Returning more cash than it generates. Paid out $6.5B vs $1.4B of free cash flow over the 3 fiscal years to 2025.
Dow returned $6.5B to shareholders over three years, 479% of the free cash flow it produced. That gap has to be covered by cash reserves or new debt, which can't last indefinitely.
Operating margin at a 6-year low.-6.6% in 2025, the weakest of the last 6 years.
Dow's operating margin fell to -6.6% in 2025, its lowest in the 6 years of filings we have.
Investment surge. Capital spending 6.2% of revenue, up from 3.2% in 2022.
Dow is spending 6.2% of revenue on facilities and equipment, up from 3.2% in 2022. That weighs on free cash flow today; whether it pays off depends on the returns those investments earn.
Annual revenue fell three years running. Fiscal-year revenue down each year from 2022 to 2025.
Dow's fiscal-year revenue declined in each of the three years to 2025.
Sector-normalized EBITDA, earnings, and free cash flow yields.
Earnings yield-4.6%
SEC filings · 12 months to Jun 2026Negative (a loss or cash outflow), so it counts as zero whatever the share price30% base weight · Z-score -1.00Sector median: 0.0364 · MAD: 0.0364
EBITDA yield4.1%
SEC filings · 12 months to Jun 2026Reported value50% base weight · Z-score -0.86Sector median: 0.0854 · MAD: 0.0520
Free cash flow yield6.4%
SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingReported value20% base weight · Z-score 1.46Sector median: 0.0261 · MAD: 0.0261
Why it changed since the Oct 27, 2026 close: Safety percentile 35 → 36
Peer companies moved+1
Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.
Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.
Questions investors ask about Dow
Is Dow getting weaker?
Its latest SEC filing (Jul 24, 2026) got stronger: operating margin rose 4.1 points to -3.0%; free cash flow turned positive over the last 12 months. Its overall score is unchanged at 28/100 since Oct 28, 2026.
How is Dow valued vs its peers?
Priced higher than most peers relative to what it earns. Valuation scores 37/100 against 1,371 basic materials peers.Free cash flow yield 6.4% vs a peer median of 2.6% (stronger than 72% of peers).Free cash flow yield 6.4% vs peers 2.6% (stronger than 72% of peers).Earnings yield -4.6% vs a peer median of 3.6% (weaker than 100% of peers).Earnings yield -4.6% vs peers 3.6% (weaker than 100% of peers).
Is Dow growing?
More slowly than most of its peers. Growth scores 27/100 against 1,371 basic materials peers.3-year revenue growth -5.7% vs a peer median of -0.0% (weaker than 71% of peers).3-year revenue growth -5.7% vs peers -0.0% (weaker than 71% of peers).
How profitable is Dow?
Less profitable than most of its peers. Profitability scores 12/100 against 1,371 basic materials peers.Return on invested capital -3.2% vs a peer median of 6.7% (weaker than 89% of peers).Return on invested capital -3.2% vs peers 6.7% (weaker than 89% of peers).
How risky is Dow?
Moderate risk relative to 1,371 basic materials peers, judged on debt, liquidity and share-price swings.Beta 0.41 vs a peer median of 0.69 (stronger than 79% of peers).Beta 0.41 vs peers 0.69 (stronger than 79% of peers).Debt / equity 1.13× vs a peer median of 0.36× (weaker than 87% of peers).Debt / equity 1.13× vs peers 0.36× (weaker than 87% of peers). A relative measure, not a bankruptcy probability.
Latest filing: what changed
Quarter ended Jun 30, 2026 · filed Jul 24, 2026 · compared with the quarter ended Mar 31, 2026
Got stronger
Operating margin rose 4.1 points to -3.0%
Free cash flow turned positive over the last 12 months
Worth watching: Dow is in the bottom fifth of its sector on profitability. From 2021 to 2025, 63% of companies in that position posted a loss over the following year, against 4% for the top fifth.
Previous quarter
Latest quarter
Change
Revenue (12 months)
39.3B USD
41.3B USD
+5.1%
Net income (12 months)
−2.7B USD
−1.1B USD
−58.3%
Operating margin
-7.1%
-3.0%
+4.1 pts
Free cash flow (12 months)
−232.0M USD
1.6B USD
turned positive
Debt
18.0B USD
17.9B USD
−0.8%
Cash
4.1B USD
4.0B USD
−3.3%
From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.
Industry valuation context
Sector: Basic Materials · 121 companies
Valuations in Basic Materials are near the top of their range since 2016.
84% of months since 2016 were valued lower than now.
43% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +23% and earnings +13% (medians): prices and earnings moved broadly together.
Median price-to-sales is −9% vs the whole market, against a usual −27%.
2016Shaded: most expensive fifth of its range2026
Shown for Basic Materials: too few Chemicals companies have a long enough history of their own.
This is a cyclical group: after a downturn, trailing earnings and sales fall faster than prices, which can make valuations look high near a cycle's low.
Describes valuations since 2016; it does not predict prices. US companies worth $1B+, from SEC filings and month-end prices, as of Aug 2026. Today's companies and industry labels are used throughout. Measured on earnings, EBITDA, sales and free cash flow yields. How this works
Financials
Fiscal years from SEC annual filings · change vs the prior year
Key ratios
FY 2021
FY 2022
FY 2023
FY 2024
FY 2025
Change
Gross margin
—
—
—
—
—
—
Operating margin
14.9%
9.4%
2.1%
2.8%
-6.6%
▼ 9.4 pts
Net margin
11.7%
8.2%
1.5%
2.8%
-6.1%
▼ 8.9 pts
Return on assets (ROA)
10.2%
7.7%
1.1%
2.1%
-4.2%
▼ 6.3 pts
Return on equity (ROE)
35.3%
22.4%
3.5%
6.9%
-15.3%
▼ 22 pts
Free cash flow margin
10.0%
9.9%
6.4%
-0.1%
-3.6%
▼ 3.6 pts
Current ratio
1.58×
1.81×
1.77×
1.61×
1.97×
▲ 22%
Quick ratio
1.02×
1.19×
1.16×
0.98×
1.25×
▲ 28%
Debt to equity
0.81×
0.74×
0.81×
0.93×
1.13×
▲ 21%
Interest coverage
11.19×
8.10×
1.25×
1.46×
-3.06×
▼ 310%
DOW price history
Price history is added with the daily price update and will appear after the next one.