DOVER CORP (DOV) Stock Fundamental Analysis
NYSE:DOV - New York Stock Exchange, Inc. - US2600031080 - Common Stock - Currency: USD
Taking everything into account, DOV scores 5 out of 10 in our fundamental rating. DOV was compared to 128 industry peers in the Machinery industry. While DOV belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DOV is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
DOV had positive earnings in the past year.
DOV had a positive operating cash flow in the past year.
DOV had positive earnings in each of the past 5 years.
In the past 5 years DOV always reported a positive cash flow from operatings.
1.2 Ratios
DOV has a better Return On Assets (21.56%) than 98.40% of its industry peers.
Looking at the Return On Equity, with a value of 38.79%, DOV belongs to the top of the industry, outperforming 94.40% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.19%, DOV is in the better half of the industry, outperforming 70.40% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DOV is in line with the industry average of 11.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.56% | ||
| ROE | 38.79% | ||
| ROIC | 10.19% |
ROA(3y)13.55%
ROA(5y)11.78%
ROE(3y)28.11%
ROE(5y)26.27%
ROIC(3y)10.95%
ROIC(5y)11.32%
1.3 Margins
Looking at the Profit Margin, with a value of 32.95%, DOV belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
DOV's Profit Margin has improved in the last couple of years.
DOV has a Operating Margin of 16.29%. This is in the better half of the industry: DOV outperforms 77.60% of its industry peers.
DOV's Operating Margin has been stable in the last couple of years.
DOV's Gross Margin of 38.05% is fine compared to the rest of the industry. DOV outperforms 68.00% of its industry peers.
DOV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.29% | ||
| PM (TTM) | 32.95% | ||
| GM | 38.05% |
OM growth 3Y-2%
OM growth 5Y1.17%
PM growth 3Y34.81%
PM growth 5Y29.67%
GM growth 3Y0.42%
GM growth 5Y0.72%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DOV is still creating some value.
DOV has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DOV has less shares outstanding
DOV has a better debt/assets ratio than last year.
2.2 Solvency
DOV has a debt to FCF ratio of 5.04. This is a neutral value as DOV would need 5.04 years to pay back of all of its debts.
The Debt to FCF ratio of DOV (5.04) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.42 indicates that DOV is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.42, DOV perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 5.04 | ||
| Altman-Z | N/A |
ROIC/WACC0.97
WACC10.54%
2.3 Liquidity
DOV has a Current Ratio of 2.04. This indicates that DOV is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.04, DOV is in line with its industry, outperforming 45.60% of the companies in the same industry.
A Quick Ratio of 1.52 indicates that DOV should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.52, DOV is in the better half of the industry, outperforming 63.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The earnings per share for DOV have decreased by -0.11% in the last year.
The Earnings Per Share has been growing by 8.13% on average over the past years. This is quite good.
The Revenue has decreased by -2.99% in the past year.
The Revenue has been growing slightly by 1.65% on average over the past years.
EPS 1Y (TTM)-0.11%
EPS 3Y4.79%
EPS 5Y8.13%
EPS Q2Q%-10.2%
Revenue 1Y (TTM)-2.99%
Revenue growth 3Y-0.68%
Revenue growth 5Y1.65%
Sales Q2Q%-8.35%
3.2 Future
DOV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.82% yearly.
DOV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.81% yearly.
EPS Next Y7.63%
EPS Next 2Y8.43%
EPS Next 3Y7.31%
EPS Next 5Y7.82%
Revenue Next Year3.47%
Revenue Next 2Y3.92%
Revenue Next 3Y3.83%
Revenue Next 5Y4.81%
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 stable.
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
DOV is valuated rather expensively with a Price/Earnings ratio of 22.84.
The rest of the industry has a similar Price/Earnings ratio as DOV.
DOV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
DOV is valuated rather expensively with a Price/Forward Earnings ratio of 21.22.
DOV's Price/Forward Earnings is on the same level as the industry average.
DOV's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.84 | ||
| Fwd PE | 21.22 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DOV.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DOV indicates a slightly more expensive valuation: DOV is more expensive than 61.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.37 | ||
| EV/EBITDA | 17.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DOV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.99
PEG (5Y)2.81
EPS Next 2Y8.43%
EPS Next 3Y7.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.02%, DOV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.67, DOV pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.02, DOV pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
5.2 History
The dividend of DOV has a limited annual growth rate of 0.91%.
DOV has been paying a dividend for at least 10 years, so it has a reliable track record.
DOV has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.91%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
DOV pays out 10.50% of its income as dividend. This is a sustainable payout ratio.
