We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can DOW's Strong Liquidity Drive Future Growth and Returns?
Read MoreHide Full Article
Key Takeaways
Dow ended Q1 with about $14B in liquidity, supporting growth investments and shareholder returns.
DOW generated about $1.1B in Q1 operating cash flow and has no major long-term debt due until 2029.
DOW trades at a forward P/E below the industry average, while 2026 and 2027 EPS estimates have risen.
Dow Inc. (DOW - Free Report) exited the first quarter with solid liquidity of around $14 billion, including cash and cash equivalents of roughly $4.1 billion. It generated solid cash flow from operating activities of roughly $1.1 billion in the first quarter.
DOW’s strong balance sheet and substantial cash flows support capital allocation, enabling it to finance its growth investments in higher-value businesses and regions and drive shareholder value while navigating a challenging macroeconomic environment. It remains focused on growth actions in attractive end markets and executing high-return incremental growth projects in cost-advantaged regions, leveraging strong financial health.
Dow returned $1.5 billion to shareholders through dividends in 2025. Dow has a policy of returning roughly 45% of its operating net income through dividends. It paid $252 million in dividends in the first quarter. It has no substantial long-term debt maturities until 2029.
Looking across the competitive landscape, LyondellBasell Industries N.V. (LYB - Free Report) had $2.64 billion in cash and cash equivalents as of the end of the first quarter. LYB’s total available liquidity was $7.3 billion. LyondellBasell generated $2.6 billion in cash from operating activities over the 12 months (ending March 31, 2026) and achieved 111% cash conversion.
Eastman Chemical Company (EMN - Free Report) ended the first quarter with cash and cash equivalents of $665 million, up from $418 million at the end of the prior-year period. EMN’s cash and cash equivalents rose $99 million sequentially from $566 million at the beginning of the quarter. Eastman Chemical generated around $1 billion in operating cash flow in 2025 and sees similar cash flows in 2026.
The Zacks Rundown for DOW
Shares of Dow have lost 5.9% in the past year compared with the Zacks Chemicals Diversified industry’s decline of 2.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, DOW is currently trading at a forward 12-month earnings multiple of 11.72, a 13.1% discount to the industry average of 13.49X. It carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DOW’s 2026 and 2027 earnings implies a year-over-year rise of 395.7% and a decline of 31.6%, respectively. The EPS estimates for 2026 and 2027 have been trending higher over the past 60 days.
Image Source: Zacks Investment Research
DOW stock currently carries a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
Can DOW's Strong Liquidity Drive Future Growth and Returns?
Key Takeaways
Dow Inc. (DOW - Free Report) exited the first quarter with solid liquidity of around $14 billion, including cash and cash equivalents of roughly $4.1 billion. It generated solid cash flow from operating activities of roughly $1.1 billion in the first quarter.
DOW’s strong balance sheet and substantial cash flows support capital allocation, enabling it to finance its growth investments in higher-value businesses and regions and drive shareholder value while navigating a challenging macroeconomic environment. It remains focused on growth actions in attractive end markets and executing high-return incremental growth projects in cost-advantaged regions, leveraging strong financial health.
Dow returned $1.5 billion to shareholders through dividends in 2025. Dow has a policy of returning roughly 45% of its operating net income through dividends. It paid $252 million in dividends in the first quarter. It has no substantial long-term debt maturities until 2029.
Looking across the competitive landscape, LyondellBasell Industries N.V. (LYB - Free Report) had $2.64 billion in cash and cash equivalents as of the end of the first quarter. LYB’s total available liquidity was $7.3 billion. LyondellBasell generated $2.6 billion in cash from operating activities over the 12 months (ending March 31, 2026) and achieved 111% cash conversion.
Eastman Chemical Company (EMN - Free Report) ended the first quarter with cash and cash equivalents of $665 million, up from $418 million at the end of the prior-year period. EMN’s cash and cash equivalents rose $99 million sequentially from $566 million at the beginning of the quarter. Eastman Chemical generated around $1 billion in operating cash flow in 2025 and sees similar cash flows in 2026.
The Zacks Rundown for DOW
Shares of Dow have lost 5.9% in the past year compared with the Zacks Chemicals Diversified industry’s decline of 2.6%.
From a valuation standpoint, DOW is currently trading at a forward 12-month earnings multiple of 11.72, a 13.1% discount to the industry average of 13.49X. It carries a Value Score of A.
The Zacks Consensus Estimate for DOW’s 2026 and 2027 earnings implies a year-over-year rise of 395.7% and a decline of 31.6%, respectively. The EPS estimates for 2026 and 2027 have been trending higher over the past 60 days.
DOW stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.