Dow Inc. (DOW)

FairStock Score: 62/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Like Graham, I want to know what I am getting for the price and whether the business earns enough on capital. Dow is a materials science company with cyclical chemical and plastics operations. In fiscal 2025, the year ended 2025-12-31, it reported revenue of $40.0B, net loss of $2.4B, and diluted EPS of -$3.70. That followed fiscal 2024 revenue of $43.0B, net income of $1.2B, and EPS of $1.57, and fiscal 2023 revenue of $44.6B, net income of $660.0M, and EPS of $0.82. So the latest filed year was a sharp reversal. At the 2026-10-13 close of $28.51, FairStock calculations show a price/book of 1.30 and negative P/E of -15.58. ROE is -5.54% and ROCE is only 1.30%. Debt/equity is 1.12, and Altman Z-Score is 1.10, which tells me the balance sheet deserves respect. Yet trailing free cash flow is $1.6B, a 7.8% FCF yield, and the dividend yield is 4.87%. The Piotroski F-Score is 7/9 and beta is 0.42. FairStock tags it TURNAROUND: loss in latest year after earlier profits. I would not call this a wide-moat compounder. Chemical commodities have limited pricing power and heavy capital needs. The key question is whether fiscal 2025 was the trough. If cash flow holds and returns recover, the asset value and yield may prove adequate. If losses persist, the debt load and low ROCE could erode equity. The price is not demanding on book value, but it is not statistically cheap on weak earnings. I want a margin of safety, not a hope.

In plain English: Dow makes chemicals and plastics used in packaging, infrastructure, cars, and consumer products. The business looks weak right now: it lost money in fiscal 2025 after earning profits in fiscal 2024 and fiscal 2023, and it carries a lot of debt. At $28.51 on 2026-10-13, the price looks more fair than bargain-basement, because cash flow and the dividend offer support but weak earnings and low returns make the value uncertain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer