DuPont de Nemours logged a -1.2% change during today's morning session, and is now trading at a price of $68.93 per share.
. DuPont de Nemours, Inc. provides technology-based materials and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. Based in Wilmington, DE, the large-cap Industrials company has 23,000 full time employees. DuPont de Nemours has offered a 1.9% dividend yield over the last 12 months.
The Company's Revenues Are Declining:
2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
---|---|---|---|---|
Revenue (MM) | $21,512 | $20,397 | $12,566 | $13,017 |
Gross Margins | 34.7% | 33.7% | 36.6% | 35.4% |
Operating Margins | 13.0% | 8.1% | 14.9% | 15.5% |
Net Margins | 2.31% | -14.47% | 9.37% | 44.54% |
Net Income (MM) | $498 | -$2,951 | $1,177 | $5,798 |
Net Interest Expense (MM) | -668 | -767 | -525 | -492 |
Net Interest Expense (MM) | -$668 | -$767 | -$525 | -$492 |
Depreciation & Amort. (MM) | -$1,050 | -$3,094 | -$566 | -$1,180 |
Earnings Per Share | $0.67 | -$4.01 | $11.89 | $2.2 |
EPS Growth | n/a | -698.51% | 396.51% | -81.5% |
Diluted Shares (MM) | 746 | 736 | 544 | 459 |
Free Cash Flow (MM) | -$1,268 | $2,831 | -$956 | -$155 |
Capital Expenditures (MM) | -$2,677 | -$1,264 | -$3,237 | -$743 |
Net Current Assets (MM) | -$17,841 | -$20,957 | -$10,592 | -$3,138 |
Current Ratio | 1.2 | 2.31 | 1.89 | 2.94 |
Long Term Debt (MM) | $13,617 | $21,806 | $10,632 | $7,774 |
Net Debt / EBITDA | 6.75 | 21.72 | 3.5 | 0.56 |
DuPont de Nemours has exceptional EPS growth and an excellent current ratio. Additionally, the company's financial statements display wider gross margins than its peer group and average operating margins with a stable trend. However, the firm suffers from declining revenues and decreasing reinvestment in the business and a highly leveraged balance sheet. Finally, we note that DuPont de Nemours has irregular cash flows.
A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:
DuPont de Nemours has a trailing twelve month P/E ratio of 30.9, compared to an average of 20.49 for the Industrials sector. Based on its EPS guidance of $4.94, the company has a forward P/E ratio of 13.8. According to the 49.1% compound average growth rate of DuPont de Nemours's historical and projected earnings per share, the company's PEG ratio is 0.63. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 11.3%. On this basis, the company's PEG ratio is 2.74. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing DuPont de Nemours in terms of its equity because its P/B ratio is 1.18 while the sector average is 3.78. The company's shares are currently trading 16.1% above their Graham number.
DuPont de Nemours Has an Average Rating of Buy:
The 18 analysts following DuPont de Nemours have set target prices ranging from $76.0 to $108.0 per share, for an average of $91.78 with a buy rating. As of April 2023, the company is trading -25.9% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
DuPont de Nemours has a very low short interest because 1.7% of the company's shares are sold short. Institutions own 80.0% of the company's shares, and the insider ownership rate stands at 0.2%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 8% stake in the company is worth $2,655,844,926.