DOVER CORP (DOV) Stock Fundamental Analysis
NYSE:DOV - New York Stock Exchange, Inc. - US2600031080 - Common Stock - Currency: USD
Taking everything into account, DOV scores 6 out of 10 in our fundamental rating. DOV was compared to 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. DOV is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
DOV had positive earnings in the past year.
DOV had a positive operating cash flow in the past year.
Each year in the past 5 years DOV has 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.
Looking at the Return On Equity, with a value of 32.16%, DOV belongs to the top of the industry, outperforming 94.53% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.16%, DOV is doing good in the industry, outperforming 70.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DOV is in line with the industry average of 10.71%.
| 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
The Profit Margin of DOV (28.85%) is better than 99.22% of its industry peers.
In the last couple of years the Profit Margin of DOV has grown nicely.
DOV has a better Operating Margin (17.01%) than 80.47% of its industry peers.
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 71.09% of its industry peers.
DOV's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DOV is creating some value.
Compared to 1 year ago, DOV has less shares outstanding
Compared to 5 years ago, DOV has less shares outstanding
The debt/assets ratio for DOV has been reduced compared to a year ago.
2.2 Solvency
DOV has an Altman-Z score of 5.53. This indicates that DOV is financially healthy and has little risk of bankruptcy at the moment.
DOV has a Altman-Z score of 5.53. This is in the better half of the industry: DOV outperforms 78.13% of its industry peers.
The Debt to FCF ratio of DOV is 5.24, which is a neutral value as it means it would take DOV, 5.24 years of fcf income to pay off 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 5.53 |
ROIC/WACC1.05
WACC9.65%
2.3 Liquidity
A Current Ratio of 2.13 indicates that DOV has no problem at all paying its short term obligations.
DOV's Current ratio of 2.13 is in line compared to the rest of the industry. DOV outperforms 55.47% of its industry peers.
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.
DOV has a Quick ratio of 1.56. This is in the better half of the industry: DOV outperforms 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
DOV shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.91%.
The Earnings Per Share has been growing by 8.13% on average over the past years. This is quite good.
The Revenue has decreased by -5.86% in the past year.
Measured over the past years, DOV shows a small growth in Revenue. The Revenue has been growing by 1.65% on average per year.
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 7.33% yearly.
DOV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.03% yearly.
EPS Next Y7.4%
EPS Next 2Y8.22%
EPS Next 3Y7.84%
EPS Next 5Y7.33%
Revenue Next Year2.35%
Revenue Next 2Y3.46%
Revenue Next 3Y3.61%
Revenue Next 5Y4.03%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 21.24, the valuation of DOV can be described as rather expensive.
Based on the Price/Earnings ratio, DOV is valued a bit cheaper than 63.28% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, DOV is valued a bit cheaper.
DOV is valuated rather expensively with a Price/Forward Earnings ratio of 18.34.
Based on the Price/Forward Earnings ratio, DOV is valued a bit cheaper than the industry average as 60.94% of the companies are valued more expensively.
DOV's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.24 | ||
| Fwd PE | 18.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DOV is on the same level as its industry peers.
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 64.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.6 | ||
| EV/EBITDA | 15.72 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.87
PEG (5Y)2.61
EPS Next 2Y8.22%
EPS Next 3Y7.84%
5. Dividend
5.1 Amount
DOV has a Yearly Dividend Yield of 1.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.87, DOV pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, DOV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
The dividend of DOV has a limited annual growth rate of 0.91%.
DOV has been paying a dividend for at least 10 years, so it has 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
DOV pays out 12.33% of its income as dividend. This is a sustainable payout ratio.
DOV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP12.33%
EPS Next 2Y8.22%
EPS Next 3Y7.84%
188.63
+0.48 (+0.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners86.95%
Inst Owner Change2.89%
Ins Owners1%
Ins Owner Change1.62%
Market Cap25.86B
Analysts77.5
Price Target204.25 (8.28%)
Short Float %1.38%
Short Ratio1.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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)0.96%
PT rev (3m)-9.78%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-0.39%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.24 | ||
| Fwd PE | 18.34 | ||
| P/S | 3.25 | ||
| P/FCF | 45.6 | ||
| P/OCF | 35.02 | ||
| P/B | 3.62 | ||
| P/tB | 42.15 | ||
| EV/EBITDA | 15.72 |
EPS(TTM)8.88
EY4.71%
EPS(NY)10.28
Fwd EY5.45%
FCF(TTM)4.14
FCFY2.19%
OCF(TTM)5.39
OCFY2.86%
SpS58.04
BVpS52.06
TBVpS4.48
PEG (NY)2.87
PEG (5Y)2.61
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 | 5.53 |
F-Score7
WACC9.65%
ROIC/WACC1.05
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 Y7.4%
EPS Next 2Y8.22%
EPS Next 3Y7.84%
EPS Next 5Y7.33%
Revenue 1Y (TTM)-5.86%
Revenue growth 3Y-0.68%
Revenue growth 5Y1.65%
Sales Q2Q%-10.88%
Revenue Next Year2.35%
Revenue Next 2Y3.46%
Revenue Next 3Y3.61%
Revenue Next 5Y4.03%
EBIT growth 1Y-3.47%
EBIT growth 3Y-0.82%
EBIT growth 5Y4%
EBIT Next Year100.34%
EBIT Next 3Y12.71%
EBIT Next 5Y7.93%
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%