Dow Inc (DOW) AI Stock Analysis

• Market Cap: $17.59B
• Dividend Yield: 9.52%
• Average Volume (3M): 13.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -5.25%
• EPS Growth: -208.14%
• Country: US
• Employees: 36,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.19
• Shares Outstanding: 708,844,200
• 10 Day Avg. Volume: 13,362,787
• 30 Day Avg. Volume: 13,673,925
• PEG Ratio: 0.28
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.66
• P/FCF Ratio: -187.04
• Enterprise Value/Market Cap: 1.83
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 11.46
• Enterprise Value/Ebitda: 10.81
• 1Y Price Target: $26.33
• Price Target Upside: 2.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

• Rating: 48 Neutral
• Price Target: $24.50 ▼(-4.78% Downside)

Dow Inc's overall stock score is primarily impacted by its financial performance, which is under pressure due to declining revenue, profitability, and cash flow. The technical analysis indicates a bearish trend, and the valuation is weak with a negative P/E ratio. Despite strategic initiatives highlighted in the earnings call, significant challenges remain, affecting the company's financial health and stock performance.

Positive Factors

Strategic Divestitures and Partnerships

Strategic divestitures and partnerships enhance Dow's financial flexibility and focus on core operations, supporting long-term growth and stability.

Cost Savings Initiatives

Cost-saving initiatives are crucial for improving operational efficiency and profitability, providing a buffer against market volatility and economic pressures.

Cash Flow Improvement

Improved cash flow from operations strengthens Dow's ability to invest in growth opportunities and manage debt, enhancing long-term financial health.

Negative Factors

Declining Revenue

Declining revenue and profitability indicate challenges in maintaining market share and pricing power, potentially impacting long-term competitive positioning.

High Leverage

High leverage can limit financial flexibility and increase risk, particularly in volatile markets, necessitating careful debt management to ensure stability.

Cash Flow Constraints

Declining free cash flow highlights challenges in cash generation, which can constrain investment in growth initiatives and debt servicing capabilities.

Dow Inc Business Overview & Revenue Model

Company Description

Dow Inc. is a global leader in materials science, delivering a broad range of innovative solutions in various sectors, including packaging, infrastructure, and consumer care. The company operates through three primary segments: Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings. Dow's core products include polyethylene, polyurethanes, and specialty chemicals, which are essential in manufacturing various consumer and industrial goods, thus positioning it as a key player in the chemical industry.

How the Company Makes Money

Dow Inc. generates revenue primarily through the production and sale of a diverse array of chemical products and materials. Its key revenue streams come from the Packaging & Specialty Plastics segment, which provides high-demand products like films and resins for the packaging industry; the Industrial Intermediates & Infrastructure segment, which supplies chemicals used in construction and automotive applications; and the Performance Materials & Coatings segment, which offers advanced materials for various applications. The company benefits from significant partnerships with other industry leaders, allowing it to expand its market reach and enhance product offerings. Additionally, fluctuations in raw material prices and global demand for its products significantly influence its earnings, as does the company's focus on innovation and sustainability initiatives to meet evolving market needs.

Dow Inc Financial Statement Overview

Summary

Dow Inc is experiencing financial difficulties with declining revenues and profitability. The income statement shows a negative net profit margin and decreased revenue. The balance sheet is moderately leveraged, but negative cash flows and profitability are concerning.

Income Statement

Dow Inc's income statement reflects a challenging period with declining revenue and profitability. The TTM data shows a negative net profit margin of -2.35%, indicating losses. Revenue has decreased by 1.9% compared to the previous period. Gross profit margin has also declined to 7.79%, down from 10.72% in the previous year. These figures suggest pressure on both top-line growth and cost management.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.05 in the TTM, indicating a balanced approach to leveraging. However, the return on equity is negative at -5.63%, reflecting the company's recent losses. The equity ratio stands at 29.21%, suggesting a reasonable level of equity financing relative to total assets.

