DOUGLAS DYNAMICS INC (PLOW) Stock Fundamental Analysis
USA - NYSE:PLOW - US25960R1059 - Common Stock
30.78 USD
+0.48 (+1.58%)
30.78 USD
0 (0%)
Overall PLOW gets a fundamental rating of 5 out of 10. We evaluated PLOW against 130 industry peers in the Machinery industry. There are concerns on the financial health of PLOW while its profitability can be described as average. PLOW has a correct valuation and a medium growth rate. Finally 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.
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 9.65%, PLOW is in the better half of the industry, outperforming 79.23% of the companies in the same industry.
With an excellent Return On Equity value of 23.71%, PLOW belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
PLOW has a Return On Invested Capital of 7.98%. This is comparable to the rest of the industry: PLOW outperforms 57.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PLOW is below the industry average of 10.01%.
The 3 year average ROIC (7.76%) for PLOW is below the current ROIC(7.98%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 11.13%, PLOW is in the better half of the industry, outperforming 79.23% of the companies in the same industry.
PLOW's Profit Margin has improved in the last couple of years.
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.
Looking at the Gross Margin, with a value of 26.63%, PLOW is doing worse than 61.54% of the companies in the same industry.
In the last couple of years the Gross Margin of PLOW has declined.
| 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
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
Compared to 5 years ago, PLOW has more shares outstanding
The debt/assets ratio for PLOW has been reduced compared to a year ago.
2.2 Solvency
PLOW has an Altman-Z score of 2.73. This is not the best score and indicates that PLOW is in the grey zone with still only limited risk for bankruptcy at the moment.
PLOW's Altman-Z score of 2.73 is in line compared to the rest of the industry. PLOW outperforms 47.69% of its industry peers.
PLOW has a debt to FCF ratio of 5.04. This is a neutral value as PLOW would need 5.04 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.04, PLOW perfoms like the industry average, outperforming 52.31% of the companies in the same industry.
A Debt/Equity ratio of 0.66 indicates that PLOW is somewhat dependend on debt financing.
PLOW's Debt to Equity ratio of 0.66 is on the low side compared to the rest of the industry. PLOW is outperformed by 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 5.04 | ||
| Altman-Z | 2.73 |
ROIC/WACC0.8
WACC9.98%
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.
PLOW's Current ratio of 2.11 is in line compared to the rest of the industry. PLOW outperforms 54.62% of its industry peers.
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.
The Quick ratio of PLOW (0.99) is worse than 65.38% 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.
The Earnings Per Share has been decreasing by -9.74% on average over the past years.
PLOW shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.03%.
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)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
Based on estimates for the next years, PLOW will show a very strong growth in Earnings Per Share. The EPS will grow by 30.20% on average per year.
The Revenue is expected to grow by 8.67% on average over the next years. This is quite good.
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.
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
A Price/Earnings ratio of 16.55 indicates a correct valuation of PLOW.
Based on the Price/Earnings ratio, PLOW is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PLOW to the average of the S&P500 Index (27.69), we can say PLOW is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.52 indicates a correct valuation of PLOW.
Based on the Price/Forward Earnings ratio, PLOW is valued cheaper than 87.69% of the companies in the same industry.
PLOW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.55 | ||
| Fwd PE | 12.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PLOW is valued a bit cheaper than 68.46% of the companies in the same industry.
69.23% of the companies in the same industry are more expensive than PLOW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.99 | ||
| EV/EBITDA | 11.68 |
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.
PLOW's earnings are expected to grow with 30.20% in the coming years. This may justify a more expensive valuation.
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 3.87%. 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 1.80. PLOW pays more dividend than 94.62% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, PLOW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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 Years0
Div Non Decr Years14
5.3 Sustainability
PLOW pays out 42.89% 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.
DP42.89%
EPS Next 2Y30.2%
EPS Next 3YN/A
30.78
+0.48 (+1.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.56%
Inst Owner Change-1.33%
Ins Owners2.11%
Ins Owner Change-2.03%
Market Cap709.17M
Analysts80
Price Target38.42 (24.82%)
Short Float %1.92%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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)0%
PT rev (3m)11.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.7%
EPS NY rev (1m)0%
EPS NY rev (3m)4.82%
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 | 16.55 | ||
| Fwd PE | 12.52 | ||
| P/S | 1.22 | ||
| P/FCF | 18.99 | ||
| P/OCF | 14.92 | ||
| P/B | 2.6 | ||
| P/tB | 14.27 | ||
| EV/EBITDA | 11.68 |
EPS(TTM)1.86
EY6.04%
EPS(NY)2.46
Fwd EY7.99%
FCF(TTM)1.62
FCFY5.27%
OCF(TTM)2.06
OCFY6.7%
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 | 2.73 |
F-Score6
WACC9.98%
ROIC/WACC0.8
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%