Dow Inc. (DOW) AI Stock Analysis

Dow Inc., along with its subsidiaries, specializes in providing advanced materials science solutions across a wide spectrum of industries globally. The company operates through three primary segments: Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings. Packaging & Specialty Plastics provides ethylene, propylene, and polymers such as polyethylene and ethylene vinyl acetate for packaging, mobility, consumer goods, and wire and cable applications. Industrial Intermediates & Infrastructure manufactures ethylene oxides, polyurethane systems, and caustic soda. Performance Materials & Coatings produces architectural and industrial coatings used in protective, wood, and metal finishes. The company also engages in insurance and reinsurance activities.

Dow's financial performance showed steady declines following peak revenue of $56.90B in FY2022. By FY2025, annual revenue fell 7.0% to $39.97B, while net income declined to -$2.62B from $1.12B in FY2024. Over this period, gross margin compressed from 18.9% in FY2021 to 6.0% in FY2025, and operating margin dropped to 0.7%. For the trailing twelve months, revenue reached $41.32B with an operating margin of 11.6% and a net profit margin of -3.1%. In the latest quarter ended June 30, 2026, quarterly revenue increased 19.7% year-over-year, while quarterly earnings declined 73.3%.

As of June 30, 2026, Dow held $3.97B in cash and short-term investments against total debt of $20.86B, resulting in net debt of $16.89B. The company maintained a debt-to-equity ratio of 0.85 and a current ratio of 11.07. In FY2025, cash generation softened as operating cash flow declined to $1.03B, which led to free cash flow of -$1.45B after capital expenditures of $2.48B. During FY2025, Dow also allocated $1.49B toward dividend payments and raised $85.0M via share issuance.

Dow trades at a forward P/E of 14.1x and an EV-to-EBITDA of 13.7x, compared with the median of its S&P 500 Basic Materials peers at 14.7x forward P/E and 14.9x EV-to-EBITDA. The stock's price-to-sales ratio stands at 0.5x, below the peer group median of 2.5x. Dow's share price gained 43.4% over the past 12 months, outperforming the S&P 500 return of 16.8%. Over a 5-year timeframe, Dow shares declined 33.2%, trailing the S&P 500 return of 83.0%.

Dow pays an annual forward dividend of $1.40 per share, distributed quarterly, yielding 4.68% as of October 16, 2026. The company has paid dividends for 8 consecutive years. Its dividend has contracted at an annualized rate of 5.6% over the last 5 years. In FY2025, dividend payments totaled $1.49B.

Wall Street analysts cover Dow with 4 Strong Buy, 1 Buy, 13 Hold, and 2 Sell ratings. The average 12-month price target is $33.29, representing an upside of 11.2% from the closing price of $29.93. The consensus EPS estimate for the current fiscal year ending December 31, 2026, is $2.42, with expected revenue of $43.69B. Dow beat analyst EPS estimates in each of the last 4 quarters, with next earnings scheduled for October 22, 2026.

This page is an AI-written research summary of Dow Inc. (DOW). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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