Dover (DOV) AI Stock Analysis

• Market Cap: $22.94B
• Dividend Yield: 1.23%
• Average Volume (3M): 899.85K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.15
• Revenue Growth: -8.23%
• EPS Growth: 54.92%
• Country: US
• Employees: 24,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.44
• Shares Outstanding: 137,134,460
• 10 Day Avg. Volume: 977,074
• 30 Day Avg. Volume: 899,848
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 3.46
• Enterprise Value/Gross Profit: 8.81
• Enterprise Value/Ebitda: 14.97
• 1Y Price Target: $215.00
• Price Target Upside: 29.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 74 Outperform
• Price Target: $200.00 ▲(20.78% Upside)

Dover's overall stock score is driven by strong earnings call performance and attractive valuation, despite mixed technical indicators and potential cash flow challenges. The company's strategic focus and operational efficiency position it well for future growth, although investors should monitor segment-specific challenges.

Positive Factors

Strategic Partnerships

This partnership enhances Dover's market reach and product adoption in the fuel retail industry, potentially driving long-term revenue growth and strengthening its competitive position in emerging markets.

Operational Efficiency

Record-high EBITDA margins indicate strong operational efficiency and effective cost management, which can sustain profitability and provide a competitive edge in the long term.

Market Demand

Sustained order growth reflects healthy market demand and supports future revenue stability, bolstering Dover's market position and long-term growth prospects.

Negative Factors

Net Income Decline

A decline in net income can impact profitability and shareholder returns, posing a challenge to maintaining financial health and growth momentum if not addressed.

Cash Flow Challenges

Declining free cash flow growth may limit Dover's ability to invest in growth opportunities and meet financial obligations, affecting long-term financial flexibility and stability.

Segment-Specific Challenges

Segment-specific challenges can hinder overall revenue growth and operational performance, requiring strategic adjustments to address these issues and sustain long-term growth.

Dover Business Overview & Revenue Model

Company Description

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. Its Clean Energy & Fueling segment offers component, equipment, and software and service solution enabling safe transport of traditional and clean fuel, and other hazardous substance along with supply chain, as well as operation of convenience retail, retail fueling, and vehicle wash establishment. The Imaging and Identification segment provides precision marking and coding; packaging intelligence; product traceability equipment; brand protection; and digital textile printing equipment, as well as related consumable, software, and service to packaged and consumer good, pharmaceutical, industrial manufacturing, fashion and apparel, and other end-market. Its Pumps and Process Solutions segment manufactures specialty pump, connector, and flow meter, fluid connecting solution, plastics and polymer processing equipment, and engineered components for rotating and reciprocating machines. The Climate & Sustainability Technologies segment manufactures refrigeration system, refrigeration display case, commercial glass refrigerator and freezer door, and brazed plate heat exchanger for industrial heating and cooling, and residential climate control applications. It sells its products directly and through a network of distributors. The company was incorporated in 1947 and is headquartered in Downers Grove, Illinois.

How the Company Makes Money

Dover generates revenue through multiple key streams, primarily from the sale of equipment, systems, and services across its various business segments. The Engineered Systems segment contributes significantly by providing advanced technology solutions that cater to the needs of specific industries. The Pumps & Process Solutions segment earns revenue through the sale of pumps and related equipment, serving diverse markets such as oil and gas, food and beverage, and chemicals. Additionally, the Refrigeration & Food Equipment segment profits from supplying refrigeration systems and food service equipment. Dover's revenue model is bolstered by a mix of direct sales, aftermarket services, and long-term contracts with significant clients, alongside strategic partnerships that enhance its product offerings and market reach.

Dover Financial Statement Overview

Summary

Dover exhibits strong revenue growth and profitability with healthy margins, though recent net income decline poses a concern. The balance sheet is robust with moderate leverage and high return on equity, but cash flow trends suggest potential liquidity challenges if not addressed. Overall, the company is financially sound with areas to monitor for future risk.

