Fundamentals · COST
DuPont (ROE Decomposition) for COST
AI-generated plain-English read of dupont (roe decomposition) for COST. Updated daily.
Balanced ROE, deteriorating
highROE is declining (6.5%) across multiple legs — profitability, asset efficiency, and leverage are all moving against the company. Broad deterioration like this is harder to reverse than a single-leg problem.
What will probably happen
- ROE has been falling — without a reversal in the weakest leg, the next period will likely show further pressure.
What to do
- If you HOLD this stock
- ROE is declining — reassess whether the original investment thesis still holds. If the weakest leg doesn't reverse in the next one or two quarters, that's a signal to trim.
- If you are EVALUATING this stock
- ROE is declining — wait for one quarter of stabilization before entering. Deteriorating DuPont trends often have a lag; buying into a falling knife adds more risk than the valuation discount typically compensates for.
- If you trade OPTIONS
- No sharp DuPont signal either way. Premium is fairly priced for a fundamentals-stable story — wait for a clearer inflection in one of the legs before positioning directionally.
59 periods with all three DuPont legs populated — trend reads are reliable.
Technical details
Technical analysis
- ROE
- 6.5% — deteriorating
- Sector context
- not provided
- Periods analysed
- 59
- Primary ROE driver
- Balanced
- Profitability (net margin)
- 3.1% — stable, healthy
- Asset efficiency (turnover)
- 0.82× — deteriorating, mixed
- Leverage (equity multiplier)
- 2.58× — stable, healthy
Key levels
| Level | Value |
|---|---|
| latest em | 2.579 |
| latest roe | 0.065 |
| latest margin | 0.031 |
| latest turnover | 0.816 |
| em high threshold | 4 |
| em critical threshold | 5 |