DuPont
DD
$44.62
-1.57%
DuPont de Nemours, Inc. is a diversified global specialty chemicals company formed from the DowDuPont merger and subsequent separations, operating in the Basic Materials sector within the Chemicals - Specialty industry. Its portfolio includes critical products serving the electronics, water treatment, protection, construction, automotive, and aerospace markets, positioning it as a key supplier of advanced materials for essential industrial and consumer applications. The current investor narrative is focused on the company's strategic transformation and portfolio optimization following its major corporate restructuring, with recent attention on its ability to navigate cyclical demand headwinds while leveraging its core strengths in electronics and water segments to drive future growth and margin recovery.…
DD
DuPont
$44.62
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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 $58.01 and implied upside of +30.0% versus the current price.
Average Target
$58.01
4 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
4
covering this stock
Price Range
$36 - $58
Analyst target range
Analyst coverage for DuPont appears limited in the provided dataset, with only 4 analysts contributing to estimates for EPS and revenue, indicating a potential gap in broad institutional consensus tracking. The consensus leans bullish, as evidenced by recent institutional ratings from major firms including Deutsche Bank, Citigroup, UBS, and JP Morgan all maintaining Buy or Overweight ratings as recently as February 2026, suggesting strong professional conviction in the stock's prospects. The target price range is not explicitly provided in the data, but the average EPS estimate for the next period is $3.15, ranging from a low of $3.11 to a high of $3.19, which, when combined with the forward PE of 18.25, implies a potential target price cluster in the mid-$50s, offering significant upside from the current $46.33 price. The tight range between the low and high EPS estimates ($3.11 to $3.19) signals high analyst conviction in the near-term earnings trajectory, while the unanimous bullish stance among recent raters, with no downgrades noted, underscores a positive near-term catalyst view likely tied to margin improvement and portfolio optimization efforts.
Bulls vs Bears: DD Investment Factors
The investment debate for DuPont is a classic clash between a promising turnaround story and harsh current fundamentals. The bull case, currently supported by stronger evidence from analyst sentiment, cash flow, and balance sheet strength, hinges on the successful execution of a strategic transformation that restores growth and consistent profitability. The bear case is grounded in the severe and volatile revenue contraction and persistent net losses, which challenge the stock's premium valuation. The single most important tension is whether the company's robust free cash flow and low leverage can fund a successful portfolio optimization that reverses the dramatic 45% YoY revenue decline before valuation multiples compress. If the forward EPS estimates of ~$3.15 are achieved, the stock appears undervalued; if not, the premium sales multiple is unsustainable.
Bullish
- Strong Free Cash Flow Generation: The company generates substantial free cash flow, with TTM FCF of $1.079 billion, yielding a healthy FCF margin. This provides significant financial flexibility for dividends, debt reduction, and strategic investments, underpinning the stock's 1.7% dividend yield.
- Solid Balance Sheet & Low Leverage: DuPont maintains a strong current ratio of 2.42 and a very low debt-to-equity ratio of 0.23. This robust financial position minimizes bankruptcy risk and provides a cushion to navigate cyclical downturns or fund acquisitions.
- Unanimous Analyst Conviction: Recent institutional ratings from major firms including Deutsche Bank, Citigroup, UBS, and JP Morgan all maintain Buy or Overweight ratings. This strong professional conviction, coupled with a tight EPS estimate range ($3.11-$3.19), signals high confidence in a near-term earnings recovery.
- Powerful Long-Term Price Momentum: The stock has significantly outperformed the market with a 67.64% 1-year price change vs. SPY's 30.59%. This technical strength, rising from a low near $34 to a recent high of $52.66, reflects a major re-rating and investor optimism about the company's transformation.
Bearish
- Severe Revenue Contraction & Volatility: Q4 2025 revenue of $1.693B represents a severe 45.25% YoY decline and a sharp sequential drop from Q3's $3.072B. This extreme volatility, with revenue swinging from $3.257B in Q2 2025 to the recent low, indicates significant underlying business disruption or cyclical pressure.
- Persistent Unprofitability: The company is unprofitable, posting a Q4 2025 net loss of $126M and a TTM net margin of -11.37%. While a positive operating margin of 12.56% exists, substantial non-operating charges have led to inconsistent profitability, with a massive $589M net loss in Q1 2025.
- Premium Valuation Despite Weak Fundamentals: DuPont trades at a trailing PS ratio of 2.45 and EV/Sales of 3.20, a premium to typical mature chemical peers (often 1.5-2.0x sales). This premium is difficult to justify given the severe revenue decline and current lack of net profitability.
- Recent Momentum Stalling: The stock's 1-month price change is 0.0%, starkly underperforming the SPY's 8.7% gain, signaling a deceleration from its powerful longer-term uptrend. Trading near 88% of its 52-week range ($46.33 vs. high of $52.66), it faces technical resistance and potential for a pullback.