Cash Flow

Cash flow analysis reveals significant challenges, with a negative free cash flow of -$1.74 billion in the TTM. The free cash flow to net income ratio is -1.41, indicating cash outflows relative to net losses. Operating cash flow is positive but has decreased significantly, impacting liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.91B	42.96B	44.62B	56.90B	54.97B	38.54B
Gross Profit	2.81B	4.46B	4.97B	7.86B	10.39B	4.81B
EBITDA	2.98B	5.25B	4.00B	9.50B	11.68B	5.54B
Net Income	-1.13B	1.12B	589.00M	4.58B	6.31B	1.23B
Balance Sheet
Total Assets	60.99B	57.31B	57.97B	60.60B	62.99B	61.47B
Cash, Cash Equivalents and Short-Term Investments	4.61B	2.57B	2.99B	3.89B	2.99B	5.10B
Total Debt	19.63B	17.64B	16.45B	16.71B	16.14B	19.04B
Total Liabilities	41.93B	39.46B	38.86B	39.36B	44.25B	48.47B
Stockholders Equity	17.54B	17.36B	18.61B	20.72B	18.16B	12.44B
Cash Flow
Free Cash Flow	-1.12B	-151.00M	2.72B	5.42B	4.68B	4.84B
Operating Cash Flow	1.56B	2.91B	5.20B	7.47B	7.01B	6.23B
Investing Cash Flow	-1.86B	-2.37B	-2.93B	-2.97B	-2.91B	-841.00M
Financing Cash Flow	1.99B	-1.17B	-3.12B	-3.36B	-6.07B	-2.76B

Dow Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOW, the sentiment is Positive. The current price of 25.73 is above the 20-day moving average (MA) of 22.71, above the 50-day MA of 23.42, and below the 200-day MA of 28.82, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 68.12 is Neutral, neither overbought nor oversold. The STOCH value of 95.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DOW.

Dow Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASIX	―	$539.03M	7.07	9.85%	3.24%	1.31%	796.76%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HUN	―	$1.57B	―	-10.43%	11.05%	-1.56%	-259.58%
DOW	―	$17.59B	-15.92	-6.39%	9.52%	-5.25%	-208.14%
CE	―	$4.62B	―	-25.69%	0.27%	-5.83%	-183.85%
TROX	―	$607.15M	-2.41	-14.11%	11.10%	0.20%	-292.54%
BAK	―	$1.08B	-1.08	―	―	-3.33%	44.37%

Dow Inc Corporate Events

Dow Inc. Reports Third Quarter 2025 Results

Dow Inc., a leading materials science company, operates in high-growth markets such as packaging, infrastructure, mobility, and consumer applications, with a commitment to sustainability and innovation. In its third quarter of 2025, Dow Inc. reported net sales of $10 billion, marking an 8% decline year-over-year, with a slight sequential decrease of 1%. The company faced challenges across all operating segments, but improvements in Industrial Intermediates & Infrastructure helped mitigate some declines. Dow’s GAAP net income stood at $124 million, with operating EBIT at $180 million, reflecting a significant year-over-year decrease due to price and equity earnings declines, partially offset by cost reduction efforts. Despite the challenging environment, Dow achieved a sequential increase in operating EBIT and cash flow, supported by cost reduction measures and lower maintenance activities. The company returned $249 million to shareholders in dividends during the quarter. Looking ahead, Dow’s management remains optimistic about navigating the current market conditions, emphasizing cost savings and strategic initiatives to enhance competitiveness and shareholder returns. The company is focused on resilient areas of its portfolio and continues to engage with global governments to ensure a fair-trade environment.

Dow Inc. Earnings Call: Strategic Gains Amid Challenges

Dow Inc. has demonstrated a strategic focus on financial improvements and cost-saving initiatives during its latest earnings call, while also acknowledging the challenges posed by pricing pressures and global economic uncertainties. The sentiment conveyed was one of cautious optimism, with a clear emphasis on navigating current economic headwinds while positioning for future growth.

Dow Inc Completes $1.4 Billion Notes Offering

On September 3, 2025, Dow Inc. entered into an Underwriting Agreement with several underwriters to issue and sell $1.4 billion in notes, consisting of $750 million in 4.800% Notes due 2031 and $650 million in 5.650% Notes due 2036. The offering was completed on September 8, 2025, under an Indenture dated July 26, 2019, with The Bank of New York Mellon Trust Company, N.A. serving as trustee. This financial move is part of Dow’s ongoing strategy to manage its capital structure and support its operational and strategic objectives.

The most recent analyst rating on (DOW) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Dow Inc stock, see the DOW Stock Forecast page.

Dow Inc Completes Sale of 9% Stake in Diamond

On September 2, 2025, Dow Inc. announced the completion of the sale of an additional 9% equity stake in Diamond Infrastructure Solutions to Macquarie Asset Management, increasing Macquarie’s stake to 49%. This transaction brought Dow an additional $540 million, totaling approximately $3 billion in proceeds. The expanded partnership with Macquarie is expected to enhance Dow’s strategic positioning and operational control over Diamond Infrastructure Solutions, which provides services across sectors like energy and infrastructure. Recent collaborations, such as hosting a CO2 transformation facility and exploring solar energy projects, highlight Diamond’s innovative initiatives.

The most recent analyst rating on (DOW) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Dow Inc stock, see the DOW Stock Forecast page.