0.72 | 2.05%
DOW CHEMICAL's gross profit margin for the first quarter of its fiscal year 2013 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. DOW CHEMICAL has average liquidity. Currently, the Quick Ratio is 1.12 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 8.80% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 14383.0 | 14719.0 |
| EBITDA ($mil) | 2002.0 | 1847.0 |
| EBIT ($mil) | 1366.0 | 1200.0 |
| Net Income ($mil) | 635.0 | 497.0 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 3514.0 | 3610.0 |
| Total Assets ($mil) | 69304.0 | 69598.0 |
| Total Debt ($mil) | 20086.0 | 20577.0 |
| Equity ($mil) | 20998.0 | 23026.0 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 22.3 | 20.1 |
| EBITDA Margin | 13.91 | 12.54 |
| Operating Margin | 9.5 | 8.15 |
| Sales Turnover | 0.81 | 0.86 |
| Return on Assets | 1.9 | 3.63 |
| Return on Equity | 4.66 | 9.5 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 1.95 | 1.78 |
| Debt/Capital | 0.49 | 0.47 |
| Interest Expense | 317.0 | 354.0 |
| Interest Coverage | 4.31 | 3.39 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 1209.59 | 1195.38 |
| Div / share | 0.32 | 0.25 |
| EPS | 0.46 | 0.35 |
| Book value / share | 17.36 | 19.26 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 7845462.0 | 7981602.0 |
BUY. DOW CHEMICAL's P/E ratio indicates a significant premium compared to an average of 23.79 for the Chemicals industry and a significant premium compared to the S&P 500 average of 18.47. To use another comparison, its price-to-book ratio of 1.91 indicates a discount versus the S&P 500 average of 2.36 and a significant discount versus the industry average of 4.05. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DOW 40.39 | Peers 23.79 | DOW 8.72 | Peers 14.73 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. DOW is trading at a significant premium to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. DOW is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| DOW 11.62 | Peers 16.77 | DOW 0.17 | Peers 1.32 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. DOW is trading at a discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. DOW trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| DOW 1.91 | Peers 4.05 | DOW -55.92 | Peers 7.60 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. DOW is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, DOW is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| DOW 0.71 | Peers 2.13 | DOW -5.88 | Peers 4.59 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. DOW is trading at a significant discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. DOW significantly trails its peers on the basis of sales growth |
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