DOUGLAS DYNAMICS INC (PLOW) Stock Fundamental Analysis
USA - NYSE:PLOW - US25960R1059 - Common Stock
31.28 USD
-0.33 (-1.04%)
31.28 USD
0 (0%)
Overall PLOW gets a fundamental rating of 5 out of 10. We evaluated PLOW against 129 industry peers in the Machinery industry. PLOW has a medium profitability rating, but doesn't score so well on its financial health evaluation. PLOW is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years PLOW had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 9.65%, PLOW is doing good in the industry, outperforming 79.07% of the companies in the same industry.
The Return On Equity of PLOW (23.71%) is better than 89.92% of its industry peers.
With a Return On Invested Capital value of 7.98%, PLOW perfoms like the industry average, outperforming 58.14% of the companies in the same industry.
PLOW had an Average Return On Invested Capital over the past 3 years of 7.76%. This is below the industry average of 10.00%.
The last Return On Invested Capital (7.98%) for PLOW is above the 3 year average (7.76%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.65% | ||
| ROE | 23.71% | ||
| ROIC | 7.98% |
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 decent Profit Margin value of 11.13%, PLOW is doing good in the industry, outperforming 79.07% of the companies in the same industry.
In the last couple of years the Profit Margin of PLOW has grown nicely.
PLOW has a Operating Margin (9.74%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PLOW has declined.
PLOW has a Gross Margin of 26.63%. This is in the lower half of the industry: PLOW underperforms 61.24% of its industry peers.
PLOW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.74% | ||
| PM (TTM) | 11.13% | ||
| GM | 26.63% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PLOW is destroying value.
The number of shares outstanding for PLOW has been increased compared to 1 year ago.
PLOW has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PLOW has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.76 indicates that PLOW is not a great score, but indicates only limited risk for bankruptcy at the moment.
PLOW has a Altman-Z score of 2.76. This is comparable to the rest of the industry: PLOW outperforms 48.84% of its industry peers.
The Debt to FCF ratio of PLOW is 5.04, which is a neutral value as it means it would take PLOW, 5.04 years of fcf income to pay off all of its debts.
PLOW has a Debt to FCF ratio of 5.04. This is comparable to the rest of the industry: PLOW outperforms 50.39% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that PLOW is somewhat dependend on debt financing.
PLOW has a worse Debt to Equity ratio (0.66) than 65.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 5.04 | ||
| Altman-Z | 2.76 |
ROIC/WACC0.77
WACC10.41%
2.3 Liquidity
PLOW has a Current Ratio of 2.11. 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 2.11, PLOW is in line with its industry, outperforming 55.04% of the companies in the same industry.
PLOW has a Quick Ratio of 2.11. This is a bad value and indicates that PLOW is not financially healthy enough and could expect problems in meeting its short term obligations.
PLOW has a Quick ratio of 0.99. This is in the lower half of the industry: PLOW underperforms 65.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
PLOW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.62%, which is quite impressive.
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.
PLOW shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.03%.
The Revenue has been decreasing by -0.11% on average over the past years.
EPS 1Y (TTM)47.62%
EPS 3Y-4.41%
EPS 5Y-9.74%
EPS Q2Q%2.7%
Revenue 1Y (TTM)-13.03%
Revenue growth 3Y1.64%
Revenue growth 5Y-0.11%
Sales Q2Q%-2.79%
3.2 Future
The Earnings Per Share is expected to grow by 30.20% on average over the next years. This is a very strong growth
PLOW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.67% yearly.
EPS Next Y47.96%
EPS Next 2Y30.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.78%
Revenue Next 2Y8.67%
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
A Price/Earnings ratio of 16.82 indicates a correct valuation of PLOW.
Compared to the rest of the industry, the Price/Earnings ratio of PLOW indicates a somewhat cheap valuation: PLOW is cheaper than 75.97% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PLOW to the average of the S&P500 Index (27.06), we can say PLOW is valued slightly cheaper.
With a Price/Forward Earnings ratio of 12.72, PLOW is valued correctly.
86.82% 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 22.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.82 | ||
| Fwd PE | 12.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PLOW is valued a bit cheaper than the industry average as 67.44% of the companies are valued more expensively.
