DWDP - Embedded Expectations Analysis - 2019 03 19
DowDuPont Inc. (DWDP:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 15.7x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about organic revenue growth, demand across their divisions, capex, and cost synergies.Specifically, management may lack confidence in their ability to sustain growth in organic revenue, EBITDA, and sales volume across their key segments, amidst challenging market conditions. Moreover, they may be exaggerating consumer demand in their Materials Science, Safety & Construction, and Packaging & Specialty Plastics divisions, and may be concerned about higher ingredient costs and capex. Also, management may be exaggerating their innovation capabilities, Agriculture segment cost synergies, Enlist E3 potential, and feedstock advantages. Lastly, they may lack confidence in their ability to sustain price improvements and share repurchases.
DowDuPont is a holding company comprised of The Dow Chemical Company and E. I. du Pont de Nemours and Company with a focus on forming independent, publicly traded companies in the agriculture and specialty products sectors. The company's worldwide operations are managed through global businesses and include the following reportable segments: Agriculture; Electronics and Imaging; Nutrition and Biosciences; Transportation and Advanced Polymers; and Safety and Construction.
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