DuPont
DD
$47.65
-0.67%
DuPont de Nemours, Inc. is a diversified global specialty chemicals company serving critical end markets including electronics, water, construction, automotive, aerospace, and healthcare. The company operates as a major, established player in the chemicals sector, with a portfolio built from the legacy DowDuPont merger and subsequent separations, focusing on high-margin, innovation-driven segments. The current investor narrative centers on the company demonstrating resilient pricing power and operational discipline, as evidenced by strong recent quarterly results and the initiation of an accelerated stock buyback program, signaling a positive outlook and a commitment to returning capital to shareholders amidst a challenging industrial environment.…
DD
DuPont
$47.65
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DD 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on DuPont's 12-month outlook, with a consensus price target around $61.95 and implied upside of +30.0% versus the current price.
Average Target
$61.95
5 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
5
covering this stock
Price Range
$38 - $62
Analyst target range
Analyst coverage for DuPont is limited, with only 5 analysts providing estimates, which is low for a company of its size and suggests it may be under-followed or in a transition phase that creates uncertainty. The consensus revenue estimate for the next period is approximately $8.07 billion, with an average EPS estimate of $3.15, indicating expectations for a substantial recovery from recent quarterly losses. The implied forward P/E of 18.5x, derived from the current price and the $3.15 EPS estimate, forms the basis for valuation targets, though a specific consensus price target is not provided in the data. The available institutional ratings data shows a uniformly bullish sentiment among the firms that have issued recent actions, with all 10 entries in the provided list being 'Buy', 'Outperform', or 'Overweight' ratings, and no downgrades. This strong institutional buy-side consensus, highlighted by reaffirmations from major banks like Citigroup, JP Morgan, and Wells Fargo in early 2026, signals high conviction in the company's turnaround and capital return story. The lack of a defined target price range in the data, however, indicates that while sentiment is positive, the precise upside potential remains less quantified, which can be typical during periods of fundamental transition.
Bulls vs Bears: DD Investment Factors
The bull case for DuPont is anchored by its formidable financial strength, evidenced by $1.08B in annual free cash flow and a pristine balance sheet (D/E of 0.23), which funds aggressive shareholder returns. The bear case is equally compelling, highlighting catastrophic revenue declines (-45.25% YoY) and persistent earnings losses that challenge the sustainability of the recent stock rally. Currently, the bull side holds stronger evidence due to the tangible capital return actions and operational margins, but the investment debate hinges on a single critical tension: whether the company's strong cash generation and pricing power can outpace and eventually resolve the severe top-line volatility and return the business to consistent profitability. The stock's fate depends on this resolution.
Bullish
- Strong Free Cash Flow & Capital Return: DuPont generated $1.08 billion in TTM free cash flow, providing significant financial flexibility. This supports the recently announced accelerated stock buyback program and a consistent dividend, signaling management's confidence and commitment to shareholder returns.
- Robust Balance Sheet with Low Debt: The company maintains a very conservative capital structure with a debt-to-equity ratio of 0.23 and a strong current ratio of 2.42. This low leverage provides a cushion against operational volatility and funds strategic initiatives without financial stress.
- Healthy Core Operating Margins: Despite recent net losses, DuPont's core operations remain profitable, evidenced by a Q4 2025 operating margin of 13.41% and a gross margin of 31.13%. This indicates underlying pricing power and operational discipline in its key segments.
- Unanimous Analyst Buy-Side Consensus: Recent institutional actions show a uniformly bullish sentiment, with all 10 tracked entries being 'Buy' or equivalent ratings from major banks. This strong consensus reflects high conviction in the company's turnaround and capital return narrative.
Bearish
- Severe Revenue Decline & Volatility: Q4 2025 revenue plummeted 45.25% year-over-year to $1.69 billion, following a pattern of highly uneven quarterly results. This extreme volatility raises significant concerns about demand stability and the company's near-term growth trajectory.
- Persistent Earnings Instability & Losses: The company reported a net loss of -$126 million in Q4 2025, with a trailing net margin of -11.37%. Earnings have swung wildly from a -$589M loss in Q1 to a $59M profit in Q2, indicating unreliable bottom-line performance.
- Stock Near 52-Week High After Major Rally: Trading at $48.42, the stock is just 8% below its 52-week high of $52.66 following a 67.76% one-year surge. This positioning suggests limited near-term upside and high vulnerability to a technical pullback or profit-taking.
- Limited Analyst Coverage Creates Uncertainty: Only 5 analysts provide estimates for DuPont, which is low for a company of its size and market cap. This sparse coverage can lead to less efficient price discovery and higher volatility around earnings events.
DD Technical Analysis
The stock is in a strong, sustained uptrend over the past year, with a 67.76% price increase. Currently trading at $48.42, it sits at approximately 92% of its 52-week high of $52.66, indicating the stock is near its recent peak and may be testing significant resistance. This positioning suggests strong momentum but also raises questions about potential overextension and the likelihood of a consolidation or pullback after such a significant run. Recent momentum shows a mixed picture; while the 3-month price change is negative at -3.24%, the 1-month performance is a robust +8.52%, indicating a recent bullish reversal after a period of consolidation. This divergence from the longer-term trend suggests the stock may be re-accelerating after a pullback, supported by a 1-month relative strength of +2.21% against the SPY. The stock's beta of 1.056 indicates it is only slightly more volatile than the broader market, which is typical for a large-cap industrial. Key technical levels are clear: immediate resistance is the 52-week high of $52.66, while major support lies at the 52-week low of $27.16. A decisive breakout above $52.66 could signal a continuation of the long-term bull trend, whereas a failure to hold recent gains could see a retest of lower support levels, with the March low near $42.44 being a critical area to watch.
