DuPont
DD
$49.24
+8.43%
DuPont de Nemours, Inc. is a diversified global specialty chemicals company serving critical end-markets including healthcare, water, construction, automotive, aerospace, and printing and packaging. As a legacy industrial leader, the company has been reshaped into a more focused entity following the DowDuPont merger and subsequent separations, aiming to leverage its deep expertise in high-performance materials. The current investor narrative centers on the company's post-restructuring execution, navigating cyclical demand headwinds in certain segments while focusing on higher-margin, growth-oriented areas like electronics and water solutions, as evidenced by recent quarterly results and strategic capital allocation decisions.…
DD
DuPont
$49.24
Related headlines
Investment Opinion: Should I buy DD Today?
Rating: Hold. The core thesis is that DuPont presents a high-risk, high-potential-reward situation where compelling valuation and financial strength are counterbalanced by severe and recent fundamental deterioration, making the stock appropriate only for patient, risk-tolerant investors awaiting a turnaround.
The Hold rating is supported by several specific data points. First, the valuation presents a dichotomy: a deep 75% discount to its own historical PS high of 9.82, yet a forward EV/Sales of 3.15 that implies growth expectations. Second, the company's financial fortress—$1.08B TTM FCF, a 2.42 current ratio, and 0.23 debt-to-equity—provides a margin of safety. Third, analyst forward EPS estimates average $3.15, which, if achieved, would justify the current price and imply a forward P/E of 14.7. Finally, unanimous institutional Buy ratings suggest professional conviction in the long-term plan, though the lack of a broad consensus target price from the provided data limits precision.
The two biggest risks invalidating a potential upgrade are: 1) Revenue fails to stabilize, with the next quarter showing continued sequential decline from the Q4 $1.69B level, and 2) Core operating margins compress below 10%. This Hold would upgrade to a Buy if the company demonstrates sequential revenue growth for two consecutive quarters and the forward P/E compresses below 15x on confirmed earnings. It would downgrade to a Sell if TTM free cash flow turns negative or the stock breaks below key support at $40, signaling a failure of the recent consolidation. Relative to its own history, the stock is undervalued, but relative to its near-term fundamentals, it appears fairly valued, awaiting proof of a turnaround.
Sign up to view all
DD 12-Month Price Forecast
The outlook for DD is bifurcated, leading to a neutral stance. The bear case is supported by hard, recent data (45% revenue drop, net losses), while the bull case is supported by forward-looking optimism (institutional ratings, valuation discount). The base case, a period of volatile sideways trading, is most likely as the market awaits proof that the drastic Q4 numbers are an anomaly, not a trend. Confidence is medium because the company's strong balance sheet and cash flow limit catastrophic downside, but the path to substantive upside is unclear and depends on reversing a severe revenue contraction. The stance would upgrade to bullish on evidence of two consecutive quarters of sequential revenue growth; it would downgrade to bearish if the next quarter's revenue falls below the Q4 level of $1.69 billion.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on DuPont's 12-month outlook, with a consensus price target around $64.01 and implied upside of +30.0% versus the current price.
Average Target
$64.01
4 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
4
covering this stock
Price Range
$39 - $64
Analyst target range
Analyst coverage for DuPont appears limited, with only 4 analysts providing estimates in the provided data, and no explicit consensus recommendation or average target price is available, indicating potentially insufficient coverage for a clear consensus signal. The provided institutional ratings show a uniformly bullish sentiment among major firms, with recent actions from Deutsche Bank, RBC Capital, Citigroup, UBS, Wells Fargo, Jefferies, Keybanc, and JP Morgan all maintaining Buy, Outperform, or Overweight ratings, suggesting strong institutional conviction in the company's long-term strategy despite near-term challenges.
Bulls vs Bears: DD Investment Factors
The investment debate for DuPont centers on a classic value vs. value trap scenario. Bullish evidence is anchored in strong financial health (robust FCF, clean balance sheet), a deep discount to historical valuation, and unwavering institutional support. Bearish evidence focuses on severe and recent fundamental deterioration, specifically a 45% revenue decline and persistent net losses. Currently, the bearish side has stronger near-term evidence due to the concrete, alarming data points in the latest quarterly report. The single most important tension is whether the drastic revenue decline is a one-time reset from portfolio actions or the beginning of a sustained downtrend in the core business. The resolution of this tension—through clarity on future revenue run-rates—will determine if the current valuation discount is a compelling opportunity or a justified reflection of a shrinking enterprise.
Bullish
- Strong Free Cash Flow Generation: Despite recent net losses, DuPont generated $1.08 billion in TTM free cash flow, providing significant financial flexibility. This robust cash flow supports the company's 3.56% dividend yield and potential for share repurchases, underpinning shareholder returns during a transitional period.
