DOUGLAS DYNAMICS INC (PLOW) Stock Fundamental Analysis
NYSE:PLOW - New York Stock Exchange, Inc. - US25960R1059 - Common Stock - Currency: USD
Overall PLOW gets a fundamental rating of 5 out of 10. We evaluated PLOW against 128 industry peers in the Machinery industry. PLOW has an average financial health and profitability rating. PLOW has a correct valuation and a medium growth rate. PLOW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PLOW was profitable.
In the past year PLOW had a positive cash flow from operations.
PLOW had positive earnings in 4 of the past 5 years.
In the past 5 years PLOW always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 8.89%, PLOW is doing good in the industry, outperforming 75.78% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.33%, PLOW belongs to the top of the industry, outperforming 85.16% of the companies in the same industry.
PLOW has a Return On Invested Capital (7.72%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for PLOW is below the industry average of 10.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.89% | ||
| ROE | 21.33% | ||
| ROIC | 7.72% |
ROA(3y)6.6%
ROA(5y)2.04%
ROE(3y)15.79%
ROE(5y)3.68%
ROIC(3y)7.76%
ROIC(5y)7.94%
1.3 Margins
The Profit Margin of PLOW (8.08%) is better than 63.28% of its industry peers.
In the last couple of years the Profit Margin of PLOW has grown nicely.
The Operating Margin of PLOW (7.44%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PLOW has declined.
With a Gross Margin value of 25.60%, PLOW is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
PLOW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.44% | ||
| PM (TTM) | 8.08% | ||
| GM | 25.6% |
OM growth 3Y-4.63%
OM growth 5Y-11.17%
PM growth 3Y19.55%
PM growth 5Y2.69%
GM growth 3Y-0.48%
GM growth 5Y-2.64%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PLOW is destroying value.
Compared to 1 year ago, PLOW has more shares outstanding
The number of shares outstanding for PLOW has been increased compared to 5 years ago.
Compared to 1 year ago, PLOW has an improved debt to assets ratio.
2.2 Solvency
PLOW has an Altman-Z score of 3.04. This indicates that PLOW is financially healthy and has little risk of bankruptcy at the moment.
PLOW has a Altman-Z score (3.04) which is in line with its industry peers.
The Debt to FCF ratio of PLOW is 3.03, which is a good value as it means it would take PLOW, 3.03 years of fcf income to pay off all of its debts.
PLOW's Debt to FCF ratio of 3.03 is fine compared to the rest of the industry. PLOW outperforms 64.06% of its industry peers.
PLOW has a Debt/Equity ratio of 0.59. This is a neutral value indicating PLOW is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.59, PLOW is doing worse than 60.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.03 | ||
| Altman-Z | 3.04 |
ROIC/WACC0.74
WACC10.46%
2.3 Liquidity
PLOW has a Current Ratio of 2.37. This indicates that PLOW is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.37, PLOW is in line with its industry, outperforming 59.38% of the companies in the same industry.
PLOW has a Quick Ratio of 2.37. This is a bad value and indicates that PLOW is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PLOW (0.70) is worse than 85.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
PLOW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.24%, which is quite impressive.
PLOW shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.74% yearly.
Looking at the last year, PLOW shows a quite strong growth in Revenue. The Revenue has grown by 17.59% in the last year.
The Revenue has been decreasing by -0.11% on average over the past years.
EPS 1Y (TTM)45.24%
EPS 3Y-4.41%
EPS 5Y-9.74%
EPS Q2Q%131.03%
Revenue 1Y (TTM)17.59%
Revenue growth 3Y1.64%
Revenue growth 5Y-0.11%
Sales Q2Q%20.29%
3.2 Future
PLOW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.11% yearly.
The Revenue is expected to grow by 7.86% on average over the next years.
EPS Next Y39.28%
EPS Next 2Y27.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.22%
Revenue Next 2Y7.86%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 accelerating.
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
With a Price/Earnings ratio of 16.60, PLOW is valued correctly.
Based on the Price/Earnings ratio, PLOW is valued a bit cheaper than the industry average as 74.22% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.30. PLOW is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.96, which indicates a correct valuation of PLOW.
79.69% of the companies in the same industry are more expensive than PLOW, based on the Price/Forward Earnings ratio.
PLOW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.6 | ||
| Fwd PE | 12.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PLOW is valued a bit cheaper than 63.28% of the companies in the same industry.
PLOW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PLOW is cheaper than 84.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.36 | ||
| EV/EBITDA | 12.72 |
4.3 Compensation for Growth
PLOW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PLOW's earnings are expected to grow with 27.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y27.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PLOW has a Yearly Dividend Yield of 3.76%. Purely for dividend investing, there may be better candidates out there.
