DuPont de Nemours, Inc. (DD) | Investment Case

1. Company Snapshot

1.a. Company Description

DuPont de Nemours, Inc.provides technology-based materials and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa.It operates through three segments: Electronics & Industrial, Mobility & Materials, and Water & Protection.

The Electronics & Industrial segment supplies materials and printing systems to the advanced printing industry; and materials and solutions for the fabrication of semiconductors and integrated circuits addressing front-end and back-end of the manufacturing process.This segment also provides semiconductor and advanced packaging materials; dielectric and metallization solutions for chip packaging; and silicones for light emitting diode packaging and semiconductor applications; permanent and process chemistries for the fabrication of printed circuit boards to include laminates and substrates, electroless, and electrolytic metallization solutions, as well as patterning solutions, and materials and metallization processes for metal finishing, decorative, and industrial applications.In addition, it offers various materials to manufacture rigid and flexible displays for organic light emitting diode, and other display applications, as well as provides high performance parts, and specialty silicone elastomers, and lubricants.

The Mobility & Materials segment provides engineering resins, silicone encapsulants, pastes, filaments, and advanced films to engineers and designers in the transportation, electronics, renewable energy, industrial, and consumer end-markets.The Water & Protection segment provides engineered products and integrated systems for worker safety, water purification and separation, transportation, energy, medical packaging and building materials.The company was formerly known as DowDuPont Inc.

and changed its name to DuPont de Nemours, Inc.in June 2019.DuPont de Nemours, Inc.

is headquartered in Wilmington, Delaware.

Show Full description

1.b. Last Insights on DD

DuPont de Nemours' recent performance has been positively driven by its strategic shift towards high-growth, high-margin water infrastructure and industrial safety markets. The company's Q3 results exceeded expectations, with 6% organic sales growth and a 27.3% EBITDA margin. A $2B share repurchase program has also been implemented, reducing outstanding shares and increasing shareholder value. Several institutional investors, including Wealth Enhancement Advisory Services LLC and Anchor Capital Advisors LLC, have increased their stakes in the company. Analysts have given DuPont de Nemours a "Moderate Buy" rating.

1.c. Company Highlights

Last Price	50.05
Change Percentage	-0.62%
Open	49.87
Previous Close	50.35
Market Cap ( Millions)	20968
Volume	1741915
Year High	52.66
Year Low	22.5
M A 50	44.83
M A 200	35.66

FCF Yield	5.15%
Dividend Yield	1.43%
ROE	-3.77%
Debt / Equity	22.95%
Net Debt / EBIDTA	165.78%
Price To Book	1.49
Price Earnings Ratio	-26.58
Price To FCF	19.43
Price To sales	1.89
EV / EBITDA	15.92

2. DuPont's Strong Q4 and Full-Year 2025 Results: A Positive Outlook for 2026

DuPont de Nemours, Inc. reported a strong fourth quarter and full-year 2025 financial results, exceeding guidance with full-year organic sales growth of 2%, operating EBITDA growth of 6%, and 100 basis points of margin expansion. The company's adjusted EPS was $1.68 per share, up 16% year over year. For the fourth quarter, the company achieved better-than-expected top-line mix and productivity, resulting in strong EBITDA and margin improvement. The actual EPS for the quarter was -0.26106, missing estimates of 0.43.

Publication Date: Feb -11

                                    📋 Highlights
                                    2025 Financial Outperformance:
                                                Full year organic sales rose 2%, EBITDA grew 6%, and adjusted EPS jumped 16% to $1.68, surpassing guidance.
2026 Guidance:
                                                Targets 3% organic sales growth, 60-80 bps margin expansion, and adjusted EPS of $2.25-$2.30, with EBITDA growth of 6-8%.
Vitality Index Impact:
                                                30% vitality index drives $2B+ in new product sales, contributing 145 bps of margin lift from high-margin innovations.
Capital Allocation Strategy:
                                                $1.2B Aramis divestiture proceeds allocated to $500M share repurchase, with 2.5% EPS growth, and plans for healthcare M&A.
Segment Outlook:
                                                Healthcare & Water (mid-single-digit growth), Diversified Industrial (low single-digit), and Shelter (flat) in 2026.

