NYSE:DOW
$27.61
(2/9 12:37PM)
+5.5%
| Open | $26.54 |
Mkt Cap | $29.9 Billion |
| High | $27.65 |
52Wk High | $31.66 |
| Low | $26.4 |
52Wk Low | $5.89 |
| Volume | 8.3 Million |
Avg Vol 10D | 14.4 Million |
Ockham's Rating/Recommendation Summary
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DOW Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, DOW the high and low end of the Price to Sales per share ratios are 0.93x and 0.55x respectively.
Notice that DOW's current Price to Sales per share ratio is 0.68x, which is below its historical average only slightly. So, while not a huge positive for our analysis, we do feel it is worth noting that DOW does look a bit undervalued on a Price to Sales basis, all other factors being equal. However, if the Price to Sales ratio drops further, Ockham Research is likely to become more bullish on this stock.
DOW Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of DOW, Ockham views their current Cash Earnings as significantly above its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for DOW to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 14.05 and a 6.67 low over the same period.
Therefore, at the current price of $26.52 and a Price to Cash Earnings ratio of 19.22, DOW is significantly overvalued. This diminishes the attractiveness of DOW until we see either a significant increase in cash earnings or a decline in price. A decline of the Price to Cash Earnings ratio of 85% is needed just to return to the historical cash earnings multiple.
DOW Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from DOW against the historic high and low levels over an available data range. Because DOW has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In DOW’s case, the estimated annual dividend is $0.60 producing a current dividend yield of 2.26%. The highest dividend yield from DOW in recent history was 11.24% while the lowest dividend yield was 1.90%. It is never a good sign for a company to pay significantly lower dividends, in this case 65.60% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
There is Significant News on DOW:Among the Twenty Most Active Stocks in the News
DOW has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. We noticed recently that in comparison to all other stocks we analyze in the news; DOW has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… DOW CHEMICAL, they had problems, sales slow. They feel better now how the economy is looking. Head of cummins engine said, d. R. …”
DOW Having an Active Day in News, Now on Street Signs
Something important is going on with DOW today, as it is getting a lot of attention on business television and influential blogs.
We noticed recently that in comparison to all other stocks we analyze in the news; DOW has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued.
“… DOW CHEMICAL said they're feeling bet bar north america. I think this is finally starting to filter through, erin. And potentially, this is a couple of important daze here. …”
Emerging Markets and DOW Covered on Squawk On The Street
There is no doubt that the emerging markets are where the growth is right now. The latest news mention of DOW on Squawk On The Street was in relation to emerging markets.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, The Dow Chemical Company has actually sunk a bit in comparison to the others. As of this week's report, we have an Overvalued valuation on DOW because the price has gotten too high to be justified by the fundamentals.
“… Finally, DOW CHEMICAL, 18 cents as we look at 11. Some of these emerging markets, michelle, beginning to show some signs of real growth and we already know strategically what ... …”
Focus on Costs: DOW on WSJ Marketbeat
DOW costs were discussed on WSJ Marketbeat, and may be of interest to investors.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. We noticed recently that in comparison to all other stocks we analyze in the news; DOW has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… –DOW CHEMICAL swung to a fourth-quarter profit, with results topping analysts’ estimates, following hefty year-earlier charges as sales jumped 15% amid acquisitions. …”
Its All About Earnings: Squawk On The Street Talks About DOW
The name of the game in business is profit, and we always pay attention for DOW news as it relates to earnings.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, DOW has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying The Dow Chemical Company at the current price level because according to our methodology it is not supported by the fundamentals. The Motley Fool CAPS data suggests that investors believe The Dow Chemical Company will beat the market in the foreseeable future.
“… DOW CHEMICAL, they beat. International sales have been great. Emerging markets are great. But europe and north america disappointing and down in north america. …”
Stocks to Watch: DOW Heavily Covered on Imus In The Morning
We are observing a lot of attention being paid to DOW in the news, so if you hold the stock you may want to take a look at what is going on.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, The Dow Chemical Company has actually sunk a bit in comparison to the others. As of this week's report, we have an Overvalued valuation on DOW because the price has gotten too high to be justified by the fundamentals.
“… DOW CHEMICAL reportings earnings excluding items. 18 cents a share, 7 cents better than expectation and sales 12 1/2 billion dollars better than expected and that stock has ... …”
Stay Current on DOW's News on Squawk Box
News has broken via the television and viral blogs regarding DOW, so investors should take an interest in learning what was said.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; DOW has received less coverage from the financial media in business television and blogs.
“… DOW CHEMICAL we reported earlier, 18 cents, 17 cents ahead. Company reporting revenue of 12. 47, well above the 11. 8 estimate. …”
The Dow Chemical Company News is Being Covered Right Now on Imus In The Morning
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to The Dow Chemical Company.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; DOW has received less coverage from the financial media in business television and blogs.
“… DOW CHEMICAL also reporting earnings this morning. Excluding items, the company earning 18 cents a share and that's 7 better than the estimate. …”
Earnings News Regarding The Dow Chemical Company Noted on Seeking Alpha Wall St Breakfast
Whenever a reliable source like Seeking Alpha Wall St Breakfast talks about earnings or news on earnings, we think it warrants bringing attention to it.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. We noticed recently that in comparison to all other stocks we analyze in the news; DOW has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… (PR) DOW CHEMICAL (DOW): Q4 EPS of $0. 18 beats by $0. 07. Revenue of $12. 4B (+15%) vs. $11. 8B. (PR) Emerson Electric Company (EMR): FQ1 EPS of $0. 56 beats by $0. 14. …”
News Breaking on The Dow Chemical Company on Squawk Box
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on DOW from Squawk Box.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; DOW has received less coverage from the financial media in business television and blogs.
“… The DOW CHEMICAL report. > > they did report. Futures looking pretty good, and dow is out with earnings this morning, 18 cents a share. …”