DuPont
DD
$130.69
+0.55%
DuPont de Nemours, Inc. is a diversified global specialty chemicals company whose portfolio spans electronics and industrial materials, water and protection solutions, and healthcare-oriented advanced materials, serving end markets including semiconductors, water treatment, construction, automotive, aerospace, and packaging. Spun out of the 2019 DowDuPont merger and subsequent separations, DuPont has repositioned itself as a focused specialty player rather than a commodity chemical producer, with its Electronics & Industrial and Water & Protection franchises generating the bulk of segment revenue and profit. The current investor narrative centers on the company's aggressive portfolio transformation — highlighted by a $4.07 billion debt repayment in Q4 2025, a $500 million accelerated share repurchase, and management's emphasis on pricing power and operational discipline despite soft top-line trends. Recent headlines underscore this tension: Q1 2026 results showed resilient pricing and raised guidance alongside an accelerated buyback, yet revenue contracted sharply year over year, leaving investors debating whether DuPont is a leaner, higher-quality earnings compounder or a shrinking business facing structural demand headwinds.…
DD
DuPont
$130.69
Related headlines
Investment Opinion: Should I buy DD Today?
Based on the synthesis of analyst consensus, valuation, and growth prospects, the recommendation is a Hold with a bias toward accumulation on weakness. The analyst consensus is Buy with a mean rating of 1.53 and an average target price of $169.63, implying 30.5% upside, but the severe revenue decline and negative trailing earnings warrant caution. The core thesis is that DuPont is a high-quality specialty chemicals company undergoing a portfolio transformation that has temporarily depressed revenue and earnings, but the market may be over-pessimistic given the strong balance sheet and cash flow.
Supporting evidence includes the forward PE of 16.32x, which is below the sector average of 18-22x, suggesting undervaluation if earnings recover as projected. The PS ratio of 2.45 is at the low end of its historical range (3.2-11.2), and the PB ratio of 1.21 is near the bottom of its historical range (0.42-1.34), indicating deep value. Revenue growth is negative (-45.17% YoY), but this is largely due to divestitures; the remaining businesses show pricing power with a gross margin of 35.81% in Q1 2026, the highest in five quarters. Free cash flow TTM is $1.107 billion, yielding 6.6%, and the balance sheet is strong with debt-to-equity of 0.229. The implied upside to the analyst average target is 30.5%, and even the low target implies 17.7% upside.
Key risks include the possibility that the revenue decline is not just portfolio pruning but also reflects structural demand weakness, which would make the earnings recovery unlikely. The negative payout ratio and trailing losses could pressure the dividend if losses continue. The stock's relative underperformance and negative momentum could persist if the company fails to show sequential improvement. The rating would upgrade to Buy if revenue stabilizes and forward EPS estimates are met, or if the stock drops below $110 (closer to the 52-week low) offering a better risk/reward. It would downgrade to Sell if revenue declines accelerate or if gross margins fall below 30%. Overall, the stock appears undervalued relative to its history and peers, but the uncertainty around the turnaround justifies a Hold rating for now.
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DD 12-Month Price Forecast
The forward-looking view is cautiously optimistic, balancing deep value and strong analyst support against severe revenue declines and negative trailing earnings. The stock appears undervalued on a forward basis, but the market is pricing in significant uncertainty. The base case (55% probability) sees the stock reaching $150-170 as earnings recover, while the bear case (20%) could see a retest of the 52-week low. Key factors to monitor include revenue stabilization, margin trends, and the success of the accelerated buyback. An upgrade to bullish would require evidence of organic growth and sustained margin expansion; a downgrade to bearish would follow further revenue deterioration or a dividend cut.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on DuPont's 12-month outlook, with a consensus price target around $169.63 and implied upside of +29.8% versus the current price.
