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DD DuPont de Nemours, Inc. - Fundamental Analysis

BULLISH
DD Stock | Fundamental Analysis & Investment Insights
NYSE Basic Materials Specialty Chemicals
Current Price
$39.71
Analyst Target
$53.25
+34.1% Upside
52W High
$41.23
52W Low
$22.5

AI Analysis

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Confidence Score
88%
Analysis Accuracy
DuPont (DD) presents a compelling value opportunity despite near-term earnings volatility, trading at a steep discount to peers on forward earnings while demonstrating consistent top-line growth and strong operating leverage. The stock has outperformed materially over the past 6 months (+38.5%) and 1 year (+16.6%), reflecting improving sentiment ahead of earnings recovery. A robust 3.6% dividend yield, disciplined capital structure with low debt/equity (0.40), and a strong history of earnings beat rates (22 of 25 quarters) bolster investor confidence. However, negative net income margin (-6.01%) and elevated payout ratio (93%) warrant caution, though the forward P/E of 9.05 suggests significant earnings inflection is priced in.

Key Strengths

Forward P/E of 9.05 is deeply discounted vs sector average (32.65) and peers like ECL (37.15) and SHW (32.47)
Consistent revenue growth of 7.3% YoY, outpacing sector average of 5.88% and peers LIN (3.1%) and SHW (3.2%)
Strong operating margin of 17.77%, indicating pricing power and cost discipline despite macro headwinds
Impressive earnings beat streak: 22 of last 25 quarters beat estimates, with average surprise of +11.5% over the last 12 quarters
Attractive dividend yield of 3.6%, well above sector average and peer group (APD: ~3.0%, ECL: ~1.2%, SHW: ~1.8%, LIN: ~1.5%)

Key Risks

Negative profit margin of -6.01% raises concerns about near-term profitability, likely driven by restructuring or one-time charges
High dividend payout ratio of 93.06% threatens sustainability if earnings do not recover as expected
Insider selling activity totaling $5.71M in the last 6 months, including CTO sales, signals internal caution
Liquidity risk highlighted by low quick ratio of 0.84, below the current ratio of 2.00, suggesting inventory overhang
EV/EBITDA and cash flow metrics unavailable, limiting full assessment of leverage and cash generation capacity
AI Fair Value Estimate
Based on comprehensive analysis
$53.25
+34.1% above current price

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