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DOV

Dover NYSE:DOV Stock Report

Last Price

US$116.67

Market Cap

US$16.4b

7D

-4.9%

1Y

-26.5%

Updated

27 Sep, 2022

Data

Company Financials +
DOV fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance6/6
Financial Health4/6
Dividends5/6

DOV Stock Overview

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

Dover Corporation Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Dover
Historical stock prices
Current Share PriceUS$116.67
52 Week HighUS$184.05
52 Week LowUS$115.02
Beta1.37
1 Month Change-8.84%
3 Month Change-3.79%
1 Year Change-26.55%
3 Year Change21.19%
5 Year Change25.40%
Change since IPO1,182.97%

Recent News & Updates

Sep 08

Dover Corporation: Steady Booking And Undervaluation Would Keep You Interested

Summary A higher backlog and greater-than-one book-to-bill ratio signal improved revenue visibility for Dover Corporation in 2H 2022. Higher productivity and improved price-cost spread would be margin accretive in 2H 2022. Although Dover's liquidity is robust, a high leverage and decreased cash flows can add to the uncertainty. Dover stock is relatively undervalued. Dover's Prospects And Challenges Dover Corporation (DOV) provides various equipment, component, services, and software used in aftermarket vehicle service, solid waste handling, industrial automation, and related fields. While the supply chain disruptions have long pestered the company, it appears the issues are receding. The end of the pandemic has opened up the demand side, as reflected in the increased backlog and order rate over the past year. Strong U.S. demand for garbage collection vehicles and parts has increased its sales. Higher productivity and improved price-cost spread would be margin accretive in 2H 2022. However, there is also uncertainty over the economic impact of the current recession. The indicators signal a slightly dimmer outlook for the company in the short term. The supply chain issue also took its toll on the cash flows. It has high leverage, which can be concerning when tagged with low cash flows. Fortunately, it has sufficient liquidity, which should lower the long-term financial risks. Dover stock is relatively undervalued compared to its peers. The recent share repurchase program and dividend hike also point to management's confidence in its value. Over the medium term, I think investors might want to buy the stock with expectations of improved returns. Bookings And Indicators Dover Corporation's Filings In Q2 2022, DOV's total backlog was ~30% higher than a year ago because of extended lead times following supply chain issues and changes in product mix. On a 12-month basis, the backlog is higher than in the past few years. Although it came down in Q2 compared to Q1 (2.8% down), it may also indicate that the supply chain issues are easing. The organic booking growth has also declined in the past quarter. The book-to-bill ratio is higher than 1x and in line with historical trends. The company's management believes that the steadiness in backlog point to a positive outlook in 2023. United States Census Bureau However, the specter of supply disruption and cost inflation is not over. Couple with this is the current weakness in economic activities and the fear of a recession. In August, the ISM Manufacturing PMI was 52.8, indicating low factory growth and softening prices. New orders, however, staged a comeback. According to the U.S. Bureau of Labor Statistics, the U.S. unemployment remained low (3.7%) in August, down from 5.2% a year ago. According to the US Census Bureau, the new privately-owned housing units decreased by 9% in July 2022 compared to the beginning of the year. Overall, I think the indicators signal a slightly dimmer outlook for the company in the short term. Therefore, the company needs to adapt to a cost and working capital structure that respond quickly to the changes in demand. The company's backlog and order rate seem comfortable and inflect in 2H 2022. Outlook: Engineered Products And Clean Energy & Fueling Seeking Alpha The Engineered Products segment, which has the highest share in the revenue mix (22% of Q2 revenues), will likely remain robust in the short to medium term due to increased backlogs and price hikes. Demand for garbage collection vehicles and parts remains strong in the U.S. The digital business would also do well. Higher productivity and improved price-cost spread would be margin accretive in 2H 2022. In Q2, the segment topline grew by 5% compared to Q1, while the segment EBITDA went up by 13%. The Clean Energy and Fueling segment, despite a lukewarm performance in 1H 2022, can see the revenue growth pick up in 2H 2022. In Q2, revenues in this segment increased by 8% compared to Q1 as volumes increased. The adjusted EBITDA also expanded 30% from Q1 to Q2 due to improved cost dynamics and product mix. Demand for fuel transport vehicle wash, below-ground retail fueling, and software solutions would keep its topline strong in the near term. The Outlook In Other Segments The Pumps and Process Solutions segment can see headwinds in demand growth. On the energy side, the crude oil price weakened in Q3 after the highs in early 2022. While the completed wells have increased rapidly since 2022, the DUC (drilled by uncompleted) wells have declined. In biopharma, the manufacturers are fast transitioning from COVID-related businesses to other growing biologic therapies, which can affect their product portfolio adversely in the near term. The supply chain-related issues are being worked out. DOV's Imaging & ID segment volumes can increase in 2H 2022 as component shortages recover in China. Recently, the company saw approved order rates for large-scale printers and digital textile printing. So, margins can improve in 2H 2022 following better volume and cost containment measures adopted by the company. The expected improvement in result would be crucial given the stagnant performance in Q2 when revenues remained unchanged and adjusted EBITDA remained unchanged. The Climate & Sustainability Technologies, which saw the highest revenue and EBITDA growth among its segments in Q2, would continue to do well in 2H 2022, posting double-digit organic growth. Pricing traction in food retail and removal of input shortages would result in deferred shipments in the year's second half. Steady Dividend In August, DOV increased its quarterly dividend marginally, by 1%, to $0.505 per share, or $2.02 annualized, translating into a 1.58% dividend yield. Snap-on Incorporated's (SNA) forward dividend yield is 2.66% while Fortive Corporation's (FTV) dividend yield is lower (0.45%). Cash Flows And Debt In 1H 2022, DOV's cash flow from operations (or CFO) decreased by 54% compared to a year ago. Despite a mild year-over-year revenue rise, the deterioration in working capital led to the CFO's fall. Investments in inventory due to high backlog following the supply chain infused input shortages caused higher working capital requirements in 1H 2022. Receivable balances also increased, creating more strain on the cash flows. Capex, excluding the acquisition part, raised in 1H 2022, leading to a 72% lower free cash flow (or FCF) in the past year.