Average Target
$169.63
0 analysts
Implied Upside
+29.8%
vs. current price
Analyst Count
—
covering this stock
Price Range
$153 - $186
Analyst target range
DuPont is covered by 16 analysts, and the consensus is decidedly bullish: the recommendation is 'Buy' with a recommendation mean of 1.53 (where 1.0 is a Strong Buy and 5.0 is a Sell), indicating the analyst community leans strongly positive. The average target price of $169.63 implies approximately +30.5% upside from the current price of $129.98, a substantial expected return that suggests analysts believe the recent selloff is overdone. The consensus EPS estimate of $9.75 for the forward period, against a current trailing loss, underscores the expectation of a dramatic earnings recovery that would justify the bullish targets. The bullish consensus stands in contrast to the stock's recent price weakness, creating a notable disconnect that could resolve either through a price recovery or through analyst downgrades if fundamentals fail to improve. The target range spans from a low of $153.00 to a high of $186.00, a spread of $33.00, or about 21.7% of the low target — a moderately wide range that signals meaningful uncertainty about the pace and magnitude of the recovery. The high target of $186.00 implies roughly +43.1% upside and likely assumes successful execution of the portfolio transformation, margin expansion toward the higher end of historical ranges, and multiple re-rating as the market gains confidence in the earnings recovery. The low target of $153.00 still implies +17.7% upside, suggesting that even the most cautious analyst sees the stock as undervalued at current levels — a notable signal of conviction. Institutional ratings show a stable-to-positive pattern: Citigroup, UBS, Deutsche Bank, RBC Capital, and BMO Capital all maintain Buy or Outperform ratings, while Morgan Stanley and B of A Securities remain Neutral, and there have been no downgrades in the recent ratings history. This stable analyst posture, combined with the wide target spread, suggests the market is in a wait-and-see mode — the bull case is well-supported but contingent on execution, and the absence of recent downgrades indicates analysts are willing to give management time to deliver.
Bulls vs Bears: DD Investment Factors
The bull case rests on a powerful combination of deep value (forward PE of 16.32x, PB of 1.21), strong analyst support (Buy consensus, +30.5% average target upside), and a deleveraged balance sheet with a 6.6% free cash flow yield. The bear case centers on the alarming 45.17% year-over-year revenue decline, negative trailing earnings, and significant relative underperformance, which raise questions about whether DuPont is a shrinking business rather than a transforming one. Currently, the bear evidence appears stronger on fundamentals, but the bull case is supported by analyst conviction and the potential for a sharp earnings recovery. The single most important tension is whether the revenue decline is primarily due to deliberate portfolio pruning (as management suggests) or underlying demand weakness; if the former, the stock is undervalued, but if the latter, the recovery may be elusive.
Bullish
- Analyst consensus strongly bullish: 16 analysts rate DD a Buy with a mean recommendation of 1.53, and the average target price of $169.63 implies +30.5% upside from the current $129.98. Even the lowest target of $153.00 still implies +17.7% upside, indicating that even the most cautious analyst sees the stock as undervalued.
- Forward PE at a discount to sector: The forward PE of 16.32x is below the typical specialty chemicals sector range of 18-22x, despite DuPont's quality franchise. This discount appears unjustified if the projected EPS recovery to $9.75 materializes, as analysts expect.
- Balance sheet deleveraged and liquid: Debt-to-equity is just 0.229 and the current ratio is 2.42, following a $4.07 billion debt repayment in Q4 2025. This low leverage provides financial flexibility and reduces risk, supporting the equity story.
- Strong free cash flow yield: TTM free cash flow of $1.107 billion against a market cap of $16.78 billion yields 6.6%, a healthy level for a specialty chemicals company. This cash generation supports the dividend (3.56% yield) and the $500 million accelerated share repurchase.
Bearish
- Severe revenue contraction: Q1 2026 revenue fell 45.17% year over year to $1.681 billion, a dramatic decline that reflects both divestitures and underlying demand weakness. The multi-quarter trend shows a step-down from $3.07 billion in Q3 2025 to $1.69 billion in Q4 2025 and Q1 2026, raising concerns about the sustainability of the business base.
- Negative trailing earnings and weak returns: Trailing EPS is -$0.046, with a net margin of -11.37% and ROE of -5.60%. Although Q1 2026 was profitable, the trailing losses and weak returns on capital (ROA of 2.07%) highlight ongoing profitability challenges.
- Relative underperformance and negative momentum: The stock has underperformed the S&P 500 by 22.08% over six months and 10.44% over three months, with a 3-month price decline of 7.10%. This negative momentum and relative weakness suggest the market is skeptical of the turnaround story.
