DuPont de Nemours, Inc. is a global specialty materials and chemicals company with a conservative balance sheet but a recently more variable earnings profile. Financial Position and Cash Flow The company’s balance sheet and cash-allocation shifts are notable positives: debt-to-equity stands at 0.2259 and reported net debt is 0.0 , indicating a low leverage position. The firm narrowed net financing
DuPont de Nemours, Inc. is a global specialty materials and chemicals company with a conservative balance sheet but a recently more variable earnings profile.
The company’s balance sheet and cash-allocation shifts are notable positives: debt-to-equity stands at 0.2259 and reported net debt is 0.0, indicating a low leverage position. The firm narrowed net financing outflows from -$2.99B at 2023 year-end to -$1.85B at 2024 year-end. Investing cash moved to -$849.0M in 2024 from +$172.0M in 2023, reflecting a shift in capital deployment Strategic Capital Allocation.
DuPont remains modestly profitable on a trailing basis with reported net income of $355.0M (TTM, period end 2024-03-31) and a recent quarterly net income of $189.0M (2024‑03‑31). This shows continued positive earnings in recent periods.
There are clear areas of concern around profitability and earnings consistency. Gross margin was -6.2% and operating margin was -2.2% for the trailing period referenced (2019 TTM series), with net profit margin at 2.3%. Reported net income fell from a peak of $6.47B in 2021 to $355.0M (TTM as of 2024-03-31). The earnings series is flagged as volatile (net-income stability metric 0.5000), while diluted EPS declined from $1.01 (2023-12-31) to $0.85 (2024‑03‑31). ROE remains low at 1.5% as of 2024-03-31, underscoring both short-term pressure and muted returns on equity.
The foundation of business quality and long-term value creation
DuPont de Nemours, Inc.'s reported net income shows a marked decline from a large one-time peak of $5.39B in the quarter ending to smaller, more recurring quarterly profits thereafter. From late 2021 through 2023, net income trended downward (: $682.0M;
Revenue data on the chart are older and uneven, showing large legacy values followed by lower amounts: $65.85B (), $20.12B (), $16.09B (), $5.43B () and the most recent revenue observation of $4.83B (). The most recent quarterly net income was $189.0M. The most recent revenue observation was $4.83B.
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Period Information
Report Type: Annual (10-K)
Period: Jan 2019 to Dec 2019
Analyzing long-term margin stability and competitive positioning
DuPont de Nemours, Inc. shows a clear deterioration in profitability between the trailing twelve months ended 2018-12-31 and 2019-12-31. Gross margin declined from 4.5% to -6.2%, and operating margin moved from a positive 6.4% to -2.2%, representing a material inflection point into negative gross and operating profitability in the most recent period. Net profit margin for the trailing twelve months ended 2019-12-31 is 2.3%, the only reported net margin in the series.
Understanding Profit Margins
Between Jan 2019 and Dec 2019, Dupont De Nemours Inc converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
DuPont de Nemours, Inc.'s trailing twelve‑month net income shows a marked decline from the 2021 peak of $6.47B to the low‑hundreds of millions in recent periods. After $423.0M at the 2023‑12‑31 TTM, net income decreased to $355.0M by the 2024‑03‑31 TTM, indicating a downward trend in the most recent quarters covered by the dataset.
Operating cash flow (TTM) in the provided data is only reported for 2018, when DuPont de Nemours, Inc. generated $4.73B of cash from operations for the trailing twelve months ended 2018‑12‑31. Because no more recent operating cash flow TTM values are included, alignment between current net income and operating cash flow cannot be assessed from this dataset. The latest Net Income (TTM) in the file is $355.0M (period end 2024-03-31) and the latest Operating Cash Flow (TTM) reported in the file is $4.73B (period end 2018‑12‑31).
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
DuPont de Nemours, Inc.'s trailing twelve-month Return on Equity has been at low single-digit levels in the most recent quarters, edging down slightly from 1.7% at 2023-12-31 to 1.5% at 2024-03-31. The most recent data show a modest quarter-to-quarter decline and a persistently low ROE versus earlier years.
A clear inflection appears at 2021-12-31 when ROE rose sharply to 24.5%, versus 1.2% at 2019-12 and the low single-digit readings in 2023–2024, indicating a temporary peak followed by a return to lower levels. The most recent Return on Equity (ROE) was 1.5% as of 2024-03-31.
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
DuPont de Nemours, Inc.'s most recent TTM data show a shift in capital allocation between 2023 and 2024. Financing cash outflows narrowed from -$2.99B at the 2023 year end to -$1.85B at the 2024 year end, indicating smaller net cash used in financing activities in the latest period. Investing cash moved from a positive $172.0M at the 2023 year end to a negative –$849.0M at the 2024 year end, an inflection toward greater net cash deployed in investing activities in the most recent trailing twelve months. Operating cash flow in the dataset is only reported through 2018, showing $4.73B at that time; no later operating CF TTM values are present to show a recent trend.
Historical financing outflows were larger in prior years (for example -$4.31B in early 2022 and -$6.51B in 2021), but the latest reported financing and investing TTM values reflect the 2024 year end position. The most recent Operating Cash Flow (TTM) available in this dataset was $4.73B (period end 2018-12-31). The most recent Investing Cash Flow (TTM) was –$849.0M (period end 2024-12-31). The most recent Financing Cash Flow (TTM) was –$1.85B (period end 2024-12-31).
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
DuPont de Nemours, Inc.'s trailing twelve-month price-to-earnings ratio has moved materially higher over the most recent quarters. After a marked trough at 2.2x in the 2021 year-end period, the PE rose to 32.1x by 2023-12-31 and then increased further to 38.1x by 2024-03-31, representing a 6.0x quarter-over-quarter increase from December 2023 to March 2024. The series shows an inflection point at 2021-12-31 (2.2x) followed by a sustained re-rating through 2023 and into early 2024.
The current level is above the 2019 reading of 22.6x and sits at the highest observed value in the provided series. The most recent price-to-earnings ratio for DuPont de Nemours, Inc. was 38.1x as of 2024-03-31.
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.