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Dover (DOV)
NYSE:DOV
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Dover
(NYSE:DOV)77Outperform
Positive Factors
Earnings
4Q adjusted EPS of $2.20 was above estimate and consensus.
Growth Potential
Potential upside to organic growth underpinned by strong bookings momentum.
Negative Factors
Market Re-Rating
There are limited secular growth drivers due to the diverse end markets, making re-rating difficult.
Dover (DOV) vs. S&P 500 (SPY)
Market Cap
$25.26B
Dividend Yield1.12%
Average Volume (3M)901.74K
Price to Earnings (P/E)9.5
Beta (1Y)1.17
Revenue Growth-2.99%
EPS Growth159.26%
CountryUS
Employees24,000
SectorIndustrials
Sector Strength66
IndustryIndustrial Goods
Share Statistics
EPS (TTM)19.45
Shares Outstanding137,225,400
10 Day Avg. Volume946,771
30 Day Avg. Volume901,739
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)N/A
Price to Sales (P/S)3.24
Price to Cash Flow (P/CF)15.10
P/FCF Ratio15.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$206.24Price Target Upside8.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
Dover Business Overview & Revenue Model
Company DescriptionDover Corporation (DOV) is a diversified global manufacturer that delivers innovative equipment and components, specialty systems, and support services through a broad range of industries, including energy, engineered systems, fluids, and refrigeration & food equipment. The company operates through several segments, providing highly engineered products and solutions to its customers worldwide, ensuring operational efficiency and enhanced productivity.
How the Company Makes MoneyDover Corporation makes money through the manufacturing and sale of its wide range of products and services across its various business segments. Its revenue streams are primarily derived from the sale of industrial products, including pumps, compressors, refrigeration systems, and printing and identification equipment. Additionally, the company earns through the provision of aftermarket services, including maintenance and support. Significant partnerships and long-term contracts with industries in energy, food and beverage, and transportation further bolster their revenue. Additionally, Dover leverages its innovative capabilities and global reach to maintain a competitive edge in the industrial manufacturing sector.
Dover Financial Statement Overview
Summary
Dover exhibits solid financial performance with strong profitability and operational efficiency. The balance sheet is robust, with improved leverage management and significant cash flow generation. Despite a slight revenue decline and reduced free cash flow, the company maintains financial stability.Income Statement
Dover shows a solid performance with a strong gross profit margin and net profit margin, indicating good profitability. However, revenue has decreased from the previous year, reflecting a revenue decline trend which could be a concern. The EBIT and EBITDA margins remain healthy, showcasing operational efficiency.78
Positive
Balance Sheet
The balance sheet is robust with a healthy equity ratio, indicating financial stability. The debt-to-equity ratio has improved, signifying better leverage management. Return on Equity has significantly improved, showcasing effective use of shareholder funds.75
Positive
Cash Flow
Dover exhibits strong cash flow generation with substantial free cash flow and a favorable operating cash flow to net income ratio. However, the free cash flow has decreased from the previous year, which may require attention if the trend continues.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.75B | 8.44B | 8.51B | 7.91B | 6.68B | Gross Profit |
| 2.96B | 3.08B | 3.06B | 2.97B | 2.47B | EBIT |
| 1.21B | 1.37B | 1.38B | 1.28B | 932.99M | EBITDA |
| 1.21B | 1.72B | 1.71B | 1.80B | 1.23B | Net Income Common Stockholders |
| 2.70B | 1.06B | 1.07B | 1.12B | 683.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.84B | 398.56M | 380.87M | 385.50M | 513.08M | Total Assets |
| 12.51B | 11.35B | 10.90B | 10.40B | 9.15B | Total Debt |
| 2.93B | 3.68B | 3.68B | 3.12B | 3.11B | Net Debt |
| 1.08B | 3.28B | 3.30B | 2.74B | 2.60B | Total Liabilities |
| 5.56B | 6.24B | 6.61B | 6.21B | 5.77B | Stockholders Equity |
| 6.95B | 5.11B | 4.29B | 4.19B | 3.39B |
| Cash Flow | Free Cash Flow | |||
| 580.85M | 1.14B | 584.76M | 944.40M | 939.12M | Operating Cash Flow |
| 748.38M | 1.34B | 805.72M | 1.12B | 1.10B | Investing Cash Flow |
| 1.96B | -726.63M | -540.92M | -992.75M | -481.38M | Financing Cash Flow |
| -1.27B | -568.06M | -260.26M | -249.88M | -506.29M |
Dover Technical Analysis
Negative
189.73
Price Trends
195.27
Negative
195.91
Negative
188.49
Positive
Market Momentum
-1.83
Positive
39.42
Neutral
12.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOV, the sentiment is Negative. The current price of 189.73 is below the 20-day moving average (MA) of 199.54, below the 50-day MA of 195.27, and above the 200-day MA of 188.49, indicating a neutral trend. The MACD of -1.83 indicates Positive momentum. The RSI at 39.42 is Neutral, neither overbought nor oversold. The STOCH value of 12.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DOV.