- Valuation not cheap on EV/EBITDA: EV/EBITDA of 16.57x is on the higher side for a company with declining revenue, suggesting the market is already pricing in a successful recovery. If earnings fail to materialize, the multiple could compress.
DD Technical Analysis
DuPont is in a medium-term downtrend within a longer-term recovery, with the stock at $129.98 sitting just 33.1% above its 52-week low of $92.49 but 17.7% below its 52-week high of $157.98 — positioning it in the lower-middle portion of its annual range. The 1-year price change of +27.86% confirms the longer-term uptrend remains intact, but the recent trajectory has clearly rolled over, with the stock surrendering a substantial portion of those gains since peaking in May 2026. Trading at roughly 59% of its 52-week range implies neither a momentum breakout nor a deep-value washout, but rather a market that has turned cautious on the name after a strong run. Recent momentum is decisively negative and diverging from the longer-term trend: the 1-month change of -2.22% and 3-month change of -7.10% contrast sharply with the +27.86% 1-year gain, signaling a clear loss of upside momentum. The 6-month change of -4.73% and YTD gain of just +6.01% versus SPY's +12.86% YTD reveal meaningful underperformance, with relative strength of -22.08% over six months and -10.44% over three months confirming the stock is being left behind by the broader market. This divergence — positive 1-year but negative 1/3/6-month — typically signals either a healthy mean-reversion pullback within an uptrend or the early stages of a trend reversal, and the burden of proof now rests on the bulls to defend the 52-week low area. Key technical levels are well-defined: support sits at the 52-week low of $92.49, roughly 28.8% below the current price, while resistance is the 52-week high of $157.98, about 21.5% above. A breakout above $157.98 would confirm trend resumption and likely draw momentum buyers, whereas a breakdown below $92.49 would signal a full trend reversal with significant downside risk. With a beta of 1.085, DuPont is only modestly more volatile than the S&P 500 — about 8.5% more — meaning position sizing need not be dramatically reduced versus the index, though the 4.04 short ratio and -19.6% max drawdown indicate the stock can still experience sharp, sentiment-driven moves.
Beta
1.08
1.08x market volatility
Max Drawdown
-19.6%
Largest decline past year
52-Week Range
$92-$158
Price range past year
Annual Return
+30.6%
Cumulative gain past year
| Period | DD Return | S&P 500 |
|---|---|---|
| 1m | -0.7% | +0.6% |
| 3m | -6.4% | +3.6% |
| 6m | -9.0% | +14.6% |
| 1y | +30.6% | +15.8% |
| ytd | +6.6% | +13.6% |
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DD Fundamental Analysis
DuPont's revenue trajectory is contracting sharply, with Q1 2026 revenue of $1.681 billion representing a -45.17% year-over-year decline — a dramatic drop that reflects both portfolio divestitures and underlying demand weakness. The multi-quarter trend is mixed: Q3 2025 revenue was $3.072 billion, Q4 2025 was $1.693 billion, and Q1 2026 was $1.681 billion, showing a step-down in the business base that complicates like-for-like comparisons. Segment data shows Electronics & Industrial at $1.506 billion and Water & Protection at $1.359 billion as the core franchises, with a small $227 million corporate segment, meaning the two primary segments drive essentially all operating performance. The key question for investors is whether the revenue decline is a deliberate portfolio-pruning effect or genuine organic deterioration — the raised guidance and pricing-power narrative in the May 2026 news suggests management views it as the former, but the magnitude of the decline warrants caution. Profitability is positive but volatile: Q1 2026 net income was $161 million with a 9.58% net margin and 35.81% gross margin, a marked improvement from Q4 2025's -$126 million loss and -7.44% net margin. Gross margin has been relatively stable in the 31-36% range over recent quarters, but the Q1 2026 figure of 35.81% is the strongest in the trailing five quarters, suggesting pricing power and cost discipline are supporting margins even as revenue shrinks. Operating margin of 12.56% and EBITDA of $219 million in Q1 2026 show the business remains solidly profitable at the operating level, though the trailing EPS of -$0.046 reflects the drag from prior-period losses and restructuring charges. The balance sheet is a clear strength: debt-to-equity of just 0.229 and a current ratio of 2.42 indicate low leverage and ample liquidity, while the Q4 2025 repayment of $4.074 billion in debt materially de-risked the capital structure. Free cash flow TTM of $1.107 billion against a market cap of roughly $16.8 billion implies an FCF yield of about 6.6%, a healthy level for a specialty chemicals company. However, ROE of -5.60% and ROA of 2.07% reveal that returns on capital remain weak, and the Q1 2026 operating cash flow of $232 million against $102 million of capex shows the company is generating cash but not at a level that would support aggressive reinvestment without continued portfolio optimization.
