We assign a fundamental rating of 5 out of 10 to DOV. DOV was compared to 132 industry peers in the Machinery industry. While DOV has a great profitability rating, there are some minor concerns on its financial health. DOV is valued expensive and it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year DOV was profitable.
DOV had a positive operating cash flow in the past year.
DOV had positive earnings in 4 of the past 5 years.
DOV had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

DOV has a Return On Assets of 16.75%. This is amongst the best in the industry. DOV outperforms 96.21% of its industry peers.
The Return On Equity of DOV (29.33%) is better than 94.70% of its industry peers.
With a decent Return On Invested Capital value of 10.10%, DOV is doing good in the industry, outperforming 72.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DOV is in line with the industry average of 10.18%.

		Industry Rank	Sector Rank
ROA	16.75%
ROE	29.33%
ROIC	10.1%

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

DOV has a Profit Margin of 28.37%. This is amongst the best in the industry. DOV outperforms 100.00% of its industry peers.
DOV's Profit Margin has improved in the last couple of years.
The Operating Margin of DOV (17.46%) is better than 81.82% of its industry peers.
In the last couple of years the Operating Margin of DOV has grown nicely.
With a decent Gross Margin value of 40.04%, DOV is doing good in the industry, outperforming 74.24% 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	17.46%
PM (TTM)	28.37%
GM	40.04%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

DOV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
DOV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

An Altman-Z score of 5.48 indicates that DOV is not in any danger for bankruptcy at the moment.
DOV has a better Altman-Z score (5.48) than 78.79% of its industry peers.
DOV has a debt to FCF ratio of 5.42. This is a neutral value as DOV would need 5.42 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.42, DOV is in line with its industry, outperforming 53.03% of the companies in the same industry.
DOV has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of DOV (0.35) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.35
Debt/FCF	5.42
Altman-Z	5.48

ROIC/WACC1.07

WACC9.48%

2.3 Liquidity

DOV has a Current Ratio of 2.04. This indicates that DOV is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.04, DOV perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
DOV has a Quick Ratio of 1.44. This is a normal value and indicates that DOV is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of DOV (1.44) is better than 62.88% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.04
Quick Ratio	1.44

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 9.57% over the past year.
DOV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.15% yearly.

EPS 1Y (TTM)9.57%

EPS 3Y4.38%

EPS 5Y11.15%

EPS Q2Q%14.09%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%8.77%

3.2 Future

DOV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.10% yearly.
The Revenue is expected to grow by 5.19% on average over the next years.

EPS Next Y10.6%

EPS Next 2Y9.42%

EPS Next 3Y7.42%

EPS Next 5Y5.1%

Revenue Next Year5.55%

Revenue Next 2Y4.96%

Revenue Next 3Y4.94%

Revenue Next 5Y5.19%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 20.94, which indicates a rather expensive current valuation of DOV.
DOV's Price/Earnings ratio is a bit cheaper when compared to the industry. DOV is cheaper than 73.48% of the companies in the same industry.
When comparing the Price/Earnings ratio of DOV to the average of the S&P500 Index (28.32), we can say DOV is valued slightly cheaper.
DOV is valuated rather expensively with a Price/Forward Earnings ratio of 18.94.
Based on the Price/Forward Earnings ratio, DOV is valued a bit cheaper than 65.15% of the companies in the same industry.
DOV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	20.94
Fwd PE	18.94

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as DOV.
62.88% of the companies in the same industry are cheaper than DOV, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	48.78
EV/EBITDA	16.65

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DOV has a very decent profitability rating, which may justify a higher PE ratio.

PEG (NY)1.98

PEG (5Y)1.88

EPS Next 2Y9.42%

EPS Next 3Y7.42%

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5. Dividend

5.1 Amount

DOV has a Yearly Dividend Yield of 1.03%.
Compared to an average industry Dividend Yield of 1.01, DOV pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.03, DOV pays less dividend than the S&P500 average, which is at 1.83.

		Industry Rank	Sector Rank
Dividend Yield	1.03%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Dividend Growth(5Y)0.91%

Div Incr Years34

Div Non Decr Years34

5.3 Sustainability

12.63% 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.

DP12.63%

EPS Next 2Y9.42%

EPS Next 3Y7.42%

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DOVER CORP / DOV FAQ

What is the fundamental rating for DOV stock?

ChartMill assigns a fundamental rating of 5 / 10 to DOV.

What is the valuation status of DOVER CORP (DOV) stock?

ChartMill assigns a valuation rating of 3 / 10 to DOVER CORP (DOV). This can be considered as Overvalued.

What is the profitability of DOV stock?

DOVER CORP (DOV) has a profitability rating of 7 / 10.

What is the valuation of DOVER CORP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for DOVER CORP (DOV) is 20.94 and the Price/Book (PB) ratio is 3.61.

How sustainable is the dividend of DOVER CORP (DOV) stock?

The dividend rating of DOVER CORP (DOV) is 6 / 10 and the dividend payout ratio is 12.63%.