DOUGLAS DYNAMICS INC (PLOW) Stock Fundamental Analysis
NYSE:PLOW - New York Stock Exchange, Inc. - US25960R1059 - Common Stock - Currency: USD
Overall PLOW gets a fundamental rating of 5 out of 10. We evaluated PLOW against 129 industry peers in the Machinery industry. PLOW has a medium profitability rating, but doesn't score so well on its financial health evaluation. PLOW scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
Of the past 5 years PLOW 4 years were profitable.
Each year in the past 5 years PLOW had a positive operating cash flow.
1.2 Ratios
PLOW has a better Return On Assets (6.96%) than 65.60% of its industry peers.
The Return On Equity of PLOW (17.77%) is better than 77.60% of its industry peers.
PLOW has a Return On Invested Capital (5.85%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for PLOW is below the industry average of 11.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.96% | ||
| ROE | 17.77% | ||
| ROIC | 5.85% |
ROA(3y)5.28%
ROA(5y)1.55%
ROE(3y)13.61%
ROE(5y)2.61%
ROIC(3y)8.43%
ROIC(5y)8.97%
1.3 Margins
With a Profit Margin value of 7.07%, PLOW perfoms like the industry average, outperforming 58.40% of the companies in the same industry.
In the last couple of years the Profit Margin of PLOW has declined.
With a Operating Margin value of 6.43%, PLOW perfoms like the industry average, outperforming 43.20% of the companies in the same industry.
In the last couple of years the Operating Margin of PLOW has declined.
With a Gross Margin value of 24.36%, PLOW is not doing good in the industry: 67.20% of the companies in the same industry are doing better.
PLOW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.43% | ||
| PM (TTM) | 7.07% | ||
| GM | 24.36% |
OM growth 3Y-10.36%
OM growth 5Y-10.83%
PM growth 3YN/A
PM growth 5Y-12.76%
GM growth 3Y-4.01%
GM growth 5Y-4.37%
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.
The number of shares outstanding for PLOW has been increased compared to 1 year ago.
PLOW has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PLOW is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.56 indicates that PLOW is not a great score, but indicates only limited risk for bankruptcy at the moment.
PLOW has a Altman-Z score (2.56) which is in line with its industry peers.
PLOW has a debt to FCF ratio of 5.84. This is a neutral value as PLOW would need 5.84 years to pay back of all of its debts.
PLOW has a Debt to FCF ratio (5.84) which is in line with its industry peers.
PLOW has a Debt/Equity ratio of 0.82. This is a neutral value indicating PLOW is somewhat dependend on debt financing.
The Debt to Equity ratio of PLOW (0.82) is worse than 77.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | 2.56 |
ROIC/WACC0.52
WACC11.32%
2.3 Liquidity
PLOW has a Current Ratio of 2.14. This indicates that PLOW is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of PLOW (2.14) is comparable to the rest of the industry.
PLOW has a Quick Ratio of 1.13. This is a normal value and indicates that PLOW is financially healthy and should not expect problems in meeting its short term obligations.
PLOW has a Quick ratio (1.13) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
PLOW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.02%.
PLOW shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.37% yearly.
Looking at the last year, PLOW shows a quite strong growth in Revenue. The Revenue has grown by 10.30% in the last year.
Measured over the past years, PLOW shows a small growth in Revenue. The Revenue has been growing by 1.63% on average per year.
EPS 1Y (TTM)-6.02%
EPS 3Y-5.63%
EPS 5Y-13.37%
EPS Q2Q%-4%
Revenue 1Y (TTM)10.3%
Revenue growth 3Y5.77%
Revenue growth 5Y1.63%
Sales Q2Q%-10.2%
3.2 Future
PLOW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.64% yearly.
Based on estimates for the next years, PLOW will show a small growth in Revenue. The Revenue will grow by 2.67% on average per year.
EPS Next Y40.42%
EPS Next 2Y40.31%
EPS Next 3Y31.64%
EPS Next 5YN/A
Revenue Next Year-5.31%
Revenue Next 2Y0.71%
Revenue Next 3Y2.67%
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
PLOW is valuated rather expensively with a Price/Earnings ratio of 20.65.
Based on the Price/Earnings ratio, PLOW is valued a bit cheaper than 62.40% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.62, PLOW is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.11, which indicates a correct valuation of PLOW.
88.80% of the companies in the same industry are more expensive than PLOW, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, PLOW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.65 | ||
| Fwd PE | 13.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PLOW indicates a somewhat cheap valuation: PLOW is cheaper than 68.00% of the companies listed in the same industry.
PLOW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PLOW is cheaper than 83.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.3 | ||
| EV/EBITDA | 11.91 |
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 31.64% in the coming years.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y40.31%
EPS Next 3Y31.64%
5. Dividend
5.1 Amount
PLOW has a Yearly Dividend Yield of 4.51%, which is a nice return.
Compared to an average industry Dividend Yield of 1.66, PLOW pays a better dividend. On top of this PLOW pays more dividend than 98.40% of the companies listed in the same industry.
