Fundamentals · LOW
DuPont (ROE Decomposition) for LOW
AI-generated plain-English read of dupont (roe decomposition) for LOW. Updated daily.
Balanced ROE, deteriorating
highROE is declining (-32.3%) 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.
39 periods with all three DuPont legs populated — trend reads are reliable.
Technical details
Technical analysis
- Profitability (net margin)
- 9.2% — improving, healthy
- Asset efficiency (turnover)
- 0.46× — stable, healthy
- Leverage (equity multiplier)
- -7.51× — deteriorating, healthy
- ROE
- -32.3% — deteriorating
- Primary ROE driver
- Balanced
- Periods analysed
- 39
- Sector context
- not provided
Key levels
| Level | Value |
|---|---|
| latest roe | -0.323 |
| latest margin | 0.092 |
| latest turnover | 0.464 |
| latest em | -7.514 |
| em critical threshold | 5 |
| em high threshold | 4 |
Caveats
- ROE is negative — the decomposition is directionally informative but interpret absolute magnitudes with care.