transfer, Verizon, and World Kinect—currently meet the 'dogcatcher' ideal of fair price and safer dividends. Analyst targets project 21% to 50% net gains for ...
MIDLAND, Mich. , June 11, 2025 /PRNewswire/ -- The Court of King's Bench of Alberta, Canada has issued a judgment ordering NOVA Chemicals Corporation to pay Dow (NYSE: DOW) an additional amount of CAD...
Dow offers a nearly 10% dividend yield, supported by aggressive cash preservation and asset sales, despite being at the bottom of a cyclical downturn. Management is proactively cutting costs, delaying...
MIDLAND, Mich. , June 3, 2025 /PRNewswire/ -- Dow Inc. (NYSE: DOW) will participate in a fireside chat during the Deutsche Bank Global Industrials & Materials Conference on Thursday, June 5 at 8:30 a...
Asking for a Trend, anchor Josh Lipton breaks down the day's market trends for June 2, 2025. Markets shrugged off a flare-up of US-China trade tensions, as all three major indexes closed higher on Mon...
Dow agrees to sell its 50% interest in DowAksa Advanced Composites Holdings BV (DowAksa) to its 50/50 joint venture partner Aksa Akrilik Kimya Sanayii A.Ş. Proceeds will be used to support Dow's balan...
On 5/30/25, Cabot, Dow and Stepan will all trade ex-dividend for their respective upcoming dividends. Cabot will pay its quarterly dividend of $0.45 on 6/13/25, Dow will pay its quarterly dividend of ...
Initiate on Dow at Strong Buy, highlighting disciplined margin recovery strategy and cadence-based execution, which we view as underappreciated by the market. Our PT of $44 is predicated on an EV/EBIT...
Dow's nearly 10% dividend yield is unsustainable, driven by a collapsing stock price and negative earnings, not strong fundamentals. The company is bleeding cash, with payout ratios far exceeding prof...
Ford Motor and Dow lead the list of stocks with the highest dividend yields in the S&P 500. Some of the other names might surprise you.
This article is part of our monthly series where we highlight five large-cap, relatively safe, dividend-paying companies offering significant discounts to their historical norms. We go over our filter...
Transaction enables the Company to further focus on core, high-value downstream markets Proceeds will be used to support Dow's balanced capital allocation approach MIDLAND, Mich. , May 1, 2025 /PRNews...
Dow sold an initial 40% equity stake in Diamond Infrastructure Solutions, a dedicated infrastructure company with assets across the U.S. Gulf Coast, to a fund managed by Macquarie Asset Management Mac...
Fermium Research analyst Frank J. Mitsch upgraded Dow Inc. DOW from Hold to Buy at a price forecast of $35.
Dow's Q1 earnings report shows Y/Y declines in all key segments and overall revenue. With the pricing and earnings pressure, I expect the company to be in a cash conservation mode for the next 1–2 yea...
Dow's shares have underperformed due to weak pricing power, manufacturing activity, and Chinese construction market, with a 40% drop since my last "buy" recommendation. Given weak results, Dow is aggr...
Dow Inc. (NYSE:DOW) Q1 2025 Earnings Conference Call April 24, 2025 8:00 AM ET Company Participants Andrew Riker - Vice President, Investor Relations Jim Fitterling - Chairman & Chief Executive Offic...
During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high...
Launches Action Plan to Further Reduce Spending, Right-Size Capacity, and Deliver $6 Billion in Cash Support MIDLAND, Mich. , April 24, 2025 /PRNewswire/ -- Dow (NYSE: DOW): 1Q25 FINANCIAL HIGHLIGHTS ...
Chemicals firms Dow and LyondellBasell are the biggest dividend payers in the S&P 500. Other fat divided payouts include Pfizer, Franklin Resources, and Invesco.
Dow's Q1 earnings are expected to be weak due to increased maintenance and rising feedstock costs, but cost-cutting measures offer some optimism. The sustainability of Dow's high dividend yield is in ...
Bank of America Securities analyst Steve Byrne downgraded Dow Inc. DOW to Underperform from Buy, lowering the price forecast from $44 to $28.
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Below estimates were sourced from SimplyWallSt and are intended for educational purposes only as a baseline for the analysis.
Year | FCF Estimate | % | # Analysts |
---|---|---|---|
2025 | 539.52M | -252.41% | Est @-252.4% |
2026 | 1,433.04M | 165.61% | Analyst x3 |
2027 | 980.85M | -31.55% | Analyst x3 |
2028 | 798.33M | -18.61% | Est @-18.6% |
2029 | 699.98M | -12.32% | Est @-12.3% |
2030 | 648.00M | -7.43% | Est @-7.4% |
2031 | 618.60M | -4.54% | Est @-4.5% |
2032 | 603.06M | -2.51% | Est @-2.5% |
2033 | 596.45M | -1.10% | Est @-1.1% |
2034 | 595.87M | -0.10% | Est @-0.1% |
Below are the FCF estimates with the discount factor and the calculated present value with the terminal value that led the results above.
Year | FCF | Discount Factor | PV of Future FCF |
---|---|---|---|
2023A | 2.50B | 1.00 | 2.50B |
2024A | -354.00M | 1.00 | -354.00M |
2025E | 539.52M | 1.08 | 499.70M |
2026E | 1.43B | 1.17 | 1.23B |
2027E | 980.85M | 1.26 | 779.31M |
2028E | 798.33M | 1.36 | 587.48M |
2029E | 699.98M | 1.47 | 477.08M |
2030E | 648.00M | 1.58 | 409.06M |
2031E | 618.60M | 1.71 | 361.68M |
2032E | 603.06M | 1.85 | 326.57M |
2033E | 596.45M | 1.99 | 299.15M |
2034E | 595.87M | 2.15 | 276.80M |
Terminal | 11.17B | 2.15 | 5.19B |
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