DOVER CORP (DOV) Stock Fundamental Analysis
NYSE:DOV - New York Stock Exchange, Inc. - US2600031080 - Common Stock - Currency: USD
DOV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. DOV has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, DOV is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year DOV was profitable.
DOV had a positive operating cash flow in the past year.
Each year in the past 5 years DOV has been profitable.
Each year in the past 5 years DOV had a positive operating cash flow.
1.2 Ratios
DOV has a Return On Assets of 18.15%. This is amongst the best in the industry. DOV outperforms 96.88% of its industry peers.
Looking at the Return On Equity, with a value of 32.16%, DOV belongs to the top of the industry, outperforming 94.53% of the companies in the same industry.
The Return On Invested Capital of DOV (10.16%) is better than 70.31% of its industry peers.
DOV had an Average Return On Invested Capital over the past 3 years of 10.97%. This is in line with the industry average of 10.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.15% | ||
| ROE | 32.16% | ||
| ROIC | 10.16% |
ROA(3y)13.55%
ROA(5y)11.78%
ROE(3y)28.11%
ROE(5y)26.27%
ROIC(3y)10.97%
ROIC(5y)11.33%
1.3 Margins
DOV's Profit Margin of 28.85% is amongst the best of the industry. DOV outperforms 99.22% of its industry peers.
DOV's Profit Margin has improved in the last couple of years.
DOV has a better Operating Margin (17.01%) than 80.47% of its industry peers.
In the last couple of years the Operating Margin of DOV has grown nicely.
Looking at the Gross Margin, with a value of 39.01%, DOV is in the better half of the industry, outperforming 71.09% of the companies in the same industry.
DOV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.01% | ||
| PM (TTM) | 28.85% | ||
| GM | 39.01% |
OM growth 3Y-0.14%
OM growth 5Y2.31%
PM growth 3Y34.81%
PM growth 5Y29.67%
GM growth 3Y0.85%
GM growth 5Y0.98%
2. Health
2.1 Basic Checks
DOV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
DOV has less shares outstanding than it did 1 year ago.
DOV has less shares outstanding than it did 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 5.53 indicates that DOV is not in any danger for bankruptcy at the moment.
DOV's Altman-Z score of 5.53 is fine compared to the rest of the industry. DOV outperforms 78.13% of its industry peers.
The Debt to FCF ratio of DOV is 5.24, which is a neutral value as it means it would take DOV, 5.24 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DOV (5.24) 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.
The Debt to Equity ratio of DOV (0.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 5.53 |
ROIC/WACC1.05
WACC9.65%
2.3 Liquidity
A Current Ratio of 2.13 indicates that DOV has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.13, DOV is in line with its industry, outperforming 55.47% of the companies in the same industry.
DOV has a Quick Ratio of 1.56. This is a normal value and indicates that DOV is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of DOV (1.56) is better than 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
DOV shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.91%.
DOV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.13% yearly.
The Revenue has decreased by -5.86% in the past year.
The Revenue has been growing slightly by 1.65% on average over the past years.
EPS 1Y (TTM)0.91%
EPS 3Y4.79%
EPS 5Y8.13%
EPS Q2Q%5.13%
Revenue 1Y (TTM)-5.86%
Revenue growth 3Y-0.68%
Revenue growth 5Y1.65%
Sales Q2Q%-10.88%
3.2 Future
DOV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.33% yearly.
Based on estimates for the next years, DOV will show a small growth in Revenue. The Revenue will grow by 4.03% on average per year.
EPS Next Y7.4%
EPS Next 2Y8.22%
EPS Next 3Y7.84%
EPS Next 5Y7.33%
Revenue Next Year2.35%
Revenue Next 2Y3.46%
Revenue Next 3Y3.61%
Revenue Next 5Y4.03%
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.
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
A Price/Earnings ratio of 21.24 indicates a rather expensive valuation of DOV.
Based on the Price/Earnings ratio, DOV is valued a bit cheaper than 63.28% of the companies in the same industry.
DOV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
Based on the Price/Forward Earnings ratio of 18.34, the valuation of DOV can be described as rather expensive.
DOV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DOV is cheaper than 60.94% of the companies in the same industry.
DOV is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.24 | ||
| Fwd PE | 18.34 |
4.2 Price Multiples
DOV's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, DOV is valued a bit more expensive than the industry average as 64.84% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.6 | ||
| EV/EBITDA | 15.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of DOV may justify a higher PE ratio.
PEG (NY)2.87
PEG (5Y)2.61
EPS Next 2Y8.22%
EPS Next 3Y7.84%
5. Dividend
5.1 Amount
DOV has a Yearly Dividend Yield of 1.09%.
DOV's Dividend Yield is a higher than the industry average which is at 1.87.
Compared to an average S&P500 Dividend Yield of 2.42, DOV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
The dividend of DOV has a limited annual growth rate of 0.91%.
