DB:DOV

Stock Analysis Report

Executive Summary

Dover Corporation provides equipment and components, specialty systems, consumable supplies, software and digital solutions, and support services worldwide.

Rewards

Trading at 5.9% below its fair value

Earnings are forecast to grow 11.35% per year

Pays a high and reliable dividend of 1.67%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Established dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: DOV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

DOV

0.09%

DE Machinery

0.07%

DE Market


1 Year Return

53.2%

DOV

-6.0%

DE Machinery

14.8%

DE Market

Return vs Industry: DOV exceeded the German Machinery industry which returned -2.6% over the past year.

Return vs Market: DOV exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

DOVIndustryMarket
7 Day1.9%0.09%0.07%
30 Day3.9%0.6%1.4%
90 Day16.9%7.1%6.1%
1 Year56.4%53.2%-3.0%-6.0%18.4%14.8%
3 Year101.6%46.1%-10.7%-17.1%17.4%7.0%
5 Year144.6%68.7%11.9%-0.8%27.9%10.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Dover undervalued compared to its fair value and its price relative to the market?

4.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DOV (€105) is trading below our estimate of fair value (€111.57)

Significantly Below Fair Value: DOV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DOV is poor value based on its PE Ratio (25.5x) compared to the Machinery industry average (16.7x).

PE vs Market: DOV is poor value based on its PE Ratio (25.5x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: DOV is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: DOV is overvalued based on its PB Ratio (5.6x) compared to the DE Machinery industry average (1.5x).


Next Steps

Future Growth

How is Dover forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DOV's forecast earnings growth (11.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: DOV's earnings (11.3% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: DOV's earnings are forecast to grow, but not significantly.

Revenue vs Market: DOV's revenue (2.6% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: DOV's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DOV's Return on Equity is forecast to be high in 3 years time (30.9%)


Next Steps

Past Performance

How has Dover performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DOV has high quality earnings.

Growing Profit Margin: DOV's current net profit margins (9.3%) are lower than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: DOV's earnings have declined by -1% per year over the past 5 years.

Accelerating Growth: DOV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DOV had negative earnings growth (-7.6%) over the past year, making it difficult to compare to the Machinery industry average (-13.7%).


Return on Equity

High ROE: Whilst DOV's Return on Equity (22.13%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dover's financial position?


Financial Position Analysis

Short Term Liabilities: DOV's short term assets ($2.6B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: DOV's short term assets ($2.6B) do not cover its long term liabilities ($3.8B).


Debt to Equity History and Analysis

Debt Level: DOV's debt to equity ratio (102.4%) is considered high.

Reducing Debt: DOV's debt to equity ratio has increased from 69.6% to 102.4% over the past 5 years.

Debt Coverage: DOV's debt is well covered by operating cash flow (30.7%).

Interest Coverage: DOV's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet

Inventory Level: DOV has a high level of physical assets or inventory.

Debt Coverage by Assets: DOV's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

1.64%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.5%industryaverage2.2%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: DOV's dividend (1.67%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: DOV's dividend (1.67%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: DOV's dividends per share have been stable in the past 10 years.

Growing Dividend: DOV's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42%), DOV's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DOV's dividends in 3 years are forecast to be well covered by earnings (29.6% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Rich Tobin (58yo)

1.7yrs

Tenure

US$28,021,305

Compensation

Mr. Richard Joseph Tobin, also known as Rich, is President and Chief Executive Officer at Dover Corporation since May 01, 2018. He was the Chief Executive Officer of CNH Industrial N.V. since January 2012  ...


CEO Compensation Analysis

Compensation vs Market: Rich's total compensation ($USD28.02M) is above average for companies of similar size in the German market ($USD4.52M).

Compensation vs Earnings: Rich's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.9yrs

Average Tenure

56.5yo

Average Age

Experienced Management: DOV's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

62yo

Average Age

Experienced Board: DOV's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: DOV insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€405,19226 Nov 19
Ivonne Cabrera
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares4,055
Max Price€99.92
Sell€651,15425 Nov 19
William Spurgeon
EntityIndividual
Shares6,559
Max Price€99.28
Sell€98,98307 Nov 19
Kristiane Graham
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max Price€98.98
Sell€1,774,46526 Jul 19
William Spurgeon
EntityIndividual
Shares20,049
Max Price€88.51
Sell€1,353,95625 Jul 19
Jay Kloosterboer
EntityIndividual
Shares15,416
Max Price€87.83
Sell€337,12201 Mar 19
Anthony Kosinski
EntityIndividual
Shares4,241
Max Price€79.49
Sell€731,14027 Feb 19
Carrie Anderson
EntityIndividual
Shares9,038
Max Price€80.97
Sell€566,98912 Feb 19
Ivonne Cabrera
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares7,272
Max Price€77.97
Sell€1,005,97808 Feb 19
William Spurgeon
EntityIndividual
Shares13,102
Max Price€76.78
Sell€948,71405 Feb 19
Jay Kloosterboer
EntityIndividual
Shares12,363
Max Price€76.74

