Current Status: HOLD

 
 

Notes:

  • 10 November:

    • Third quarter 2022 results:

      • EPS: US$0.70 (down from US$0.81 in 3Q 2021).

      • Revenue: US$3.32b (down 22% from 3Q 2021).

      • Net income: US$350.0m (down 17% from 3Q 2021).

      • Profit margin: 11% (in line with 3Q 2021).

      • Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 2.4% growth forecast for the Chemicals industry in the US.

      • Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings.

  • 20 October:

    • Board of Directors has declared a fourth quarter dividend of thirty-three cents ($0.33) per share on the outstanding Common Stock of the Company (par value $0.01 per share) payable on December 15, 2022, to holders of record of said stock at the close of business on November 30, 2022.

  • Second quarter 2022 results:

    • EPS: US$0.71 (down from US$1.05 in 2Q 2021).

    • Revenue: US$3.32b (down 20% from 2Q 2021).

    • Net income: US$357.0m (down 36% from 2Q 2021).

    • Profit margin: 11% (down from 13% in 2Q 2021). The decrease in margin was driven by lower revenue.

    • Over the last 3 years on average, earnings per share has increased by 79% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings.

OVERVIEW:

  • Exchange: NYSE

  • Ticker: DD

  • Sector: Process Industries, Chemicals

COMPANY DESCRIPTION:

DuPont de Nemours, Inc., commonly known as DuPont, is an American company formed by the merger of Dow Chemical and E. I. du Pont de Nemours and Company on August 31, 2017, and the subsequent spinoffs of Dow Inc. and Corteva. Prior to the spinoffs, it was the world's largest chemical company in terms of sales.

FINANCIAL OVERVIEW:

  • Market Cap - $40.2 billion

  • P/E Ratio - 7.26

  • Dividend Yield - 1.55%

  • Return-On-Equity (5 year avg %) - 0.84%

  • Interest Coverage - 6.52

  • Year Net Income Growth Rate (5 year avg %) - -145.27%

  • Earnings Per Share (5 year avg %) - -164.83%

  • Current Ratio - 2.31

  • Revenue Growth Rate (5 year avg %) - -9.03%

RECOMMENDATION:

  • Buy Range - $70 to $90

  • Profit Target - $128 (approx 71.1% ROI)

  • Stop Loss - $50

  • Risk:Reward - 1:2.9

CHART: