DuPont (DD)
Materials · $20.6B market cap · SEC CIK 0001666700
ahead of 4% of the S&P 500 · #23 of 26 in Materials
Next reports on Feb 8, 2027, after the close, with analysts expecting $1.98 in earnings per share.
52-week range $111.15 to $157.98. 1% below its 52-week high and 41% above its low.
The case for DD
- Trades at 1.29× book value, close to what the balance sheet says it owns.
- Current assets cover the near-term bills 2.4 times over.
- Pays a modest 2.0% dividend.
- Within 1% of its 52-week high: the trend is up.
The case against
- Expensive for its growth: 68.6× earnings, where 0% a year of growth plus a 2.0% dividend would justify about 11×.
- Revenue fell 16.6% year over year.
- Long-term debt of $3.1B would take 6 years of operating cash flow to repay.
- Operating profit covers its interest bill only 1.9 times.
- Return on equity of only 2%.
- Revenue has shrunk 9.3% a year over five years.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Materials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 5 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 12 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 34 |
| Momentumhow the price has behaved lately | 82 |
| Stabilityhow violently it moves, what it owes and what it pays you | 35 |
- Each factor except momentum is half fixed thresholds, half rank among the 26 Materials companies.
The financials
Revenue growth
Is the business growing? No, shrinking
| Last 12 months | −16.6% |
|---|---|
| Over 5 years | −9.3% a year |
| FY2025 revenue | $6.8B (+2%) |
Free cash flow
Is it generating real cash? A little
| FY2025 free cash flow | $227M |
|---|---|
| Of revenue | 3% |
| Of profit | n/a |
Profit margins
Is profitability improving? No, slipping
| Gross margin | 36% |
|---|---|
| Operating margin | 14% |
| Net margin, FY24 → FY25 → now | 10.5% → −11.4% → 8.0% |
Debt vs. cash
Is the balance sheet healthy? Stretched
| Cash | $715M |
|---|---|
| Long-term debt | $3.1B |
| Net debt | $2.4B |
| Years to repay | 5.6 yrs |
Valuation
Is the stock price reasonable? No, expensive
| P/E | 68.6× |
|---|---|
| Fair P/E for its growth | 11× |
| P/FCF | 90.9× |
| Forward P/E | 17.9× |
| EV / EBITDA | 135.5× |
At 68.6× earnings it trades well above the 11× that 0% a year of growth plus a 2.0% dividend would justify. At 90.9× free cash flow it trades well above that same mark.
The financials, five years deep
Pulled from DuPont's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $6.8B | $6.7B | $6.6B | $13.0B | $12.6B |
| Change on the year | +2% | +2% | −49% | +4% | — |
| Free cash flow | |||||
| Free cash flow | $227M | $480M | $543M | −$74.0M | $1.5B |
| Of revenue | 3% | 7% | 8% | −1% | 12% |
| Profit margins | |||||
| Net margin | −11.4% | 10.5% | 6.4% | 45.1% | 51.5% |
| Debt vs. cash | |||||
| Cash | $715M | $1.8B | $2.4B | $3.7B | $2.0B |
| Long-term debt | $3.1B | $5.3B | $7.9B | $8.1B | $10.6B |
| Net cash (debt) | −$2.4B | −$3.5B | −$5.5B | −$4.5B | −$8.7B |
What DuPont says it does
Throughout this Annual Report on Form 10-K, except as otherwise noted by the context, the terms "DuPont" or "Company" used herein mean DuPont de Nemours, Inc. and its consolidated subsidiaries. DuPont is a leading provider of advanced solutions that improve everyday life across healthcare, water, construction and industrial markets. The Company is committed to helping customers advance their technology pipelines and provide solutions that address their unique challenges. From delivering clean water to enabling medical packaging solutions which enhance safety and performance, DuPont's innovations power the essential products and technologies people rely on every day. At December 31, 2025, the Company has subsidiaries in about 50 countries worldwide and manufacturing operations in about 20 countries. See Note 23 to the Consolidated Financial Statements for details on the location of the Company's sales and property. Transformational…
Risk factors DD lists in its 10-K
- DuPont could incur additional tax liabilities if certain internal transactions undertaken in connection with the completed divestiture of a majority of the Mobility & Materials business to Celanese and divestiture of the Delrin
- business to TJC (the “M&M Divestitures”), fail to qualify for their intended tax treatment
- The separation and combination of DuPont’s Nutrition & Biosciences business with IFF could result in a significant tax liability to DuPont
- DuPont is subject to continuing contingent tax-related liabilities of Dow and Corteva following the DWDP Distributions
- The timing and outcome of the Aramids Divestiture is subject to risk and uncertainties
- Enforcing the Company’s intellectual property rights, or defending against intellectual property claims asserted by others, could adversely affect the Company’s business, results of operations, financial condition and cash flows
- An impairment of goodwill or intangible assets could negatively impact the Company’s financial results
- Failure to effectively manage acquisitions, divestitures, alliances and other portfolio actions could adversely impact the Company’s business, results of operations, financial condition and cash flows
- Failure to maintain a streamlined operating model and sustain operational improvements may reduce the Company’s profitability or adversely impact the Company’s business, results of operations, financial condition and cash flows
- The Company’s results are affected by its ability to foresee and respond to competitive conditions and customer preferences
- Failure to attract and retain talented people with the necessary knowledge and experience could adversely affect Company’s ability to compete and achieve its strategic goals
- Changes in the Company’s credit ratings could increase the Company’s cost of borrowing or restrict the Company’s ability to access debt capital markets. The Company’s credit ratings are important to the Company’s cost of capital
- A significant percentage of the Company’s net sales are generated from the Company’s international operations and are subject to economic, geo-political, foreign exchange and other risks
- The Company’s business, results of operations and reputation could be adversely affected by industry-specific risks including process safety and product stewardship/regulatory compliance issues
- Changes in the global and local tax regulatory environments in, and the distribution of income among, the various jurisdictions in which the Company operates, could adversely impact DuPont’s results of operations