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Rich Tobin (58yo)

    President

    • Tenure: 1.7yrs
    • Compensation: US$28.02m
  • Brad Cerepak (60yo)

    Senior VP & CFO

    • Tenure: 8.7yrs
    • Compensation: US$3.33m
  • Paul Goldberg (55yo)

    Vice President of Investor Relations

    • Tenure: 8.2yrs
  • Adrian Sakowicz (61yo)

    Vice President of Communications

    • Tenure: 9yrs
  • Ivonne Cabrera (52yo)

    Senior VP

    • Tenure: 7yrs
    • Compensation: US$1.85m
  • Stephen Kennon (59yo)

    Senior Vice President

    • Tenure: 3.9yrs
  • Russell Toney (49yo)

    Senior Vice President of Global Sourcing

    • Tenure: 4.9yrs
  • David Malinas (44yo)

    Senior Vice President of Operations

    • Tenure: 0.5yrs
  • Andrey Galiuk

    Vice President of Corporate Development & Investor Relations

    • Ryan Paulson

      Principal Accounting Officer

      • Tenure: 0.7yrs

    Board Members

    • Mike Johnston (71yo)

      Independent Chairman

      • Tenure: 3.7yrs
      • Compensation: US$399.97k
    • Keith Wandell (69yo)

      Independent Director

      • Tenure: 4.2yrs
      • Compensation: US$257.48k
    • Kristiane Graham (61yo)

      Independent Director

      • Tenure: 21yrs
      • Compensation: US$249.98k
    • Mary Winston (57yo)

      Independent Director

      • Tenure: 15yrs
      • Compensation: US$257.48k
    • Rich Tobin (58yo)

      President

      • Tenure: 1.7yrs
      • Compensation: US$28.02m
    • Eric Spiegel (61yo)

      Independent Director

      • Tenure: 2.9yrs
      • Compensation: US$257.48k
    • Stephen Todd (70yo)

      Independent Director

      • Tenure: 9.2yrs
      • Compensation: US$261.23k
    • Stephen Wagner (71yo)

      Independent Director

      • Tenure: 9.2yrs
      • Compensation: US$259.98k
    • H. Gilbertson (62yo)

      Independent Director

      • Tenure: 1.4yrs
      • Compensation: US$114.13k

    Company Information

    Dover Corporation's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Dover Corporation
    • Ticker: DOV
    • Exchange: DB
    • Founded: 1947
    • Industry: Industrial Machinery
    • Sector: Capital Goods
    • Market Cap: US$17.364b
    • Listing Market Cap: US$15.653b
    • Shares outstanding: 145.27m
    • Website: https://www.dovercorporation.com

    Number of Employees


    Location

    • Dover Corporation
    • 3005 Highland Parkway
    • Downers Grove
    • Illinois
    • 60515
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    DOVNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
    0ICPLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
    DOVDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

    Biography

    Dover Corporation provides equipment and components, specialty systems, consumable supplies, software and digital solutions, and support services worldwide. The company operates through three segments: Engineered Systems, Fluids, and Refrigeration & Food Equipment. The Engineered Systems segment offers precision marking and coding, digital textile printing, soldering and dispensing equipment, and related consumables and services; and automation components, including manual and power clamps, rotary and linear mechanical indexers, conveyors, pick and place units, glove ports, and manipulators, as well as end-of-arm robotic grippers, slides, and end effectors for fast-moving consumer goods, digital textile printing, vehicle service, environmental solutions, and industrials end markets. The Fluids segment handles fluids across the retail fueling, chemical, hygienic, oil and gas, and industrial markets. This segment also manufactures pumps that are used to transfer liquid and bulk products in various markets, including refined fuels, liquefied petroleum gas, food/sanitary, transportation, and chemical process industries; pumps and connectors for use in various bio-processing, medical, and specialty applications; and pumps, filtration systems, pelletizing equipment, compressors, and bearings for use in the chemical, polymer, power generation, oil and gas, industrial, and marine industries. The Refrigeration & Food Equipment segment manufactures refrigeration systems, refrigeration display cases, specialty glass, commercial glass refrigerator and freezer doors, and brazed heat exchangers for industrial and climate control; and electrical distribution products and engineering services, commercial food service equipment, wash systems, cook-chill production systems, custom food storage and preparation products, kitchen ventilation systems, conveyer systems, and beverage can-making machinery. The company was founded in 1947 and is headquartered in Downers Grove, Illinois. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/19 21:19
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    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.