DuPont
DD
$134.86
+0.51%
DuPont de Nemours, Inc. is a diversified global specialty chemicals company serving healthcare, water, construction, automotive, aerospace, and printing/packaging industries. Formed from the DowDuPont merger and subsequent separations, it positions itself as a focused specialty player with leading positions in water filtration and healthcare materials. The current investor narrative centers on its ability to navigate end-market volatility, with recent earnings highlighting pricing power and an accelerated stock buyback program, while the market debates the sustainability of margin improvements amid a challenging demand environment.…
DD
DuPont
$134.86
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Investment Opinion: Should I buy DD Today?
Rating: Hold. DuPont is a turnaround story with a strong balance sheet and analyst support, but near-term earnings visibility is low. The consensus analyst rating is Buy, but without explicit price targets, the implied upside is uncertain. The core thesis is that the company's pricing power and cost discipline will drive an earnings recovery, but this is not yet evident in the data.
Supporting Evidence: The forward PE of 17.75x is reasonable, and the PEG ratio of 0.10 suggests undervaluation if earnings grow as expected. Revenue is expected to recover to $8.069B next fiscal year (analyst estimate), up from the depressed Q4 run rate. Free cash flow of $1.079B TTM supports the dividend and buybacks. The PS ratio of 2.45x is near the low end of its 5-year range (3.2x-9.8x), indicating historical cheapness. However, negative TTM net income makes trailing valuation metrics unreliable.
Risks & Conditions: The biggest risks are continued revenue decline and failure to achieve positive net income. This Hold would upgrade to Buy if the company reports two consecutive quarters of positive net income and revenue growth, or if the forward PE compresses below 15x. It would downgrade to Sell if revenue growth guidance is negative or if free cash flow turns negative. Overall, DuPont appears fairly valued relative to its historical PS range but overvalued on a trailing earnings basis. The valuation verdict is mixed: cheap on a forward basis but expensive given current losses.
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DD 12-Month Price Forecast
DuPont is at a crossroads: the sharp revenue decline and negative earnings are concerning, but the low debt, strong cash flow, and analyst support provide a floor. The base case of stabilization is most likely, with a 45% probability. The bull case requires a clear earnings recovery, while the bear case hinges on further demand deterioration. The neutral stance reflects the balanced risk/reward at current levels. An upgrade to bullish would require positive net income and revenue growth in the next quarter; a downgrade to bearish would follow a guidance cut or negative free cash flow.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on DuPont's 12-month outlook, with a consensus price target around $175.32 and implied upside of +30.0% versus the current price.
Average Target
$175.32
5 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
5
covering this stock
Price Range
$108 - $175
Analyst target range
Five analysts cover DuPont, with a consensus leaning bullish: all recent ratings are Buy/Outperform/Overweight. The average estimated EPS for the next fiscal year is $9.45, with a range of $9.31 to $9.53. The average revenue estimate is $8.069 billion, with a low of $7.977 billion and high of $8.120 billion. While explicit price targets are not provided, the strong buy consensus and positive earnings estimates imply confidence in a turnaround. The narrow range of EPS estimates (high-low spread of ~2.3%) suggests relatively high conviction among analysts. Recent upgrades from firms like Deutsche Bank, RBC, and Citigroup reinforce the bullish sentiment. The implied upside from current price to the average target cannot be calculated without target prices, but the consensus is clearly positive. The absence of sell ratings and the consistent 'Buy' actions indicate that analysts see the current weakness as temporary and expect earnings recovery to drive the stock higher.
Bulls vs Bears: DD Investment Factors
DuPont presents a mixed picture: strong balance sheet and analyst optimism contrast with sharp revenue declines and negative earnings. The bull case rests on a turnaround driven by pricing power, buybacks, and low valuation relative to history. The bear case highlights demand weakness, margin pressure, and recent price deterioration. The key tension is whether the revenue decline is temporary (due to divestitures and cyclical weakness) or structural. Current evidence slightly favors the bulls given the low debt, strong cash flow, and analyst conviction, but the near-term earnings visibility is poor.
Bullish
- Strong Buyback and Pricing Power: DuPont initiated an accelerated stock buyback in Q1 2026, signaling management confidence. Recent earnings highlighted resilient pricing power, which helped offset volume declines in a challenging demand environment.
- Low Debt and Strong Liquidity: Debt-to-equity is only 0.23 and current ratio is 2.42, indicating a healthy balance sheet. This financial flexibility supports dividends (3.56% yield) and strategic investments.
- Attractive Forward Valuation: Forward PE is 17.75x, reasonable for a specialty chemical company. The PEG ratio of 0.10 suggests undervaluation relative to expected earnings growth, though earnings are volatile.
