DuPont de Nemours (DD) AI Stock Analysis

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DuPont de Nemours

(NYSE:DD)

63Neutral

DuPont's overall score reflects a stable but challenged financial outlook, with strong cash flows but profitability issues. Technical analysis shows potential weaknesses, and the high P/E ratio suggests valuation concerns. Positive earnings call performance and strategic initiatives provide support but are offset by industry challenges and tariff uncertainties.

Positive Factors

Earnings

DuPont posted an earnings per share that exceeded consensus expectations, supported by margin improvements and restructuring savings.

Growth Potential

DuPont owns industry-leading platforms that have ties to secular themes, which over time, should help it grow at GDP+ rates with margins that exceed the majority of specialty chemical/industrial companies.

Spin-off Plans

The planned spin-off of its large Electronics platforms should unlock value, all resulting in DD outperforming.

Negative Factors

Export Challenges

A decline in exports of end products to China is likely an additional headwind for DuPont, given that 30% of sales in Electronics is in China.

PFAS Liabilities

PFAS liability remains a key overhang, likely raising litigation risks with recent developments.

Tariff Risks

Tariff risks pose a challenge, with an estimated $500 million of materials facing import tariffs.

DuPont de Nemours (DD) vs. S&P 500 (SPY)

Market Cap

$27.22B

Dividend Yield2.4%

Average Volume (3M)3.90M

Price to Earnings (P/E)40.2

Beta (1Y)1.02

Revenue Growth4.51%

EPS Growth-121.68%

CountryUS

Employees24,000

SectorBasic Materials

Sector Strength60

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)1.03

Shares Outstanding418,498,720

10 Day Avg. Volume3,414,585

30 Day Avg. Volume3,896,308

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.38

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit8.32

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$81.92

Price Target Upside23.65% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering12

DuPont de Nemours Business Overview & Revenue Model

Company DescriptionDuPont de Nemours, Inc., commonly known as DuPont, is a global innovation leader with technology-based materials, ingredients, and solutions that help transform industries and everyday life. The company operates in several key sectors, including electronics, transportation, construction, water solutions, and healthcare. DuPont's core products and services encompass a wide range of offerings, including specialty chemicals, advanced materials, and biotechnology solutions.

How the Company Makes MoneyDuPont makes money through the sale of its diverse portfolio of products and solutions across various industries. The company's revenue model is primarily based on the production and sale of specialty chemicals and advanced materials, which are integral to manufacturing processes in electronics, automotive, and construction industries. Key revenue streams include the Electronics & Industrial segment, which supplies essential materials for semiconductors and other electronics; and the Water & Protection segment, which provides filtration technologies and protective materials. DuPont also engages in strategic partnerships and collaborations that enhance its product offerings and market reach. Additionally, the company invests heavily in research and development to innovate and sustain its competitive edge in the market.

DuPont de Nemours Key Performance Indicators (KPIs)

Any

Electronics and Industrial Revenue Breakdown

Electronics and Industrial Revenue Breakdown
Breaks down revenue from the Electronics and Industrial segment, reflecting the company's performance in high-tech and industrial markets, and its ability to innovate and capture market share.

Chart InsightsDuPont's Electronics and Industrial segment is experiencing a notable recovery, with double-digit organic growth driven by semiconductor demand and AI applications. Despite recent fluctuations, the segment is poised for continued strength, supported by a strategic spin-off planned for 2025. However, challenges such as price pressures and automotive headwinds could impact margins. The company's focus on operational excellence and portfolio management aims to sustain growth, with a mid-single-digit organic sales increase targeted for 2025.

Data provided by:

Main Street Data

DuPont de Nemours Financial Statement Overview

Summary

DuPont exhibits a stable financial position with strong cash flows and a healthy balance sheet. However, challenges in profitability and margin volatility on the income statement highlight areas for improvement. The company needs to focus on enhancing profit margins while maintaining robust cash generation.

Income Statement

Neutral

The income statement reveals a mixed performance with a modest revenue growth when comparing TTM (Trailing-Twelve-Months) to the previous year. The gross profit margin has improved significantly, indicating better cost management. However, the net profit margin has decreased sharply in the TTM, suggesting issues in controlling expenses or increased financial costs. EBITDA and EBIT margins also show volatility, which could be concerning for future profitability.