                                

Guidance for 2026

DuPont expects organic sales to grow about 3% year over year in 2026, with operating margins expanding 60 to 80 basis points, and adjusted EPS of $2.25 to $2.30 per share. The company's guidance assumes about 3% organic growth and a currency benefit of about 1%. The operating EBITDA is expected to increase by 6% to 8% year over year. Analysts estimate revenue growth at 3.8% for next year, slightly higher than the company's guidance.

Segment Performance

The healthcare and water segment is expected to drive growth in 2026, with mid-single-digit percent range organic sales growth, driven by broad-based strength within healthcare and continued growth in industrial and municipal water markets. The diversified industrial segment is expected to see low single-digit percent range organic sales growth, with stabilization in US construction markets and low double-digit improvement in aerospace orders. As Lori Koch mentioned, "We're seeing low double-digit improvement in aerospace orders, which comprise about 3% of our revenue."

Valuation

DuPont's current valuation metrics indicate a 'P/E Ratio' of -26.87, 'P/B Ratio' of 1.47, 'P/S Ratio' of 1.87, and 'EV/EBITDA' of 19.16. The 'Dividend Yield (%)' is 1.45, and 'Free Cash Flow Yield (%)' is 6.1. These metrics suggest that the market is pricing in a challenging EPS growth trajectory, but the company's guidance and segment performance indicate a positive outlook for 2026.

Capital Allocation

DuPont plans to continue its shareholder-friendly capital allocation policy, with a focus on deploying the remaining proceeds from the Aramis divestiture towards M&A, particularly in the healthcare space. The company has already deployed half of the $1.2 billion in pretax proceeds with the $500 million ASR, enabling 2.5% EPS growth. The company expects free cash flow conversion to be greater than 90% in 2026.

3. NewsRoom

DD's MemCor MBR Chosen for Expansion of Wastewater Treatment in UK

15:12

Source: zacks.com

duPont REGISTRY Group Appoints Cristina Cheever as Chief Marketing Officer

Feb -24

Source: businesswire.com

Starbucks: What The 3-Step DuPont Model Reveals About Valuation

Feb -20

Source: seekingalpha.com

DuPont Announces Regular Quarterly Dividend on Common Stock

Feb -19

Source: prnewswire.com

MemCor™ MBR systems selected for three major wastewater treatment plant expansions in England

Feb -18

Source: prnewswire.com

Mark Hillman's Strategic Move: Significant Addition to State Street SPDR S&P 500 ETF Trust

Feb -17

Source: gurufocus.com

AlphaQuest LLC Sells 11,874 Shares of DuPont de Nemours, Inc. $DD

Feb -15

Source: defenseworld.net

Barrow, Hanley, Mewhinney & Strauss Makes Significant Move with GE HealthCare Technologies Inc

Feb -12

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.59%)

6. Segments

Electronics & Industrial

Expected Growth: 4.5%

The 4.5% growth in Electronics & Industrial segment at DuPont de Nemours, Inc. is driven by strong demand for advanced materials and technologies. Key drivers include increased adoption of 5G and electric vehicles, growth in renewable energy, and expansion of high-performance electronics. Additionally, the segment benefits from DuPont's innovative product portfolio and strategic investments in emerging technologies.

Corporate & other

Expected Growth: 3.0%

The 3.0% growth in Corporate & other from DuPont de Nemours, Inc. is driven by increased demand for specialty products, efficient cost management, and benefits from strategic investments. This growth is also attributed to the company's innovation and market expansion efforts, leading to higher sales and improved profitability in this segment.

Water & Protection

Expected Growth: 5.0%

Water & Protection's 5.0% growth is driven by increasing demand for water treatment solutions, expansion of the company's portfolio in industrial and municipal markets, and a strong position in the filtration and purification segment. DuPont's innovation and sustainability initiatives also contribute to its growth momentum.

7. Detailed Products

Tyvek

A synthetic material used for various applications, including protective clothing, medical packaging, and construction.

Corian

A solid surface material used for countertops, sinks, and other surfaces.

DuPont Pioneer Seeds

A range of seeds for agricultural use, including corn, soybeans, and other crops.

DuPont Crop Protection

A range of crop protection products, including insecticides, herbicides, and fungicides.

