Investment Thesis
DuPont faces significant fundamental challenges including minimal revenue growth (1.9% YoY), declining net income (-5.6% YoY), and severely depressed returns on capital (ROE 1.1%, ROA 0.8%). While balance sheet leverage remains conservative and free cash flow is positive, the company's inability to convert gross profit into adequate operating returns, combined with data integrity concerns regarding reported gross margins, suggests limited upside potential and elevated execution risk.
Strengths
- Solid liquidity position with 2.68x current ratio and substantial cash reserves of $710M
- Conservative capital structure with 0.22x debt-to-equity ratio providing financial flexibility
- Positive free cash flow of $241M with 14.3% FCF margin demonstrates operational cash generation
Risks
- Severe data quality red flags: reported gross profit of $20.6B exceeds revenue of $1.7B (1228.1% gross margin is mathematically impossible)
- Declining profitability: net income down 5.6% YoY and diluted EPS down 210.7% YoY despite revenue growth
- Anemic revenue growth at 1.9% YoY with minimal returns on invested capital (ROE 1.1%, ROA 0.8%)
Key Metrics to Watch
- Revenue growth trajectory and margin expansion potential
- Return on equity improvement through either increased profitability or capital optimization
- Operating expense ratios and their impact on the substantial gap between gross and operating profit
Financial Metrics
Revenue
1.7B
Net Income
161.0M
EPS (Diluted)
$0.39
Free Cash Flow
241.0M
Total Assets
21.4B
Cash
710.0M
Profitability Ratios
Gross Margin
1,228.1%
Operating Margin
10.8%
Net Margin
9.6%
ROE
1.1%
ROA
0.8%
FCF Margin
14.3%
Balance Sheet & Liquidity
Current Ratio
2.68x
Quick Ratio
2.11x
Debt/Equity
0.22x
Debt/Assets
33.6%
Interest Coverage
N/A
Long-term Debt
3.1B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-07T08:37:44.305163 |
Data as of: 2026-03-31 |
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