PLOW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PLOW is cheaper than 65.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.3 | ||
| EV/EBITDA | 11.95 |
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.
A more expensive valuation may be justified as PLOW's earnings are expected to grow with 30.20% in the coming years.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y30.2%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PLOW has a Yearly Dividend Yield of 3.56%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.74, PLOW pays a better dividend. On top of this PLOW pays more dividend than 94.57% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, PLOW pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
5.2 History
The dividend of PLOW has a limited annual growth rate of 1.50%.
PLOW has paid a dividend for at least 10 years, which is 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
42.89% of the earnings are spent on dividend by PLOW. 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.
DP42.89%
EPS Next 2Y30.2%
EPS Next 3YN/A
31.28
-0.33 (-1.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.56%
Inst Owner Change2.19%
Ins Owners2.11%
Ins Owner Change-2.03%
Market Cap720.69M
Analysts80
Price Target38.42 (22.83%)
Short Float %2.17%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Yearly Dividend1.19
Dividend Growth(5Y)1.5%
DP42.89%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)134.3%
Min EPS beat(2)12.89%
Max EPS beat(2)255.7%
EPS beat(4)4
Avg EPS beat(4)76.45%
Min EPS beat(4)12.89%
Max EPS beat(4)255.7%
EPS beat(8)6
Avg EPS beat(8)32.38%
EPS beat(12)9
Avg EPS beat(12)0.33%
EPS beat(16)11
Avg EPS beat(16)0.46%
Revenue beat(2)2
Avg Revenue beat(2)2.6%
Min Revenue beat(2)0.55%
Max Revenue beat(2)4.64%
Revenue beat(4)2
Avg Revenue beat(4)-3.57%
Min Revenue beat(4)-10.15%
Max Revenue beat(4)4.64%
Revenue beat(8)4
Avg Revenue beat(8)-5.54%
Revenue beat(12)6
Avg Revenue beat(12)-4.92%
Revenue beat(16)9
Avg Revenue beat(16)-2.59%
PT rev (1m)11.88%
PT rev (3m)11.88%
EPS NQ rev (1m)-6.25%
EPS NQ rev (3m)-1.64%
EPS NY rev (1m)1.77%
EPS NY rev (3m)6.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.82 | ||
| Fwd PE | 12.72 | ||
| P/S | 1.24 | ||
| P/FCF | 19.3 | ||
| P/OCF | 15.16 | ||
| P/B | 2.64 | ||
| P/tB | 14.51 | ||
| EV/EBITDA | 11.95 |
EPS(TTM)1.86
EY5.95%
EPS(NY)2.46
Fwd EY7.86%
FCF(TTM)1.62
FCFY5.18%
OCF(TTM)2.06
OCFY6.59%
SpS25.28
BVpS11.86
TBVpS2.16
PEG (NY)0.35
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.65% | ||
| ROE | 23.71% | ||
| ROCE | 10.98% | ||
| ROIC | 7.98% | ||
| ROICexc | 8.09% | ||
| ROICexgc | 13.62% | ||
| OM | 9.74% | ||
| PM (TTM) | 11.13% | ||
| GM | 26.63% | ||
| FCFM | 6.41% |
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-Score6
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 5.04 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 64.52% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.54% | ||
| Profit Quality | 57.63% | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.76 |
F-Score6
WACC10.41%
ROIC/WACC0.77
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)47.62%
EPS 3Y-4.41%
EPS 5Y-9.74%
EPS Q2Q%2.7%
EPS Next Y47.96%
EPS Next 2Y30.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-13.03%
Revenue growth 3Y1.64%
Revenue growth 5Y-0.11%
Sales Q2Q%-2.79%
Revenue Next Year9.78%
Revenue Next 2Y8.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y13.34%
EBIT growth 3Y-3.07%
EBIT growth 5Y-11.27%
EBIT Next Year29.15%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y84.48%
FCF growth 3Y-12.26%
FCF growth 5Y-12.72%
OCF growth 1Y48.51%
OCF growth 3Y-12.09%
OCF growth 5Y-11.85%