FMP
May 23, 2024 2:49 PM - Davit Kirakosyan
DuPont (NYSE:DD) shares gained more than 5% pre-market today after the company announced its intention to split into three independent, publicly traded companies focused on Electronics, Water, and a diversified industrial segment. The restructuring aims to increase shareholder value by enabling each new entity to focus on its specific market. The company stated that the separations are intended to be tax-free for DuPont shareholders.
The reorganization will result in New DuPont becoming a diversified industrial leader, while the Electronics and Water divisions will operate as separate companies, each with its own board and management team. New DuPont will retain its primary businesses, excluding Water Solutions, and will continue to apply its materials science expertise across sectors like healthcare and electric vehicles.
The new structure is designed to uphold high margins and strong cash flow, with financial policies similar to those of the current DuPont. The Electronics division, projected to have $4.0 billion in net sales and a 29% operating EBITDA margin in 2023, will concentrate on semiconductor solutions and advanced electronics products, benefiting from the expansion of high-performance computing, AI, and the Internet of Things. The Water division, specializing in water filtration and purification technologies, reported net sales of around $1.5 billion and a 24% operating EBITDA margin in 2023. It aims to boost earnings through ongoing investments and potential acquisitions.
DuPont expects to complete the separations within 18 to 24 months, subject to customary conditions and approvals, including those from DuPont's Board of Directors and regulatory authorities.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...