DOUGLAS DYNAMICS INC (PLOW) Stock Fundamental Analysis
NYSE:PLOW - New York Stock Exchange, Inc. - US25960R1059 - Common Stock - Currency: USD
PLOW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 may be a bit undervalued, certainly considering the very reasonable score on growth Finally PLOW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PLOW was profitable.
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
With a decent Return On Assets value of 8.89%, PLOW is doing good in the industry, outperforming 77.34% of the companies in the same industry.
The Return On Equity of PLOW (21.33%) is better than 84.38% of its industry peers.
PLOW's Return On Invested Capital of 7.72% is in line compared to the rest of the industry. PLOW outperforms 56.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PLOW is below the industry average of 10.31%.
| 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
PLOW has a better Profit Margin (8.08%) than 63.28% of its industry peers.
PLOW's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 7.44%, PLOW perfoms like the industry average, outperforming 46.88% of the companies in the same industry.
In the last couple of years the Operating Margin of PLOW has declined.
The Gross Margin of PLOW (25.60%) is worse than 60.16% of its industry peers.
In the last couple of years the Gross Margin of PLOW has declined.
| 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
PLOW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PLOW has more shares outstanding
Compared to 5 years ago, PLOW has more shares outstanding
PLOW has a better debt/assets ratio than last year.
2.2 Solvency
PLOW has an Altman-Z score of 2.90. 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 2.90 is in line compared to the rest of the industry. PLOW outperforms 46.09% of 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 has a Debt to FCF ratio of 3.03. This is in the better half of the industry: PLOW outperforms 64.84% 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.
With a Debt to Equity ratio value of 0.59, PLOW perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.03 | ||
| Altman-Z | 2.9 |
ROIC/WACC0.73
WACC10.56%
2.3 Liquidity
A Current Ratio of 2.37 indicates that PLOW has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.37, PLOW is doing good in the industry, outperforming 62.50% 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 82.81% 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.
The Earnings Per Share has been decreasing by -9.74% on average over the past years.
Looking at the last year, PLOW shows a quite strong growth in Revenue. The Revenue has grown by 17.59% in the last year.
PLOW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.11% yearly.
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.
Based on estimates for the next years, PLOW will show a small growth in Revenue. The Revenue will grow by 7.86% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 14.74, which 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 77.34% of the companies listed in the same industry.
PLOW is valuated rather cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.51, the valuation of PLOW can be described as reasonable.
Based on the Price/Forward Earnings ratio, PLOW is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. PLOW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 11.51 |
4.2 Price Multiples
PLOW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PLOW is cheaper than 64.84% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PLOW is valued cheaply inside the industry as 86.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.81 | ||
| EV/EBITDA | 11.43 |
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)0.38
PEG (5Y)N/A
EPS Next 2Y27.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.03%, PLOW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.88, PLOW pays a better dividend. On top of this PLOW pays more dividend than 95.31% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, PLOW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
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 Years13
Div Non Decr Years13
5.3 Sustainability
50.25% 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.
DP50.25%
EPS Next 2Y27.11%
EPS Next 3YN/A
26.97
-0.19 (-0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners92.96%
Inst Owner Change2.14%
Ins Owners1.97%
Ins Owner Change8.33%
Market Cap623.01M
Analysts80
Price Target34.34 (27.33%)
Short Float %2.01%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
Yearly Dividend1.19
Dividend Growth(5Y)1.5%
DP50.25%
Div Incr Years13
Div Non Decr Years13
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)4.12%
EPS NQ rev (1m)0.66%
EPS NQ rev (3m)1%
EPS NY rev (1m)7.22%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)-2.49%
Revenue NQ rev (3m)-2.12%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 11.51 | ||
| P/S | 0.91 | ||
| P/FCF | 11.81 | ||
| P/OCF | 10.14 | ||
| P/B | 2.41 | ||
| P/tB | 18.46 | ||
| EV/EBITDA | 11.43 |
EPS(TTM)1.83
EY6.79%
EPS(NY)2.34
Fwd EY8.69%
FCF(TTM)2.28
FCFY8.47%
OCF(TTM)2.66
OCFY9.86%
SpS29.59
BVpS11.21
TBVpS1.46
PEG (NY)0.38
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 | 2.9 |
F-Score8
WACC10.56%
ROIC/WACC0.73
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 Year21.33%
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%