Balance Sheet

Positive

The balance sheet highlights a strong equity position with a relatively low debt-to-equity ratio. The equity ratio indicates a solid asset base supported by equity, although there has been a decline in total assets over the periods. Return on Equity (ROE) has weakened, reflecting challenges in generating profits from shareholders' investments.

Cash Flow

Positive

Cash flow analysis indicates strong operating cash flow, which comfortably covers net income, suggesting good cash generation from operations. The free cash flow growth rate is positive in the TTM, although it reflects fluctuations over the years. The company has managed capital expenditures effectively, contributing to positive free cash flow, which is a positive sign for financial health.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
12.39B	12.07B	13.02B	12.57B	20.40B
	Gross Profit
4.51B	4.23B	4.62B	4.59B	6.88B
	EBIT
1.83B	1.71B	2.29B	2.10B	2.53B
	EBITDA
2.75B	2.05B	3.19B	3.01B	-201.00M
	Net Income Common Stockholders
703.00M	423.00M	1.06B	1.18B	-2.87B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.86B	2.39B	4.96B	2.01B	2.54B
	Total Assets
36.64B	38.55B	41.40B	45.71B	70.90B
	Total Debt
7.17B	8.29B	8.07B	10.78B	21.81B
	Net Debt
5.32B	5.48B	4.41B	8.77B	19.27B
	Total Liabilities
12.84B	13.83B	14.45B	18.66B	31.83B
	Stockholders Equity
23.35B	24.28B	26.50B	26.43B	38.50B
Cash Flow		Free Cash Flow
1.74B	1.57B	-155.00M	-956.00M	2.83B
	Operating Cash Flow
2.32B	1.92B	588.00M	2.28B	4.09B
	Investing Cash Flow
-920.00M	139.00M	8.92B	-2.40B	-202.00M
	Financing Cash Flow
-1.85B	-2.99B	-7.67B	-6.51B	3.24B

DuPont de Nemours Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price66.25

Price Trends

50DMA

69.85

Negative

100DMA

73.77

Negative

200DMA

77.86

Negative

Market Momentum

MACD

-0.72

Negative

RSI

50.87

Neutral

STOCH

32.49

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DD, the sentiment is Neutral. The current price of 66.25 is above the 20-day moving average (MA) of 63.30, below the 50-day MA of 69.85, and below the 200-day MA of 77.86, indicating a neutral trend. The MACD of -0.72 indicates Negative momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 32.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DD.

DuPont de Nemours Risk Analysis

DuPont de Nemours disclosed 24 risk factors in its most recent earnings report. DuPont de Nemours reported the most risks in the “Legal & Regulatory” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

DuPont de Nemours Peers Comparison

Overall Rating

UnderperformOutperform

Sector (49)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMN	68 Neutral	$8.79B	9.71	16.16%	4.36%	2.78%	1.50%
DD	63 Neutral	$27.22B	40.24	0.06%	2.40%	4.51%	-121.68%
LYB	63 Neutral	$18.76B	18.05	7.19%	9.64%	-6.53%	-50.08%
PPG	63 Neutral	$24.64B	18.67	18.47%	2.52%	-7.67%	-0.58%
WLK	56 Neutral	$10.11B	26.30	3.71%	2.66%	-1.27%	48.34%
IFF	55 Neutral	$20.25B	83.39	-6.08%	2.17%	0.68%	66.69%
Sector *	49 Neutral	$1.94B	-1.23	-21.28%	3.73%	1.19%	-29.73%

* Basic Materials Sector Average

Performance Comparison

DuPont de Nemours

66.25

-11.08

-14.33%

EMN

Eastman Chemical

77.45

-20.29

-20.76%

IFF

International Flavors & Fragrances

74.08

-21.27

-22.31%

LYB

LyondellBasell

57.22

-38.40

-40.16%

PPG

PPG Industries

108.61

-23.49

-17.78%

WLK

Westlake Chemical

80.44

-74.44

-48.06%

DuPont de Nemours Earnings Call Summary

Earnings Call Date:May 02, 2025

(Q1-2025)

% Change Since: 0.30%|

Next Earnings Date:Aug 05, 2025

Earnings Call Sentiment Positive

DuPont's first quarter displayed strong financial performance and progress on strategic initiatives, including the electronics spin-off. Despite facing challenges such as tariff impacts and softness in certain industrial segments, the company maintained its full-year guidance and demonstrated resilience across key markets.