Quarterly Revenue
$1.7B
2026-03
Revenue YoY Growth
-45.2%
YoY Comparison
Gross Margin
35.8%
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?
Because DuPont's trailing net income is negative (EPS of -$0.046, trailing PE of -21.50), the PE ratio is not meaningful as a primary metric; instead, the PS ratio of 2.45 and the forward PE of 16.32 are the most informative valuation anchors. The forward PE of 16.32 against a trailing PE that is negative reflects the market's expectation of a sharp earnings recovery — analysts project average EPS of $9.75, which would represent a dramatic swing from the current loss-making trailing basis. This wide gap between trailing and forward earnings power implies the market is pricing in a successful execution of DuPont's portfolio transformation and margin recovery, leaving little room for disappointment. On a peer-comparison basis, DuPont's PS ratio of 2.45 and EV/Sales of 2.72 sit at moderate levels for a specialty chemicals company, while the EV/EBITDA of 16.57 is on the higher side and suggests the market is paying a premium for the quality and stability of DuPont's earnings stream relative to commodity chemical peers. The PB ratio of 1.21 is notably low, indicating the stock trades close to book value — a level that historically has marked valuation floors for the company and could provide downside support. The forward PE of 16.32 versus a specialty chemicals sector average typically in the 18-22x range suggests DuPont may be trading at a discount on forward earnings, potentially justified by the revenue contraction but also offering upside if the turnaround gains traction. Historically, DuPont's PS ratio has ranged from roughly 3.2 to 11.2 over the past several years, and the current 2.45 sits at the low end of that band — a level last seen during periods of maximum pessimism. The PB ratio of 1.21 is similarly near the bottom of its historical range (which has spanned roughly 0.42 to 1.34), suggesting the market is valuing the company near its asset base and pricing in limited growth. This historical context cuts both ways: it could signal a genuine value opportunity if the transformation succeeds, or it could reflect the market's rational assessment that the business is structurally smaller and less profitable than it once was.
PE
-21.5x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 1x~29x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
16.6x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks are significant. The company's revenue contracted 45.17% year over year in Q1 2026 to $1.681 billion, and trailing EPS is negative at -$0.046, with a net margin of -11.37% and ROE of -5.60%. Although debt-to-equity is low at 0.229 and the current ratio is 2.42, the weak returns on capital (ROA of 2.07%) indicate operational inefficiency. The business is heavily concentrated in two segments—Electronics & Industrial ($1.506 billion) and Water & Protection ($1.359 billion)—which together drive nearly all profit, leaving it vulnerable to cyclical downturns in semiconductors and construction. Additionally, the company's dividend payout ratio is negative (-76.6%), meaning the dividend is not covered by trailing earnings, which could pressure the dividend if losses persist.
Market and competitive risks are also material. DuPont trades at a forward PE of 16.32x, which is below the specialty chemicals sector average of 18-22x, but its EV/EBITDA of 16.57x is above the sector median, suggesting a premium that may not be justified given the revenue decline. The stock has a beta of 1.085, meaning it is slightly more volatile than the S&P 500, and its 6-month relative strength of -22.08% indicates significant underperformance. Competitive pressures in specialty chemicals are intense, and DuPont's portfolio transformation may not yield the expected synergies. Recent news highlights pricing power and a $500 million accelerated buyback, but the market has reacted negatively, with the stock down 7.10% over three months, suggesting skepticism about the sustainability of these measures.
