DOVER CORP (DOV) Stock Fundamental Analysis
USA - NYSE:DOV - US2600031080 - Common Stock
167.61 USD
-5.43 (-3.14%)
170 USD
+2.39 (+1.43%)
DOV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. DOV scores excellent on profitability, but there are some minor concerns on its financial health. DOV has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
DOV had positive earnings in the past year.
In the past year DOV had a positive cash flow from operations.
Each year in the past 5 years DOV has been profitable.
In the past 5 years DOV always reported a positive cash flow from operatings.
1.2 Ratios
DOV has a Return On Assets of 17.42%. This is amongst the best in the industry. DOV outperforms 97.69% of its industry peers.
With an excellent Return On Equity value of 30.81%, DOV belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
The Return On Invested Capital of DOV (10.00%) is better than 70.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DOV is in line with the industry average of 10.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.42% | ||
| ROE | 30.81% | ||
| ROIC | 10% |
ROA(3y)13.55%
ROA(5y)11.78%
ROE(3y)28.11%
ROE(5y)26.27%
ROIC(3y)10.97%
ROIC(5y)11.33%
1.3 Margins
Looking at the Profit Margin, with a value of 29.29%, DOV belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of DOV has grown nicely.
The Operating Margin of DOV (17.16%) is better than 80.00% of its industry peers.
DOV's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 39.67%, DOV is in the better half of the industry, outperforming 71.54% of the companies in the same industry.
In the last couple of years the Gross Margin of DOV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.16% | ||
| PM (TTM) | 29.29% | ||
| GM | 39.67% |
OM growth 3Y-0.14%
OM growth 5Y2.31%
PM growth 3Y34.81%
PM growth 5Y29.67%
GM growth 3Y0.85%
GM growth 5Y0.98%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DOV is creating some value.
The number of shares outstanding for DOV has been reduced compared to 1 year ago.
The number of shares outstanding for DOV has been reduced compared to 5 years ago.
The debt/assets ratio for DOV has been reduced compared to a year ago.
2.2 Solvency
DOV has an Altman-Z score of 5.07. This indicates that DOV is financially healthy and has little risk of bankruptcy at the moment.
DOV has a better Altman-Z score (5.07) than 78.46% of its industry peers.
The Debt to FCF ratio of DOV is 5.52, which is a neutral value as it means it would take DOV, 5.52 years of fcf income to pay off all of its debts.
DOV's Debt to FCF ratio of 5.52 is in line compared to the rest of the industry. DOV outperforms 49.23% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that DOV is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.36, DOV perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 5.52 | ||
| Altman-Z | 5.07 |
ROIC/WACC1.09
WACC9.19%
2.3 Liquidity
A Current Ratio of 1.95 indicates that DOV should not have too much problems paying its short term obligations.
DOV has a Current ratio (1.95) which is comparable to the rest of the industry.
A Quick Ratio of 1.35 indicates that DOV should not have too much problems paying its short term obligations.
The Quick ratio of DOV (1.35) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The earnings per share for DOV have decreased by -1.65% in the last year.
DOV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.13% yearly.
Looking at the last year, DOV shows a decrease in Revenue. The Revenue has decreased by -8.23% in the last year.
DOV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.65% yearly.
EPS 1Y (TTM)-1.65%
EPS 3Y4.79%
EPS 5Y8.13%
EPS Q2Q%3.39%
Revenue 1Y (TTM)-8.23%
Revenue growth 3Y-0.68%
Revenue growth 5Y1.65%
Sales Q2Q%-5.91%
3.2 Future
The Earnings Per Share is expected to grow by 5.98% on average over the next years.
DOV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.78% yearly.
EPS Next Y9.09%
EPS Next 2Y9.36%
EPS Next 3Y8.17%
EPS Next 5Y5.98%
Revenue Next Year4.13%
Revenue Next 2Y4.68%
Revenue Next 3Y4.47%
Revenue Next 5Y4.78%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.71, the valuation of DOV can be described as rather expensive.
Based on the Price/Earnings ratio, DOV is valued a bit cheaper than 68.46% of the companies in the same industry.
DOV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.57.
DOV is valuated correctly with a Price/Forward Earnings ratio of 15.96.
Based on the Price/Forward Earnings ratio, DOV is valued a bit cheaper than 64.62% of the companies in the same industry.
DOV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 15.96 |
4.2 Price Multiples
DOV's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, DOV is valued a bit more expensive than the industry average as 62.31% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.31 | ||
| EV/EBITDA | 15.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DOV does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of DOV may justify a higher PE ratio.
PEG (NY)2.06
PEG (5Y)2.3
EPS Next 2Y9.36%
EPS Next 3Y8.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.25%, DOV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.80, DOV pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.25, DOV pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
The dividend of DOV has a limited annual growth rate of 0.91%.
