DuPont: Two Centuries of Chemistry

This episode is brought to you by:

Tegus. Tegus is the new digital hub for market intelligence. The Tegus platform empowers Investors and Corporate Development teams to invest smarter by pairing best-in-class technology with the highest quality user-generated content and data. Find out why a majority of the top firms are using Tegus on a daily basis. If you're ready to go deeper on any company and you appreciate the value of primary research, head to tegus.co/breakdowns for a free trial.

Scribe. Scribe is the trusted transcription provider for the business and investing community. Scribe is designed to accurately transcribe messy, real-world audio and is unique in that it’s optimized for the complexities of enterprise audio, such as company and product names, currencies, accents and numbers. Visit kensho.com/breakdowns to learn more and unlock your free trial.

[00:03:38] - [First question] - Key products that define DuPont’s history and where their products show up in our everyday lives

[00:06:23] - The science that goes into developing their products and what being a specialty chemicals business looks like

[00:08:22] - Where they’re sourcing commodity chemicals from 

[00:10:30] - The thought process that went into their merger in December 2015

[00:13:21] - Commodity chemicals versus specialty chemicals

[00:16:01] - The importance of patents and early products that first had them

[00:17:38] - How much effort is put into research and development today

[00:19:47] - Their economic model and profile and current businesses

[00:23:56] - How their EBITDA margins today compare to the business historically

[00:25:27] - Overview and duration of their merger supply agreements

[00:26:23] - The seasonality and customer base for a business like this

[00:27:52] - Producing on a per-order basis or on market speculation

[00:30:04] - How many of their chemicals are produced in their own manufacturing facilities

[00:31:00] - Stability and internal investment of their cash flow cycle

[00:32:28] - History of the du Pont family and key leadership changes

[00:34:24] - Thoughts on the bull case for DuPont that will put them back on the pedestal 

[00:36:28] - The percentage of the market they represent today and their current competitors

[00:37:56] - Metrics used when valuing commodity and speciality chemical businesses

[00:40:03] - Prior regulatory fines and potential risks going forward

[00:46:44] - Key lessons for operators and investors from DuPont’s story