DOVER CORP (DOV) Stock Fundamental Analysis
NYSE:DOV - New York Stock Exchange, Inc. - US2600031080 - Common Stock - Currency: USD
DOV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. While DOV belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, DOV is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year DOV was profitable.
In the past year DOV had a positive cash flow from operations.
In the past 5 years DOV has always been profitable.
DOV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 18.15%, DOV belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
With an excellent Return On Equity value of 32.16%, DOV belongs to the best of the industry, outperforming 94.53% of the companies in the same industry.
The Return On Invested Capital of DOV (10.16%) is better than 71.09% 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 10.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.15% | ||
| ROE | 32.16% | ||
| ROIC | 10.16% |
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 28.85%, DOV belongs to the top of the industry, outperforming 99.22% of the companies in the same industry.
DOV's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 17.01%, DOV belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
In the last couple of years the Operating Margin of DOV has grown nicely.
DOV's Gross Margin of 39.01% is fine compared to the rest of the industry. DOV outperforms 71.88% of its industry peers.
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 | 17.01% | ||
| PM (TTM) | 28.85% | ||
| GM | 39.01% |
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
DOV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
An Altman-Z score of 5.46 indicates that DOV is not in any danger for bankruptcy at the moment.
DOV has a better Altman-Z score (5.46) than 76.56% of its industry peers.
DOV has a debt to FCF ratio of 5.24. This is a neutral value as DOV would need 5.24 years to pay back of all of its debts.
DOV has a Debt to FCF ratio of 5.24. This is comparable to the rest of the industry: DOV outperforms 52.34% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that DOV is not too dependend on debt financing.
DOV has a Debt to Equity ratio (0.42) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 5.46 |
ROIC/WACC0.99
WACC10.26%
2.3 Liquidity
A Current Ratio of 2.13 indicates that DOV has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.13, DOV is in line with its industry, outperforming 57.03% of the companies in the same industry.
DOV has a Quick Ratio of 1.56. 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 (1.56) is better than 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.91% over the past year.
The Earnings Per Share has been growing by 8.13% on average over the past years. This is quite good.
Looking at the last year, DOV shows a decrease in Revenue. The Revenue has decreased by -5.86% 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)0.91%
EPS 3Y4.79%
EPS 5Y8.13%
EPS Q2Q%5.13%
Revenue 1Y (TTM)-5.86%
Revenue growth 3Y-0.68%
Revenue growth 5Y1.65%
Sales Q2Q%-10.88%
3.2 Future
DOV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.45% yearly.
The Revenue is expected to grow by 5.21% on average over the next years.
EPS Next Y7.36%
EPS Next 2Y8.13%
EPS Next 3Y7.61%
EPS Next 5Y7.45%
Revenue Next Year2.35%
Revenue Next 2Y3.47%
Revenue Next 3Y3.61%
Revenue Next 5Y5.21%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.15, which indicates a rather expensive current valuation of DOV.
61.72% of the companies in the same industry are more expensive than DOV, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DOV to the average of the S&P500 Index (26.03), we can say DOV is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.43 indicates a rather expensive valuation of DOV.
DOV's Price/Forward Earnings ratio is in line with the industry average.
DOV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.15 | ||
| Fwd PE | 17.43 |
4.2 Price Multiples
DOV's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DOV indicates a slightly more expensive valuation: DOV is more expensive than 64.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.25 | ||
| EV/EBITDA | 15.36 |
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.
DOV has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.74
PEG (5Y)2.48
EPS Next 2Y8.13%
EPS Next 3Y7.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.12%, DOV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.83, DOV pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, DOV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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
12.33% 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.
DP12.33%
EPS Next 2Y8.13%
EPS Next 3Y7.61%
178.92
-5.35 (-2.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners86.42%
Inst Owner Change2.83%
Ins Owners0.35%
Ins Owner Change-0.1%
Market Cap24.53B
Analysts77.5
Price Target202.3 (13.07%)
Short Float %1.77%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend2.04
Dividend Growth(5Y)0.91%
DP12.33%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.67%
Min EPS beat(2)2.47%
Max EPS beat(2)4.86%
EPS beat(4)3
Avg EPS beat(4)2.74%
Min EPS beat(4)-2.05%
Max EPS beat(4)5.69%
EPS beat(8)6
Avg EPS beat(8)0.86%
EPS beat(12)8
Avg EPS beat(12)0.9%
EPS beat(16)12
Avg EPS beat(16)2.27%
Revenue beat(2)0
Avg Revenue beat(2)-1.83%
Min Revenue beat(2)-2.04%
Max Revenue beat(2)-1.63%
Revenue beat(4)1
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)0.43%
Revenue beat(8)2
Avg Revenue beat(8)-2.27%
Revenue beat(12)2
Avg Revenue beat(12)-1.77%
Revenue beat(16)5
Avg Revenue beat(16)-0.78%
PT rev (1m)-9.89%
PT rev (3m)-8.54%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-0.51%
EPS NY rev (1m)0.71%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.15 | ||
| Fwd PE | 17.43 | ||
| P/S | 3.08 | ||
| P/FCF | 43.25 | ||
| P/OCF | 33.22 | ||
| P/B | 3.44 | ||
| P/tB | 39.98 | ||
| EV/EBITDA | 15.36 |
EPS(TTM)8.88
EY4.96%
EPS(NY)10.26
Fwd EY5.74%
FCF(TTM)4.14
FCFY2.31%
OCF(TTM)5.39
OCFY3.01%
SpS58.04
BVpS52.06
TBVpS4.48
PEG (NY)2.74
PEG (5Y)2.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.15% | ||
| ROE | 32.16% | ||
| ROCE | 12.88% | ||
| ROIC | 10.16% | ||
| ROICexc | 12.17% | ||
| ROICexgc | 42.95% | ||
| OM | 17.01% | ||
| PM (TTM) | 28.85% | ||
| GM | 39.01% | ||
| FCFM | 7.13% |
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%
ROICexcg growth 3Y-7.13%
ROICexcg 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 Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 5.24 | ||
| Debt/EBITDA | 1.75 | ||
| Cap/Depr | 50.29% | ||
| Cap/Sales | 2.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.58% | ||
| Profit Quality | 24.7% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 5.46 |
F-Score7
WACC10.26%
ROIC/WACC0.99
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)0.91%
EPS 3Y4.79%
EPS 5Y8.13%
EPS Q2Q%5.13%
EPS Next Y7.36%
EPS Next 2Y8.13%
EPS Next 3Y7.61%
EPS Next 5Y7.45%
Revenue 1Y (TTM)-5.86%
Revenue growth 3Y-0.68%
Revenue growth 5Y1.65%
Sales Q2Q%-10.88%
Revenue Next Year2.35%
Revenue Next 2Y3.47%
Revenue Next 3Y3.61%
Revenue Next 5Y5.21%
EBIT growth 1Y-3.47%
EBIT growth 3Y-0.82%
EBIT growth 5Y4%
EBIT Next Year95.71%
EBIT Next 3Y12.43%
EBIT Next 5Y7.63%
FCF growth 1Y-29.49%
FCF growth 3Y-14.96%
FCF growth 5Y-5.2%
OCF growth 1Y-27.84%
OCF growth 3Y-12.47%
OCF growth 5Y-4.56%