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).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