Income Statement

Dover's revenue has shown a steady growth trend with a TTM revenue of $7.83 billion compared to $7.75 billion in the previous year. The gross profit margin is healthy at approximately 39.2%. However, there has been a noticeable decrease in net income from $2.70 billion to $2.29 billion in the TTM, affecting the net profit margin. The EBIT and EBITDA margins are strong at 16.3% and 21.1%, respectively, indicating stable operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity position with a Debt-to-Equity ratio of 0.41, suggesting moderate leverage. The return on equity is impressive at 30.8%, indicating effective use of shareholder funds to generate profit. However, the equity ratio is 56.5%, which shows a balanced asset financing structure but leaves room for improvement in leveraging the company's financial position.

Cash Flow

Dover's cash flow generation is stable with free cash flow of $556.63 million in the TTM. The operating cash flow to net income ratio decreased slightly, indicating less cash generation from operations relative to net income. Free cash flow growth has been declining, which could pose challenges if the trend continues, but the company remains cash-positive.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.83B	7.75B	7.68B	7.84B	7.91B	6.68B
Gross Profit	3.07B	2.96B	2.87B	2.90B	2.97B	2.47B
EBITDA	1.81B	2.23B	1.56B	1.60B	1.80B	1.23B
Net Income	2.29B	2.70B	1.06B	1.07B	1.12B	683.45M
Balance Sheet
Total Assets	13.16B	12.51B	11.35B	10.90B	10.40B	9.15B
Cash, Cash Equivalents and Short-Term Investments	1.26B	1.84B	398.56M	380.87M	385.50M	513.08M
Total Debt	3.07B	3.15B	3.68B	3.89B	3.30B	3.29B
Total Liabilities	5.72B	5.56B	6.24B	6.61B	6.21B	5.77B
Stockholders Equity	7.44B	6.95B	5.11B	4.29B	4.19B	3.39B
Cash Flow
Free Cash Flow	556.63M	580.85M	1.14B	584.76M	944.40M	939.12M
Operating Cash Flow	747.94M	748.38M	1.34B	805.72M	1.12B	1.10B
Investing Cash Flow	735.08M	1.96B	-726.63M	-540.92M	-992.75M	-481.38M
Financing Cash Flow	-566.70M	-1.27B	-568.06M	-260.26M	-249.88M	-506.29M

Dover Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 165.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 165.59 is below the 20-day moving average (MA) of 173.91, below the 50-day MA of 177.96, and below the 200-day MA of 182.13, indicating a bearish trend. The MACD of -2.95 indicates Positive momentum. The RSI at 31.44 is Neutral, neither overbought nor oversold. The STOCH value of 7.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DOV.

Dover Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XYL	78 Outperform	34.43B	36.77	8.47%	1.10%	3.97%	21.95%
PNR	76 Outperform	17.87B	29.77	16.59%	0.90%	-0.25%	-7.32%
DOV	74 Outperform	$22.94B	10.19	16.72%	1.23%	-8.23%	54.92%
IR	70 Outperform	32.16B	63.17	5.18%	0.10%	4.67%	-36.65%
OTIS	69 Neutral	34.82B	23.46	-28.19%	1.81%	-0.09%	5.47%
GGG	67 Neutral	13.94B	29.82	19.30%	1.29%	0.75%	-2.74%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Dover Corporate Events

Dover Reports Strong Q2 2025 Financial Results

Dover announced its financial results for the second quarter ending June 30, 2025, reporting a 5% increase in revenue to $2.0 billion and a 14% rise in GAAP earnings from continuing operations to $280 million. The company attributed its solid performance to strong production execution and shipment growth, particularly in short cycle components and secular-growth-exposed end markets. Dover also completed two acquisitions in its high-priority Pumps & Process Solutions segment, enhancing its market position. Despite macroeconomic challenges, Dover remains optimistic about the second half of 2025, raising its full-year adjusted EPS guidance.