DB:5D4

Stock Analysis Report

Executive Summary

Douglas Dynamics, Inc. operates as a manufacturer and upfitter of commercial work truck attachments and equipment primarily in North America.

Snowflake

Fundamentals

Imperfect balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Douglas Dynamics's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.8%

DB:5D4

-2.2%

DE Machinery

-0.9%

DE Market


1 Year Return

-14.3%

DB:5D4

-30.8%

DE Machinery

-7.4%

DE Market

5D4 outperformed the Machinery industry which returned -30.9% over the past year.

5D4 underperformed the Market in Germany which returned -7.6% over the past year.


Share holder returns

5D4IndustryMarket
7 Day-0.8%-2.2%-0.9%
30 Day2.7%-9.0%-0.4%
90 Day3.2%-17.7%-3.7%
1 Year-11.9%-14.3%-28.5%-30.8%-4.4%-7.4%
3 Year60.0%49.3%-18.2%-24.0%18.3%8.1%
5 Year228.6%181.5%5.1%-0.2%29.9%12.0%

Price Volatility Vs. Market

How volatile is Douglas Dynamics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Douglas Dynamics undervalued based on future cash flows and its price relative to the stock market?

20.09x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Douglas Dynamics's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Douglas Dynamics's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Douglas Dynamics is overvalued based on earnings compared to the DE Machinery industry average.

Douglas Dynamics is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

Douglas Dynamics is poor value based on expected growth next year.


Price Based on Value of Assets

Douglas Dynamics is overvalued based on assets compared to the DE Machinery industry average.


Next Steps

Future Growth

How is Douglas Dynamics expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Douglas Dynamics's revenue is expected to grow by 4% yearly, however this is not considered high growth (20% yearly).

Douglas Dynamics's earnings are expected to grow by 8.2% yearly, however this is not considered high growth (20% yearly).

Douglas Dynamics's revenue growth is positive but not above the Germany market average.

Douglas Dynamics's earnings growth is positive but not above the Germany market average.

Douglas Dynamics's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Douglas Dynamics will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Douglas Dynamics performed over the past 5 years?

11.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Douglas Dynamics's year on year earnings growth rate has been positive over the past 5 years.

Douglas Dynamics's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Douglas Dynamics's 1-year earnings growth is negative, it can't be compared to the DE Machinery industry average.


Return on Equity

Douglas Dynamics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Douglas Dynamics used its assets more efficiently than the DE Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Douglas Dynamics's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Douglas Dynamics's financial position?


Financial Position Analysis

Douglas Dynamics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Douglas Dynamics's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Douglas Dynamics's level of debt (98.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (72.5% vs 98.5% today).

Debt is not well covered by operating cash flow (14.1%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

What is Douglas Dynamics's current dividend yield, its reliability and sustainability?

2.74%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Douglas Dynamics's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.48%).

Douglas Dynamics's dividend is below the markets top 25% of dividend payers in Germany (3.92%).

Whilst dividend payments have been stable, Douglas Dynamics has been paying a dividend for less than 10 years.

Dividend payments have increased, but Douglas Dynamics only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Douglas Dynamics's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Bob McCormick (58yo)

0.5yrs

Tenure

US$1,455,711

Compensation

Mr. Robert L. Mccormick, also known as Bob, has been President, CEO and Director of Douglas Dynamics, Inc., since January 1, 2019. Mr. Mccormick served as Chief Operating Officer of Douglas Dynamics, Inc.  ...


CEO Compensation Analysis

Bob's remuneration is about average for companies of similar size in Germany.

Bob's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.2yrs

Average Tenure

58yo

Average Age

The average tenure for the Douglas Dynamics management team is less than 2 years, this suggests a new team.