Aug 31

Dover announces $500M accelerated share repurchase program

Dover (NYSE:DOV) on Wednesday announced an accelerated share repurchase program with Bank of America to buy back $500M of its stock. The program will be part of DOV's existing repurchase authorization for 20M shares. A majority of the shares expected to be retired over the course of the program will be received by DOV on Sept. 1. DOV will fund the accelerated share repurchases with commercial paper. Final settlement is expected to be completed prior to Q4-end, but the program may be terminated earlier.

Aug 08
Dover (NYSE:DOV) Is Increasing Its Dividend To $0.505

Dover (NYSE:DOV) Is Increasing Its Dividend To $0.505

Dover Corporation's ( NYSE:DOV ) periodic dividend will be increasing on the 15th of September to $0.505, with...

Jul 30
Does Dover (NYSE:DOV) Have A Healthy Balance Sheet?

Does Dover (NYSE:DOV) Have A Healthy Balance Sheet?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

DOVUS MachineryUS Market
7D-4.9%-6.6%-5.8%
1Y-26.5%-19.9%-22.1%

Return vs Industry: DOV underperformed the US Machinery industry which returned -20.8% over the past year.

Return vs Market: DOV underperformed the US Market which returned -23.7% over the past year.

Price Volatility

Is DOV's price volatile compared to industry and market?
DOV volatility
DOV Average Weekly Movement3.8%
Machinery Industry Average Movement5.4%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: DOV is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DOV's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194725,000Rich Tobinhttps://www.dovercorporation.com

Dover Corporation provides equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services worldwide. The Engineered Products segment provides various equipment, component, software, solution, and services that are used in aftermarket vehicle service, solid waste handling, industrial automation, aerospace and defense, industrial winch and hoist, and fluid dispensing end-market. This segment also offers manual and power clamp, rotary and linear mechanical indexer, conveyor, pick and place unit, glove port, and manipulator, as well as end-of-arm robotic gripper, slide, and end effector.

Dover Corporation Fundamentals Summary

How do Dover's earnings and revenue compare to its market cap?
DOV fundamental statistics
Market CapUS$16.37b
Earnings (TTM)US$1.14b
Revenue (TTM)US$8.22b

14.3x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DOV income statement (TTM)
RevenueUS$8.22b
Cost of RevenueUS$5.21b
Gross ProfitUS$3.01b
Other ExpensesUS$1.86b
EarningsUS$1.14b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)8.14
Gross Margin36.58%
Net Profit Margin13.90%
Debt/Equity Ratio75.9%

How did DOV perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

25%

Payout Ratio