On Jan. 22, chemical alchemist DuPont
- DuPont likes to point out that the current 16% return on invested capital (ROIC) is twice what it was only five years ago, with an unbroken improvement trend in between.
- A trailing quarterly dividend of $0.41 means a generous 3.8% yield at today's price. One competitor already got a thumbs-up from our Motley Fool Income Investor team -- perhaps DuPont is next?
(Figures in millions, except per-share data.)
Income Statement Highlights
FY 2007 |
FY 2006 |
Change |
|
---|---|---|---|
Sales |
$30,653 |
$28,982 |
5.8% |
Net Profit |
$2,988 |
$3,148 |
(5.1%) |
EPS |
$3.22 |
$3.38 |
(4.7%) |
Diluted Shares |
925.4 |
928.6 |
(0.3%) |
Get back to basics with the income statement.
Margin Checkup
FY 2007 |
FY 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
29.7% |
29.5% |
0.2 |
Operating Margin |
14.3% |
13.9% |
0.5 |
Net Margin |
9.8% |
10.9% |
(1.1) |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
FY 2007 |
FY 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$1,300 |
$1,893 |
(31.3%) |
Accounts Rec. |
$5,700 |
$4,335 |
31.5% |
Inventory |
$5,300 |
$4,941 |
7.3% |
Liabilities |
FY 2007 |
FY 2006 |
Change |
---|---|---|---|
Long-Term Debt |
$6,000 |
$6,013 |
(0.2%) |
The balance sheet reflects the company's health. If the 2007 numbers look too nice and round, it's because they were culled from the conference call and reported in billions.
Cash Flow Highlights
FY 2007 |
FY 2006 |
Change |
|
---|---|---|---|
Cash From Ops. |
$4,300 |
$3,736 |
15.1% |
Capital Expenditures |
$1,698 |
$1,532 |
10.8% |
Free Cash Flow |
$2,602 |
$2,204 |
18.1% |
Free cash flow is a Fool's best friend. The roundness-related balance sheet comment above also applies to cash from operations.
Competitive Context
Market Cap* |
Trailing P/E Ratio |
CAPS Rating |
|
---|---|---|---|
Monsanto |
$55.4 |
48.5 |
**** |
DuPont |
$38.4 |
12.2 |
**** |
Dow Chemical |
$32.5 |
9.8 |
**** |
Air Products & Chemicals |
$18.2 |
18.1 |
**** |
The mystery Income Investor guest is Dow Chemical.
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