DOUGLAS DYNAMICS INC (PLOW) Stock Fundamental Analysis
NYSE:PLOW - New York Stock Exchange, Inc. - US25960R1059 - Common Stock - Currency: USD
Taking everything into account, PLOW scores 5 out of 10 in our fundamental rating. 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 better Return On Assets (7.96%) than 71.88% of its industry peers.
With a decent Return On Equity value of 17.77%, PLOW is doing good in the industry, outperforming 78.13% of the companies in the same industry.
With a Return On Invested Capital value of 6.41%, PLOW perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
PLOW had an Average Return On Invested Capital over the past 3 years of 7.76%. This is below the industry average of 10.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.96% | ||
| ROE | 17.77% | ||
| ROIC | 6.41% |
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
PLOW has a better Profit Margin (7.07%) than 60.16% of its industry peers.
PLOW's Profit Margin has improved in the last couple of years.
PLOW's Operating Margin of 6.39% is in line compared to the rest of the industry. PLOW outperforms 42.97% of its industry peers.
PLOW's Operating Margin has declined in the last couple of years.
The Gross Margin of PLOW (24.96%) is worse than 63.28% of its industry peers.
In the last couple of years the Gross Margin of PLOW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.39% | ||
| PM (TTM) | 7.07% | ||
| GM | 24.96% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PLOW is destroying value.
Compared to 1 year ago, PLOW has more shares outstanding
The number of shares outstanding for PLOW has been increased compared to 5 years ago.
PLOW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.92 indicates that PLOW is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.92, PLOW perfoms like the industry average, outperforming 48.44% of the companies in the same industry.
PLOW has a debt to FCF ratio of 4.40. This is a neutral value as PLOW would need 4.40 years to pay back of all of its debts.
The Debt to FCF ratio of PLOW (4.40) is comparable to the rest of the industry.
PLOW has a Debt/Equity ratio of 0.56. This is a neutral value indicating PLOW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, PLOW perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.4 | ||
| Altman-Z | 2.92 |
ROIC/WACC0.6
WACC10.76%
2.3 Liquidity
A Current Ratio of 3.39 indicates that PLOW has no problem at all paying its short term obligations.
PLOW has a Current ratio of 3.39. This is amongst the best in the industry. PLOW outperforms 80.47% of its industry peers.
A Quick Ratio of 1.40 indicates that PLOW should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.40, PLOW is in line with its industry, outperforming 59.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.39 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.00% over the past year.
The Earnings Per Share has been decreasing by -9.74% on average over the past years.
The Revenue has grown by 16.90% in the past year. This is quite good.
PLOW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.11% yearly.
EPS 1Y (TTM)45%
EPS 3Y-4.41%
EPS 5Y-9.74%
EPS Q2Q%105.26%
Revenue 1Y (TTM)16.9%
Revenue growth 3Y1.64%
Revenue growth 5Y-0.11%
Sales Q2Q%7.13%
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 25.81% on average per year.
Based on estimates for the next years, PLOW will show a small growth in Revenue. The Revenue will grow by 7.77% on average per year.
EPS Next Y29.9%
EPS Next 2Y25.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.19%
Revenue Next 2Y7.77%
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.
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
With a Price/Earnings ratio of 16.31, PLOW is valued correctly.
64.84% of the companies in the same industry are more expensive than PLOW, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PLOW to the average of the S&P500 Index (28.29), we can say PLOW is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.56, the valuation of PLOW can be described as correct.
Based on the Price/Forward Earnings ratio, PLOW is valued cheaply inside the industry as 80.47% of the companies are valued more expensively.
PLOW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 12.56 |
4.2 Price Multiples
PLOW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PLOW is cheaper than 60.94% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PLOW is valued a bit cheaper than the industry average as 67.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.4 | ||
| EV/EBITDA | 11.4 |
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 25.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y25.81%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PLOW has a Yearly Dividend Yield of 5.32%, which is a nice return.
Compared to an average industry Dividend Yield of 2.12, PLOW pays a better dividend. On top of this PLOW pays more dividend than 97.66% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.57, PLOW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
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 Years13
Div Non Decr Years13
5.3 Sustainability
PLOW pays out 58.52% 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.
DP58.52%
EPS Next 2Y25.81%
EPS Next 3YN/A
23.65
+0.1 (+0.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners92.96%
Inst Owner Change0.05%
Ins Owners1.97%
Ins Owner Change8.96%
Market Cap546.32M
Analysts80
Price Target34.34 (45.2%)
Short Float %2.06%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
Yearly Dividend1.19
Dividend Growth(5Y)1.5%
DP58.52%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.59%
Min EPS beat(2)13.85%
Max EPS beat(2)23.34%
EPS beat(4)4
Avg EPS beat(4)26.77%
Min EPS beat(4)4.16%
Max EPS beat(4)65.72%
EPS beat(8)5
Avg EPS beat(8)-36.52%
EPS beat(12)9
Avg EPS beat(12)-19.18%
EPS beat(16)11
Avg EPS beat(16)-6.19%
Revenue beat(2)0
Avg Revenue beat(2)-9.75%
Min Revenue beat(2)-10.15%
Max Revenue beat(2)-9.34%
Revenue beat(4)2
Avg Revenue beat(4)-2.43%
Min Revenue beat(4)-10.15%
Max Revenue beat(4)7.23%
Revenue beat(8)3
Avg Revenue beat(8)-8.11%
Revenue beat(12)6
Avg Revenue beat(12)-3.37%
Revenue beat(16)9
Avg Revenue beat(16)-0.38%
PT rev (1m)0%
PT rev (3m)4.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-325.13%
EPS NY rev (1m)-4.32%
EPS NY rev (3m)-4.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.48%
Revenue NY rev (1m)-0.94%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 12.56 | ||
| P/S | 0.82 | ||
| P/FCF | 16.4 | ||
| P/OCF | 13.28 | ||
| P/B | 2.07 | ||
| P/tB | 14.56 | ||
| EV/EBITDA | 11.4 |
EPS(TTM)1.45
EY6.13%
EPS(NY)1.88
Fwd EY7.96%
FCF(TTM)1.44
FCFY6.1%
OCF(TTM)1.78
OCFY7.53%
SpS28.75
BVpS11.44
TBVpS1.62
PEG (NY)0.55
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.96% | ||
| ROE | 17.77% | ||
| ROCE | 8.16% | ||
| ROIC | 6.41% | ||
| ROICexc | 6.48% | ||
| ROICexgc | 11.58% | ||
| OM | 6.39% | ||
| PM (TTM) | 7.07% | ||
| GM | 24.96% | ||
| FCFM | 5.02% |
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-Score7
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 4.4 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 43.66% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 2.24 | ||
| Cash Conversion | 68.18% | ||
| Profit Quality | 70.96% | ||
| Current Ratio | 3.39 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 2.92 |
F-Score7
WACC10.76%
ROIC/WACC0.6
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%
EPS 3Y-4.41%
EPS 5Y-9.74%
EPS Q2Q%105.26%
EPS Next Y29.9%
EPS Next 2Y25.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)16.9%
Revenue growth 3Y1.64%
Revenue growth 5Y-0.11%
Sales Q2Q%7.13%
Revenue Next Year8.19%
Revenue Next 2Y7.77%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.58%
EBIT growth 3Y-3.07%
EBIT growth 5Y-11.27%
EBIT Next Year21.33%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1610.52%
FCF growth 3Y-12.26%
FCF growth 5Y-12.72%
OCF growth 1Y229.87%
OCF growth 3Y-12.09%
OCF growth 5Y-11.85%