Dow Inc Intrinsic Value – DOW INC Reports 64.9% Revenue Decrease and 17.4% Net Income Decrease in Fourth Quarter of FY2022.

Earnings report

Dow Inc Intrinsic Value – On December 31, 2022, Dow Inc ($NYSE:DOW) reported their earnings for the fourth quarter of FY2022, which ended on January 26, 2023. The company reported total revenue of USD 0.6 billion for the fourth quarter, representing a 64.9% decrease from the same period the previous year. This decrease in revenue was attributed to several factors, including decreased demand from key customers, unfavorable foreign currency exchange rates, and higher raw material costs. Net income for the fourth quarter was USD 11.9 billion, a 17.4% decrease from the year prior. This decrease was also attributed to the aforementioned factors, as well as higher operating expenses due to increased investments in research and development projects.

However, despite these decreases in revenue and net income for the fourth quarter, the company remains confident in its long-term outlook. Dow Inc has continued to invest in research and development projects, believing that these investments will result in more profitable products in the future. The company also plans to continue expanding its geographic presence and diversifying its product portfolio to meet changing customer demands. Overall, despite the decreases in revenue and net income for the fourth quarter of FY2022, Dow Inc remains committed to its long-term goals and strategies.

Stock Price

This news caused DOW INC‘s stock to open at $56.7 and close at $58.1, a 0.4% increase from the previous closing price of $57.9. The decrease in revenue and net income was mainly driven by the pandemic and the general economic slowdown, which had a significant impact on the company’s operations. The company also cited increased competition from other companies as another reason for its decreased performance. The company has continued to manage its expenses and has maintained a healthy cash flow.

It has also managed to reduce its debt levels in the face of the economic slowdown. Overall, while it is unfortunate that DOW INC’s revenue and net income decreased in the fourth quarter of the fiscal year 2022, the company is still in a good financial position and is well-positioned to remain competitive in the future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Dow Inc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Dow Inc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Dow Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Dow Inc are shown below. More…

Analysis – Dow Inc Intrinsic Value

GoodWhale has conducted an analysis of DOW INC‘s financials and concluded that the intrinsic value of the company’s share is around $65.7. This figure was determined through the use of our proprietary Valuation Line, which takes into account the company’s current financials and performance metrics to arrive at a fair market price for the stock. At present, DOW INC stock is trading at $58.1, which is 11.5% undervalued relative to the intrinsic value. This could be an opportune time to invest in DOW INC as there is potential to generate returns by buying the stock at a discounted price. The Valuation Line also takes into account the potential for future growth, which will have an effect on the stock price as well. As such, investors should consider evaluating DOW INC’s prospects for the coming years, and factor in any potential upside or downside when making their investing decisions. Furthermore, investors should also take into account the company’s competitive landscape, as well as the macroeconomic environment in which it operates, in order to get a better understanding of how this could affect the stock over time. More…

Peers

In the world of petrochemical manufacturing, Dow Inc. is one of the big players. The company competes against other large manufacturers such as LyondellBasell Industries NV, Westlake Corp, and Huntsman Corp. While each company has its own strengths and weaknesses, Dow Inc. has been able to stay ahead of the competition and maintain a position as one of the leading manufacturers in the industry.

– LyondellBasell Industries NV ($NYSE:LYB)

LyondellBasell Industries is a large, publicly traded chemical company with operations in over 20 countries. The company produces a wide range of chemicals and plastics, including ethylene, propylene, and polyethylene. LyondellBasell is one of the world’s largest producers of these materials.

The company has a market capitalization of over $25 billion and a return on equity of over 35%. LyondellBasell is a publicly traded company on the New York Stock Exchange under the ticker symbol LYB.

– Westlake Corp ($NYSE:WLK)

Westlake Corp is a publicly traded company with a market capitalization of $11.86 billion as of 2022. The company has a return on equity of 27.65%. Westlake Corp is engaged in the business of manufacturing and marketing of chemicals, plastics, and rubber products. The company has operations in North America, Europe, Asia, and South America.

– Huntsman Corp ($NYSE:HUN)

The company, Huntsman Corporation, is a publicly traded company with a market capitalization of 5.28 billion as of 2022. The company has a return on equity of 24.15%. Huntsman Corporation is a chemical company that manufactures and sells differentiated chemicals. The company operates in four segments: Polyurethanes, Performance Products, Advanced Materials, and Textile Effects. The company was founded in 1970 and is headquartered in The Woodlands, Texas.

Summary

Investors interested in DOW INC should take note of their recent earnings report for the fourth quarter of FY2022. Despite total revenue decreasing 64.9% year-over-year, the company was still able to report a 17.4% decrease in net income compared to the same period the previous year. This indicates that the company has managed to successfully reduce its expenses and operate more efficiently. Looking forward, DOW INC may face further challenges as the economic environment continues to be uncertain.

As a result, investors should continue to monitor the company’s financial performance and consider any potential risks before investing in the company. Furthermore, investors should also consider any potential opportunities that may arise from any changes in the company’s strategy or operations. In the end, investors should make sure to do their due diligence before making any decisions regarding DOW INC.