Fundamentals · PM

DuPont (ROE Decomposition) for PM

AI-generated plain-English read of dupont (roe decomposition) for PM. Updated daily.

ROE is slipping (-42.3%) and profitability (25.2%) is the culprit: the margin leg is weakening. Watch for pricing pressure or cost creep compressing margins further.

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.

37 periods with all three DuPont legs populated: trend reads are reliable.

Technical details

Technical analysis

Profitability (net margin): 25.2%, deteriorating, mixed
Asset efficiency (turnover): 0.16×, stable, healthy
Leverage (equity multiplier): -10.26×, deteriorating, healthy
ROE: -42.3%, deteriorating
Primary ROE driver: Margin Driven
Periods analysed: 37
Sector context: not provided

Key levels

Key price and metric levels
Level	Value
latest roe	-0.423
latest margin	0.252
latest turnover	0.164
latest em	-10.256
em critical threshold	5
em high threshold	4

Caveats

ROE is negative: the decomposition is directionally informative but interpret absolute magnitudes with care.