DuPont de Nemours Outlook - A Weak Technical Profile Amid Mixed Analyst Optimism

Market Snapshot

Headline Takeaway: DuPont de Nemours (DD) faces a challenging technical outlook, while fundamentals and analyst sentiment remain mixed. Stance: Cautious

News Highlights

Recent news headlines show little direct impact on DD, though the broader market environment remains fluid. Key stories include:

• Trump Fast-Tracked Utah Uranium Mine: While not directly tied to DD, this signals potential shifts in energy-related policy, which could impact DuPont's materials division if uranium demand rises with nuclear power expansion.
• China's Factory Activity Contracts: China's purchasing managers index (PMI) rose to 49.5 in May, still below the 50 threshold for expansion. This highlights ongoing global manufacturing softness, which could affect DuPont's industrial chemical demand.
• Ethereum and Solana ETF Filings: REX Shares filed for Ethereum and Solana ETFs, signaling growing crypto interest. While not relevant to DD's core business, this could highlight broader risk-on sentiment or volatility.

Analyst Views & Fundamentals

Average Rating Score (Simple Mean): 4.33 out of 5

Weighted Rating Score (Performance-Weighted): 3.85 out of 5

Rating Consistency: Analysts show a slight divergence. Three active analysts from Keybanc, UBS, and RBC Capital have issued "Strong Buy" and "Buy" ratings in the past 20 days, though UBS's historical track record is weaker than others.

Price Trend Alignment: The stock has fallen by -0.71% recently, which contrasts with a generally positive analyst outlook. The market appears to be discounting near-term challenges, possibly due to technical pressures and dividend-related timing.

Key Fundamental Factors:

• Price-to-Earnings (PE) Ratio: 856.36 (highly elevated, suggesting overvaluation)
• ROA (Return on Assets): 0.19% (very low profitability relative to assets)
• Net Cash Flow from Operating Activities per Share (YoY Growth Rate): 18.59% (positive cash generation improving)
• Net Cash Flow from Operating Activities (YoY Growth Rate): 18.93% (healthy cash flow growth)
• Total Profit / EBIT (%): -279.55% (indicates significant non-cash expenses or accounting charges)
• Cash-UP: 16.45% (positive liquidity and debt coverage)
• CFOA (Cash from Operating Activities): 1.13% (weak operating cash generation relative to revenue)
• Total Assets Turnover Ratio: 17.28% (low asset efficiency)
• Cost of Sales Ratio (%): 62.64% (high production cost burden)
• Cash-MV: -85.32% (suggests undervaluation or strong cash position relative to market cap)

Model Score (Fundamental): 5.17 (internal diagnostic score, 0-10). This suggests a moderate fundamental profile, with strengths in operating cash flow but weak margins and profitability.

Money-Flow Trends

Money flow data reveals a mixed picture. Large and extra-large investors have seen a negative trend, with a block inflow ratio of 48.9%, suggesting institutional outflows. In contrast, retail (small) investors are positive, with a 48.5% inflow ratio. This divergence may indicate uncertainty in the broader market and a lack of consensus on DD's near-term prospects.

Fund-Flow Score: 7.77 (internal diagnostic score, 0-10). A "good" rating in our system, suggesting that, while large money is cautious, smaller investors remain optimistic, possibly due to fundamental or thematic factors.

Key Technical Signals

The technical outlook for DD is clearly bearish, with a technical score of 1.67 (internal diagnostic score, 0-10). Here’s the breakdown:

• RSI Overbought: 1.66 – indicates overbought conditions and a strong risk of pullback.
• Ex-Dividend Date: 1.00 – historically linked to price declines around this time.
• Dividend Record Date: 1.00 – same bearish sentiment as ex-dividend date.
• WR Overbought: 2.52 – suggests caution despite a slightly higher score.
• Bullish Engulfing: 2.19 – historically neutral bias, but not strong enough to reverse the trend.

Key Insights: Technical indicators show a weak market state with 5 bearish signals and no bullish ones. The recent 5-day analysis highlights several bearish events, particularly on August 29 and September 5, when ex-dividend and record date events occurred, worsening sentiment.

Conclusion

DuPont de Nemours faces a tough near-term outlook from a technical standpoint, with several bearish signals and a low model score. While fundamentals show moderate strength and some analyst optimism, the price is falling, and large investors remain cautious. Actionable Takeaway: Consider waiting for a pull-back or clearer technical strength before entering a position. Watch for earnings updates and any policy shifts in the materials or energy sectors that could drive positive momentum.