- Analyst Consensus Bullish: All five analysts rate DuPont as Buy/Outperform, with average EPS estimate of $9.45 for next fiscal year. Recent upgrades from Deutsche Bank, RBC, and Citigroup reinforce positive sentiment.
Bearish
- Sharp Revenue Decline: Q4 2025 revenue fell 45.25% YoY to $1.693B, partly due to divestitures but also organic weakness in electronics and industrial segments. This raises concerns about demand sustainability.
- Negative Net Income: DuPont reported a net loss of $126M in Q4 2025 and negative TTM net income. ROE is -5.60%, indicating the company is not generating shareholder returns currently.
- Margin Compression: Gross margin declined to 31.13% in Q4 2025 from 31.66% a year ago. Operating margin fell to 13.41%, and net margin was -7.44%, pressured by interest and other expenses.
- Recent Price Weakness: The stock is down 36.99% in the past month and underperformed the S&P 500 by 4.44% over that period. This short-term momentum is negative despite the longer-term uptrend.
DD Technical Analysis
DuPont's 1-year price change of +40.94% reflects a sustained uptrend, with the current price of $134.68 sitting at 61.6% of its 52-week range ($86.59 low to $157.98 high). This positioning near the midpoint suggests the stock is in a healthy consolidation phase after a strong rally, not yet overextended but also not at a deep value level. The 52-week high of $157.98 represents key resistance, while the low provides a support floor. Over the past 3 months, the stock has declined 4.99%, while the 1-month change is -36.99%, indicating a sharp short-term pullback. This divergence from the 1-year uptrend could signal a temporary correction or profit-taking, especially as the 1-month relative strength vs. SPY is -4.44, underperforming the market. The 3-month relative strength of -16.10 confirms recent weakness. The stock's beta of 1.083 suggests slightly higher volatility than the market, meaning moves may be amplified but not extreme. The 52-week low of $86.59 provides a strong support level, while the high of $157.98 is a clear resistance. A breakout above $157.98 would signal a resumption of the uptrend, while a breakdown below $86.59 would indicate a major reversal. The current price is well above the low, suggesting the uptrend remains intact despite short-term weakness.
Beta
1.08
1.08x market volatility
Max Drawdown
-17.6%
Largest decline past year
52-Week Range
$87-$158
Price range past year
Annual Return
+45.0%
Cumulative gain past year
| Period | DD Return | S&P 500 |
|---|---|---|
| 1m | -7.4% | +0.0% |
| 3m | -3.8% | +7.6% |
| 6m | +4.9% | +9.1% |
| 1y | +45.0% | +21.3% |
| ytd | +10.0% | +10.7% |
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DD Fundamental Analysis
Revenue has been volatile, with the most recent quarter (Q4 2025) reporting $1.693 billion, a steep 45.25% decline year-over-year. This follows a trend of deceleration: Q3 2025 revenue was $3.072 billion (down from $3.092 billion in Q4 2024), and Q2 2025 was $3.257 billion. The sharp drop in Q4 2025 is partly due to divestitures, but organic demand weakness in electronics and industrial segments is evident. The Electronics & Industrial segment contributed $1.506 billion and Water & Protection $1.359 billion, while the Corporate segment added $227 million. The growth trajectory is negative, raising concerns about end-market exposure. DuPont reported a net loss of $126 million in Q4 2025, with a gross margin of 31.13%, down from 31.66% in Q4 2024. Operating margin was 13.41%, but net margin was -7.44% due to interest and other expenses. Over the trailing twelve months, net income was negative, though the company has shown profitability in some quarters (e.g., Q2 2025 net income of $59 million). The trend is mixed, with margins compressing in recent quarters. The balance sheet appears healthy: debt-to-equity is low at 0.23, and the current ratio is 2.42, indicating ample liquidity. Free cash flow for Q4 2025 was $221 million, and trailing twelve-month FCF was $1.079 billion, providing a solid cash generation capability. ROE is negative at -5.60% due to net losses, but the company maintains a dividend yield of 3.56%, supported by cash flow. The low debt levels reduce financial risk.
Quarterly Revenue
$1.7B
2025-12
Revenue YoY Growth
-45.3%
YoY Comparison
Gross Margin
31.1%
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?