PLOW's Dividend Yield is rather good when compared to the industry average which is at 1.81. PLOW pays more dividend than 95.31% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, PLOW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
5.2 History
The dividend of PLOW has a limited annual growth rate of 1.50%.
PLOW has been paying a dividend for at least 10 years, so it has a reliable track record.
PLOW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.5%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
PLOW pays out 50.25% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of PLOW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.25%
EPS Next 2Y27.11%
EPS Next 3YN/A
30.37
-0.4 (-1.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.46%
Inst Owner Change-0.14%
Ins Owners2.09%
Ins Owner Change6.47%
Market Cap704.89M
Analysts80
Price Target34.34 (13.07%)
Short Float %3.09%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
Yearly Dividend1.19
Dividend Growth(5Y)1.5%
DP50.25%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)139.52%
Min EPS beat(2)23.34%
Max EPS beat(2)255.7%
EPS beat(4)4
Avg EPS beat(4)89.65%
Min EPS beat(4)13.85%
Max EPS beat(4)255.7%
EPS beat(8)6
Avg EPS beat(8)33.49%
EPS beat(12)9
Avg EPS beat(12)0.06%
EPS beat(16)11
Avg EPS beat(16)2.2%
Revenue beat(2)1
Avg Revenue beat(2)-2.35%
Min Revenue beat(2)-9.34%
Max Revenue beat(2)4.64%
Revenue beat(4)2
Avg Revenue beat(4)-1.9%
Min Revenue beat(4)-10.15%
Max Revenue beat(4)7.23%
Revenue beat(8)4
Avg Revenue beat(8)-5%
Revenue beat(12)6
Avg Revenue beat(12)-4.07%
Revenue beat(16)9
Avg Revenue beat(16)-2.05%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.66%
EPS NY rev (1m)0%
EPS NY rev (3m)7.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.6 | ||
| Fwd PE | 12.96 | ||
| P/S | 1.03 | ||
| P/FCF | 13.36 | ||
| P/OCF | 11.48 | ||
| P/B | 2.72 | ||
| P/tB | 20.88 | ||
| EV/EBITDA | 12.72 |
EPS(TTM)1.83
EY6.03%
EPS(NY)2.34
Fwd EY7.71%
FCF(TTM)2.27
FCFY7.49%
OCF(TTM)2.65
OCFY8.71%
SpS29.45
BVpS11.15
TBVpS1.45
PEG (NY)0.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.89% | ||
| ROE | 21.33% | ||
| ROCE | 10.06% | ||
| ROIC | 7.72% | ||
| ROICexc | 7.83% | ||
| ROICexgc | 14.02% | ||
| OM | 7.44% | ||
| PM (TTM) | 8.08% | ||
| GM | 25.6% | ||
| FCFM | 7.72% |
ROA(3y)6.6%
ROA(5y)2.04%
ROE(3y)15.79%
ROE(5y)3.68%
ROIC(3y)7.76%
ROIC(5y)7.94%
ROICexc(3y)8.02%
ROICexc(5y)8.38%
ROICexgc(3y)15.46%
ROICexgc(5y)17.44%
ROCE(3y)10.15%
ROCE(5y)10.28%
ROICexcg growth 3Y-14.39%
ROICexcg growth 5Y-18.59%
ROICexc growth 3Y-7.06%
ROICexc growth 5Y-8.75%
OM growth 3Y-4.63%
OM growth 5Y-11.17%
PM growth 3Y19.55%
PM growth 5Y2.69%
GM growth 3Y-0.48%
GM growth 5Y-2.64%
F-Score8
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.03 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 52.8% | ||
| Cap/Sales | 1.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.38% | ||
| Profit Quality | 95.59% | ||
| Current Ratio | 2.37 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 3.04 |
F-Score8
WACC10.46%
ROIC/WACC0.74
Cap/Depr(3y)49.92%
Cap/Depr(5y)55.67%
Cap/Sales(3y)1.73%
Cap/Sales(5y)2.05%
Profit Quality(3y)47.07%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)45.24%
EPS 3Y-4.41%
EPS 5Y-9.74%
EPS Q2Q%131.03%
EPS Next Y39.28%
EPS Next 2Y27.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)17.59%
Revenue growth 3Y1.64%
Revenue growth 5Y-0.11%
Sales Q2Q%20.29%
Revenue Next Year8.22%
Revenue Next 2Y7.86%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.06%
EBIT growth 3Y-3.07%
EBIT growth 5Y-11.27%
EBIT Next Year24.14%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1607.77%
FCF growth 3Y-12.26%
FCF growth 5Y-12.72%
OCF growth 1Y574.89%
OCF growth 3Y-12.09%
OCF growth 5Y-11.85%