Beta
1.06
1.06x market volatility
Max Drawdown
-17.6%
Largest decline past year
52-Week Range
$27-$53
Price range past year
Annual Return
+67.6%
Cumulative gain past year
| Period | DD Return | S&P 500 |
|---|---|---|
| 1m | -3.2% | +4.6% |
| 3m | +5.3% | +12.6% |
| 6m | +17.6% | +10.4% |
| 1y | +67.6% | +27.0% |
| ytd | +16.6% | +11.0% |
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DD Fundamental Analysis
DuPont's revenue trajectory is volatile and currently under pressure, as evidenced by a significant -45.25% year-over-year decline in Q4 2025 revenue to $1.69 billion. This sharp drop follows a pattern of uneven quarterly performance, with Q3 2025 revenue at $3.07 billion and Q2 at $3.26 billion, indicating potential segment volatility or one-time impacts. The revenue is driven primarily by its Electronics & Industrial ($1.51B) and Water & Protection ($1.36B) segments, which together constitute the vast majority of sales. Profitability is currently challenged, with the company reporting a net loss of -$126 million and a net margin of -7.44% for Q4 2025. However, the gross margin remains healthy at 31.13% for the quarter, and the operating margin is positive at 13.41%, suggesting core operations are profitable but being impacted by significant other expenses. The trend shows inconsistency, moving from a net loss of -$589M in Q1 2025 to a profit of $59M in Q2, then back to a loss of -$123M in Q3. The balance sheet and cash flow position appears solid. The company maintains a strong current ratio of 2.42 and a low debt-to-equity ratio of 0.23, indicating a conservative capital structure with ample liquidity. Free cash flow over the trailing twelve months is a robust $1.08 billion, providing significant financial flexibility. This strong cash generation, evidenced by quarterly operating cash flows like $71M in Q4 and $650M in Q3, supports the company's ability to fund its dividend, share buybacks, and navigate the current earnings volatility.
Quarterly Revenue
$1.7B
2025-12
Revenue YoY Growth
-0.45%
YoY Comparison
Gross Margin
+0.31%
Latest Quarter
Free Cash Flow
$1.1B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is DD Overvalued?
Given the negative trailing twelve-month net income and EPS of -$0.046, the primary valuation metric selected is the Price-to-Sales (PS) ratio. DuPont trades at a trailing PS ratio of 2.45, with an Enterprise Value-to-Sales (EV/Sales) of 3.22. The forward P/E ratio of 18.5, based on estimated EPS of $3.15, indicates the market is pricing in a significant return to profitability. Compared to industry averages, DuPont's valuation presents a mixed picture. Its forward P/E of 18.5x is moderately above the typical specialty chemicals sector range, suggesting a premium for its market position and expected recovery. The PS ratio of 2.45x is reasonable for a capital-intensive industrial company with strong cash flow. Historically, the stock's own valuation has fluctuated significantly. The current PS ratio of 2.45 is near the lower end of its historical range observed in recent quarters, which has seen figures as high as 9.82 in Q4 2025 and as low as 3.69 in Q2 2025. This suggests the stock is not trading at peak historical multiples despite the strong price performance, potentially leaving room for multiple expansion if earnings stabilize and grow as forecasted.
PE
-21.5x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range -157x~51x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
16.6x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: DuPont's primary risk is extreme earnings volatility, as net income has swung from a -$589M loss to a $59M profit within consecutive quarters, culminating in a TTM net margin of -11.37%. This instability is driven by a severe -45.25% YoY revenue drop in Q4 2025, indicating potential demand destruction or significant one-time impacts in its core Electronics and Water segments. While strong free cash flow of $1.08B provides a buffer, the company's valuation (forward P/E of 18.5x) is entirely dependent on achieving a sharp earnings recovery to an estimated $3.15 EPS; failure to do so would rapidly de-rate the stock.
Market & Competitive Risks: The stock trades at a forward P/E of 18.5x, which is a premium to the typical specialty chemicals sector, embedding high expectations for a successful turnaround. With the stock price up 67.76% over the past year and sitting at 92% of its 52-week high, it faces significant valuation compression risk if growth disappoints or if sector rotation away from cyclical industrials occurs. Its beta of 1.056 indicates market-correlated moves, and the low analyst coverage (5 firms) exacerbates price swings on news, as seen with the recent positive buyback announcement driving the rally.
Worst-Case Scenario: The worst-case scenario involves the Q4 2025 revenue collapse signaling a structural, rather than cyclical, decline in key end markets like electronics or construction, leading to sustained losses. Combined with a broader market downturn, this could trigger analyst downgrades from the current unanimous bullish stance, forcing a re-rating to a distressed multiple. A realistic downside could see the stock retest its critical March 2026 low of $42.44 (a -12% drop) or, in a severe recession, approach its 52-week low of $27.16, representing a catastrophic -44% loss from the current price. The recent max drawdown of -17.64% provides a benchmark for volatility.