# Dow Inc. (DOW) — Stock CV

Dow Inc. is a $20.6B materials company. Revenue shrank 1.2% over the last year, it currently loses money, and its net debt equals ~5.2 years of free cash flow.

> Dow is one of the largest plastics and chemicals producers in the world, ranking in the top five for upstream plastics production, such as polyethylene, or PE, and polypropylene, or PP.

## Identity

- **Ticker**: DOW
- **Sector**: Basic Materials
- **Industry**: Plastic Materials, Synth Resins & Nonvulcan Elastomers
- **Headquarters**: MIDLAND, MI
- **Employees**: 34 600
- **Website**: https://www.dow.com
- **Market cap**: $20.6B
- **Last price**: $28.48
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $41.3B
- **Net income**: -$1.29B
- **Free cash flow**: $2.74B
- **Net debt**: $14.3B
- **P/E**: 8.2
- **Revenue growth (YoY)**: -1.2%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 50 |
| Growth | 0 |
| Profitability | 0 |
| Health | 30 |
| Quality | 50 |
| Moat | 0 |

## Qualifications (beginner checklist) — 6 of 11 passed

- [ ] Revenue growing — -1.2% YoY
- [ ] Profitable — -$1.29B TTM
- [ ] Profit growing — -335.0% YoY
- [x] Generates cash — $2.74B TTM
- [ ] Debt under control — ~5.2y of cash flow to repay
- [x] Established company — $20.6B market cap
- [x] Not printing shares — -4.1% shares over ~5y
- [x] Proven track record — 5/7 profitable years
- [ ] Financially stable — health score 28/100
- [x] Pays a dividend — yield 4.90%
- [x] Valuation not extreme — P/E 8.2

## Experience (career milestones)

- **FY2021** — Revenue crossed $50B: $55.0B for the year
- **FY2021** — Best year on record: $6.31B net income
- **FY2020** — Turned profitable: $1.23B net income after a loss year
- **FY2019** — Revenue already above $10B: $43.0B in first reported year
- **FY2019** — Positive free cash flow every year since: 7-year streak
- **2019** — The spin-off was completed on 1 April 2019, at which time Dow Inc
- **2017** — The plan commenced in 2017, when Dow and DuPont merged to form DowDuPont
- **2017** — The merger was pushed back a second time pending regulatory approvals
- **2015** — Dow and fellow chemical company DuPont agreed to a corporate reorganization involving the merger of Dow and…
- **2013** — A federal court rejected two tax shelter transactions entered into by Dow that created…
- **2009** — After negotiating the sale of preferred stock with Rohm and Hass' two largest stockholders and extending their…
- **2009** — The two cases against Dole and Dow were thrown out by a judge in Los Angeles due to fraud and…
- **2001** — Dow Chemical acquired Union Carbide in 2001
- **1966** — Dow Europe, Dow Latin America and Dow Pacific were established in 1966.Technology centers were also established for…
- **1949** — When Leland Doan became president of Dow in 1949, the world was evolving rapidly

## Strengths

- None stand out in the data.

## Watch-outs

- Revenue shrinking 1.2% year over year
- Not profitable — 3.1% net margin
- Thin interest coverage (-1.7×)
- Loss-making in 2 of the recent years
- Net debt equals ~5.2 years of free cash flow

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $55.0B | $6.31B | $7.01B |
| FY2022 | $56.9B | $4.58B | $7.47B |
| FY2023 | $44.6B | $589M | $5.20B |
| FY2024 | $43.0B | $1.12B | $2.91B |
| FY2025 | $40.0B | -$2.62B | $1.03B |

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Source: https://stockcv.com/DOW — derived from company filings; may be delayed or incomplete. Information, not investment advice.