The worst-case scenario would involve a continued decline in core end markets (semiconductors, water treatment, construction) leading to further revenue contraction and margin compression. If the projected EPS recovery to $9.75 fails to materialize, the stock could re-rate downward. The 52-week low is $92.49, which is 28.8% below the current price of $129.98. In a severe downturn, the stock could test that low, implying a potential loss of approximately 28.8%. Additionally, the analyst low target of $153.00 is above the current price, so it does not represent a downside scenario; however, if analysts downgrade and lower targets, the stock could fall below $100. The max drawdown over the past year was -19.6%, but a full trend reversal could exceed that, especially if the company misses earnings expectations.
FAQ
The key risks for DD are ranked as follows: First, financial risk from the severe revenue decline of 45.17% year over year in Q1 2026, which could persist if end markets remain weak, leading to further earnings pressure. Second, operational risk from the concentration in two segments—Electronics & Industrial and Water & Protection—which together drive nearly all profit, making the company vulnerable to cyclical downturns in semiconductors and construction. Third, market risk from the stock's relative underperformance, with a 6-month relative strength of -22.08% versus the S&P 500, and a beta of 1.085, meaning it is slightly more volatile than the market. Fourth, company-specific risk from the negative payout ratio of -76.6%, which means the dividend is not covered by trailing earnings and could be at risk if losses continue. Additionally, the wide analyst target range of $153 to $186 signals uncertainty about the recovery pace.
The 12-month forecast for DD is based on three scenarios. The base case (55% probability) targets $150-170, assuming revenue declines moderate and EPS meets the $9.75 consensus, with the stock trading near the analyst average target of $169.63. The bull case (25% probability) targets $170-186, driven by successful execution, margin expansion, and a re-rating to a higher multiple. The bear case (20% probability) targets $92-120, assuming continued revenue declines and earnings misses, potentially retesting the 52-week low of $92.49. The most likely scenario is the base case, with the key assumption that the company achieves its projected earnings recovery. However, the wide range reflects significant uncertainty, and the stock could be volatile around earnings reports.
DD appears undervalued on several metrics. The forward PE of 16.32x is below the specialty chemicals sector average of 18-22x, and the PS ratio of 2.45 is at the low end of its historical range of 3.2-11.2. The PB ratio of 1.21 is near the bottom of its historical range (0.42-1.34), suggesting the market is valuing the company close to its book value. However, the EV/EBITDA of 16.57x is on the higher side, indicating that the market is paying a premium for the quality of earnings relative to commodity chemical peers. The negative trailing PE of -21.50 is not meaningful due to the trailing loss, but the forward PE suggests the market expects a sharp earnings recovery to $9.75 per share. Overall, the valuation implies that the market is pricing in a successful turnaround; if that fails, the stock could be overvalued.
DD presents a mixed risk/reward profile. On the positive side, the stock trades at a forward PE of 16.32x, below the sector average, and analysts have a Buy consensus with an average target of $169.63, implying 30.5% upside. The balance sheet is strong with debt-to-equity of 0.229 and a current ratio of 2.42, and the 6.6% free cash flow yield supports the dividend. However, the severe 45.17% year-over-year revenue decline in Q1 2026 and negative trailing EPS of -$0.046 raise concerns about the sustainability of the business. The biggest downside risk is a retest of the 52-week low of $92.49, which would represent a 28.8% loss. For value investors with a long-term horizon and tolerance for volatility, DD could be a good buy on weakness, but for those seeking growth or income stability, it may be less suitable until revenue stabilizes.
DD is more suitable for long-term investment than short-term trading. The company is in a turnaround phase, and the thesis depends on the successful execution of its portfolio transformation, which will take several quarters to play out. The stock has a beta of 1.085, indicating moderate volatility, and a short ratio of 4.04, suggesting some short-term trading interest. The dividend yield of 3.56% provides income for long-term holders, but the negative payout ratio means the dividend is not currently covered by earnings, which could be a risk. For short-term traders, the stock's negative momentum and relative underperformance make it less attractive. A minimum holding period of 12-18 months is recommended to allow for the earnings recovery to materialize and for the market to re-rate the stock. Long-term investors should monitor quarterly revenue trends and margin stability.