DOV has paid a dividend for at least 10 years, which is a reliable track record.
DOV has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.91%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
12.33% of the earnings are spent on dividend by DOV. This is a low number and sustainable payout ratio.
The dividend of DOV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12.33%
EPS Next 2Y8.22%
EPS Next 3Y7.84%
188.63
+0.48 (+0.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners86.95%
Inst Owner Change2.89%
Ins Owners1%
Ins Owner Change1.62%
Market Cap25.86B
Analysts77.5
Price Target204.25 (8.28%)
Short Float %1.38%
Short Ratio1.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend2.04
Dividend Growth(5Y)0.91%
DP12.33%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.67%
Min EPS beat(2)2.47%
Max EPS beat(2)4.86%
EPS beat(4)3
Avg EPS beat(4)2.74%
Min EPS beat(4)-2.05%
Max EPS beat(4)5.69%
EPS beat(8)6
Avg EPS beat(8)0.86%
EPS beat(12)8
Avg EPS beat(12)0.9%
EPS beat(16)12
Avg EPS beat(16)2.27%
Revenue beat(2)0
Avg Revenue beat(2)-1.83%
Min Revenue beat(2)-2.04%
Max Revenue beat(2)-1.63%
Revenue beat(4)1
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)0.43%
Revenue beat(8)2
Avg Revenue beat(8)-2.27%
Revenue beat(12)2
Avg Revenue beat(12)-1.77%
Revenue beat(16)5
Avg Revenue beat(16)-0.78%
PT rev (1m)0.96%
PT rev (3m)-9.78%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-0.39%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.24 | ||
| Fwd PE | 18.34 | ||
| P/S | 3.25 | ||
| P/FCF | 45.6 | ||
| P/OCF | 35.02 | ||
| P/B | 3.62 | ||
| P/tB | 42.15 | ||
| EV/EBITDA | 15.72 |
EPS(TTM)8.88
EY4.71%
EPS(NY)10.28
Fwd EY5.45%
FCF(TTM)4.14
FCFY2.19%
OCF(TTM)5.39
OCFY2.86%
SpS58.04
BVpS52.06
TBVpS4.48
PEG (NY)2.87
PEG (5Y)2.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.15% | ||
| ROE | 32.16% | ||
| ROCE | 12.88% | ||
| ROIC | 10.16% | ||
| ROICexc | 12.17% | ||
| ROICexgc | 42.95% | ||
| OM | 17.01% | ||
| PM (TTM) | 28.85% | ||
| GM | 39.01% | ||
| FCFM | 7.13% |
ROA(3y)13.55%
ROA(5y)11.78%
ROE(3y)28.11%
ROE(5y)26.27%
ROIC(3y)10.97%
ROIC(5y)11.33%
ROICexc(3y)11.99%
ROICexc(5y)12.23%
ROICexgc(3y)42.19%
ROICexgc(5y)45.45%
ROCE(3y)14.24%
ROCE(5y)14.39%
ROICexcg growth 3Y-7.13%
ROICexcg growth 5Y-2%
ROICexc growth 3Y-4.68%
ROICexc growth 5Y-1.94%
OM growth 3Y-0.14%
OM growth 5Y2.31%
PM growth 3Y34.81%
PM growth 5Y29.67%
GM growth 3Y0.85%
GM growth 5Y0.98%
F-Score7
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 5.24 | ||
| Debt/EBITDA | 1.75 | ||
| Cap/Depr | 50.29% | ||
| Cap/Sales | 2.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.58% | ||
| Profit Quality | 24.7% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 5.53 |
F-Score7
WACC9.65%
ROIC/WACC1.05
Cap/Depr(3y)60.37%
Cap/Depr(5y)59.92%
Cap/Sales(3y)2.41%
Cap/Sales(5y)2.38%
Profit Quality(3y)62.15%
Profit Quality(5y)81.58%
High Growth Momentum
Growth
EPS 1Y (TTM)0.91%
EPS 3Y4.79%
EPS 5Y8.13%
EPS Q2Q%5.13%
EPS Next Y7.4%
EPS Next 2Y8.22%
EPS Next 3Y7.84%
EPS Next 5Y7.33%
Revenue 1Y (TTM)-5.86%
Revenue growth 3Y-0.68%
Revenue growth 5Y1.65%
Sales Q2Q%-10.88%
Revenue Next Year2.35%
Revenue Next 2Y3.46%
Revenue Next 3Y3.61%
Revenue Next 5Y4.03%
EBIT growth 1Y-3.47%
EBIT growth 3Y-0.82%
EBIT growth 5Y4%
EBIT Next Year100.34%
EBIT Next 3Y12.71%
EBIT Next 5Y7.93%
FCF growth 1Y-29.49%
FCF growth 3Y-14.96%
FCF growth 5Y-5.2%
OCF growth 1Y-27.84%
OCF growth 3Y-12.47%
OCF growth 5Y-4.56%