Q1-2025 Updates

Positive Updates

Strong First Quarter Performance

DuPont reported first-quarter sales growth of 6% on an organic basis with strong volume growth. Operating EBITDA increased 16% year-over-year to $788 million, and adjusted EPS rose by 30% to $1.03.

Successful Electronics Spin-off Progress

DuPont announced significant progress on the intended spin-off of its electronics business, named Qnity, with a planned separation date of November 1st. Key executive leadership appointments were completed, and the Form 10 registration statement was submitted to the SEC.

ElectronicsCo and IndustrialsCo Segment Growth

ElectronicsCo reported net sales growth of 14% year-over-year to $1.1 billion, with a 16% increase in volume. IndustrialsCo achieved a 2% organic sales growth, led by double-digit gains in electronics, healthcare, and water end-markets.

Strong Regional Performance in Asia Pacific

Asia Pacific delivered 13% organic sales growth year-over-year, including a 20% increase in China, driven by electronics and water segments.

Robust Financial Guidance

DuPont maintained its full-year guidance with net sales estimates of $12.8 billion to $12.9 billion, operating EBITDA of $3.325 billion to $3.375 billion, and adjusted EPS of $4.30 to $4.40.

Negative Updates

Tariff Uncertainty and Cost Exposure

DuPont faces an estimated cost exposure of $500 million annually due to tariffs, with a net impact of $60 million expected in 2025, primarily affecting the second half.

Challenges in Diversified Industrials

Diversified Industrials sales were down mid-single digits on an organic basis due to softness in construction and auto end-markets.

Impact of Currency Headwinds

A currency headwind of 1% slightly offset overall net sales growth of 5% in the first quarter.

Aramids Business Impairment Charge

A non-cash impairment charge was taken due to the realignment of reporting units, affecting the Aramids business.

Company Guidance

During DuPont's Q1 2025 earnings call, the company reported sales growth of 6% on an organic basis, driven by strong volume increases. Operating EBITDA reached $788 million, a 16% rise from the previous year, with an operating EBITDA margin of 25.7%, marking a 240 basis point improvement. Adjusted EPS increased by 30% to $1.03. The Electronics segment experienced 14% organic sales growth, propelled by high demand in semiconductor technologies and interconnect solutions. The Industrials segment saw a 2% organic sales increase, supported by robust performance in healthcare and water technologies, although offset by softness in construction and automotive markets. DuPont maintained its full-year guidance, projecting net sales between $12.8 billion and $12.9 billion, operating EBITDA from $3.325 billion to $3.375 billion, and adjusted EPS between $4.30 and $4.40. The company also highlighted a potential $60 million net cost impact from tariffs, predominantly in the second half of the year, while continuing to work on mitigation strategies.

DuPont de Nemours Corporate Events

Legal ProceedingsRegulatory Filings and Compliance

DuPont Under Investigation by Chinese Market Regulator

Neutral

Apr 4, 2025

DuPont is cooperating with an investigation by the State Administration for Market Regulation of China concerning its Tyvek® business. In 2024, Tyvek® sales to China were approximately $90 million, representing less than 1% of DuPont’s total net sales, indicating limited financial impact on the company.

Executive/Board ChangesBusiness Operations and Strategy

DuPont Announces Leadership Change Amid Business Separation

Neutral

Mar 17, 2025

On March 17, 2025, DuPont announced that Leland G. Weaver, President of the Water & Protection segment, will leave the company following the separation of its electronics business into an independent entity. Until a successor is named, Weaver will lead the Diversified Solutions businesses and ensure a smooth transition during the separation process, marking a significant organizational change for DuPont.

Executive/Board Changes

DuPont Appoints Kurt B. McMaken to Board

Positive

Feb 21, 2025

On February 21, 2025, DuPont de Nemours announced the appointment of Kurt B. McMaken to its Board of Directors, effective immediately. McMaken, an independent director as per NYSE standards, will serve on the Audit and Nomination and Governance Committees. His extensive experience in finance and strategic planning, particularly in the manufacturing sector, is expected to bolster DuPont’s growth and value creation strategies.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.