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Fundamental analysis: Dow Inc. (DOW)

Awarener score: 7.1

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 3.0

• Business has been shrinking at a fast pace. It's been last-in-rank when measured against peer companies.
• Dow Inc. business shows some variation, there's some risk. It looks worse than most rivals.

Margins score: 6.3

• DOW profit margins -on goods and services sold- are usually very poor. They stand worse than most rival companies.
• Business profit on sales tends to be very good. It's almost average when measured against competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually good. They remain in a weak position compared to peers.
• Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still somewhat worse than similar companies.
• Profits -before income taxes- are usually good considering total sales, and remain below average when measured against rivals.
• Total net profit tends to be sufficient when confronted to sales. Company stands substantially worse when measured against comparable firms.

Growth score: 4.3

• Dow Inc. profit growth -on goods and services sold- has been almost stagnant. It's been lacking compared to competitors.
• In recent years, earnings -on operations- have been growing at a good step, which has been somewhat worse than comparable firms.
• Profits -available to repay debt and purchase properties- have been growing at a good pace, which compares below average when measured against peer enterprises.
• Earnings -before income taxes and interests on loans taken- have been growing at an extremely fast tempo. It turns to be impressive in relation to similar stocks.
• In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
• In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
• The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 5.3

• DOW had to pay a lot of income taxes in relation to profits made in the past years. It's been worse than most peers.
• Research and development expenses consume a very little portion of revenues. It's last-in-rank when measured against competitors.
• The company grows very little in relation to research and development efforts. It stands a disappointment compared to rival companies.

Profitability score: 8.0

• Dow Inc. usually gets very good returns on the resources it controls. It proves weak when measured against peer firms.
• The company normally gets very good proceeds -on the resources directly invested in the business-. They remain in a weak position compared to similar companies.
• There's usually abundant profitability -in relation to owned resources-. It ranks weak when measured against competitors.
• In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's below average when measured against comparable enterprises.

Usage of Funds score: 6.1

• DOW usually uses a modest portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments isn't too high. It stands below average when measured against rival firms.
• The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is weak when measured against industry peers.
• In the past twelve months it paid excellent dividends, considering the current stock price. It came better than most competitors.
• In recent years, has cut back dividend payments. It could be traversing challenging times. The company has behaved in a very weak position compared to similar firms.
• The company usually uses a portion of genuine funds generated to pay dividends. Dividend payments should be safe, unless business prospects are challenged. Sustainability looks somewhat worse than comparable companies.
• The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you 're interested in a technical explanation. It stands in good shape compared to rivals.
• The company uses a significant portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks below average when measured against competitors.

Balance Sheet score: 5.3

• Dow Inc. intangible assets (like brands and goodwill) represent a portion of resources controlled, according to accounting books. There could be difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
• The company has roughly double short-term resources than short-term obligations. Liquidity concerns are normally not an issue. It turns to be a disappointment compared to similar firms.
• Roughly a third of resources controlled were provided for with financial debt. Creditors have claims on the company. It remains somewhat worse than rival firms.
• Controlled resources might be turned into cash and equivalents neither fast nor too slow. Liquidity and risk might be run-of-the-mill. It looks substantially worse when measured against rivals.
• For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's in a very weak position compared to peer firms.
• For every dollar of short-term obligations, the company has roughly half of cash and equivalents, which is worse than most similar enterprises.
• Usually, sales are on a month and a half credit. It still ranks below average when measured against peers.
• Normally has approximately somewhat less than two months of sales worth in inventory. It comes up as in a weak position compared to competitors.
• On average, it takes higher than three months from the purchase to charging customers. It happens to be somewhat worse than peers.
• Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
• The company pays its suppliers roughly three months before charging its customers, so there's sufficient money invested in working capital. It's in a very weak position compared to similar companies.
• Net interest expenses consume a minor portion of usual business earnings, and are easily bearable. It stands somewhat better than rival firms.
• Business earnings have usually been good when measured against loans taken. Cutting back reinvesting in the business, it could take less than three years to repay the obligations with current profitability. It ranks almost average when measured against comparable enterprises.
• Revenues are somewhat low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks close to average when compared to similar firms.
• Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still somewhat worse than peer companies.

Valuation score: 7.5

• Dow Inc. looks cheap in relation to profits and financial position. It happens to be weak when measured against competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a weak position compared to peers.
• In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands somewhat worse than similar companies.
• The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still encouraging in relation to industry firms.
• In the past twelve months, the company has rewarded investors, considering both dividends and share on the pie of earnings. It came up in good shape compared to peer ventures.
• The company is indebted, it should focus on loan repayment. It looks mediocre against similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation looks cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be attractive. It ranks weak when measured against peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a weak position compared to rival firms.
• The relation between the stock price and accounting book value is somewhat high. It's important both to check this metric through time and to compare it with rival companies. The company remains mediocre against peer firms.
• In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be substantially worse when measured against industry peers.
• In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still in a weak position compared to peer companies.

Total score: 5.7

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Awarener score: 7.1

Conclusion

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