DOV has paid a dividend for at least 10 years, which is a reliable track record.
DOV has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.91%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
12.36% of the earnings are spent on dividend by DOV. This is a low number and sustainable payout ratio.
The dividend of DOV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12.36%
EPS Next 2Y9.36%
EPS Next 3Y8.17%
167.61
-5.43 (-3.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners88.22%
Inst Owner Change0.28%
Ins Owners1%
Ins Owner Change-0.01%
Market Cap22.98B
Revenue(TTM)7.83B
Net Income(TTM)2.29B
Analysts77.5
Price Target215.24 (28.42%)
Short Float %1.86%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend2.04
Dividend Growth(5Y)0.91%
DP12.36%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.76%
Min EPS beat(2)1.05%
Max EPS beat(2)2.47%
EPS beat(4)3
Avg EPS beat(4)1.58%
Min EPS beat(4)-2.05%
Max EPS beat(4)4.86%
EPS beat(8)7
Avg EPS beat(8)1.98%
EPS beat(12)8
Avg EPS beat(12)0.81%
EPS beat(16)12
Avg EPS beat(16)1.65%
Revenue beat(2)0
Avg Revenue beat(2)-1%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)-0.36%
Revenue beat(4)0
Avg Revenue beat(4)-2%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)-0.36%
Revenue beat(8)2
Avg Revenue beat(8)-1.64%
Revenue beat(12)2
Avg Revenue beat(12)-1.65%
Revenue beat(16)4
Avg Revenue beat(16)-1.18%
PT rev (1m)0%
PT rev (3m)4%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)0.86%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.5%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)1.77%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 15.96 | ||
| P/S | 2.94 | ||
| P/FCF | 41.31 | ||
| P/OCF | 30.74 | ||
| P/B | 3.09 | ||
| P/tB | 134.78 | ||
| EV/EBITDA | 15.08 |
EPS(TTM)8.96
EY5.35%
EPS(NY)10.5
Fwd EY6.27%
FCF(TTM)4.06
FCFY2.42%
OCF(TTM)5.45
OCFY3.25%
SpS57.09
BVpS54.26
TBVpS1.24
PEG (NY)2.06
PEG (5Y)2.3
Graham Number104.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.42% | ||
| ROE | 30.81% | ||
| ROCE | 12.22% | ||
| ROIC | 10% | ||
| ROICexc | 11.3% | ||
| ROICexgc | 44.7% | ||
| OM | 17.16% | ||
| PM (TTM) | 29.29% | ||
| GM | 39.67% | ||
| FCFM | 7.11% |
ROA(3y)13.55%
ROA(5y)11.78%
ROE(3y)28.11%
ROE(5y)26.27%
ROIC(3y)10.97%
ROIC(5y)11.33%
ROICexc(3y)11.99%
ROICexc(5y)12.23%
ROICexgc(3y)42.19%
ROICexgc(5y)45.45%
ROCE(3y)14.24%
ROCE(5y)14.39%
ROICexgc growth 3Y-7.13%
ROICexgc growth 5Y-2%
ROICexc growth 3Y-4.68%
ROICexc growth 5Y-1.94%
OM growth 3Y-0.14%
OM growth 5Y2.31%
PM growth 3Y34.81%
PM growth 5Y29.67%
GM growth 3Y0.85%
GM growth 5Y0.98%
F-Score7
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 5.52 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 54.78% | ||
| Cap/Sales | 2.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.17% | ||
| Profit Quality | 24.26% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 5.07 |
F-Score7
WACC9.19%
ROIC/WACC1.09
Cap/Depr(3y)60.37%
Cap/Depr(5y)59.92%
Cap/Sales(3y)2.41%
Cap/Sales(5y)2.38%
Profit Quality(3y)62.15%
Profit Quality(5y)81.58%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.65%
EPS 3Y4.79%
EPS 5Y8.13%
EPS Q2Q%3.39%
EPS Next Y9.09%
EPS Next 2Y9.36%
EPS Next 3Y8.17%
EPS Next 5Y5.98%
Revenue 1Y (TTM)-8.23%
Revenue growth 3Y-0.68%
Revenue growth 5Y1.65%
Sales Q2Q%-5.91%
Revenue Next Year4.13%
Revenue Next 2Y4.68%
Revenue Next 3Y4.47%
Revenue Next 5Y4.78%
EBIT growth 1Y-6.71%
EBIT growth 3Y-0.82%
EBIT growth 5Y4%
EBIT Next Year29.22%
EBIT Next 3Y14.02%
EBIT Next 5Y8.46%
FCF growth 1Y-33.05%
FCF growth 3Y-14.96%
FCF growth 5Y-5.2%
OCF growth 1Y-28.09%
OCF growth 3Y-12.47%
OCF growth 5Y-4.56%