Dow Inc. DOW

Competitive advantage analysis · basic-materials

Corporate Default
Overall moat score
49/100
Developing

About Dow Inc.

Dow Inc., through its subsidiaries, provides various materials science solutions for packaging, infrastructure, mobility, and consumer applications in the United States, Canada, Europe, the Middle East, Africa, India, the Asia Pacific, and Latin America. The company operates through Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings segments. The Packaging & Specialty Plastics segment provides ethylene, … Full DOW analysis →

Competitive advantage assessment

Key strengths

  • Operating Expense Control OpEx growth is controlled (score 0.71), demonstrating operating leverage.

Key risks

  • Elevated Debt Risk Debt serviceability is weak (score 0.21), raising refinancing risk.
  • Inconsistent Cash Generation Cash generation is inconsistent (score 0.44), indicating operational challenges.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Developing
44

Where DOW ranks in Chemicals

Dow Inc. ranks #9 of 18 scored companies in Chemicals by moat score — the top 50%. The widest moat in the group is Westlake Chemical Partners LP (WLKP) at 88/100.

Moat scores for companies ranked near DOW in Chemicals
# Company Moat score Rating
5 LSB Industries, Inc. LXU 57/100 Moderate
6 Rayonier Advanced Materials Inc RYAM 57/100 Moderate
7 Green Plains, Inc. GPRE 53/100 Moderate
8 Valhi, Inc. VHI 53/100 Moderate
9 Dow Inc. DOW 49/100 Developing
10 Huntsman Corporation HUN 47/100 Developing
11 Olin Corporation OLN 45/100 Developing
12 Celanese Corporation CE 36/100 Developing
13 Tronox Holdings plc TROX 35/100 Developing

See every General Corporate company ranked by moat score →

How DOW scores on the Corporate Default defenses

Pricing Power

Score 44 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 82 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 55 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 37 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 34 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 48 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding DOW's moat

What is Dow Inc.'s moat score?

Dow Inc. (DOW) scores 48 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #9 of 18 scored companies in Chemicals, the top 50%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 17 companies in Chemicals. Its strongest defense is Cost Advantage (82/100) and its weakest is Resilience (34/100).

How does Dow Inc. compare with other Chemicals companies?

Dow Inc. ranks #9 of 18 scored companies in Chemicals by moat score. The widest moat in Chemicals is Westlake Chemical Partners LP (WLKP) at 88/100. The companies ranked closest are Valhi, Inc. (VHI) at 53 just above it and Huntsman Corporation (HUN) at 47 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 17 companies in Chemicals. The defenses are then weighted to produce the overall score out of 100.

Why is Dow Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Dow Inc.?

The Corporate Default template measures 6 defenses, and DOW scores: Pricing Power (44), Cost Advantage (82), Customer Stickiness (55), Capital Efficiency (37), Resilience (34), Scale & Market Position (48). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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