Is DuPont’s Stock a Buy Now?

December 23, 2012

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E = Equity to Debt Ratio Is Weak

The debt-to-equity ratio for Staples is too high, especially when compared to its competitors, The Dow Chemical Company (NYSE:DOW) and Monsanto (NYSE:MON).

	Debt-To-Equity	Cash	Long-Term Debt
DD	1.41	$3.52 Billion	$15.07 Billion
DOW	.82	$3.89 Billion	$19.96 Billion
MON	.17	$3.59 Billion	$2.07 Billion

T = Technicals on the Stock Chart Are Mixed

DuPont hasn’t done much for its investors over the past year, but the past three years have been strong. Over a three-year timeframe, DuPont has outperformed The Dow Chemical Company and Monsanto Company.

	1 Month	Year-To-Date	1 Year	3 Year
DD	4.47%	1.44%	7.40%	57.00%
DOW	12.68%	15.99%	30.73%	34.51%
MON	3.79%	32.41%	37.55%	19.81%

At $44.85, DuPont is currently trading below all its averages.

50-Day SMA	45.02
100-Day SMA	47.67
200-Day SMA	49.18

E = Earnings and Revenue Have Been Steady

Earnings and revenue have been steadily improving since 2009. More of the same is expected for 2013.

	2007	2008	2009	2010	2011
Revenue ($)in billions	30.65	31.84	27.33	32.73	38.72
Diluted EPS ($)	3.22	2.20	1.92	3.28	3.68

Looking at the last quarter on a YoY basis, the last quarter was far from impressive. This would usually be cause for concern, but guidance is solid.

	9/2011	12/2011	3/2012	6/2012	9/2012
Revenue ($)in billions	8.30	9.87	11.26	11.28	7.34
Diluted EPS ($)	.48	.39	1.57	1.25	.01

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