DOW sp is getting a pasting this morning - sp down 6% as I write. But let's look at the picture in the overall: - Total revenue $12.6B - Underlying NPATA $174.2m So, NPATA margin is only 1.4%. This is poor; well, very poor actually. One would expect the NPATA margin to be 5-8% for a mature business. Now, if the write-offs are behind now (the business has culled some activities, so we can hope but not be certain), and if the new-broom changes take effect (we have indications of this in the latest half), DOW should be able to treble its NPATA by FY25 (and be well on way to this in FY24). So, DOW still needs to prove its improvement through demonstrated profitability and so it won't be a "BUY" or "screaming BUY" for the immediate future, but it has to be an "Accumulate on Weakness" for those with a 2+ year outlook (once the individual or institution has ratified its own comfort levels re the turnaround).
DOW Price at posting:
$4.09 Sentiment: Hold Disclosure: Held
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