_edited.png)
RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Dupont De Nemours, Inc. (XNYS:DD) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
DD
Name:
DuPont de Nemours, Inc. (XNYS:DD)
Sector:
- 42000.00K
Industry:
Specialty Chemicals
CEO:
Mr. Edward Breen
Total Employees:
28,000
Our Technological Advancement Rating
Our Rating:
B
Technological advancement compared to industry is -38.26% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF DUPONT DE NEMOURS, INC.(DD) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND SPECIALTY CHEMICALS INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
54.76
One Month Price Target:
$55.2
Six Month Price Target :
$57.41
Likely Price in One Year's Time:
Ticker:
$60.07
Likely Trading Range Today Under (Normal Volatility)
$54.53
Price Upper limit ($) :
$54.99
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$51.97
This week:
$48.53
This month :
$42.29
Other Primary facts
Market Cap:
27.17B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
500.90M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
14.05%
-13.21%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$67.70
$61.81
$41.82
$47.71
Medium risk (<10%) entry points
Buy Call
Sell Call
$59.89
Buy Put:
Sell Put:
$58.63
$49.61
$50.89
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
DD
Sharpe Ratio:
-0.06%
Comparison:
DD, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -102.80% lower than the industry
& is -102.60% lower than the market/S&P 500 average
Average Returns/Yield of
DD
Daily returns:
0.01%
Weekly returns:
0.04%
Monthly returns:
0.15%
Yearly returns:
24.57%
Comparison of returns:
Average annual returns/yield (last 3 years) is -92.80% below industry average
Classification:
DD, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.8
Statistical test of Returns:
DD has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.48%
Weekly Volatility:
5.55%
Monthly Volatility:
11.10%
Yearly Volatility:
38.45%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.83%
Volatility in last five trading days has been -66.44% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-5.09%
Weekly VaR:
-11.38%
Monthly VaR:
-22.76%
How Much Can the price of
DD
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-20%
Worst case (decline):
-78.86%
This translates to price declining to:
$43.78
This translates to price declining to:
$11.58
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
DD is a 60.67% riskier investment compared to the market/S&P 500 & is 37.64% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -26.16% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
DD
Beta in relation to market/S&P 500--1.44
Expected beta in 1 year's time:
1.075
Expected beta in 3 year's time:
1.52
Unlevered (debt free) Beta:
1.093
Beta in relation to Nasdaq (XNAS):
0.829
Beta in relation to all global stocks::
0.78
Beta Comparison & Analysis
Beta of competitors/peers::
0.968
Beta is 49.05% higher than peers
Average Industry Beta:
1.164
Beta is 23.87% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
21.77%
Sustainable growth rate is -24.65% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.113
Alpha is -183.76% below industry average alpha yield
Alpha is -717% below the market average
Analysis of Cost of Capital of
DD
Equity cost of capital:
0.130
Equity cost of capital is 17.11% above industry mean WACC
Unlevered (without debt) cost of capital:
9.88%
Before-tax cost of debt:
4.52%
After-tax cost of debt:
3.57%
Overall debt rating:
Lower BB medium grade (Fifth highest grade)
Weighted average cost of capital (WACC):
3.57%
WACC is 28.46% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$31.84
Revenue growth rate per share of (3Y):
1.02
Annual revenue growth rate is -4321.81% below industry average
EPS:
$2.99
Expected Annual growth rate of EPS (3Y):
68.93%
Expected future EPS growth rate is 7503.36% higher than the Specialty Chemicals industry
Free cash flow (FCF) per share:
-
Balance sheet equity growth per share: -73.46%
Equity growth rate per share is -802.61% lower than the industry
Debt per share
$21.23
EBITDA per share
$7.74
Valuation Analysis Today of
DD
P/E Ratio:
22.89
P/E Ratio of Competitors/Peers:
19.76
P/E ratio is 15.82% higher than main peers & is -38.89% lower than the industry
Stock price/value with industry average P/E ratio: $112.00
DD is -51.11% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $24.35
Present value of the expected future dividends only: $10.58
P/S (Price to Sales ratio):
1.72
Price to sales ratio is -37.68% below the industry mean
P/B (Price to book value ratio):
1.02
-
-
Net income growth rate (3Y):
147.43%