Nomex

A flame-resistant material used for protective clothing and other applications.

DuPont Water Solutions

A range of water treatment and purification products, including reverse osmosis membranes and other technologies.

DuPont Electronics and Industrial

A range of materials and solutions for the electronics and industrial markets, including photoresists, etchants, and cleaners.

8. DuPont de Nemours, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

DuPont de Nemours, Inc. operates in a diversified portfolio of industries such as agriculture, construction, electronics, and industrial manufacturing. While there are substitutes available for some of its products, the company's strong brand recognition, extensive distribution network, and innovative product offerings mitigate the threat of substitutes. However, the increasing focus on sustainability and environmental concerns may lead to a rise in substitutes, particularly in the agriculture and industrial sectors.

Bargaining Power Of Customers

DuPont de Nemours, Inc. has a diverse customer base across various industries. While some customers may have significant bargaining power due to their large volume purchases, the company's diversified product portfolio and strong relationships with customers reduce the bargaining power of individual customers. Additionally, the company's products are often critical components in its customers' manufacturing processes, which further limits customer bargaining power.

Bargaining Power Of Suppliers

DuPont de Nemours, Inc. has a large and diversified supplier base, which reduces the bargaining power of individual suppliers. The company also has a strong procurement strategy in place, which enables it to negotiate favorable prices and terms with its suppliers. Furthermore, the company has implemented various initiatives to ensure a stable supply chain and reduce dependence on any single supplier.

Threat Of New Entrants

The industries in which DuPont de Nemours, Inc. operates have high barriers to entry, including significant research and development expenses, complex manufacturing processes, and stringent regulatory requirements. Additionally, the company's strong brand recognition and extensive distribution network make it difficult for new entrants to gain traction in the market.

Intensity Of Rivalry

DuPont de Nemours, Inc. operates in highly competitive industries, including agriculture, construction, and industrial manufacturing. The company faces intense competition from established players, as well as new entrants, which can lead to pricing pressure and reduced profit margins. However, the company's diversified product portfolio, strong innovation capabilities, and commitment to sustainability help it to stay competitive in the market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	23.50%
Debt Cost	7.82%
Equity Weight	76.50%
Equity Cost	9.47%
WACC	9.08%
Leverage	30.71%

11. Quality Control: DuPont de Nemours, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Ecolab

A-Score: 5.2/10

Value: 1.2

Growth: 5.1

Quality: 6.2

Yield: 2.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

PPG

A-Score: 5.0/10

Value: 4.0

Growth: 2.8

Quality: 6.5

Yield: 5.0

Momentum: 3.0

Volatility: 8.7

1-Year Total Return ->

Sherwin-Williams

A-Score: 4.9/10

Value: 1.7

Growth: 6.4

Quality: 6.0

Yield: 2.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

Air Products

A-Score: 4.4/10

Value: 4.8

Growth: 2.9

Quality: 2.1

Yield: 6.0

Momentum: 2.5

Volatility: 8.3

1-Year Total Return ->

IFF

A-Score: 4.4/10

Value: 5.4

Growth: 2.3

Quality: 3.1

Yield: 6.0

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

DuPont

A-Score: 3.5/10

Value: 6.9

Growth: 3.7

Quality: 3.7

Yield: 4.0

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

6.67%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.08%

DuPont de Nemours, Inc. - US26614N1028

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on DD

1.c. Company Highlights

Less Volatile

Average Growth

Fairly Valued

Earnings Beats

Revenues Beats

Lower Growth

Expensive

Revenues Miss

Medium Volatility

Average Yield

Average Quality

Stable Momentum

2. DuPont's Strong Q4 and Full-Year 2025 Results: A Positive Outlook for 2026

Guidance for 2026

Segment Performance

Valuation

Capital Allocation

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.59%)

6. Segments

Electronics & Industrial

Expected Growth: 4.5%

Corporate & other

Expected Growth: 3.0%

Water & Protection

Expected Growth: 5.0%

7. Detailed Products

Tyvek

Corian

DuPont Pioneer Seeds

DuPont Crop Protection

Nomex

DuPont Water Solutions

DuPont Electronics and Industrial

8. DuPont de Nemours, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: DuPont de Nemours, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

50.04$

Current Price

50.05$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA