DOVER CORP (DOV)
US2600031080 - Common Stock
We assign a fundamental rating of 6 out of 10 to DOV. DOV was compared to 131 industry peers in the Machinery industry. DOV has an excellent profitability rating, but there are some minor concerns on its financial health. DOV is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DOV was profitable.
In the past year DOV had a positive cash flow from operations.
DOV had positive earnings in each of the past 5 years.
Each year in the past 5 years DOV had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DOV (13.07%) is better than 89.76% of its industry peers.
Looking at the Return On Equity, with a value of 27.33%, DOV belongs to the top of the industry, outperforming 92.13% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.81%, DOV is in the better half of the industry, outperforming 77.17% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DOV is in line with the industry average of 11.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.07% | ||
| ROE | 27.33% | ||
| ROIC | 11.81% |
ROA(3y)9.96%
ROA(5y)9.04%
ROE(3y)24.12%
ROE(5y)22.98%
ROIC(3y)12.95%
ROIC(5y)12.44%
1.3 Margins
The Profit Margin of DOV (18.63%) is better than 96.06% of its industry peers.
In the last couple of years the Profit Margin of DOV has grown nicely.
Looking at the Operating Margin, with a value of 16.86%, DOV belongs to the top of the industry, outperforming 81.10% of the companies in the same industry.
DOV's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 37.84%, DOV is in the better half of the industry, outperforming 70.08% of the companies in the same industry.
In the last couple of years the Gross Margin of DOV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.86% | ||
| PM (TTM) | 18.63% | ||
| GM | 37.84% |
OM growth 3Y4.71%
OM growth 5Y5.42%
PM growth 3Y6.99%
PM growth 5Y8.96%
GM growth 3Y-0.46%
GM growth 5Y-0.03%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DOV is creating some value.
The number of shares outstanding for DOV remains at a similar level compared to 1 year ago.
The number of shares outstanding for DOV has been reduced compared to 5 years ago.
The debt/assets ratio for DOV has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.33 indicates that DOV is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.33, DOV is doing good in the industry, outperforming 77.17% of the companies in the same industry.
DOV has a debt to FCF ratio of 3.08. This is a good value and a sign of high solvency as DOV would need 3.08 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.08, DOV is in the better half of the industry, outperforming 68.50% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that DOV is somewhat dependend on debt financing.
DOV has a Debt to Equity ratio of 0.59. This is in the lower half of the industry: DOV underperforms 65.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 5.33 |
ROIC/WACC1.32
WACC8.93%
2.3 Liquidity
DOV has a Current Ratio of 1.57. This is a normal value and indicates that DOV is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.57, DOV is doing worse than 73.23% of the companies in the same industry.
A Quick Ratio of 1.06 indicates that DOV should not have too much problems paying its short term obligations.
The Quick ratio of DOV (1.06) is worse than 65.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
DOV shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.24%.
DOV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.86% yearly.
The Revenue has decreased by -1.30% in the past year.
The Revenue has been growing slightly by 3.83% on average over the past years.
EPS 1Y (TTM)6.24%
EPS 3Y15.74%
EPS 5Y10.86%
EPS Q2Q%-3.4%
Revenue 1Y (TTM)-1.3%
Revenue growth 3Y8.08%
Revenue growth 5Y3.83%
Sales Q2Q%-7.88%
3.2 Future
DOV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.03% yearly.
The Revenue is expected to grow by 5.67% on average over the next years.
EPS Next Y1%
EPS Next 2Y3.96%
EPS Next 3Y5.84%
EPS Next 5Y12.03%
Revenue Next Year-8.44%
Revenue Next 2Y-1.89%
Revenue Next 3Y0.75%
Revenue Next 5Y5.67%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
The Price/Earnings ratio is 22.66, which indicates a rather expensive current valuation of DOV.
The rest of the industry has a similar Price/Earnings ratio as DOV.
DOV is valuated rather cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.54 indicates a rather expensive valuation of DOV.
DOV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DOV is cheaper than 60.63% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. DOV is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.66 | ||
| Fwd PE | 21.54 |
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 somewhat cheap valuation: DOV is cheaper than 60.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.55 | ||
| EV/EBITDA | 17.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DOV does not grow enough to justify the current Price/Earnings ratio.
DOV has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)22.66
PEG (5Y)2.09
EPS Next 2Y3.96%
EPS Next 3Y5.84%
5. Dividend
5.1 Amount
DOV has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
DOV's Dividend Yield is a higher than the industry average which is at 1.54.
With a Dividend Yield of 1.02, DOV pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
5.2 History
The dividend of DOV has a limited annual growth rate of 1.47%.
DOV has paid a dividend for at least 10 years, which is 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)1.47%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
18.22% of the earnings are spent on dividend by DOV. This is a low number and sustainable payout ratio.
DOV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.22%
EPS Next 2Y3.96%
EPS Next 3Y5.84%
DOVER CORP
NYSE:DOV (11/22/2024, 3:45:01 PM)
204.645
+2.16 (+1.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap28.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.66 | ||
| Fwd PE | 21.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)22.66
PEG (5Y)2.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.07% | ||
| ROE | 27.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.86% | ||
| PM (TTM) | 18.63% | ||
| GM | 37.84% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)6.24%
EPS 3Y15.74%
EPS 5Y
EPS Q2Q%
EPS Next Y1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.3%
Revenue growth 3Y8.08%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y