Equity Brief · Basic Materials2026-09-16
DOW·Basic Materials

Last results 22 Oct 2026

Dow Inc.

I · AI Analysis

The brief

Dow manufactures chemicals and materials used in packaging, construction, automotive, and consumer goods. Its product lines include plastics like polyethylene, industrial intermediates such as polyurethanes and chlorine, and coatings for architectural and industrial applications [Yahoo Finance].

Dow Inc. is a major chemicals manufacturer operating across packaging plastics, industrial intermediates, and coatings, with trailing-twelve-month revenue of $41.3B through 30 June 2026 [Yahoo Finance]. The company is reportedly reconsidering its $20 billion joint venture with Saudi Aramco, a strategic shift that could reshape its international footprint [Yahoo Finance]. Trailing net income is negative at $-1.3B, though this reflects one-off charges rather than weak operations — operating income for the period was $1.5B positive [Yahoo Finance].

Operations are profitable with improving margins, but trailing earnings remain negative due to one-off charges, and leverage sits at an elevated 3.5x net debt to EBITDA.

The brief AI analysisConfidence 7/10

Sentinellis health

Moderate concerns

4.8/10

7.5+ strong · 4.5–7.5 moderate · under 4.5 weak

Profitability

14% of score0.0/10
Net margin-3.1%· need ≥ 3.5%, the lower third of Basic Materials in our libraryGross margin+9.8%· need ≥ 30.2%, the lower third of Basic Materials in our library

Returns on capital

14% of score0.0/10
ROIC+4.8%· need > 10%Return on equity-8.2%· need > 12%

Growth & momentum

19% of score10.0/10
Revenue growth+19.7%Operating margin trend+11.6pp YoY

Balance sheet

29% of score5.0/10
Current ratio1.7xNet debt / EBITDA3.5x· need < 2.5xInterest coverage1.8x· need > 3.0xDebt / equity1.12

Cash generation

14% of score10.0/10
Free cash flow$1.6BCash vs reported profit$3.9B vs $-1.3B

Value creation

10% of score0.0/10
ROIC vs cost of capital-0.8pp· need ROIC above WACC

Sentinellis calculation from the published statements — not a score reported by any data source. Each category is scored on the checks that had data; missing inputs are excluded rather than counted as failures.

Market capitalisation

$21.6B

Revenue (TTM)

$41.3B

Explainers

How we read these numbers

Plain-English guides · no account needed

II · Recent news

What moved

4 stories · ranked by relevance

  • Company2026-09-14

    Dow Rethinks its $20 Billion Saudi Chemicals Bet - Yahoo Finance

    Yahoo Finance

  • Company2026-09-09

    Top Midday Stories: Meta Launches Muse Personal AI Agent; Dow Said to Consider Exiting $20 Billion Chemicals JV With Saudi Aramco

    MT Newswires

  • Company2026-09-09

    Dow explores potential exit from $20 billion Saudi Aramco chemicals venture, Bloomberg reports

    InvestorsHub

  • Sector2026-09-13

    3 of the Most Resilient High-Yield Dividend Stocks in the Chemical Sector: A Safety Deep Dive

    24/7 Wall St.

Premium · Free with any account

The company carries net debt at 3.5x EBITDA, elevated for a cyclical chemicals business and limiting financial flexibility during downturns [Sentinellis calculation].

1 of 5 risks in this report

Risks

5

Opportunities

5

Red flags

3

Leadership

10

12 more findings in the full report — free with any account.

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III · Related

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Produced 16 Sept 2026, 09:08 UTC

Figures come from company filings and market data. The Sentinellis health score and the wording attached to it are our interpretation of those figures, not numbers the company reported.

Not investment advice and not a recommendation to buy or sell. Sentinellis holds no positions in the companies it covers, takes no payment from issuers, and has no broker referral arrangements.

How every figure and score is calculated