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, Inc.'s recent performance was driven by strong organic growth, strategic initiatives, and robust demand in key markets. The company's Q3 2025 earnings call highlights revealed 6% organic growth in revenue, reaching $3.1 billion, and a 6% year-over-year increase in operating EBITDA to $840 million. A $2 billion share repurchase authorization and a $500 million accelerated share repurchase program also underscore the company's commitment to returning value to shareholders. Robust demand in electronics and AI markets fueled 7% sales growth.

1.c. Company Highlights

Last Price	40.51
Change Percentage	1.73%
Open	39.9
Previous Close	39.82
Market Cap ( Millions)	16973
Volume	4437837
Year High	41.23
Year Low	22.5
M A 50	36.05
M A 200	31.57

FCF Yield	6.96%
Dividend Yield	1.76%
ROE	-3.35%
Debt / Equity	40.45%
Net Debt / EBIDTA	328.24%
Price To Book	0.74
Price Earnings Ratio	-22.02
Price To FCF	14.36
Price To sales	1.36
EV / EBITDA	13.46

2. DuPont's Q3 Earnings: A Strong Performance with Raised Guidance

DuPont's third-quarter sales reached $3.1 billion, representing a 6% organic growth, with operating EBITDA of $840 million, up 6% year-over-year, resulting in an operating EBITDA margin of 27.3%. The company reported adjusted EPS of -$0.29279, missing estimates of $1.04. The strong performance was driven by significant growth in healthcare and water, and strength in electronics driven by AI technology demand. The company raised its full-year earnings guidance due to strong performance and expected operational improvement.

Publication Date: Nov -07

                                    📋 Highlights
                                    Q3 Performance::
                                                Sales hit $3.1B (+6% organic), EBITDA rose to $840M (+6 YoY), with a 27.3% margin.
Full-Year Guidance Raised::
                                                EPS guidance uplifted to $1.66 (+16% YoY), driven by operational gains and $4.2B cash from Qnity separation.
Capital Returns::
                                                $0.20/share dividend and $2B share repurchase plan, including $500M ASR, to reduce debt post-separation.
2025 Targets::
                                                $1.6B EBITDA (up from prior) and 8–10% EPS growth, with healthcare/water sectors targeting 5% organic growth annually.
Balance Sheet Strength::
                                                Pro forma net debt at $3.25B, $1B cash on hand, and $500M/year free cash flow expected for 2024–2026.

                                

Segment Performance

The company saw organic growth across all businesses, with healthcare and water growing at high single digits, adjusted to mid-single digits. Diversified industrials were up low single digits, adjusted to relatively flat. The IndustrialsCo. business saw organic sales growth of plus 4% ex and 2% ex the pull-forward. The recent RO acquisition in China adds local membrane production capabilities, not new technology.

Guidance and Outlook

For 2025, DuPont expects organic sales growth of 2%, with operating EBITDA guidance raised to $1.6 billion and adjusted EPS of $1.66 per share, up 16% year-over-year. The company expects to deliver medium-term targets of 3-4% organic growth, 150-200 basis points of margin expansion, and 8-10% EPS growth. The fourth-quarter guidance assumes 1% organic growth, with net sales of $1.685 billion, operating EBITDA of $385 million, and adjusted EPS of $0.43 per share.

Valuation and Capital Allocation

The current valuation metrics indicate a P/E Ratio of -21.28, P/B Ratio of 0.72, and EV/EBITDA of 26.55. The company's net debt-to-EBITDA leverage is expected to stay below 2x, with a pro forma debt of around $3.25 billion and $1 billion of cash on the balance sheet. DuPont has a strong balance sheet, with an expected $1 billion in cash and a $2 billion share repurchase authorization, with an Accelerated Share Repurchase (ASR) of $500 million imminent. Analysts estimate next year's revenue growth at 26.4%.

Growth Strategy

The company is focused on a balanced approach, considering share buybacks and M&A activity, and has a robust pipeline, particularly in healthcare. DuPont has a goal to move its portfolio towards more secular-based end markets, ideally with a 2/3, 1/3 split between healthcare and water. The company expects mid-single-digit growth in its healthcare and water businesses, driven by growth in biopharma, Med packaging, and medical devices.

3. NewsRoom

AlphaCore Capital LLC Makes New $156,000 Investment in DuPont de Nemours, Inc. $DD

Nov -26

Source: defenseworld.net

DuPont Can Become a ‘Compounder.' Why the Stock Could Gain 20%.

Nov -25

Source: barrons.com

DuPont Advances MOLYKOTE Growth Strategy With China Expansion

Nov -19

Source: zacks.com

DuPont Announces Early Results of Tender Offer for Senior Notes

Nov -18

Source: prnewswire.com

DuPont Breaks Ground on MOLYKOTE® Lubricants Manufacturing Plant in China

Nov -18

Source: prnewswire.com

Alberta Investment Management Corp Has $4.16 Million Stock Position in DuPont de Nemours, Inc. $DD

Nov -17

Source: defenseworld.net

duPont REGISTRY Group Launches duPont REGISTRY Live, Creating a New Era for Luxury Car Auctions

Nov -13

Source: businesswire.com

Invesco Diversified Dividend Fund Q3 2025 Portfolio Positioning

Nov -12

Source: seekingalpha.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

Air Products

A-Score: 5.2/10

Value: 3.6

Growth: 5.4

Quality: 4.2

Yield: 6.0

Momentum: 2.5

Volatility: 9.3

1-Year Total Return ->

Ecolab

A-Score: 5.1/10

Value: 1.4

Growth: 5.1

Quality: 6.2

Yield: 2.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

PPG

A-Score: 4.7/10

Value: 3.7

Growth: 2.8

Quality: 6.2

Yield: 5.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

Sherwin-Williams

A-Score: 4.6/10

Value: 1.4

Growth: 6.4

Quality: 5.9

Yield: 2.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

DuPont

A-Score: 4.6/10

Value: 4.9

Growth: 3.7

Quality: 4.3

Yield: 4.0

Momentum: 3.0

Volatility: 7.7

1-Year Total Return ->

IFF

A-Score: 4.3/10

Value: 5.1

Growth: 2.3

Quality: 3.4

Yield: 6.0

Momentum: 1.0

Volatility: 8.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

3.19%

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 Q3 Earnings: A Strong Performance with Raised Guidance

Segment Performance

Guidance and Outlook

Valuation and Capital Allocation

Growth Strategy

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

40.51$

Current Price

40.51$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA