DOUGLAS DYNAMICS INC (PLOW) Stock Fundamental Analysis
NYSE:PLOW - New York Stock Exchange, Inc. - US25960R1059 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to PLOW. PLOW was compared to 128 industry peers in the Machinery industry. Both the profitability and the financial health of PLOW get a neutral evaluation. Nothing too spectacular is happening here. PLOW has a decent growth rate and is not valued too expensively. Finally PLOW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PLOW had positive earnings in the past year.
In the past year PLOW had a positive cash flow from operations.
Of the past 5 years PLOW 4 years were profitable.
Each year in the past 5 years PLOW had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.96%, PLOW is in the better half of the industry, outperforming 71.09% of the companies in the same industry.
With a decent Return On Equity value of 17.77%, PLOW is doing good in the industry, outperforming 76.56% of the companies in the same industry.
PLOW's Return On Invested Capital of 6.41% is in line compared to the rest of the industry. PLOW outperforms 43.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PLOW is below the industry average of 10.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.96% | ||
| ROE | 17.77% | ||
| ROIC | 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%
1.3 Margins
The Profit Margin of PLOW (7.07%) is comparable to the rest of the industry.
PLOW's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 6.39%, PLOW perfoms like the industry average, outperforming 42.97% of the companies in the same industry.
PLOW's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 24.96%, PLOW is not doing good in the industry: 63.28% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of PLOW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.39% | ||
| PM (TTM) | 7.07% | ||
| GM | 24.96% |
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
PLOW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, PLOW has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.93 indicates that PLOW is not a great score, but indicates only limited risk for bankruptcy at the moment.
PLOW's Altman-Z score of 2.93 is in line compared to the rest of the industry. PLOW outperforms 48.44% of its industry peers.
The Debt to FCF ratio of PLOW is 4.40, which is a neutral value as it means it would take PLOW, 4.40 years of fcf income to pay off all of its debts.
PLOW has a Debt to FCF ratio of 4.40. This is comparable to the rest of the industry: PLOW outperforms 53.91% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that PLOW is somewhat dependend on debt financing.
PLOW has a worse Debt to Equity ratio (0.56) than 60.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.4 | ||
| Altman-Z | 2.93 |
ROIC/WACC0.61
WACC10.57%
2.3 Liquidity
A Current Ratio of 3.39 indicates that PLOW has no problem at all paying its short term obligations.
The Current ratio of PLOW (3.39) is better than 80.47% of its industry peers.
PLOW has a Quick Ratio of 1.40. This is a normal value and indicates that PLOW is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of PLOW (1.40) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.39 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
PLOW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.00%, 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.
PLOW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.90%.
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)45%
EPS 3Y-4.41%
EPS 5Y-9.74%
EPS Q2Q%105.26%
Revenue 1Y (TTM)16.9%
Revenue growth 3Y1.64%
Revenue growth 5Y-0.11%
Sales Q2Q%7.13%
3.2 Future
The Earnings Per Share is expected to grow by 25.81% on average over the next years. This is a very strong growth
Based on estimates for the next years, PLOW will show a small growth in Revenue. The Revenue will grow by 7.77% on average per year.
EPS Next Y29.9%
EPS Next 2Y25.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.19%
Revenue Next 2Y7.77%
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
Based on the Price/Earnings ratio of 16.92, the valuation of PLOW can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of PLOW indicates a somewhat cheap valuation: PLOW is cheaper than 67.97% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PLOW to the average of the S&P500 Index (28.22), we can say PLOW is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.02, the valuation of PLOW can be described as correct.
Based on the Price/Forward Earnings ratio, PLOW is valued a bit cheaper than 78.13% of the companies in the same industry.
PLOW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.92 | ||
| Fwd PE | 13.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PLOW is valued a bit cheaper than the industry average as 61.72% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PLOW is valued a bit cheaper than the industry average as 72.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.01 | ||
| EV/EBITDA | 11.49 |
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 25.81% in the coming years.
