DuPont
DD
$137.82
-1.56%
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. The company is a legacy industry leader, having been restructured following the DowDuPont merger and subsequent separations, and it maintains a distinct competitive identity through its portfolio of high-performance materials and solutions. The current investor narrative is driven by the company's demonstrated pricing power and capital allocation discipline, as evidenced by recent strong quarterly results, raised guidance, and the initiation of an accelerated stock buyback program, which signal a focus on operational execution and shareholder returns amidst a challenging macroeconomic environment for materials.…
DD
DuPont
$137.82
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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 $179.17 and implied upside of +30.0% versus the current price.
Average Target
$179.17
5 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
5
covering this stock
Price Range
$110 - $179
Analyst target range
Analyst coverage for DuPont appears limited based on the provided data, with only 5 analysts contributing to forward estimates for EPS and revenue, suggesting this may be a consolidated view post-restructuring. The consensus sentiment leans bullish, as evidenced by a series of recent institutional ratings from major firms including Deutsche Bank, Citigroup, UBS, and JP Morgan, all maintaining Buy or Overweight equivalents. While a specific average target price is not provided in the dataset, the pattern of reiterated positive ratings following Q4 2025 earnings in February 2026 indicates analyst confidence in the company's strategic direction and capital return plans. The target range and implied upside cannot be calculated without specific price targets, but the unanimous bullish stance among covering firms and the initiation of an accelerated buyback are strong positive signals; however, the limited number of explicit targets may also reflect a period of transition and reassessment for the company following its major corporate transformations.
Bulls vs Bears: DD Investment Factors
The investment debate for DuPont is a stark clash between financial strength and operational weakness. The bull case is anchored by a pristine balance sheet, strong cash flow, and aggressive capital returns, which have driven a powerful technical rally and analyst support. The bear case focuses on the alarming 45% YoY revenue decline, inconsistent profitability, and margin pressure that raise serious questions about the underlying business health. Currently, the bull side has stronger evidence in the near term, as the market is rewarding capital return and pricing power over fundamental deterioration. The single most important tension is whether the severe Q4 revenue drop is a one-time portfolio adjustment or the beginning of a sustained downtrend; the resolution of this will determine if the stock is a value trap or a turnaround story in the making.
Bullish
- Strong Balance Sheet & Capital Return: DuPont maintains a fortress balance sheet with a low debt-to-equity ratio of 0.23 and a strong current ratio of 2.42, providing significant financial flexibility. This strength is actively deployed for shareholders, evidenced by the initiation of an accelerated stock buyback program and a consistent dividend yielding 3.56%.
- Robust Free Cash Flow Generation: The company generates substantial cash, with trailing twelve-month free cash flow of $1.079 billion. This strong cash flow underpins the shareholder return initiatives and provides a buffer against earnings volatility, supporting the stock's valuation.
- Analyst Confidence & Positive Momentum: Major institutions (Deutsche Bank, Citigroup, UBS, JP Morgan) maintain Buy/Overweight ratings following Q1 2026 results, signaling confidence in the strategic direction. This sentiment is reflected in a powerful 70.55% one-year price surge, with the stock trading at 90.6% of its 52-week high.
- Valuation Compression from Historical Highs: The current Price-to-Sales (PS) ratio of 2.45 is a dramatic compression from a recent historical high of 9.82. This de-rating suggests significant negative news may already be priced in, potentially creating a value opportunity if operational performance stabilizes.
Bearish
- Severe Revenue Contraction & Volatility: Q4 2025 revenue of $1.693B represents a severe 45.25% year-over-year decline, following a more stable Q3. This extreme quarterly volatility, potentially from portfolio changes, creates significant uncertainty about the core business's growth trajectory and stability.
- Inconsistent & Negative Profitability: The company posted a net loss of $126M in Q4 2025 with a negative trailing EPS of -$0.046, leading to a negative ROE of -5.60%. Profitability has swung wildly, from a $59M net income in Q2 2025 to deep losses, indicating fundamental instability in earnings.
- Margin Pressure & Operating Leverage: Operating margin fell to 12.56% in Q4 2025 from 17.81% in Q3 2025, while gross margin compressed to 31.13%. This suggests the company is struggling with cost control or product mix, eroding profitability amidst the sharp revenue decline.
- Limited Analyst Coverage & No Clear Target: Only 5 analysts provide forward estimates, indicating limited sell-side coverage which can reduce market efficiency and liquidity. The absence of a published average price target in the data makes it difficult to quantify the consensus upside, adding to investment uncertainty.