- Deep Discount to Historical Valuation: The stock trades at a trailing Price-to-Sales (PS) ratio of 2.45, which is a significant discount to its own historical PS ratio as high as 9.82. This suggests the market has already priced in substantial negativity, creating a potential value opportunity if the company's restructuring and growth initiatives gain traction.
- Solid Balance Sheet and Liquidity: DuPont maintains a strong current ratio of 2.42 and a low debt-to-equity ratio of 0.23. This conservative capital structure provides a buffer against cyclical downturns and positions the company to capitalize on strategic opportunities without financial strain.
- Unanimous Institutional Bullish Sentiment: Major investment banks including Deutsche Bank, Citigroup, and JP Morgan maintain Buy or equivalent ratings. This strong institutional conviction, despite near-term challenges, signals confidence in the company's long-term strategy and post-restructuring execution.
Bearish
- Severe Revenue Contraction: Q4 2025 revenue of $1.69 billion represents a 45.25% year-over-year decline, indicating significant top-line pressure. This sharp contraction, whether from divestitures or weak end-market demand, raises serious questions about the company's near-term growth trajectory and market positioning.
- Persistent Net Losses: The company reported a net loss of -$126 million in Q4 2025 and has a trailing twelve-month net margin of -11.37%. Sustained losses, even if driven by non-operational factors, erode shareholder equity and complicate the valuation story, limiting multiple expansion.
- Valuation Gap Suggests High Expectations: The forward EV/Sales multiple of 3.15 is higher than the trailing PS ratio of 2.45, implying the market expects revenue stabilization or growth. If the company fails to meet these expectations, particularly after the 45% revenue drop, the stock could face significant multiple compression.
- Technical Momentum Shows Deceleration: While the stock is up 67.32% over one year, recent momentum has slowed, with a 3-month gain of 5.28% and a 1-month gain of 6.49%. Trading at 75% of its 52-week range ($46.24 vs. $52.66 high), the rally appears to be consolidating, suggesting limited near-term upside without a fundamental catalyst.
DD Technical Analysis
The stock is in a sustained uptrend over the past year, evidenced by a 67.32% one-year price change, significantly outperforming the broader market. As of the latest close at $46.24, the stock is trading approximately 75% of its 52-week range ($26.82 to $52.66), positioning it closer to the upper bound and indicating strong momentum but also potential for overextension. Recent momentum shows a deceleration from the longer-term surge, with a 3-month gain of 5.28% and a 1-month gain of 6.49%, which, while positive, is notably weaker than the explosive moves seen earlier in the year and suggests a period of consolidation after the rally. The stock's beta of 1.12 indicates it is moderately more volatile than the market, which is typical for a cyclical materials company, and key technical levels to watch are the 52-week high of $52.66 as immediate resistance and the 52-week low of $26.82 as a distant but critical support level; a breakout above resistance would signal a resumption of the bullish trend, while a breakdown below recent consolidation could indicate profit-taking.
Beta
1.06
1.06x market volatility
Max Drawdown
-26.7%
Largest decline past year
52-Week Range
$27-$53
Price range past year
Annual Return
+80.2%
Cumulative gain past year
| Period | DD Return | S&P 500 |
|---|---|---|
| 1m | +8.3% | +10.4% |
| 3m | +2.9% | +5.5% |
| 6m | +25.8% | +8.0% |
| 1y | +80.2% | +28.4% |
| ytd | +20.5% | +6.1% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
DD Fundamental Analysis
Revenue growth has been volatile and recently negative, with the latest Q4 2025 revenue of $1.69 billion representing a sharp 45.25% year-over-year decline, indicating significant top-line pressure likely from divestitures or weak end-market demand. The company's profitability is under strain, with a net loss of $126 million in Q4 2025 and a trailing twelve-month net margin of -11.37%, though the operating margin of 12.56% and gross margin of 30.25% suggest the core operations remain profitable before one-time items and interest expenses. The balance sheet and cash flow present a mixed picture: the company maintains a strong current ratio of 2.42 and a low debt-to-equity ratio of 0.23, indicating good liquidity and a conservative capital structure, while generating substantial free cash flow of $1.08 billion over the trailing twelve months, which provides flexibility for dividends, share repurchases, and investments.
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
Open an Account, get $2 TSLA now!
Valuation Analysis: Is DD Overvalued?
