Dow Inc Stock Intrinsic Value – Dow Announces $1 Billion Cost Reduction Plan with 2,000 Job Cuts Worldwide, Stock Prices Dip 4.8%
January 30, 2023
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Dow Inc Stock Intrinsic Value – Dow Inc ($NYSE:DOW)., a global leader in materials science, recently announced a $1 billion cost reduction plan for the year with 2,000 job cuts worldwide. This news sent shockwaves throughout the investment community, causing Dow’s stock prices to dip 4.8% in premarket trading. This is a sign that layoffs are becoming increasingly common outside of the tech sector. Their portfolio of brands includes well-known names such as Dow, DuPont and Corning. The company has a long history of research and development, and has become one of the largest producers of plastics and chemicals in the world. The company’s decision to reduce costs through job cuts is part of an effort to remain competitive in a market where prices are decreasing due to increased competition from foreign rivals. Dow’s stock price has declined significantly over the past year due to concerns over the company’s profitability. The cost-cutting measures are just one way that the company is attempting to turn its fortunes around. Dow Inc.’s cost-cutting plan will undoubtedly have a significant impact on the lives of the 2,000 people who will be affected by the layoffs. The company has promised to provide severance packages and other support to those affected, as well as job placements for some.
However, the announcement has caused many investors to question the future of the company and its ability to remain competitive in a challenging environment. The stock price dip following the announcement of Dow Inc.’s cost reduction plan is an indication that investors are uncertain about the company’s prospects in the near future. Despite their commitment to remain competitive, it remains to be seen if Dow Inc. can emerge from this difficult period unscathed.
Share Price
The news was met with mostly negative sentiment, and the stock prices dipped 4.8%, opening at $56.7 and closing at $58.1, up by 0.4% from the previous closing price of 57.9. The job cuts will mainly affect the company’s manufacturing, administrative and research and development operations, with most of the affected jobs being located in the United States. The charge will include severance expenses and other related costs. DOW INC is taking these steps in order to respond to the changing market conditions and enhance its competitiveness in the global marketplace. The company believes that these measures will improve its overall financial performance and increase its shareholder value.
The news of the job cuts has been met with criticism from labor groups, who are concerned about the potential impact on the workers who will be affected by the cuts. It remains to be seen how effective the cost reduction plan will be and whether it will be able to offset the losses caused by the job cuts. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Dow Inc. More…
| Total Revenues | Net Income | Net Margin |
| 59.41k | 5.67k | 9.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dow Inc. More…
| Operations | Investing | Financing |
| 7.97k | -2.72k | -5.61k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Dow Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 59.56k | 40.93k | 25.74 |
Key Ratios Snapshot
Some of the financial key ratios for Dow Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.4% | 6.2% | 13.5% |
| FCF Margin | ROE | ROA |
| 9.3% | 27.0% | 8.4% |
VI Analysis – Dow Inc Stock Intrinsic Value
DOW INC (DOW) is an American multinational with a strong presence in various markets including chemicals, plastics, and hydrocarbons. By using the Value Investor (VI) app, the fundamentals of the company are easily evaluated. The intrinsic value of the DOW INC share is estimated to be around $68.5 by VI Line. Currently, the stock is trading at $58.1 which is a fair price but still undervalued by 15%. On top of that, the company’s current ratio has been consistently above 1 for the last five years, indicating a healthy liquidity position. All in all, DOW INC is an attractive investment option given its strong fundamentals. The stock is currently undervalued by 15%, presenting a good opportunity for investors to enter at a good price. In addition, its steady growth over the years suggests that it has good long-term potential. Therefore, investors should take advantage of this opportunity and consider investing in DOW INC. More…
VI Peers
In the world of petrochemical manufacturing, Dow Inc. is one of the big players. The company competes against other large manufacturers such as LyondellBasell Industries NV, Westlake Corp, and Huntsman Corp. While each company has its own strengths and weaknesses, Dow Inc. has been able to stay ahead of the competition and maintain a position as one of the leading manufacturers in the industry.
– LyondellBasell Industries NV ($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 in Dow Inc. recently received some bad news, with the company announcing a $1 billion cost reduction plan, along with 2,000 job cuts worldwide. This news has already had a negative effect on sentiment towards the company, and investors should be aware that this could continue to be the case in the short term. It is important to monitor the stock prices and news surrounding Dow Inc. to make sure that a potential investment is well informed. Going forward, investors should consider whether the cost reduction plan is a viable long-term solution for success, or if it will ultimately have a negative effect on the company’s performance.
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