DuPont de Nemours, Inc. (NYSE: DD)

Sector: Basic Materials Industry: Specialty Chemicals CIK: 0001666700
Market Cap 16.63 Bn
P/B 0.68
P/E 3.65
P/S 0.32
ROIC (Qtr) 2.07
Div Yield % 12.07
Rev 1y % (Qtr) 7.34
Total Debt (Qtr) 8.90 Bn
Debt/Equity (Qtr) 0.39

About

DuPont de Nemours, Inc., often referred to as DuPont, is a global innovation leader that operates in the chemical industry, providing diverse science and expertise to help customers advance their best ideas and deliver essential innovations in various markets, such as electronics, transportation, construction, water, healthcare, and worker safety. The company was established in 2015, following the merger of The Dow Chemical Company and E. I. du Pont de Nemours and Company, and is based in Delaware, with subsidiaries in around 50 countries and manufacturing...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 3.79B provide 2.05x coverage of short-term debt 1.85B, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 1.90B provides exceptional 41.30x coverage of minority interest expenses 46M, showing strong core operations.
  • Operating cash flow of 1.90B provides strong 15.83x coverage of stock compensation 120M, indicating sustainable incentive practices.
  • Robust free cash flow of 1.26B exceeds capital expenditure of 644M by 1.95x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 17.29B provides 3.45x coverage of working capital 5.02B, indicating strong operational backing.

Bear case

  • Operating cash flow of 1.90B barely covers its investment activities of (703M), with a coverage ratio of -2.70, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.90B provides thin coverage of dividend payments of (674M) with a -2.82 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (703M) provide weak support for R&D spending of 557M, which is -1.26x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 3.79B provide limited coverage of acquisition spending of (47M), which is -80.53x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of (111M) show weak coverage of depreciation charges of 1.07B, with a -0.10 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Specialty Chemicals
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 LIN Linde Plc 218.63 Bn 38.41 6.61 25.93 Bn
2 SHW Sherwin Williams Co 110.34 Bn 170.54 11.54 13.58 Bn
3 ECL Ecolab Inc. 80.35 Bn 80.18 5.93 8.67 Bn
4 APD Air Products & Chemicals, Inc. 56.37 Bn 48.29 5.86 18.31 Bn
5 PPG Ppg Industries Inc 34.00 Bn 31.05 2.58 7.91 Bn
6 LYB LyondellBasell Industries N.V. 17.46 Bn 5.03 0.49 13.22 Bn
7 DD DuPont de Nemours, Inc. 16.63 Bn 3.65 0.32 8.90 Bn
8 ALB Albemarle Corp 14.44 Bn 48.94 6.36 3.63 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.79 1.52
EV to Cash from Ops. EV/CFO 3.80 12.52
EV to Debt EV to Debt 3.39 13.65
EV to EBIT EV/EBIT 3.88 21.45
EV to EBITDA EV/EBITDA 3.10 14.82
EV to Free Cash Flow [EV/FCF] EV/FCF 7.52 29.24
EV to Market Cap EV to Market Cap 1.81 3.84
EV to Revenue EV/Rev 0.58 89.11
Price to Book Value [P/B] P/B 0.68 5.48
Price to Earnings [P/E] P/E 3.65 16.02
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -1.14 -5.31
Dividend Payout Ratio % Div Payout % (Qtr) -87.50 -75.74
Dividend per Basic Share Div per Share (Qtr) 1.61 1.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 53.70 23.50
Interest Coverage Int. cover (Qtr) -0.32 -8.92
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -23.61 -1.67
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 129.25 72.99
Dividend Growth (1y) % Div 1y % (Qtr) 7.33 -3.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -115.61 -31.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -15.05 51.49
EBIT Growth (1y) % EBIT 1y % (Qtr) -109.49 0.57
EBT Growth (1y) % EBT 1y % (Qtr) -158.58 -80.35
EPS Growth (1y) % EPS 1y % (Qtr) -194.85 -90.82
FCF Growth (1y) % FCF 1y % (Qtr) -4.56 -50.40
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 7.86 219.02
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.33 0.70
Cash Payout Ratio Cash Payout (Qtr) 0.26 0.41
Cash Ratio Cash Ratio (Qtr) 0.76 1.28
Current Ratio Curr Ratio (Qtr) 2.00 3.42
Debt to Equity Ratio Debt/Equity (Qtr) 0.39 0.92
Interest Cover Ratio Int Coverage (Qtr) -0.32 -8.92
Times Interest Earned Times Interest Earned (Qtr) -0.32 -8.92
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.70 -333.97
EBIT Margin % EBIT Margin % (Qtr) -0.89 -374.34
EBT Margin % EBT Margin % (Qtr) -3.69 -379.75
Gross Margin % Gross Margin % (Qtr) 37.50 29.26
Net Profit Margin % Net Margin % (Qtr) -6.20 -380.67