NYSE:DOV

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

1.3%

DOV

3.2%

US Machinery

1.0%

US Market


1 Year Return

16.9%

DOV

2.3%

US Machinery

6.7%

US Market

Return vs Industry: DOV exceeded the US Machinery industry which returned 2.3% over the past year.

Return vs Market: DOV exceeded the US Market which returned 6.7% over the past year.


Share holder returns

DOVIndustryMarket
7 Day1.3%3.2%1.0%
30 Day-3.8%-3.5%-1.8%
90 Day-3.4%-4.6%-1.8%
1 Year19.5%16.9%4.5%2.3%9.1%6.7%
3 Year88.7%41.8%46.3%36.8%46.1%36.6%
5 Year79.6%28.6%60.6%41.3%66.9%48.6%

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

Valuation

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

22.61x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: DOV ($95.91) is trading above our estimate of fair value ($93.1)

Significantly Undervalued: DOV is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: DOV is poor value based on its PE Ratio (22.6x) compared to the Machinery industry average (19.7x).

PE vs Market: DOV is poor value based on its PE Ratio (22.6x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: DOV is poor value based on its PEG Ratio (2.3x)


Price Based on Value of Assets

PB vs Industry: DOV is overvalued based on its PB Ratio (4.7x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

How is Dover expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: DOV's forecast earnings growth (9.9% per year) is above the savings rate (2.7%).

Earnings vs Market: DOV's earnings (9.9% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: DOV's revenue (2.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: DOV's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: DOV's Return on Equity is forecast to be high in 3 years time (29.6%)


Next Steps

Past Performance

How has Dover performed over the past 5 years?

-2.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DOV's earnings have declined by -2.2% 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 (-14.6%) over the past year, making it difficult to compare to the Machinery industry average (18.7%).


Return on Equity

High ROE: Whilst DOV's Return on Equity (20.95%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: DOV has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: DOV has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Dover's financial position?


Financial Position Analysis

Short Term Liabilities: DOV's short term assets ($2.6B) exceeds its short term liabilities ($2.0B)

Long Term Liabilities: DOV's short term assets (2.6B) do not cover its long term liabilities (3.9B)


Debt to Equity History and Analysis

Debt Level: DOV's debt to equity ratio (111.8%) is considered high

Reducing Debt: DOV's debt to equity ratio has increased from 67.9% to 111.8% over the past 5 years.

Debt Coverage: DOV's debt is well covered by operating cash flow (25.4%).

Interest Coverage: DOV's interest payments on its debt are well covered by EBIT (8.3x 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?

2.17%

Expected Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.5%markettop25%3.8%industryaverage1.7%forecastin3Years2.2%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: DOV's dividend (2.04%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: DOV's dividend (2.04%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 (45.3%), 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 (30.9% 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?

7.3yrs

Average management tenure


CEO

Rich Tobin (58yo)

1.4yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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

7.3yrs

Average Tenure

58yo

Average Age

Experienced Management: DOV's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

62yo

Average Age

Experienced Board: DOV's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$1,973,16226 Jul 19
William Spurgeon
EntityIndividual
Role
Unit CEO
CEO & President of Dover Fluids
Shares20,049
Max PriceUS$98.42
SellUS$1,510,77425 Jul 19
Jay Kloosterboer
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources
Shares15,416
Max PriceUS$98.00
SellUS$383,92201 Mar 19
Anthony Kosinski
EntityIndividual
Shares4,241
Max PriceUS$90.53
SellUS$831,02927 Feb 19
Carrie Anderson
EntityIndividual
Shares9,038
Max PriceUS$92.03
SellUS$641,60912 Feb 19
Ivonne Cabrera
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares7,272
Max PriceUS$88.23
SellUS$1,142,37808 Feb 19
William Spurgeon
EntityIndividual
Role
Unit CEO
CEO & President of Dover Fluids
Shares13,102
Max PriceUS$87.19
SellUS$1,082,14205 Feb 19
Jay Kloosterboer
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources
Shares12,363
Max PriceUS$87.53
SellUS$164,58025 Oct 18
Mary Winston
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$82.29

Ownership Breakdown


Management Team

  • Rich Tobin (58yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$28.02m
  • Jay Kloosterboer (58yo)

    Senior Vice President of Human Resources

    • Tenure: 8.4yrs
    • Compensation: US$1.71m
  • Bill Spurgeon (60yo)

    CEO & President of Dover Fluids

    • Tenure: 0yrs
    • Compensation: US$2.24m
  • Brad Cerepak (60yo)

    Senior VP & CFO

    • Tenure: 8.4yrs
    • Compensation: US$3.33m
  • Paul Goldberg (55yo)

    Vice President of Investor Relations

    • Tenure: 7.9yrs
  • Adrian Sakowicz (61yo)

    Vice President of Communications

    • Tenure: 8.8yrs
  • Ivonne Cabrera (52yo)

    Senior VP

    • Tenure: 6.8yrs
    • Compensation: US$1.85m
  • David Malinas (44yo)

    Senior Vice President of Operations

    • Tenure: 0.3yrs
  • Andrey Galiuk

    Vice President of Corporate Development & Investor Relations

    • Tenure: 0yrs
  • Ryan Paulson

    Principal Accounting Officer

    • Tenure: 0.4yrs

Board Members

  • Mike Johnston (71yo)

    Independent Chairman

    • Tenure: 3.4yrs
    • Compensation: US$399.97k
  • Keith Wandell (69yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$257.48k
  • Kristiane Graham (61yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$249.97k
  • Mary Winston (57yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$257.47k
  • Rich Tobin (58yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$28.02m
  • Eric Spiegel (61yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$257.48k
  • Stephen Todd (70yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$261.23k
  • Stephen Wagner (71yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$259.97k
  • H. Gilbertson (62yo)

    Independent Director

    • Tenure: 1.2yrs
    • 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: NYSE
  • Founded: 1947
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$13.949b
  • Shares outstanding: 145.44m
  • 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: Eng ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:33
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.

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