Since net income is negative (TTM), the trailing PE is not meaningful; thus, we use the price-to-sales (PS) ratio as the primary metric. The trailing PS ratio is 2.45x, while the forward PE is 17.75x (based on positive expected earnings). The gap between negative trailing PE and positive forward PE implies the market expects a sharp earnings recovery. Compared to the industry average (Chemicals - Specialty), the PS ratio of 2.45x is reasonable but not cheap; the sector median PS is around 1.5-2.0x, so DuPont trades at a slight premium. The EV/Sales of 3.05x also suggests a premium valuation. Historically, DuPont's PS ratio has ranged from about 3.2x to 9.8x over the past five years. The current 2.45x is near the lower end of that range, indicating the stock is relatively cheap compared to its own history. This could reflect the recent revenue decline and losses, but also suggests potential upside if growth recovers. The PEG ratio of 0.10 (based on forward earnings growth) implies the stock is undervalued relative to expected growth, but this metric should be treated cautiously given the earnings volatility.
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 negative net income and ROE of -5.60% signal current unprofitability. The sharp 45.25% YoY revenue decline in Q4 2025, partly from divestitures, creates uncertainty about organic growth. Gross margin compression to 31.13% and net margin of -7.44% indicate cost pressures. However, low debt-to-equity of 0.23 and strong free cash flow of $1.079B TTM provide a cushion. The main financial risk is that earnings do not recover as expected, leaving the stock expensive on a trailing basis.
Market & Competitive Risks: DuPont trades at a PS ratio of 2.45x, a premium to the specialty chemicals sector median of ~1.5-2.0x, leaving it vulnerable to multiple compression if growth disappoints. The stock's beta of 1.083 implies slightly above-market volatility, and recent underperformance vs. the S&P 500 (relative strength -4.44% over 1 month) suggests sector rotation away from cyclicals. Competitive risks include pricing pressure in electronics and industrial end-markets, though the company's water and healthcare segments provide some defensiveness.
Worst-Case Scenario: If end-market demand deteriorates further, DuPont could see continued revenue declines and negative earnings, leading to analyst downgrades and multiple compression. The 52-week low of $86.59 represents a potential 35.7% downside from the current price of $134.68. In a severe recession, the stock could approach that level, implying a loss of approximately $48 per share. The historical max drawdown of -17.64% is less severe, but the current earnings weakness amplifies downside risk.
FAQ
The primary risk is continued revenue decline: Q4 2025 revenue fell 45.25% YoY, and if end-market demand does not recover, earnings may remain negative. Second, margin compression is a concern: gross margin dropped to 31.13% from 31.66% a year ago. Third, the stock's beta of 1.083 means it is slightly more volatile than the market, and recent underperformance (down 36.99% in one month) highlights momentum risk. Finally, the negative ROE of -5.60% indicates the company is not generating shareholder returns currently. The most severe risk is a dividend cut if cash flow deteriorates.
The 12-month outlook is balanced. The base case (45% probability) sees the stock trading between $130 and $150 as revenue stabilizes and earnings turn positive. The bull case (30% probability) targets $150-$165, driven by a strong recovery and multiple expansion. The bear case (25% probability) sees the stock falling to $90-$110 if demand weakens further. Analyst estimates for next fiscal year EPS average $9.45, implying a forward PE of 14.2x at the current price, which suggests upside if achieved. The most likely scenario is a gradual recovery, but the stock's path depends on upcoming earnings.
DuPont's valuation is mixed. On a trailing basis, the PE is negative due to losses, making it unappealing. However, the forward PE of 17.75x is reasonable for a specialty chemical company. The PS ratio of 2.45x is below its 5-year average of around 5x, suggesting the stock is cheap relative to its own history. Compared to the sector median PS of 1.5-2.0x, it trades at a slight premium. The PEG ratio of 0.10 implies undervaluation relative to expected growth, but this metric is unreliable given earnings volatility. Overall, the stock appears fairly valued on a forward basis but cheap on a historical PS basis.
DuPont offers a compelling risk/reward for patient investors. The stock trades at a forward PE of 17.75x, which is reasonable given expected earnings recovery, and the PS ratio of 2.45x is near the low end of its historical range. Analyst consensus is Buy, with all five analysts rating it positively. However, the company reported a net loss of $126M in Q4 2025 and a 45.25% revenue decline, so near-term earnings visibility is poor. It is a good buy for investors who believe in a cyclical recovery and can tolerate volatility; for those seeking stable earnings, it may be best to wait for confirmation of a turnaround.
DuPont is better suited for medium- to long-term investment (12-24 months) due to its current earnings volatility and turnaround narrative. The stock's beta of 1.083 indicates moderate volatility, but the recent 36.99% monthly decline shows short-term risk. The dividend yield of 3.56% provides income for long-term holders, and the low debt supports stability. Short-term traders may find the stock attractive for mean reversion plays, but the lack of earnings visibility makes it risky. A minimum holding period of 12 months is recommended to allow the turnaround to materialize.