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. PLOW has an average financial health and profitability rating. PLOW is valued quite cheap, while showing a decent growth score. This is a good combination! Finally PLOW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PLOW was profitable.
In the past year PLOW had a positive cash flow from operations.
Of the past 5 years PLOW 4 years were profitable.
In the past 5 years PLOW always reported a positive cash flow from operatings.
1.2 Ratios
PLOW has a better Return On Assets (8.89%) than 75.78% of its industry peers.
PLOW's Return On Equity of 21.33% is amongst the best of the industry. PLOW outperforms 85.16% of its industry peers.
PLOW has a Return On Invested Capital (7.72%) which is comparable to the rest of the industry.
PLOW had an Average Return On Invested Capital over the past 3 years of 7.76%. This 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.
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 48.44% of the companies in the same industry.
PLOW's Operating Margin has declined in the last couple of years.
PLOW has a worse Gross Margin (25.60%) than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PLOW is destroying value.
Compared to 1 year ago, PLOW has more shares outstanding
Compared to 5 years ago, PLOW has more shares outstanding
Compared to 1 year ago, PLOW has an improved debt to assets ratio.
2.2 Solvency
PLOW has an Altman-Z score of 3.05. This indicates that PLOW is financially healthy and has little risk of bankruptcy at the moment.
PLOW's Altman-Z score of 3.05 is in line compared to the rest of the industry. PLOW outperforms 48.44% 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.
Looking at the Debt to FCF ratio, with a value of 3.03, PLOW is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that PLOW is somewhat dependend on debt financing.
The Debt to Equity ratio of PLOW (0.59) is worse than 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.03 | ||
| Altman-Z | 3.05 |
ROIC/WACC0.74
WACC10.38%
2.3 Liquidity
A Current Ratio of 2.37 indicates that PLOW has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.37, PLOW is in line with its industry, outperforming 59.38% of the companies in the same industry.
A Quick Ratio of 0.70 indicates that PLOW may have some problems paying its short term obligations.
The Quick ratio of PLOW (0.70) is worse 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.
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.
Measured over the past years, PLOW shows a decrease in Revenue. The Revenue has been decreasing by -0.11% on average per year.
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
The Earnings Per Share is expected to grow by 27.11% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.86% on average over the next years.
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 16.95, 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 73.44% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.29, PLOW is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.24, which indicates a correct valuation of PLOW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PLOW indicates a rather cheap valuation: PLOW is cheaper than 80.47% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PLOW to the average of the S&P500 Index (21.74), we can say PLOW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 13.24 |
4.2 Price Multiples
60.94% of the companies in the same industry are more expensive than PLOW, based on the Enterprise Value to EBITDA ratio.
83.59% of the companies in the same industry are more expensive than PLOW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.64 | ||
| EV/EBITDA | 12.8 |
4.3 Compensation for Growth
The 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)0.43
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%.
Compared to an average industry Dividend Yield of 1.81, 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 2.37, PLOW pays a better dividend.
| 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 been paying a dividend for at least 10 years, so it has a reliable track record.
PLOW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.5%
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
31.01
-0.34 (-1.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.46%
Inst Owner Change-0.14%
Ins Owners2.09%
Ins Owner Change6.47%
Market Cap719.74M
Analysts80
Price Target34.34 (10.74%)
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 | 16.95 | ||
| Fwd PE | 13.24 | ||
| P/S | 1.05 | ||
| P/FCF | 13.64 | ||
| P/OCF | 11.72 | ||
| P/B | 2.78 | ||
| P/tB | 21.33 | ||
| EV/EBITDA | 12.8 |
EPS(TTM)1.83
EY5.9%
EPS(NY)2.34
Fwd EY7.55%
FCF(TTM)2.27
FCFY7.33%
OCF(TTM)2.65
OCFY8.53%
SpS29.45
BVpS11.15
TBVpS1.45
PEG (NY)0.43
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 | 3.05 |
F-Score8
WACC10.38%
ROIC/WACC0.74
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%