Skip to Content
Stock Strategist

DuPont Is Materially Undervalued

We don't think the market appreciates the company's long-term earnings power.

Mentioned: , , ,

DuPont de Nemours (DD) is a world-renowned chemical company with a history spanning over 200 years and an ever-evolving portfolio. In its current iteration, DuPont is the specialty chemical company created in 2019 from the DowDuPont merger and subsequent separations. The company’s four business lines each generate roughly one fourth of profits and sell products to different end markets. With 15% of sales to the auto industry and no other end market making up over 5%, DuPont is fairly diversified. We forecast consolidated revenue to grow slightly above global GDP.

DuPont has produced some noteworthy and high-profit products over the years. The safety and construction segment invented products such as Kevlar, which has wide applications in textiles, safety equipment, and transportation. Tyvek, broadly used in construction materials, also demonstrates DuPont's successful product development and innovation. The company has a solid record of innovation, and we think it will be able to replace earnings from older products as they fall out of favor or are leapfrogged by new technologies and as patents expire.

Seth Goldstein does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.