NYSE:PLOW

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

2.4%

PLOW

2.5%

US Machinery

0.4%

US Market


1 Year Return

6.6%

PLOW

8.5%

US Machinery

6.9%

US Market

Return vs Industry: PLOW underperformed the US Machinery industry which returned 8.5% over the past year.

Return vs Market: PLOW matched the US Market which returned 6.9% over the past year.


Shareholder returns

PLOWIndustryMarket
7 Day2.4%2.5%0.4%
30 Day-0.3%0.9%-1.1%
90 Day13.6%-0.4%-0.5%
1 Year9.6%6.6%10.8%8.5%9.3%6.9%
3 Year50.5%38.8%49.9%40.2%45.8%36.4%
5 Year158.9%120.3%57.6%38.3%62.9%45.1%

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

Valuation

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

20.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: PLOW ($45.1) is trading above our estimate of fair value ($41.82)

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


Price To Earnings Ratio

PE vs Industry: PLOW is poor value based on its PE Ratio (20.9x) compared to the Machinery industry average (20.1x).

PE vs Market: PLOW is poor value based on its PE Ratio (20.9x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: PLOW is poor value based on its PEG Ratio (5.8x)


Price to Book Ratio

PB vs Industry: PLOW is overvalued based on its PB Ratio (3.5x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

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

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PLOW's forecast earnings growth (3.6% per year) is above the savings rate (2.7%).

Earnings vs Market: PLOW's earnings (3.6% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: PLOW's revenue (3.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: PLOW's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if PLOW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Douglas Dynamics performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PLOW's earnings have grown by 8.4% per year over the past 5 years.

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

Earnings vs Industry: PLOW had negative earnings growth (-21.1%) over the past year, making it difficult to compare to the Machinery industry average (17.5%).


Return on Equity

High ROE: PLOW's Return on Equity (16.9%) is considered low.


Return on Assets

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


Return on Capital Employed

ROCE Improving: PLOW's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Douglas Dynamics's financial position?


Financial Position Analysis

Short Term Liabilities: PLOW's short term assets ($227.0M) exceeds its short term liabilities ($89.9M)

Long Term Liabilities: PLOW's short term assets (227.0M) do not cover its long term liabilities (339.5M)


Debt to Equity History and Analysis

Debt Level: PLOW's debt to equity ratio (97.9%) is considered high

Reducing Debt: PLOW's debt to equity ratio has increased from 68% to 97.9% over the past 5 years.

Debt Coverage: PLOW's debt is not well covered by operating cash flow (16.3%).

Interest Coverage: PLOW's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

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

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


Next Steps

Dividend

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

2.42%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PLOW's dividend (2.42%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: PLOW's dividend (2.42%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: Whilst dividend payments have been stable, PLOW has been paying a dividend for less than 10 years.

Growing Dividend: PLOW's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.7%), PLOW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Bob McCormick (58yo)

0.8yrs

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

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

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.5yrs

Average Tenure

58yo

Average Age

Experienced Management: PLOW's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

7.3yrs

Average Tenure

62yo

Average Age

Experienced Board: PLOW's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$247,84518 Mar 19
Andrew Dejana
EntityIndividual
Role
Consultant
Consultant
Shares6,500
Max PriceUS$38.13
SellUS$569,95107 Mar 19
James Janik
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares14,028
Max PriceUS$40.63
SellUS$56,43407 Mar 19
Jonathon Sievert
EntityIndividual
Role
Senior Key Executive
President of Work Truck Solutions
Shares1,389
Max PriceUS$40.63
SellUS$42,05207 Mar 19
Andrew Dejana
EntityIndividual
Role
Consultant
Consultant
Shares1,035
Max PriceUS$40.63
SellUS$45,30207 Mar 19
Sarah Lauber
EntityIndividual
Role
Chief Financial Officer
CFO & Secretary
Shares1,115
Max PriceUS$40.63
SellUS$21,00507 Mar 19
Jon Sisulak
EntityIndividual
Role
Controller
Corporate Controller & Assistant Secretary
Shares517
Max PriceUS$40.63
SellUS$128,14507 Mar 19
Keith Hagelin
EntityIndividual
Role
Unit President
President of Commercial Snow & Ice
Shares3,154
Max PriceUS$40.63
SellUS$271,68907 Mar 19
Robert McCormick
EntityIndividual
Role
Chief Executive Officer
President
Shares6,687
Max PriceUS$40.63
BuyUS$40,77506 Dec 18
Robert Young
EntityIndividual
Shares1,165
Max PriceUS$35.00

Ownership Breakdown


Management Team

  • Andy Dejana (58yo)

    Consultant

    • Tenure: 0.5yrs
    • Compensation: US$683.45k
  • Bob McCormick (58yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$1.46m
  • Jim Janik (62yo)

    Executive Chairman

    • Tenure: 5.5yrs
    • Compensation: US$2.63m
  • Keith Hagelin (58yo)

    President of Commercial Snow & Ice

    • Tenure: 2.3yrs
    • Compensation: US$887.59k
  • Sarah Lauber (47yo)

    CFO & Secretary

    • Tenure: 2.2yrs
    • Compensation: US$1.02m
  • Jonathon Sievert (43yo)

    President of Work Truck Solutions

    • Tenure: 2.6yrs
    • Compensation: US$482.70k
  • Jon Sisulak

    Corporate Controller & Assistant Secretary

    • Tenure: 0yrs
  • Shannan Vlieger

    Director of Operational Excellence

    • Tenure: 0yrs
  • Jesse Pilachowski

    Director of Organizational Development

    • Tenure: 0yrs
  • Linda Evans

    Vice President of Human Resources

    • Tenure: 0yrs

Board Members

  • James Packard (76yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$134.90k
  • Jim Staley (69yo)

    Lead Director

    • Tenure: 5.5yrs
    • Compensation: US$159.90k
  • Ken Krueger (63yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$148.90k
  • Margaret Dano (60yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$144.90k
  • Bob McCormick (58yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$1.46m
  • Don Sturdivant (58yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$144.90k
  • Jim Janik (62yo)

    Executive Chairman

    • Tenure: 5.5yrs
    • Compensation: US$2.63m

Company Information

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


Key Information

  • Name: Douglas Dynamics, Inc.
  • Ticker: PLOW
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: US$1.028b
  • Shares outstanding: 22.80m
  • Website: https://www.douglasdynamics.com

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 Analysis2019/10/20 00:16
End of Day Share Price2019/10/18 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.