Dow (DOW)
Materials · $20.4B market cap · SEC CIK 0001751788
fundamentals score out of 100
Next reports on Oct 22, 2026, before the open, with analysts expecting $0.68 in earnings per share.
The case for DOW
- Pays a 5.4% dividend while you wait.
- Trades at 1.24× book value, close to what the balance sheet says it owns.
- Moves less than the market (beta 0.43).
- Price/sales of 0.5× is lower than 100% of Materials companies.
The case against
- Losing money over the last year: net margin -3.1%, return on equity -8%.
- Burned $1.4B of free cash in FY2025.
- Pays a dividend while losing money over the last twelve months.
- Revenue was flat on the year (-1.2%).
- Free-cash-flow yield of -7.1% is lower than 100% of Materials companies.
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. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 22 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 22 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 13 |
| Momentumhow the price has behaved lately | 45 |
| Stabilityhow violently it moves, what it owes and what it pays you | 63 |
- It is losing money, so it has no P/E; that counts against value rather than being skipped.
- Each factor except momentum is half fixed thresholds, half rank among the 26 Materials companies.
Key numbers
| Price / earnings | n/a |
|---|---|
| Price / book | 1.24× |
| Price / sales | 0.5× |
| Revenue growth (YoY) | -1.2% |
| EPS growth (YoY) | — |
| Gross margin | 10% |
| Operating margin | -1% |
| Net margin | -3% |
| Return on equity | -8% |
| Debt / equity | 1.13× |
| Current ratio | 1.75 |
| Dividend yield | 5.42% |
| Beta | 0.43 |
| 52-week range | $20.65 – $42.74 |
| Position in that range | 34% of the way up |
| 3-month return | -10.9% |
| 1-year return | +20.3% |
Five years of financials, as filed
Pulled from Dow's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $40.0B | $43.0B | $44.6B | $56.9B | $55.0B |
| Operating cash flow | $1.0B | $2.9B | $5.2B | $7.5B | $7.0B |
| Capital expenditure | $2.5B | $2.9B | $2.4B | $1.8B | $1.5B |
| Total assets | $58.5B | $57.3B | $58.0B | $60.6B | $63.0B |
| Shareholder equity | $16.0B | $17.4B | $18.6B | $20.7B | $18.2B |
| Cash | $3.8B | $2.2B | $3.0B | $3.9B | $3.0B |
| Long-term debt | — | $16.2B | — | $15.1B | $14.5B |
| Free cash flow | -$1.4B | -$26.0M | $2.8B | $5.7B | $5.5B |
| Diluted shares | 712M | 705M | 709M | 726M | 749M |
Share count is down 5.0% over 4 years. Buybacks have been shrinking the pie.
What Dow says it does
for further discussion of the Company's segments. Dow’s measure of profit/loss for segment reporting purposes is Operating EBIT as this is the manner in which the chief executive officer, chief operating officer, chief financial officer, general counsel and corporate secretary, and senior vice president of corporate development, together the "executive committee" and chief operating decision maker ("CODM"), assesses performance and allocates resources. The CODM compares quarterly results to both the year-ago and sequential periods to assess performance and allocate resources to each segment. The Company defines Operating EBIT as earnings (i.e., "Income before income taxes") before interest, excluding the impact of significant items. Operating EBIT by segment includes all operating items relating to the businesses; items that principally apply to Dow as a whole are assigned to Corporate. See Note 25 to the Consolidated Financial…
Risk factors DOW lists in its 10-K
- Sales Variances by Operating Segment and Geographic Region
- Selling, General and Administrative Expenses
- Restructuring, Goodwill Impairment and Asset Related Charges - Net
- Equity in Earnings (Losses) of Nonconsolidated Affiliates
- Interest Expense and Amortization of Debt Discount
- Provision (Credit) for Income Taxes
- Net Income Attributable to Noncontrolling Interests
- Net Income (Loss) Available for Common Stockholder(s)
- Change in Net Sales from Prior Period due to
- Industrial Intermediates & Infrastructure
- Operating Segments & End-Market Expectations
- Cash Flows from Operating Activities
- Net Working Capital and Current Ratio at Dec 31
- Cash Flows from Investing Activities