DOUGLAS DYNAMICS INC (PLOW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PLOW - US25960R1059 - Common Stock
37.88 USD
+0.1 (+0.26%)
37.88 USD
0 (0%)
Overall PLOW gets a fundamental rating of 5 out of 10. We evaluated PLOW against 132 industry peers in the Machinery industry. PLOW has only an average score on both its financial health and profitability. PLOW has a correct valuation and a medium growth rate. PLOW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- PLOW had positive earnings in the past year.
- PLOW had a positive operating cash flow in the past year.
- PLOW had positive earnings in 4 of the past 5 years.
- PLOW 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 5.90%, PLOW is in the better half of the industry, outperforming 65.15% of the companies in the same industry.
- PLOW's Return On Equity of 14.89% is fine compared to the rest of the industry. PLOW outperforms 75.00% of its industry peers.
- PLOW has a better Return On Invested Capital (9.01%) than 65.91% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PLOW is below the industry average of 10.24%.
- The 3 year average ROIC (7.76%) for PLOW is below the current ROIC(9.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.9% | ||
| ROE | 14.89% | ||
| ROIC | 9.01% |
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
- With a Profit Margin value of 6.66%, PLOW perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
- PLOW's Profit Margin has improved in the last couple of years.
- PLOW's Operating Margin of 10.93% is in line compared to the rest of the industry. PLOW outperforms 57.58% of its industry peers.
- PLOW's Operating Margin has declined in the last couple of years.
- PLOW's Gross Margin of 26.38% is in line compared to the rest of the industry. PLOW outperforms 40.15% of its industry peers.
- In the last couple of years the Gross Margin of PLOW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.93% | ||
| PM (TTM) | 6.66% | ||
| GM | 26.38% |
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.
- PLOW has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for PLOW has been increased compared to 5 years ago.
- PLOW has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.96 indicates that PLOW is not a great score, but indicates only limited risk for bankruptcy at the moment.
- PLOW has a Altman-Z score (2.96) which is comparable to the rest of the industry.
- The Debt to FCF ratio of PLOW is 5.07, which is a neutral value as it means it would take PLOW, 5.07 years of fcf income to pay off all of its debts.
- PLOW has a Debt to FCF ratio of 5.07. This is comparable to the rest of the industry: PLOW outperforms 54.55% of its industry peers.
- PLOW has a Debt/Equity ratio of 0.73. This is a neutral value indicating PLOW is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.73, PLOW is doing worse than 68.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.07 | ||
| Altman-Z | 2.96 |
ROIC/WACC0.9
WACC10.05%
2.3 Liquidity
- A Current Ratio of 2.01 indicates that PLOW has no problem at all paying its short term obligations.
- PLOW has a Current ratio (2.01) which is comparable to the rest of the industry.
- PLOW has a Quick Ratio of 1.09. This is a normal value and indicates that PLOW is financially healthy and should not expect problems in meeting its short term obligations.
- PLOW has a Quick ratio (1.09) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 61.60% over the past year.
- Measured over the past years, PLOW shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.74% on average per year.
- Looking at the last year, PLOW shows a decrease in Revenue. The Revenue has decreased by -6.08% in the last year.
- Measured over the past years, PLOW shows a decrease in Revenue. The Revenue has been decreasing by -0.11% on average per year.
EPS 1Y (TTM)61.6%
EPS 3Y-4.41%
EPS 5Y-9.74%
EPS Q2Q%66.67%
Revenue 1Y (TTM)-6.08%
Revenue growth 3Y1.64%
Revenue growth 5Y-0.11%
Sales Q2Q%25.29%
3.2 Future
- PLOW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.68% yearly.
- PLOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.61% yearly.
EPS Next Y52.47%
EPS Next 2Y31.28%
EPS Next 3Y26.14%
EPS Next 5Y19.68%
Revenue Next Year10.55%
Revenue Next 2Y10.47%
Revenue Next 3Y8.76%
Revenue Next 5Y6.61%
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
- The Price/Earnings ratio is 18.75, which indicates a rather expensive current valuation of PLOW.
- Based on the Price/Earnings ratio, PLOW is valued a bit cheaper than 78.79% of the companies in the same industry.
- PLOW is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 15.16, the valuation of PLOW can be described as correct.
- 84.85% of the companies in the same industry are more expensive than PLOW, based on the Price/Forward Earnings ratio.
- PLOW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.75 | ||
| Fwd PE | 15.16 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PLOW indicates a somewhat cheap valuation: PLOW is cheaper than 70.45% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PLOW indicates a somewhat cheap valuation: PLOW is cheaper than 67.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.14 | ||
| EV/EBITDA | 12.16 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as PLOW's earnings are expected to grow with 26.14% in the coming years.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y31.28%
EPS Next 3Y26.14%
5. Dividend
5.1 Amount
- PLOW has a Yearly Dividend Yield of 3.14%. 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 1.01. PLOW pays more dividend than 95.45% of the companies in the same industry.
- PLOW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.5%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
- 68.06% of the earnings are spent on dividend by PLOW. This is not a sustainable payout ratio.
- The dividend of PLOW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP68.06%
EPS Next 2Y31.28%
EPS Next 3Y26.14%
DOUGLAS DYNAMICS INC / PLOW FAQ
Can you provide the ChartMill fundamental rating for DOUGLAS DYNAMICS INC?
ChartMill assigns a fundamental rating of 5 / 10 to PLOW.
Can you provide the valuation status for DOUGLAS DYNAMICS INC?
ChartMill assigns a valuation rating of 6 / 10 to DOUGLAS DYNAMICS INC (PLOW). This can be considered as Fairly Valued.
What is the profitability of PLOW stock?
DOUGLAS DYNAMICS INC (PLOW) has a profitability rating of 5 / 10.
What is the earnings growth outlook for DOUGLAS DYNAMICS INC?
The Earnings per Share (EPS) of DOUGLAS DYNAMICS INC (PLOW) is expected to grow by 52.47% in the next year.
Is the dividend of DOUGLAS DYNAMICS INC sustainable?
The dividend rating of DOUGLAS DYNAMICS INC (PLOW) is 7 / 10 and the dividend payout ratio is 68.06%.