Dow Inc
DOW
Market Cap$21.5B
Close$
Earnings Call Q1 2025
April 24, 2025 - AI Summary
Year-Over-Year Performance: In Q1, Dow reported net sales of $10.4 billion, a decline of 3% YoY, reflecting volume growth offset by margin compression. EBITDA was $944 million, impacted by lower closing pricing and margin pressures across all operating segments. This represents a continuation of a protracted down cycle, now in its third year with GDP growth below 3%.
Cost Reduction Initiatives: Dow is implementing targeted annualized cost reductions of at least $1 billion by 2026, including workforce reductions of approximately 1,500 roles. The company expects these actions to improve profitability in a challenging macro environment. An initial benefit of $50 million in cost reductions is expected in Q2 as ramped-up initiatives kick in.
Delayed Capital Expenditure: The construction of the path to zero project in Fort Saskatchewan has been delayed, reducing 2025 capital expenditures from $3.5 billion to $2.5 billion. This delay aims to align project spending with a more optimistic demand outlook and protect margins in the near term.
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$83.73
184% upside
Current Fair Value
184% upsideUndervalued by 184% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $21.50 Billion |
|---|---|
| Enterprise Value | $38.26 Billion |
| Dividend Yield | $2.8 (9.20447074293228%) |
| Earnings per Share | $1.57 |
| Beta | 1.04 |
| Outstanding Shares | 706,900,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 74.15 |
|---|---|
| PEG | 895.75 |
| Price to Sales | 0.49 |
| Price to Book Ratio | 1.23 |
| Enterprise Value to Revenue | 0.89 |
| Enterprise Value to EBIT | 21.91 |
| Enterprise Value to Net Income | 32 |
| Total Debt to Enterprise | 0.48 |
| Debt to Equity | 1.05 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Dow Inc
CEO: James Fitterling The Dow Jones Industrial Average , Dow Jones, or simply the Dow , is a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States. Although it is one of the most commonly f...