DD Technical Analysis
The stock is in a sustained uptrend over the past year, evidenced by a 67.64% 1-year price change, significantly outperforming the SPY's 30.59% gain. As of the latest close at $46.33, the price is trading at approximately 88% of its 52-week range ($26.76 to $52.66), indicating it is near the upper end of its yearly band, which reflects strong momentum but also suggests potential for overextension or resistance near the yearly high. The short-term momentum shows signs of consolidation and potential weakness, with the 1-month price change at 0.0%, starkly underperforming the SPY's 8.7% gain, and a 3-month gain of 4.96% that modestly outpaces the market's 3.59% rise, signaling a recent deceleration from the powerful longer-term trend. This divergence, where the 1-month trend is flat against a strong 1-year uptrend, could signal a healthy pullback or a period of digestion following the sharp rally from the November 2025 lows near $34. Key technical support is anchored at the 52-week low of $26.76, while immediate resistance is at the 52-week high of $52.66; a decisive breakout above $52.66 would confirm the resumption of the primary bull trend, whereas a breakdown below recent support near $42-$44 could signal a deeper correction. With a beta of 1.122, the stock exhibits approximately 12% more volatility than the broader market, which is a moderate consideration for risk management, especially given its significant 28.47% maximum drawdown over the observed period.
Beta
1.12
1.12x market volatility
Max Drawdown
-27.9%
Largest decline past year
52-Week Range
$27-$53
Price range past year
Annual Return
+61.9%
Cumulative gain past year
| Period | DD Return | S&P 500 |
|---|---|---|
| 1m | +0.9% | +12.6% |
| 3m | +0.0% | +2.5% |
| 6m | +30.6% | +4.3% |
| 1y | +61.9% | +28.4% |
| ytd | +9.2% | +4.3% |
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DD Fundamental Analysis
DuPont's revenue trajectory is currently challenged, with the most recent Q4 2025 revenue of $1.693 billion representing a severe 45.25% year-over-year decline, and a sequential drop from Q3's $3.072 billion, indicating significant top-line pressure likely tied to portfolio changes or end-market weakness. Segment data shows Electronics & Industrial ($1.506B) and Water & Protection ($1.359B) as the primary revenue drivers, but the overall multi-quarter trend from the income statement reveals volatile revenue, moving from $3.092B in Q4 2024 to a peak of $3.257B in Q2 2025 before the sharp Q4 contraction, suggesting underlying cyclicality or one-off impacts. The company is currently unprofitable on a net income basis, posting a Q4 2025 net loss of $126 million and a trailing twelve-month net margin of -11.37%, though it maintains a positive gross margin of 30.25% and operating margin of 12.56%. Profitability has been inconsistent, with Q2 2025 showing a net income of $59 million and a gross margin of 33.04%, contrasting with the substantial Q1 2025 net loss of $589 million, indicating the business is grappling with significant non-operating charges or restructuring costs that obscure core operational performance. The balance sheet appears solid with a strong current ratio of 2.42 and a conservative debt-to-equity ratio of 0.23, signaling ample liquidity and low financial leverage risk. The company generates substantial free cash flow, with TTM FCF of $1.079 billion, yielding a healthy FCF margin, and an ROA of 1.86% that, while positive, is offset by a negative ROE of -5.60%, reflecting the impact of recent net losses on shareholder equity.
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 trailing net income, the primary valuation metric selected is the Price-to-Sales (PS) ratio. DuPont trades at a trailing PS ratio of 2.45 and an Enterprise Value-to-Sales (EV/Sales) of 3.20, with no forward PS provided, though the forward PE of 18.25 suggests the market anticipates a return to profitability. The stock trades at a premium to typical specialty chemical peers on a sales basis, as its PS of 2.45 and EV/Sales of 3.20 are generally above the sector average for mature chemical companies, which often trade closer to 1.5-2.0x sales, implying the market assigns a premium for its diversified portfolio and market leadership positions. Historically, DuPont's own valuation has been volatile; its current PS of 2.45 is below the extreme highs seen in recent quarters (e.g., 9.82 in Q4 2025 per historical data) but above the lows near 3.17-4.44 seen through much of 2024-2025, placing it in a mid-range relative to its own history, which suggests the market has normalized expectations post the significant revenue decline and is pricing in a stabilization or recovery scenario.
PE
-21.5x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range -157x~51x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
16.6x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks center on the extreme volatility and recent collapse in the company's top line. The 45.25% YoY revenue decline in Q4 2025 is alarming and suggests either significant portfolio changes, severe end-market weakness, or one-off disruptions that may not be fully understood. While the company maintains a positive operating margin (12.56%) and strong free cash flow ($1.079B TTM), its net margin is deeply negative (-11.37%) due to substantial non-operating charges, as seen in the $589M Q1 2025 net loss. This earnings volatility obscures core performance and creates significant uncertainty for investors.
Market & Competitive Risks are elevated by the stock's premium valuation and cyclical exposure. Trading at a PS of 2.45 and EV/Sales of 3.20—above sector averages—DuPont is vulnerable to valuation compression if its growth recovery falters or if interest rates remain elevated, pressuring growth stock multiples. Its beta of 1.122 indicates above-market volatility, and its 28.47% max drawdown highlights its sensitivity to negative news. As a specialty chemical company, it faces competitive pressures and cyclical demand headwinds in key markets like electronics and construction, which could delay a fundamental recovery.
The Worst-Case Scenario involves a failure of the strategic transformation to stabilize revenues, coupled with a broader market downturn compressing valuations. In this adverse scenario, the stock could re-test its 52-week low of $26.76, representing a potential loss of approximately -42% from the current price of $46.33. A chain of events triggering this could include a guidance cut in the next earnings report, analyst downgrades from the current unanimous bullish stance, and a sector-wide de-rating. The combination of fundamental disappointment and multiple contraction presents a realistic, high-severity downside risk.