PLOW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
5.2 History
The dividend of PLOW has a limited annual growth rate of 2.13%.
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)2.13%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
PLOW pays out 58.87% 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.
DP58.87%
EPS Next 2Y40.31%
EPS Next 3Y31.64%
25.81
-0.35 (-1.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners92.96%
Inst Owner Change-93.19%
Ins Owners1.97%
Ins Owner Change8.66%
Market Cap595.95M
Analysts80
Price Target29.58 (14.61%)
Short Float %2.01%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
Yearly Dividend1.2
Dividend Growth(5Y)2.13%
DP58.87%
Div Incr Years13
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)39.79%
Min EPS beat(2)13.85%
Max EPS beat(2)65.72%
EPS beat(4)3
Avg EPS beat(4)3.83%
Min EPS beat(4)-68.43%
Max EPS beat(4)65.72%
EPS beat(8)5
Avg EPS beat(8)-38.85%
EPS beat(12)8
Avg EPS beat(12)-21.66%
EPS beat(16)11
Avg EPS beat(16)-5.8%
Revenue beat(2)1
Avg Revenue beat(2)-1.46%
Min Revenue beat(2)-10.15%
Max Revenue beat(2)7.23%
Revenue beat(4)2
Avg Revenue beat(4)-6.73%
Min Revenue beat(4)-26.53%
Max Revenue beat(4)7.23%
Revenue beat(8)3
Avg Revenue beat(8)-7.55%
Revenue beat(12)7
Avg Revenue beat(12)-2.42%
Revenue beat(16)10
Avg Revenue beat(16)0.51%
PT rev (1m)-10.31%
PT rev (3m)-18.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.65 | ||
| Fwd PE | 13.11 | ||
| P/S | 0.91 | ||
| P/FCF | 16.3 | ||
| P/OCF | 13.75 | ||
| P/B | 2.29 | ||
| P/tB | 18.37 | ||
| EV/EBITDA | 11.91 |
EPS(TTM)1.25
EY4.84%
EPS(NY)1.97
Fwd EY7.63%
FCF(TTM)1.58
FCFY6.14%
OCF(TTM)1.88
OCFY7.27%
SpS28.36
BVpS11.29
TBVpS1.41
PEG (NY)0.51
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.96% | ||
| ROE | 17.77% | ||
| ROCE | 8.13% | ||
| ROIC | 5.85% | ||
| ROICexc | 5.94% | ||
| ROICexgc | 9.83% | ||
| OM | 6.43% | ||
| PM (TTM) | 7.07% | ||
| GM | 24.36% | ||
| FCFM | 5.58% |
ROA(3y)5.28%
ROA(5y)1.55%
ROE(3y)13.61%
ROE(5y)2.61%
ROIC(3y)8.43%
ROIC(5y)8.97%
ROICexc(3y)8.92%
ROICexc(5y)9.54%
ROICexgc(3y)18.66%
ROICexgc(5y)22.87%
ROCE(3y)10.65%
ROCE(5y)11.21%
ROICexcg growth 3Y-12.65%
ROICexcg growth 5Y-18.66%
ROICexc growth 3Y-6.86%
ROICexc growth 5Y-6.92%
OM growth 3Y-10.36%
OM growth 5Y-10.83%
PM growth 3YN/A
PM growth 5Y-12.76%
GM growth 3Y-4.01%
GM growth 5Y-4.37%
F-Score7
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 5.84 | ||
| Debt/EBITDA | 3.46 | ||
| Cap/Depr | 34.77% | ||
| Cap/Sales | 1.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.35% | ||
| Profit Quality | 78.92% | ||
| Current Ratio | 2.14 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 2.56 |
F-Score7
WACC11.32%
ROIC/WACC0.52
Cap/Depr(3y)53.76%
Cap/Depr(5y)58.94%
Cap/Sales(3y)1.96%
Cap/Sales(5y)2.18%
Profit Quality(3y)80.46%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.02%
EPS 3Y-5.63%
EPS 5Y-13.37%
EPS Q2Q%-4%
EPS Next Y40.42%
EPS Next 2Y40.31%
EPS Next 3Y31.64%
EPS Next 5YN/A
Revenue 1Y (TTM)10.3%
Revenue growth 3Y5.77%
Revenue growth 5Y1.63%
Sales Q2Q%-10.2%
Revenue Next Year-5.31%
Revenue Next 2Y0.71%
Revenue Next 3Y2.67%
Revenue Next 5YN/A
EBIT growth 1Y-14.07%
EBIT growth 3Y-5.19%
EBIT growth 5Y-9.38%
EBIT Next Year23.19%
EBIT Next 3Y18.23%
EBIT Next 5YN/A
FCF growth 1Y598.81%
FCF growth 3Y-63.13%
FCF growth 5Y-47.42%
OCF growth 1Y683.83%
OCF growth 3Y-38.41%
OCF growth 5Y-26.51%