DD Technical Analysis
The stock is in a sustained uptrend, evidenced by a remarkable 70.55% price increase over the past year. As of the latest close of $47.71, the stock is trading at approximately 90.6% of its 52-week high of $52.66, positioning it near the upper bound of its range, which suggests strong momentum but also raises questions about potential overextension. The short-term momentum is positive but shows signs of deceleration; the stock gained 12.42% over the last three months but only 2.47% over the past month, indicating the powerful rally from earlier in the year may be consolidating. This divergence from the longer-term trend could signal a healthy pause or a potential near-term pullback, especially as the 1-month relative strength of 1.73 versus the SPY indicates modest outperformance. Key technical support is anchored at the 52-week low of $27.45, while immediate resistance is at the 52-week high of $52.66. A decisive breakout above $52.66 would confirm the bullish trend's resumption, whereas a breakdown below the recent consolidation range around $45-$47 could signal a deeper correction. With a beta of 1.076, the stock exhibits volatility roughly in line with the broader market, implying its price movements are moderately amplified relative to market swings, which is a relevant consideration for risk management.
Beta
1.08
1.08x market volatility
Max Drawdown
-17.6%
Largest decline past year
52-Week Range
$85-$158
Price range past year
Annual Return
+61.0%
Cumulative gain past year
| Period | DD Return | S&P 500 |
|---|---|---|
| 1m | -4.5% | -1.7% |
| 3m | -0.2% | +13.7% |
| 6m | +11.3% | +6.2% |
| 1y | +61.0% | +20.8% |
| ytd | +12.4% | +7.5% |
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DD Fundamental Analysis
DuPont's revenue trajectory is volatile and currently under pressure, with the most recent Q4 2025 revenue of $1.693 billion representing a severe 45.25% year-over-year decline. This sharp drop follows a more stable Q3 2025 revenue of $3.072 billion, indicating significant quarterly volatility, potentially driven by portfolio changes or one-time items; segment data shows Electronics & Industrial ($1.506B) and Water & Protection ($1.359B) as the primary revenue drivers. The company's profitability is inconsistent, posting a net loss of $126 million in Q4 2025 with a gross margin of 31.13%, but it has shown periods of profitability like the $59 million net income in Q2 2025. Margins are fluctuating, with the operating margin at 12.56% for Q4 2025, down from 17.81% in Q3 2025, reflecting potential cost pressures or mix issues. The balance sheet and cash flow position appear robust; the company maintains a strong current ratio of 2.42 and a very conservative debt-to-equity ratio of 0.23, indicating low financial leverage. Free cash flow over the trailing twelve months is a healthy $1.079 billion, providing ample internal funding for dividends, buybacks, and growth, though the negative Return on Equity (ROE) of -5.60% highlights recent profitability challenges impacting shareholder returns.
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 net income for the trailing period, the primary valuation metric selected is the Price-to-Sales (PS) ratio. The trailing PS ratio is 2.45, while the forward-looking Enterprise Value-to-Sales (EV/Sales) is 3.24; the higher forward multiple suggests the market anticipates revenue stabilization or growth ahead. Compared to industry averages, data is not available in the provided dataset for a direct sector PS comparison, preventing a quantified premium/discount assessment. Historically, the stock's own valuation provides critical context: its current PS ratio of 2.45 is significantly below the historical highs seen in recent quarters, such as the 9.82 PS recorded at the end of Q4 2025. This dramatic compression from its own historical band suggests the market has significantly de-rated the stock, potentially pricing in fundamental deterioration or a more conservative outlook, but it may also present a value opportunity if the underlying business stabilizes.
PE
-64.5x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range -157x~51x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
45.5x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: DuPont's primary risk is severe revenue volatility and inconsistent profitability. The 45.25% YoY revenue decline in Q4 2025 is extreme, and if this reflects a structural rather than transitory issue, the current valuation (PS 2.45, EV/Sales 3.24) could compress further. The company's negative ROE (-5.60%) and recent net losses highlight an earnings problem not solved by its strong balance sheet. Dependence on continued share buybacks to support the stock price is a risk if free cash flow, currently $1.079B TTM, comes under pressure from operational headwinds.
Market & Competitive Risks: The stock's 70.55% one-year rally has pushed it to 90.6% of its 52-week high, increasing valuation compression risk if growth fails to materialize. With a beta of 1.076, DD is slightly more volatile than the market, making it susceptible to sector-wide rotations out of cyclical materials stocks if macroeconomic conditions weaken. Competitive risks are inherent in the specialty chemicals industry, where pricing power, recently demonstrated, could be challenged by lower-cost alternatives or customer insourcing, potentially pressuring already fluctuating gross margins (31.13% in Q4).
Worst-Case Scenario: The worst-case scenario involves the Q4 revenue collapse signaling a permanent loss of market share or a failed business segment, leading to consecutive quarterly losses. This could trigger analyst downgrades from their current bullish stance, a halt to the buyback program, and a dividend cut. In this adverse scenario, the stock could re-test its 52-week low of $27.45, representing a potential downside of approximately -42% from the current price of $47.71. A more realistic bear-case drawdown could align with the stock's recent max drawdown of -17.64%, implying a drop to the low-$39 range.