Morningstar Rating

Stock Research and Analysis

by Jeffrey Stafford, CFA

Bulls Say

Dow benefits from greater feedstock flexibility than the average basic chemical producer in North America and Europe, giving it opportunities for added profits in periods of fluctuating input and output prices.
Dow's investments in feedstocks at the U.S. Gulf Coast and in the Middle East should boost profitability for its downstream businesses.
After a rocky start to the Dow/Rohm and Haas marriage, the combined company is on track to meet its synergy targets. Read more 

Bears Say

A plethora of announced petrochemical projects in the U.S. could eventually lead to oversupply.
We expect continued generic price competition on commodity crop chemicals, such as glyphosate--a situation that could dent otherwise impressive revenue growth from Dow's agriculture business.
As seen in 2009, Dow operates in a cyclical industry that can get pounded by downturns in the global economy. The recent slowdown in GDP growth does not bode well for Dow's near-term prospects. Read more 

Management

Andrew Liveris started at Dow in 1976 and moved his way up the ranks to become COO in 2003 and CEO in 2004, adding the role of chairman in 2006. During his long career at Dow, Liveris has gained experience in manufacturing, engineering, sales, marketing,  Read more 

Profile

Organized in 1897, Dow is one of the world's largest chemical and materials companies, manufacturing and supplying a wide variety of intermediaries and building blocks to   Read more 

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A Rare Economic Moat in the Basic Materials Sector 
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