Dow Inc.
Find Ratings ReportsDOW INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. DOW INC has average liquidity. Currently, the Quick Ratio is 1.10 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 10.18% 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.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 10621.0 | 11859.0 |
EBITDA ($mil) | 982.0 | 1196.0 |
EBIT ($mil) | 412.0 | 597.0 |
Net Income ($mil) | -105.0 | 613.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 4348.0 | 4879.0 |
Total Assets ($mil) | 57967.0 | 60603.0 |
Total Debt ($mil) | 16447.0 | 16706.0 |
Equity ($mil) | 18607.0 | 20718.0 |
Profitability | Q4 FY23 | Q4 FY22 |
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Gross Profit Margin | 14.94 | 15.1 |
EBITDA Margin | 9.24 | 10.08 |
Operating Margin | 3.88 | 5.03 |
Sales Turnover | 0.77 | 0.94 |
Return on Assets | 1.01 | 7.56 |
Return on Equity | 3.17 | 22.12 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.77 | 1.81 |
Debt/Capital | 0.47 | 0.45 |
Interest Expense | 197.0 | 175.0 |
Interest Coverage | 2.09 | 3.41 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 702.29 | 704.88 |
Div / share | 0.7 | 0.7 |
EPS | -0.15 | 0.85 |
Book value / share | 26.49 | 29.39 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 4595014.0 | 4229864.0 |
HOLD. The current P/E ratio indicates a significant discount compared to an average of 85.83 for the Chemical Manufacturing subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 2.16 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 19.07. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, DOW INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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DOW 69.90 | Peers 85.83 | DOW 7.75 | Peers 38.76 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. DOW is trading at a discount 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 |
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Price to Earnings/Growth |
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DOW 13.59 | Peers 18.08 | DOW 0.26 | Peers 1.16 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. DOW is trading at a valuation on par with 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 |
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Earnings Growth |
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DOW 2.16 | Peers 19.07 | DOW -86.86 | Peers 12.58 | |||||||||||||||||||||
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 |
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Sales Growth |
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DOW 0.90 | Peers 84.44 | DOW -21.59 | Peers 42.35 | |||||||||||||||||||||
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 subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. DOW significantly trails its peers on the basis of sales growth. |
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