Board Age and Tenure

7.1yrs

Average Tenure

62yo

Average Age

The tenure for the Douglas Dynamics board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

Buy€218,89718 Mar 19
Andrew Dejana
EntityIndividual
Role
Consultant
Shares6,500
Max Price€33.68
Sell€503,60807 Mar 19
James Janik
EntityIndividual
Role
Executive Chairman
Chairman of the Board
Shares14,028
Max Price€35.90
Sell€49,86507 Mar 19
Jonathon Sievert
EntityIndividual
Role
President of Work Truck Solutions
Shares1,389
Max Price€35.90
Sell€37,15707 Mar 19
Andrew Dejana
EntityIndividual
Role
Consultant
Shares1,035
Max Price€35.90
Sell€40,02907 Mar 19
Sarah Lauber
EntityIndividual
Role
CFO & Secretary
Shares1,115
Max Price€35.90
Sell€18,56007 Mar 19
Jon Sisulak
EntityIndividual
Role
Corporate Controller & Assistant Secretary
Shares517
Max Price€35.90
Sell€113,22907 Mar 19
Keith Hagelin
EntityIndividual
Role
President of Commercial Snow & Ice
Shares3,154
Max Price€35.90
Sell€240,06507 Mar 19
Robert McCormick
EntityIndividual
Role
President
Member of the Board of Directors
Shares6,687
Max Price€35.90
Buy€35,85806 Dec 18
Robert Young
EntityIndividual
Shares1,165
Max Price€30.78
Sell€45,52717 Aug 18
Jonathon Sievert
EntityIndividual
Role
President of Work Truck Solutions
Shares1,200
Max Price€37.94

Ownership Breakdown


Management Team

  • Andy Dejana (58yo)

    Consultant

    • Tenure: 0.3yrs
    • Compensation: $683.45k
  • Bob McCormick (58yo)

    President

    • Tenure: 0.5yrs
    • Compensation: $1.46m
  • Jim Janik (62yo)

    Executive Chairman

    • Tenure: 0.5yrs
    • Compensation: $2.63m
  • Keith Hagelin (58yo)

    President of Commercial Snow & Ice

    • Tenure: 2.1yrs
    • Compensation: $887.59k
  • Sarah Lauber (47yo)

    CFO & Secretary

    • Tenure: 1.9yrs
    • Compensation: $1.02m
  • Jonathon Sievert (43yo)

    President of Work Truck Solutions

    • Tenure: 2.3yrs
    • Compensation: $482.70k
  • Jon Sisulak

    Corporate Controller & Assistant Secretary


Board Members

  • James Packard (76yo)

    Independent Director

    • Tenure: 9.0yrs
    • Compensation: $134.90k
  • Jim Staley (69yo)

    Lead Director

    • Tenure: 5.3yrs
    • Compensation: $159.90k
  • Ken Krueger (63yo)

    Independent Director

    • Tenure: 8.0yrs
    • Compensation: $148.90k
  • Margaret Dano (60yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: $144.90k
  • Bob McCormick (58yo)

    President

    • Tenure: 0.5yrs
    • Compensation: $1.46m
  • Don Sturdivant (58yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: $144.90k
  • Jim Janik (62yo)

    Executive Chairman

    • Tenure: 5.3yrs
    • Compensation: $2.63m

Company Information

Douglas Dynamics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Douglas Dynamics, Inc.
  • Ticker: 5D4
  • Exchange: DB
  • Founded: 2004
  • Industry: construction machinery and heavy trucks
  • Sector: capital goods
  • Market Cap: US$902.242m
  • Listing Market Cap: US$804.169m
  • Shares outstanding: 22.80m
  • Website: Click here

Number of Employees


Location

  • Douglas Dynamics, Inc.
  • 7777 North 73rd Street
  • Milwaukee
  • Wisconsin
  • 53233
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PLOWNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2010
5D4DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2010

Biography

Douglas Dynamics, Inc. operates as a manufacturer and upfitter of commercial work truck attachments and equipment primarily in North America. It operates in two segments, Work Truck Attachments and Work Tr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/22 21:26
End of Day Share Price2019/07/22 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.