Quality score · DOW · Materials

Is Dow Inc. a quality business?

Dow Inc. (DOW) scored on five pillars from its reported financial statements, and ranked against 77 Materials companies.

2.5/ 10
Low quality
as of October 19, 2026
Profitability
1.3 Weak
Solvency
3.2 Weak
Growth
—
Efficiency
—
Predictability
3.2 Weak
Strongest pillar: Solvency · Weakest: Profitability

Dow Inc. (DOW) scores 2.5 out of 10 as of , computed from its reported financial statements. That reads as low quality. The reading rests on solvency, and profitability is what holds it back.

2 pillars, growth and efficiency, are unscored because the filings behind them carry too little to judge. Each is shown as a dash rather than a zero, and the overall score is the weighted average of what could be scored.

Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.

Does Dow Inc. have an economic moat?

Not enough data

We cannot judge Dow Inc. yet, because fewer than five years had both a return on capital and a cost of capital we could measure. This is not a “no”.

Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →

How Dow Inc. scores

On the filings behind it, Dow Inc. earns 2.5 out of 10 for business quality as of October 19, 2026. That is low quality on our scale. A low reading means the reported numbers show weakness on several pillars at once, which is a reason to understand the business before anything else. The figure is a weighted average of five pillars, each scored from 0 to 10 against sector-aware benchmarks from reported statements.

Among the 77 Materials companies with a published score, that ranks at the 21st percentile, near the foot of the group. A typical company in the group scores 4.4, and the best quarter starts from 6.2. Dow Inc. is well below that typical reading.

Pillar by pillar

Profitability

Dow Inc.’s profitability score is 1.3 out of 10 (weak). Against a median of 4.4 among 74 Materials companies, that is well below the group and the 28th percentile. Low margins and returns leave little cushion, so a downturn or a cost increase reaches the bottom line quickly.

Solvency

Solvency scores 3.2 out of 10, which reads as weak. The median across 66 Materials companies is 6.7, so Dow Inc. is well below its peers on this pillar and ranks at the 12th percentile. Stretched leverage narrows the options open to management, since cash that services debt is cash that cannot be reinvested.

Growth

There is no growth score for Dow Inc.: too little of the pillar could be measured from the filings to give an honest reading. The overall is therefore the weighted average of the other pillars. Across 57 Materials companies the median for this pillar is 3.2. Growth needs at least three years of comparable annual statements, so a short or interrupted history leaves it blank.

Efficiency

There is no efficiency score for Dow Inc.: too little of the pillar could be measured from the filings to give an honest reading. The overall is therefore the weighted average of the other pillars. Across 71 Materials companies the median for this pillar is 5.2. Without it the overall cannot say how well reported profit turns into cash.

Predictability

Predictability scores 3.2 out of 10, which reads as weak. The median across 76 Materials companies is 4.5, so Dow Inc. is below its peers on this pillar and ranks at the 35th percentile. A low predictability score often belongs to cyclical businesses, where good and bad years alternate with the economy or with commodity prices.

Strongest and weakest pillar

The profile is uneven. Solvency leads at 3.2 while profitability trails at 1.3, a gap of 1.9 points, so the overall averages a clear strength against a clear soft spot. A solvency lead means the balance sheet is the company’s strongest asset, a cushion that buys time when trading gets harder. A profitability shortfall is the one most worth understanding, since it bears directly on whether the business creates value.

What would move the score

The pillar with the most room to move the score is profitability. If it rose to the median of Materials companies, 4.4, Dow Inc.’s overall score would go from 2.5 to about 3.7. Only three of the five pillars could be scored. Together they carry 65 of the 100 weight points (the full set is profitability 25, solvency 20, growth 20, efficiency 15, predictability 20), and the overall is the weighted average of those alone.

Dow Inc. and similar companies

These are the Materials companies closest to Dow Inc. in market value. Each has its own page scored on the same five pillars, so the comparison is like for like.

What each pillar measures

Profitability

1.3 / 10

How much profit the company generates from its capital and sales.

Solvency

3.2 / 10

The company’s ability to service debt and meet its obligations.

Growth

—

How fast revenue, earnings and cash flow are compounding.

Efficiency

—

How well assets and earnings convert into cash and output.

Predictability

3.2 / 10

How stable and consistent results have been over time.

How this score is calculated

Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.

Limitations

This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.

Educational only. Not investment advice.

FAQ

Is Dow Inc. a quality business?

On this reading Dow Inc. scores 2.5 out of 10, which reads as low quality. Its strongest pillar is solvency, its weakest is profitability. Quality is not the same as a good investment: the score says nothing about the price you would pay.

How does Dow Inc. compare with other Materials companies?

Dow Inc. ranks at the 21st percentile of the 77 Materials companies Lemma publishes a score for. The median there is 4.4 and the top quarter starts at 6.2, against Dow Inc.’s 2.5.

What does the DOW quality score measure?

Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.

How current is this score?

This page last changed on October 19, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for DOW are in the app.

Does a high score mean the stock is cheap?

No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.

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Score any company, not just these.

Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.

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