DOV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP10.5%
EPS Next 2Y8.43%
EPS Next 3Y7.31%
200.54
-5.89 (-2.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.21%
Inst Owner Change0.52%
Ins Owners0.37%
Ins Owner Change-2.39%
Market Cap27.51B
Analysts79.13
Price Target221.19 (10.3%)
Short Float %1.22%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend2.04
Dividend Growth(5Y)0.91%
DP10.5%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.4%
Min EPS beat(2)-2.05%
Max EPS beat(2)4.86%
EPS beat(4)3
Avg EPS beat(4)2.99%
Min EPS beat(4)-2.05%
Max EPS beat(4)5.69%
EPS beat(8)5
Avg EPS beat(8)0.54%
EPS beat(12)8
Avg EPS beat(12)0.94%
EPS beat(16)12
Avg EPS beat(16)3.57%
Revenue beat(2)0
Avg Revenue beat(2)-3.01%
Min Revenue beat(2)-3.99%
Max Revenue beat(2)-2.04%
Revenue beat(4)2
Avg Revenue beat(4)-0.89%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)2.04%
Revenue beat(8)2
Avg Revenue beat(8)-2.15%
Revenue beat(12)3
Avg Revenue beat(12)-1.63%
Revenue beat(16)6
Avg Revenue beat(16)-0.24%
PT rev (1m)-0.09%
PT rev (3m)4.91%
EPS NQ rev (1m)-3.82%
EPS NQ rev (3m)-7.05%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)-3.75%
Revenue NQ rev (3m)-11.83%
Revenue NY rev (1m)-1.61%
Revenue NY rev (3m)-1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.84 | ||
| Fwd PE | 21.22 | ||
| P/S | 3.36 | ||
| P/FCF | 47.37 | ||
| P/OCF | 36.76 | ||
| P/B | 3.96 | ||
| P/tB | 58.86 | ||
| EV/EBITDA | 17.35 |
EPS(TTM)8.78
EY4.38%
EPS(NY)9.45
Fwd EY4.71%
FCF(TTM)4.23
FCFY2.11%
OCF(TTM)5.46
OCFY2.72%
SpS59.67
BVpS50.69
TBVpS3.41
PEG (NY)2.99
PEG (5Y)2.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.56% | ||
| ROE | 38.79% | ||
| ROCE | 12.93% | ||
| ROIC | 10.19% | ||
| ROICexc | 12.31% | ||
| ROICexgc | 45.85% | ||
| OM | 16.29% | ||
| PM (TTM) | 32.95% | ||
| GM | 38.05% | ||
| FCFM | 7.1% |
ROA(3y)13.55%
ROA(5y)11.78%
ROE(3y)28.11%
ROE(5y)26.27%
ROIC(3y)10.95%
ROIC(5y)11.32%
ROICexc(3y)11.95%
ROICexc(5y)12.21%
ROICexgc(3y)41.98%
ROICexgc(5y)45.32%
ROCE(3y)14.23%
ROCE(5y)14.39%
ROICexcg growth 3Y-8.86%
ROICexcg growth 5Y-3.09%
ROICexc growth 3Y-6.45%
ROICexc growth 5Y-3.04%
OM growth 3Y-2%
OM growth 5Y1.17%
PM growth 3Y34.81%
PM growth 5Y29.67%
GM growth 3Y0.42%
GM growth 5Y0.72%
F-Score7
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 5.04 | ||
| Debt/EBITDA | 1.75 | ||
| Cap/Depr | 49.59% | ||
| Cap/Sales | 2.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.77% | ||
| Profit Quality | 21.54% | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | N/A |
F-Score7
WACC10.54%
ROIC/WACC0.97
Cap/Depr(3y)60.52%
Cap/Depr(5y)60.01%
Cap/Sales(3y)2.38%
Cap/Sales(5y)2.36%
Profit Quality(3y)61.84%
Profit Quality(5y)81.39%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.11%
EPS 3Y4.79%
EPS 5Y8.13%
EPS Q2Q%-10.2%
EPS Next Y7.63%
EPS Next 2Y8.43%
EPS Next 3Y7.31%
EPS Next 5Y7.82%
Revenue 1Y (TTM)-2.99%
Revenue growth 3Y-0.68%
Revenue growth 5Y1.65%
Sales Q2Q%-8.35%
Revenue Next Year3.47%
Revenue Next 2Y3.92%
Revenue Next 3Y3.83%
Revenue Next 5Y4.81%
EBIT growth 1Y-5.86%
EBIT growth 3Y-2.67%
EBIT growth 5Y2.84%
EBIT Next Year93.46%
EBIT Next 3Y12.96%
EBIT Next 5Y10.72%
FCF growth 1Y-49.62%
FCF growth 3Y-14.96%
FCF growth 5Y-5.2%
OCF growth 1Y-44%
OCF growth 3Y-12.47%
OCF growth 5Y-4.56%