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DOW Dow Inc. - Fundamental Analysis

BEARISH
DOW Stock | Fundamental Analysis & Investment Insights
NYSE Basic Materials Chemicals
Current Price
$24.27
Analyst Target
$27.65
+13.9% Upside
52W High
$42.17
52W Low
$20.4

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Confidence Score
85%
Analysis Accuracy
The Advanced Deterministic Scorecard reveals severe financial distress with a Piotroski F-Score of 2/9, indicating weak fundamental health, and despite an impossibly high Altman Z-Score of 73183187353.6 (likely a data error, rendering it meaningless), the company shows alarming profitability and earnings deterioration. Dow Inc. is operating at a loss with negative profit margin (-2.77%) and ROE (-5.29%), while earnings have collapsed year-over-year by -127.9%. Valuation metrics are distorted by negative earnings, and the dividend is unsustainable with a 700% payout ratio. Despite a 5.77% yield, the technical trend is deeply bearish (0/100), and the stock has lost over 40% in the past three years.

Key Strengths

Current Ratio of 1.94 indicates short-term liquidity adequacy
Price/Sales of 0.42 suggests potential undervaluation relative to revenue
Recent quarterly EPS surprise of +36.8% shows some operational improvement
Dividend yield of 5.77% remains attractive on surface level
Price is well below 52-week high, offering potential entry point for contrarian investors

Key Risks

Piotroski F-Score of 2/9 signals severe financial weakness and high risk of continued underperformance
Negative earnings and forward P/E of -111.66 indicate unprofitability and lack of earnings visibility
Earnings growth YoY at -127.9% reflects a sharp deterioration in profitability
Dividend payout ratio of 700% is unsustainable and likely to be cut
Technical trend score of 0/100 confirms strong bearish momentum

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