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The Dow Chemical Company (NYSE: DOW) – Is this large market cap stock undervalued?

The Dow Chemical Company (NYSE: DOW), is firmly in the large market cap category with market cap of 58967.02. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for The Dow Chemical Company is 52.33 (with a change from open of -0.17%), this in conjunction with a target price of 60.25. Volume today has so far reached 5865300, with an average volume of about 5816.07. The GAP for this stock, is 0.59%.

The P/E ratio is 7.95, bringing the forward P/E to a value of 12.96. The current EPS for The Dow Chemical Company, is 6.59, with a EPS growth for this year coming to a value of 104.80%. Performance has been interesting with performance year to date coming to 4.43%.

Looking further into the growth statistics for The Dow Chemical Company, EPS is looking like it will grow 14.40% in the next year. Looking even further it is projected to be 8.08%. Quarter over quarter is 181.30% for EPS growth and for sales growth quarter over quarter it is -7.40%. Looking at past EPS growth statistics we see that for the past five years it has been 27.80%. Sales growth for the past five years has in fact been -1.90%.

Looking at the ownership, we see that the insider ownership is at 0.10% and institutional ownership is 69.10%. Shares outstanding is 1126.83, while shares float is at a value of 1124.83. Float short for The Dow Chemical Company is 2.00% and the short ratio is 3.86.

In terms of debt, long term debt/equity is 0.84, while the total debt/equity comes to 0.86. The ability to meet these debts, means that the current ratio is 2, and the quick ratio is 1.4. The most recent gross margin is 23.30% and their operating margin is 23.10%. The profit margin is 17.50%.

The Dow Chemical Company has seen returns on assets of 11.20%, and on investment, 21.80%. Return on equity is 36.50%. Price/Earnings to growth ratio is 0.98. Price/Sales ratio is at a value of 1.28, with Price/book ratio coming to 2.33 and Price/cash is 8.07, and finally Price/Free cash Flow is 51.54.

The simple moving averages are -1.69% and 4.15% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -5.84% and the 52 week low is 34.95%.

The Dow Chemical Company has a dividend yield of 3.52%, with a current price of 52.33. The ability to pay this means the payout ratio is 24.90%. This is in an industry, Chemicals – Major Diversified, with equally high dividends from other companies in this sector, which it is Basic Materials. The Dow Chemical Company is based in USA.

Performance in the Chemicals – Major Diversified industry means that The Dow Chemical Company has seen performance for the past week of 0.10%, with performance for the month coming to -2.47%. Looking at the data for the quarter it is at a value of 6.87%, and for the half year the performance is 33.73%. Volatility for this week is 1.15% and for the month this is 1.29%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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