DOUGLAS DYNAMICS INC (PLOW) Stock Fundamental Analysis
NYSE:PLOW - New York Stock Exchange, Inc. - US25960R1059 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to PLOW. PLOW was compared to 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 has a correct valuation and a medium growth rate. Finally PLOW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PLOW had positive earnings in the past year.
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
PLOW has a Return On Assets of 8.89%. This is in the better half of the industry: PLOW outperforms 75.78% of its industry peers.
The Return On Equity of PLOW (21.33%) is better than 85.16% of its industry peers.
The Return On Invested Capital of PLOW (7.72%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PLOW is below the industry average of 10.71%.
| 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
With a decent Profit Margin value of 8.08%, PLOW is doing good in the industry, outperforming 63.28% of the companies in the same industry.
In the last couple of years the Profit Margin of PLOW has grown nicely.
PLOW has a Operating Margin (7.44%) which is in line with its industry peers.
PLOW's Operating Margin has declined in the last couple of years.
PLOW's Gross Margin of 25.60% is on the low side compared to the rest of the industry. PLOW is outperformed by 62.50% 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.
PLOW has more shares outstanding than it did 1 year ago.
PLOW has more shares outstanding than it did 5 years ago.
PLOW has a better debt/assets ratio than last year.
2.2 Solvency
PLOW has an Altman-Z score of 3.07. This indicates that PLOW is financially healthy and has little risk of bankruptcy at the moment.
PLOW has a Altman-Z score (3.07) which is comparable to the rest of the industry.
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 better Debt to FCF ratio (3.03) than 64.06% 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.
PLOW's Debt to Equity ratio of 0.59 is on the low side compared to the rest of the industry. PLOW is outperformed by 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.03 | ||
| Altman-Z | 3.07 |
ROIC/WACC0.75
WACC10.35%
2.3 Liquidity
PLOW has a Current Ratio of 2.37. This indicates that PLOW is financially healthy and has no problem in meeting its short term obligations.
PLOW's Current ratio of 2.37 is in line compared to the rest of the industry. PLOW outperforms 59.38% of its industry peers.
A Quick Ratio of 0.70 indicates that PLOW may have some problems paying its short term obligations.
PLOW has a worse Quick ratio (0.70) than 85.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.24% over the past year.
Measured over the past years, PLOW shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.74% on average per year.
PLOW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.59%.
The Revenue has been decreasing by -0.11% on average over the past years.
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
Based on estimates for the next years, PLOW will show a very strong growth in Earnings Per Share. The EPS will grow by 27.11% on average per year.
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
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 17.13 indicates a rather expensive 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 73.44% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. PLOW is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.38, PLOW is valued correctly.
Based on the Price/Forward Earnings ratio, PLOW is valued a bit cheaper than 79.69% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. PLOW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 13.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PLOW is valued a bit cheaper than 62.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PLOW indicates a rather cheap valuation: PLOW is cheaper than 83.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.79 | ||
| EV/EBITDA | 12.92 |
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.
A more expensive valuation may be justified as PLOW's earnings are expected to grow with 27.11% in the coming years.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y27.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PLOW has a Yearly Dividend Yield of 3.76%. 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 1.83. PLOW pays more dividend than 95.31% of the companies in the same industry.
PLOW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
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 Years0
Div Non Decr Years14
5.3 Sustainability
PLOW pays out 50.25% of its income as dividend. This is a bit on the high side, but may be sustainable.
PLOW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50.25%
EPS Next 2Y27.11%
EPS Next 3YN/A
31.35
+0.5 (+1.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.46%
Inst Owner Change-66.37%
Ins Owners2.09%
Ins Owner Change6.47%
Market Cap727.63M
Analysts80
Price Target34.34 (9.54%)
Short Float %3.09%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
Yearly Dividend1.19
Dividend Growth(5Y)1.5%
DP50.25%
Div Incr Years0
Div Non Decr Years14
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.66%
EPS NY rev (1m)0%
EPS NY rev (3m)7.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 13.38 | ||
| P/S | 1.06 | ||
| P/FCF | 13.79 | ||
| P/OCF | 11.85 | ||
| P/B | 2.81 | ||
| P/tB | 21.56 | ||
| EV/EBITDA | 12.92 |
EPS(TTM)1.83
EY5.84%
EPS(NY)2.34
Fwd EY7.47%
FCF(TTM)2.27
FCFY7.25%
OCF(TTM)2.65
OCFY8.44%
SpS29.45
BVpS11.15
TBVpS1.45
PEG (NY)0.44
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 | 3.07 |
F-Score8
WACC10.35%
ROIC/WACC0.75
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 Year24.14%
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%