Given the negative trailing net income, the primary valuation metric selected is the Price-to-Sales (PS) ratio. The stock trades at a trailing PS ratio of 2.45 and a forward EV/Sales multiple of 3.15, with the gap suggesting the market anticipates some revenue stabilization or growth ahead. Compared to industry averages, specific peer comparison data is not available in the provided dataset, preventing a quantified premium/discount analysis; however, the PS ratio of 2.45 for a specialty chemicals company with a 30% gross margin appears reasonable, pending sector context. Historically, the current PS ratio of 2.45 is significantly below the stock's own historical range observed in the data, which has seen PS ratios as high as 9.82 in recent quarters, suggesting the stock is trading at a deep discount to its own history, which may reflect the market's negative reaction to recent revenue declines and losses, presenting a potential value opportunity if fundamentals stabilize.
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 are pronounced, stemming directly from the company's recent performance. The 45.25% YoY revenue decline in Q4 2025 represents an extreme top-line shock, indicating either significant divestiture activity or severe end-market weakness. While the operating margin of 12.56% suggests core profitability, the net margin of -11.37% and a Q4 net loss of $126 million reveal pressure from interest expenses and potentially one-time charges. The company's dependence on a return to revenue growth to justify its forward EV/Sales multiple of 3.15 is a key vulnerability; failure to stabilize sales could lead to further earnings disappointments and cash flow pressure, despite the current strong $1.08 billion TTM FCF.
Market & Competitive Risks are elevated due to the company's cyclical nature and valuation positioning. With a beta of 1.12, DD stock is moderately more volatile than the market and is exposed to macroeconomic swings impacting its key end-markets like construction and automotive. The stock has rallied 67% over the past year, significantly outperforming the S&P 500's 29% gain, which may have priced in much of the recovery optimism. Trading at a forward P/E of 18.2, the valuation is not excessive, but it assumes a successful earnings turnaround from current losses. The primary risk is valuation compression if the expected earnings recovery, implied by the forward multiple, is delayed or fails to materialize, especially if sector-wide growth slows.
Worst-Case Scenario involves a failure to arrest the revenue decline, coupled with a broader economic downturn that pressures its cyclical end-markets. This could lead to consecutive quarterly losses, a dividend cut despite the recent declaration, and a loss of institutional confidence, triggering analyst downgrades. In this adverse scenario, the stock could re-test its 52-week low of $26.82, representing a potential downside of approximately -42% from the current price of $46.24. The historical max drawdown of -27.42% provides a reference for recent volatility, but a fundamental deterioration could drive losses beyond that level, aligning with the bear-case price target derived from the 52-week low.
FAQ
The key risks are, in order of severity: 1) Fundamental Deterioration Risk: The 45.25% YoY revenue drop may continue, indicating a shrinking business rather than a one-time event. 2) Earnings Risk: Persistent net losses (TTM net margin -11.37%) could continue, delaying any valuation recovery. 3) Cyclical/Macro Risk: With a beta of 1.12, the stock is exposed to economic downturns that would hurt its construction and automotive end-markets. 4) Execution Risk: The company's strategic pivot to growth areas like electronics is unproven and faces intense competition.
The 12-month forecast presents three scenarios. The base case (55% probability) sees the stock trading between $44 and $50 as the company stabilizes but doesn't dramatically grow. The bull case (25% probability) targets $52 to $58 on successful execution and earnings beats. The bear case (20% probability) warns of a drop to $27-$35 if fundamentals worsen. The base case is most likely, anchored by the analyst forward EPS estimate of $3.15, but the wide range reflects the extreme uncertainty following the company's recent volatile performance.
DD stock sends mixed valuation signals. It is deeply undervalued relative to its own history, trading at a Price-to-Sales ratio of 2.45 compared to past levels above 9.8. However, this discount reflects the market's negative reaction to recent fundamental weakness. The forward EV/Sales of 3.15 suggests the market is paying a fair price for expected stabilization. Overall, the stock appears fairly valued given the current high level of uncertainty; it is not cheap enough to ignore the risks, nor expensive enough to preclude upside if execution improves.
DD is a speculative buy only for investors with a high risk tolerance and a long-term horizon. The potential reward is significant, with the stock trading at a deep discount to its historical valuation and supported by a strong balance sheet. However, the risk is equally high, given the severe 45% year-over-year revenue decline in the latest quarter. It could be a good buy for a contrarian investor betting on a successful corporate turnaround, but it is not a good buy for those seeking stability, consistent growth, or low volatility.
DD is strictly a long-term investment, with a suggested minimum holding period of 3-5 years. The company is in the midst of a significant transition following its restructuring, and proving the success of its new strategy will take multiple quarters. Its beta of 1.12 and recent price volatility make it unsuitable for short-term trading. The investment thesis is based on a patient wait for operational turnaround and valuation mean reversion, processes that unfold over years, not months.