Net income growth rate is -366.68% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 10.83%
Dividend yeild: 2.30%
Previous Dividend: $0.33
Previous adjusted dividend: $0.33
Previous Dividend: $1.26
Expected next dividend best case: $0.34
Expected next dividend worst case: $0.32
Average dividend payment (long-term): $0.31
Average dividend increase/decrease (growth rate) % per period: 1.00%
Expected next dividend payment date: 13/09/2022
Expected next dividend record date: 29/08/2022
Expected next dividend declaration date: 20/07/2022
Previous dividend payment date: 15/06/2022
Previous dividend record date: 31/05/2022
Previous dividend declaration date: 21/04/2022
Dividend History:
2022-05-27--$0.33
2021-11-29--$0.30
2021-05-27--$0.30
2022-02-25--$0.33
2021-07-29--$0.30
2021-02-26--$0.30
Dividend growth rate is -95.13% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
40.63%
Net debt to equity ratio:
35.78%
Debt to assets ratio:
23.43%
Net debt to assets ratio:
20.64%
Debt-to-asset ratio is -56.70% below industry average
Ability to repay debt:
Interest coverage ratio:
7.77
Interest coverage ratio is -63.06% less than industry average
Looking forward:
Debt growth rate:
-50.57%
Annual debt growth is -114% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.731
Statistical significance of correlation:
DD has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.58
Stock price is 26.03% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.58
Correlation of price movement with Nasdaq (^IXIC):
0.011
Covariance of price movement with the market:
0.016
Kurtosis
4.982
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.02
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
DD
Gross Profit Margin Ratio:
139%
Operating Profit Margin Ratio:
15.33%
Operating profit margin is -105.45% lower than the industry
Net Profit Margin Ratio:
139%
Effective Tax Rate:
21.40%
Effective tax rate is 19.17% higher than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
5.96%
Return on equity (ROE) is -79.25% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
3.44%
Return on assets (ROA) is 30.95% higher than the industry
Financial Leverage:
1.3x
Current Ratio:
2.82
Current ratio is 5.18% above industry average
Cash Conversion Cycle (days):
-5
Cash conversion cycle is -108.08% below industry average
The remaining useful life of property plant & equipment is: 11.5 years
Stock based compensation to net income ratio:
-
In-depth Efficiency Analysis
Revenue generated per employee:
569.7K
Each employee generates -24% less revenue than industry average revenue per employee
EBITDA generated per employee:
138.4K
Each employee generates 40% more EBITDA than industry average revenue per employee
Profit generated per employee:
55.8K
Each employee generates 76% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 1.5K
Each employee generates -96% less free cash flow than industry average revenue per employee
Assets/Capital per employee
1.1M
Each employee generates -96% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- -28.14%
Growth rate in R&D investment/expenditure is -369.15% lower than the industry
Competitors/Peer firms of
DD
PPG INDUSTRIES, INC. (XNYS:PPG)
BARRICK GOLD CORPORATION (XNYS:GOLD)
CRH PUBLIC LIMITED COMPANY (XNYS:CRH)
Dow Inc. (XNYS:DOW)
INTERNATIONAL FLAVORS & FRAGRANCES INC. (XNYS:IFF)
CORTEVA, INC. (XNYS:CTVA)
Nutrien Ltd. (XNYS:NTR)
ArcelorMittal SA (XNYS:MTCN)
NEWMONT CORPORATION (XNYS:NEM)
Current Analyst Ratings
Strong buy�0%
Buy�0%
Hold�0%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: -
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
15.95B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
10.40B
5.55B
605.00M
-
1.79B
-
711.00M
3.10B
3.00M
499.00M
1.41B
3.88B
2.45B
1.56B
1.90B
407.00M
1.56B
Statement of Cash Flow
Date:
Period:
342.00M
Differed Income Tax :
- 252000.00K
Stock Based Compensation :
-
Change in Working Capital :
- 514000.00K
Accounts Receivables:
-
Other Working Capital:
- 287000.00K
Other Non-Cash Items:
125.00M
Net Cash Provided by Operating Activities:
209.00M
Investments in PP&E:
-
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
1.67B
-
1.67B
2.33B
2.24B
8.21B
14.44B
5.67B
16.88B
6.04B
821.00M
127.00M
1.42B
30.95B
-
45.39B
2.18B
405.00M
197.00M
-
2.54B
5.12B
10.63B
1.57B
13.48B
-
18.60B
5.00M
- 23096000.00K
- 220000.0K
-
March 31, 2022 at 6:00:00 AM
13.51B
26.18B
44.78B
-
11.04B
9.4B
-
- 229000.00K
- 229000.00K
-
83.00M
- 375000.00K
- 169000.00K
203.00M
- 258000.00K
- 25000.00K
- 303000.00K
1.77B
2.08B
209.00M
- 251000.00K
- 42000.00K
Our Proprietary Portfolio Rating
Our Rating:
A+
Price Forecast/Expected Price in Next 5 Years of
DD
2023
2024
2025
2026
2027
$60.37
$100.27
$109.99
$120.65
$132.34