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Dover (DOV)
NYSE:DOV
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Dover (DOV) AI Stock Analysis

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DOV

Dover

(NYSE:DOV)

Rating:74Outperform
Price Target:
$200.00
â–²(12.13% 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
Growth Markets Exposure
Dover Corporation is positioned for better growth due to increased exposure to secular growth markets like Biopharma and Clean Energy.
Operational Efficiency
Dover Corporation has expanded margins at an impressive rate despite facing volume and mix headwinds, indicating strong operational resilience.
Portfolio Transformation
The portfolio transformation focusing on acquisitions is expected to accelerate EPS and EBITDA growth, acting as a catalyst for stock re-rating.
Negative Factors
Growth Durability Concerns
There is concern about the durability of Dover Corporation's growth, as it might fade back to lower levels if comparisons normalize.
Growth Stability
There is concern about the durability of Dover's growth, with potential for it to fade back to lower levels, making it difficult for the stock to re-rate.

Dover (DOV) vs. SPDR S&P 500 ETF (SPY)

Dover Business Overview & Revenue Model

Company DescriptionDover 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 MoneyDover 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 Key Performance Indicators (KPIs)

Any
Any
EBITDA by Segment
EBITDA by Segment
Reveals the profitability of each business unit before interest, taxes, depreciation, and amortization, indicating operational efficiency and cash flow potential.
Chart InsightsDover's Pumps and Process Solutions segment shows robust growth, bolstered by strategic acquisitions and strong order trends, aligning with a 7% year-over-year increase in orders. Despite challenges in Engineered Products and Climate Sustainability, the company achieved record EBITDA margins above 25%, reflecting effective cost management. The positive momentum in the Pumps and Process Solutions segment is crucial for driving overall performance, as highlighted by the upward revision of full-year EPS guidance. Investors should note the strategic focus on high-priority segments, which is expected to sustain growth despite sector-specific challenges.
Data provided by:Main Street Data

Dover Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong operational and financial performance, with significant achievements in margin expansion, order growth, and strategic investments. However, challenges were noted in specific segments such as Engineered Products and Climate Sustainability, affecting overall revenue growth. The company's proactive measures in cost management and strategic investments are positioning it positively for the future.
Q2-2025 Updates
Positive Updates
Strong Order Trends and Revenue Growth
Order trends continued to show positive momentum in the quarter, with orders up 7% year-over-year, supporting confidence in the second half outlook. The majority of third quarter revenue is already in backlog.
Record Adjusted Segment EBITDA Margins
Adjusted segment EBITDA margins reached a record high above 25%, attributed to prior period portfolio actions, positive mix from growth platforms, and cost containment measures.
Increase in Full-Year Adjusted EPS Guidance
Full year adjusted EPS guidance was raised to $9.35 to $9.55, which represents an increase of 14% at the midpoint.
Positive Performance in Clean Energy & Fueling
Clean Energy & Fueling segment revenue was up 8% in the quarter, driven by strong shipments in clean energy components and restructuring benefits.
Organic Growth in Pumps & Process Solutions
Pumps & Process Solutions grew 4% organically, with double-digit growth in single-use biopharma components and thermal connectors for liquid cooling of data centers.
Strong Free Cash Flow Generation
Year-to-date free cash flow reached $261 million or 7% of revenue, up $41 million over the prior year, with expectations for cash flow generation to accelerate in the second half.
Negative Updates
Decline in Engineered Products Revenue
Engineered Products revenue was down due to lower volumes in vehicle services, although margin performance improved due to structural cost management.
Challenges in Climate Sustainability
Revenue in Climate Sustainability was down due to declines in food retail cases and engineering services, despite record volumes in CO2 systems.
Refrigeration Business Performance Below Expectations
Core Refrigeration business did not meet expectations, with a noted shift in retail food projects sliding to the right, affecting the overall segment performance.
Company Guidance
During Dover's Second Quarter 2025 Earnings Conference Call, the company provided optimistic guidance based on strong quarterly performance metrics. Dover reported a remarkable 25% adjusted segment EBITDA margin, spurred by effective cost containment and productivity measures. Adjusted EPS increased by 16%, and order trends showed positive momentum with a 7% year-over-year growth, reinforcing confidence in the second half of the year. The company has raised its full-year adjusted EPS guidance to $9.35 to $9.55, representing a 14% increase at the midpoint. Free cash flow guidance for 2025 remains on track at 14% to 16% of revenue, with plans for accelerated cash flow generation in the second half. Dover continues to focus on high ROI organic investments and has completed two acquisitions in its Pumps & Process Solutions segment. Despite some macroeconomic uncertainties, Dover's underlying market demand remains healthy, supported by sustained order rates.

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
78
Positive
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
74
Positive
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
65
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.83B7.75B7.68B7.84B7.91B6.68B
Gross Profit3.07B2.96B2.87B2.90B2.97B2.47B
EBITDA1.81B2.23B1.56B1.60B1.80B1.23B
Net Income2.29B2.70B1.06B1.07B1.12B683.45M
Balance Sheet
Total Assets13.16B12.51B11.35B10.90B10.40B9.15B
Cash, Cash Equivalents and Short-Term Investments1.26B1.84B398.56M380.87M385.50M513.08M
Total Debt3.07B3.15B3.68B3.89B3.30B3.29B
Total Liabilities5.72B5.56B6.24B6.61B6.21B5.77B
Stockholders Equity7.44B6.95B5.11B4.29B4.19B3.39B
Cash Flow
Free Cash Flow556.63M580.85M1.14B584.76M944.40M939.12M
Operating Cash Flow747.94M748.38M1.34B805.72M1.12B1.10B
Investing Cash Flow735.08M1.96B-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
Neutral
Last Price178.36
Price Trends
50DMA
182.01
Negative
100DMA
178.18
Positive
200DMA
184.26
Negative
Market Momentum
MACD
-0.76
Positive
RSI
48.39
Neutral
STOCH
22.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOV, the sentiment is Neutral. The current price of 178.36 is above the 20-day moving average (MA) of 178.11, below the 50-day MA of 182.01, and below the 200-day MA of 184.26, indicating a neutral trend. The MACD of -0.76 indicates Positive momentum. The RSI at 48.39 is Neutral, neither overbought nor oversold. The STOCH value of 22.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DOV.

Dover Risk Analysis

Dover disclosed 17 risk factors in its most recent earnings report. Dover reported the most risks in the "Legal & Regulatory" 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$34.16B36.488.76%1.12%3.97%21.95%
78
Outperform
$14.01B29.9819.62%1.25%0.75%-2.74%
76
Outperform
$17.42B29.0317.15%0.89%-0.25%-7.32%
74
Outperform
$24.10B10.6016.72%1.16%-8.23%54.92%
67
Neutral
$31.48B60.425.21%0.10%4.67%-36.65%
64
Neutral
$10.73B15.657.61%2.01%2.80%-14.92%
63
Neutral
$33.66B22.68-33.93%1.87%-0.09%5.47%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DOV
Dover
178.36
1.40
0.79%
GGG
Graco
86.20
5.86
7.29%
PNR
Pentair
110.06
24.42
28.51%
XYL
Xylem
141.94
14.15
11.07%
IR
Ingersoll Rand
79.20
-8.17
-9.35%
OTIS
Otis Worldwide
86.50
-3.63
-4.03%

Dover Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Dover Reports Strong Q2 2025 Financial Results
Positive
Jul 24, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 30, 2025