CluenexDuPont DD
DuPont scores weak on business quality (4.1 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What DuPont does
DuPont de Nemours manufactures specialty materials, chemicals, and engineered solutions, selling directly to industrial manufacturers and electronics producers. Customers rely on its proprietary formulations to build advanced components.
- What it does best
DuPont dominates high-end specialty materials, driving a gross margin of 37% that beats peers like IFF at 38% while operating at massive industrial scale. This edge relies on deep customer co-development and entrenched chemical formulations that take years to swap out.
- The main risk
An interest coverage ratio of 1.9x leaves the company highly vulnerable to earnings shocks, as operating income barely covers debt servicing costs. A sudden drop in industrial demand could quickly strain the balance sheet.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 6.4% alongside an FCF margin derived from $856M in cash flow on $6.6B in revenue. Margins are compressing as costs bite, showing limited margin expansion at current scale.
Switching costs form the core moat, locking in industrial and electronics customers who build DuPont chemistry directly into their production lines. Its gross margin ranks in the top quartile of its sector at 74%.
Revenue grew 1.9% to $6.5B, putting it in the middle of the pack for its sector. This rate represents a sluggish trend when compared to its historical multi-year performance.
Total debt sits at $3.2B against $715M in cash, resulting in net debt of $2.5B. Free cash flow came in at $856M, showing steady generation but getting softer compared to prior years.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on DD
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
DuPont scores weak on the Cluenex quality check (4.1 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 4, 2026.
See DD today
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Cite this page: Cluenex, “DuPont (DD)”, https://cluenex.com/stocks/dd/, data as of Oct 10, 2026.