PEG (NY)0.57
PEG (5Y)N/A
EPS Next 2Y25.81%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.87%, PLOW is a good candidate for dividend investing.
PLOW's Dividend Yield is rather good when compared to the industry average which is at 2.06. PLOW pays more dividend than 96.88% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, PLOW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
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 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 Years13
Div Non Decr Years13
5.3 Sustainability
PLOW pays out 58.52% 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.
DP58.52%
EPS Next 2Y25.81%
EPS Next 3YN/A
24.53
+0.64 (+2.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners92.96%
Inst Owner Change-0.09%
Ins Owners1.97%
Ins Owner Change8.96%
Market Cap566.64M
Analysts80
Price Target34.34 (39.99%)
Short Float %3.22%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
Yearly Dividend1.19
Dividend Growth(5Y)1.5%
DP58.52%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.59%
Min EPS beat(2)13.85%
Max EPS beat(2)23.34%
EPS beat(4)4
Avg EPS beat(4)26.77%
Min EPS beat(4)4.16%
Max EPS beat(4)65.72%
EPS beat(8)5
Avg EPS beat(8)-36.52%
EPS beat(12)9
Avg EPS beat(12)-19.18%
EPS beat(16)11
Avg EPS beat(16)-6.19%
Revenue beat(2)0
Avg Revenue beat(2)-9.75%
Min Revenue beat(2)-10.15%
Max Revenue beat(2)-9.34%
Revenue beat(4)2
Avg Revenue beat(4)-2.43%
Min Revenue beat(4)-10.15%
Max Revenue beat(4)7.23%
Revenue beat(8)3
Avg Revenue beat(8)-8.11%
Revenue beat(12)6
Avg Revenue beat(12)-3.37%
Revenue beat(16)9
Avg Revenue beat(16)-0.38%
PT rev (1m)0%
PT rev (3m)4.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-325.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.48%
Revenue NY rev (1m)-0.94%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.92 | ||
| Fwd PE | 13.02 | ||
| P/S | 0.85 | ||
| P/FCF | 17.01 | ||
| P/OCF | 13.78 | ||
| P/B | 2.14 | ||
| P/tB | 15.1 | ||
| EV/EBITDA | 11.49 |
EPS(TTM)1.45
EY5.91%
EPS(NY)1.88
Fwd EY7.68%
FCF(TTM)1.44
FCFY5.88%
OCF(TTM)1.78
OCFY7.26%
SpS28.75
BVpS11.44
TBVpS1.62
PEG (NY)0.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.96% | ||
| ROE | 17.77% | ||
| ROCE | 8.16% | ||
| ROIC | 6.41% | ||
| ROICexc | 6.48% | ||
| ROICexgc | 11.58% | ||
| OM | 6.39% | ||
| PM (TTM) | 7.07% | ||
| GM | 24.96% | ||
| FCFM | 5.02% |
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-Score7
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.4 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 43.66% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 2.24 | ||
| Cash Conversion | 68.18% | ||
| Profit Quality | 70.96% | ||
| Current Ratio | 3.39 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 2.93 |
F-Score7
WACC10.57%
ROIC/WACC0.61
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%
EPS 3Y-4.41%
EPS 5Y-9.74%
EPS Q2Q%105.26%
EPS Next Y29.9%
EPS Next 2Y25.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)16.9%
Revenue growth 3Y1.64%
Revenue growth 5Y-0.11%
Sales Q2Q%7.13%
Revenue Next Year8.19%
Revenue Next 2Y7.77%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.58%
EBIT growth 3Y-3.07%
EBIT growth 5Y-11.27%
EBIT Next Year21.33%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1610.52%
FCF growth 3Y-12.26%
FCF growth 5Y-12.72%
OCF growth 1Y229.87%
OCF growth 3Y-12.09%
OCF growth 5Y-11.85%