Dover Risk Analysis
Dover disclosed 16 risk factors in its most recent earnings report. Dover reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Dover Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $76.96B | 22.39 | 105.16% | 2.27% | -1.30% | 20.26% | |
77 Outperform | $25.26B | 9.47 | 38.79% | 1.12% | -2.99% | 159.26% | |
74 Outperform | $64.30B | 27.12 | 9.66% | 1.85% | 10.29% | 22.72% | |
73 Outperform | $14.78B | 23.96 | 18.45% | 1.05% | -0.53% | 0.13% | |
68 Neutral | $135.18B | 23.89 | 33.10% | 2.13% | 5.05% | 2.73% | |
66 Neutral | $30.29B | 33.33 | 26.22% | 1.91% | -11.28% | -23.69% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% |
* Industrials Sector Average
Performance Comparison
DOV
Dover
189.73
20.64
12.21%
EMR
Emerson Electric Company
115.84
7.99
7.41%
HON
Honeywell International
209.62
13.28
6.76%
ITW
Illinois Tool Works
261.05
6.66
2.62%
PNR
Pentair
91.19
12.85
16.40%
ROK
Rockwell Automation
273.66
-12.17
-4.26%
Dover Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -3.61% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive outlook for 2025 with strong segment performance, robust bookings, and a healthy cash position supporting growth and acquisitions. However, there were challenges noted in specific segments and expected FX headwinds.Highlights
Solid Segment Margin Performance
Segment margin performance for Q4 was 22.2%, up 60 basis points year-over-year, indicating strong product mix impact and cost restructuring benefits.
Bookings and Organic Growth
Bookings were up 7% organically in Q4, driven by robust order rates across markets. Four out of five segments posted positive organic growth.
Strong Cash Position and Capital Flexibility
Dover ended the year with a significant cash position providing flexibility for value-creating capital deployments.
Double-Digit EPS Growth Outlook for 2025
Dover is poised to deliver double-digit EPS growth in 2025 through accretive top-line growth and margin improvement.
Acquisitions and Growth Investments
Closed two bolt-on acquisitions in high-priority segments, with a robust acquisition pipeline.
Pumps & Process Solutions Growth
Organic growth of 3% driven by single-use biopharma components and thermal connectors, with significant year-over-year bookings growth.
Lowlights
Challenges in European Heat Exchangers
Revenue was down due to expected declines in European heat exchangers, despite improvements in U.S. and Asian markets.
Aerospace and Defense Segment Decline
Aerospace and defense saw lower performance in Q4 due to shipment timing, despite posting a record year overall.
Foreign Exchange Headwinds
Heightened FX translation headwinds due to a strengthening U.S. dollar are expected to impact 2025 performance.
Company Guidance
During Dover's Q4 and full-year 2024 earnings call, guidance for 2025 was provided with a focus on strong projected performance across several metrics. The company anticipates double-digit EPS growth driven by accretive top-line growth, margin improvements, and strategic capital allocation. Organic bookings grew 7% in Q4, contributing to a positive outlook for 2025. Segment margins improved to 22.2%, up 60 basis points compared to the previous year, with expectations of further margin enhancements in the upcoming year. Dover forecasts free cash flow to be 14% to 16% of revenue, supported by strong operating cash flow conversion. The company also plans for increased capital expenditures in 2025 to fuel growth investments. Overall, Dover is optimistic about leveraging its market positions, flexible business model, and execution strategy to capitalize on opportunities in high-growth, high-margin sectors.Dover Corporate Events
Business Operations and StrategyFinancial Disclosures
Dover Reports Modest Revenue Growth and Earnings Surge
Positive
Jan 30, 2025
Dover reported its financial results for the fourth quarter and full year ending December 31, 2024. The company saw a modest revenue increase of 1% for both the quarter and the year, generating $1.9 billion and $7.7 billion respectively. Despite a slight decline in GAAP earnings from continuing operations for the quarter, annual earnings showed significant growth, with a 48% increase. The company remains optimistic about 2025, expecting continued margin improvements and robust demand across its markets, supported by strategic acquisitions and a strong cash position.
Executive/Board Changes
Dover Announces CFO Transition with Chris Woenker
Positive
Dec 10, 2024
Dover Corporation has announced the retirement of its long-serving CFO, Brad Cerepak, effective January 31, 2025, with Chris Woenker set to succeed him. Woenker, who has been with Dover since 2013, brings extensive experience from his roles in various segments of the company. This leadership transition highlights Dover’s commitment to internal talent development and strategic succession planning, promising continuity and stability for investors.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.