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Douglas Dynamics (PLOW)
NYSE:PLOW
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Douglas Dynamics
(NYSE:PLOW)
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Rating:68Neutral
Price Target:
$40.00
▲(10.86% Upside)
Douglas Dynamics' overall stock score is driven by strong earnings call performance and positive financial guidance, which are significant strengths. However, technical indicators suggest bearish momentum, and operational efficiency and cash flow management remain areas for improvement. The valuation is reasonable, with a good dividend yield, but not significantly compelling.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business sustainability.
Improved Leverage
Improved leverage enhances financial stability, reducing risk and increasing capacity for future investments and growth opportunities.
Strategic Acquisition
The acquisition expands product offerings and market reach, potentially increasing revenue streams and strengthening competitive position.
Negative Factors
Operational Efficiency Challenges
Declining operational efficiency may impact profitability, requiring strategic adjustments to maintain margins and competitive advantage.
Interest Rate Challenges
Rising interest rates can dampen demand, especially among price-sensitive customers, potentially affecting sales and revenue growth.
Softening Commercial Demand
Softening demand in the commercial segment may lead to reduced sales, impacting overall revenue and necessitating strategic adjustments.
Douglas Dynamics (PLOW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$840.99M
Dividend Yield3.52%
Average Volume (3M)144.85K
Price to Earnings (P/E)20.8
Beta (1Y)0.75
Revenue Growth9.99%
EPS Growth-23.93%
CountryUS
Employees1,673
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.40
Shares Outstanding23,040,878
10 Day Avg. Volume179,734
30 Day Avg. Volume144,846
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)2.06
Price to Sales (P/S)0.96
P/FCF Ratio16.36
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue1.68
Enterprise Value/Gross Profit6.38
Enterprise Value/Ebitda12.54
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Douglas Dynamics Business Overview & Revenue Model
Company DescriptionDouglas Dynamics, Inc. operates as a manufacturer and upfitter of commercial work truck attachments and equipment in North America. It operates through two segments, Work Truck Attachments and Work Truck Solutions. The Work Truck Attachments segment manufactures and sells snow and ice control attachments, including snowplows, and sand and salt spreaders for light trucks and heavy duty trucks, as well as various related parts and accessories. The Work Truck Solutions segment primarily manufactures municipal snow and ice control products; provides truck and vehicle upfits where it attaches component pieces of equipment, truck bodies, racking, and storage solutions to a vehicle chassis for use by end users for work related purposes; and manufactures storage solutions for trucks and vans, and cable pulling equipment for trucks. This segment also offers up-fit and storage solutions. It also provides customized turnkey solutions to governmental agencies, such as Departments of Transportation and municipalities. The company sells its products under the BLIZZARD, FISHER, SNOWEX, WESTERN, TURFEX, SWEEPEX, HENDERSON, BRINEXTREME, and DEJANA brands. It distributes its products primarily to professional snowplowers who are contracted to remove snow and ice from commercial and residential areas. The company was founded in 1948 and is headquartered in Milwaukee, Wisconsin.
How the Company Makes MoneyDouglas Dynamics generates revenue primarily through the sale of its snow and ice control equipment, including plows and spreaders. The company has a robust distribution network that includes both direct sales and partnerships with various dealers and retailers. In addition to equipment sales, Douglas Dynamics also earns revenue from aftermarket parts and accessories, which provide ongoing support and maintenance for their products. Seasonal demand for snow management equipment significantly influences sales, leading to peak revenues during the winter months. The company may also engage in strategic partnerships with municipalities and commercial entities to secure contracts for snow and ice management services, contributing to its overall earnings.
Douglas Dynamics Earnings Call Summary
Earnings Call Date:Nov 03, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 02, 2026
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment with strong performance in key segments, successful acquisition efforts, and improved financial guidance. However, ongoing economic concerns and debt management issues were acknowledged.Q3-2025 Updates
Positive Updates
Successful Acquisition of Venco Venturo
Douglas Dynamics completed the acquisition of Venco Venturo, marking their first acquisition in over nine years. This acquisition is expected to diversify and balance the portfolio, with Venco Venturo generating estimated sales in the $30 million to $40 million range.
Work Truck Solutions Segment Performance
The Work Truck Solutions segment delivered record third-quarter results with net sales and adjusted EBITDA both up over 30%, driven by strong demand and improved efficiencies.
Improved Financial Guidance
Douglas Dynamics raised its financial guidance for 2025. They now expect net sales to range from $635 million to $660 million, adjusted EBITDA to range from $87 million to $102 million, and adjusted earnings per share to be between $1.85 and $2.25.
Reduction in Inventory
The Attachments team significantly decreased its inventory by $11 million year-over-year, leading to healthier dealer inventories below the 5-year average.
Negative Updates
Economic and Tariff Concerns
Despite a stronger-than-expected performance, there were mentions of ongoing economic and tariff concerns that may affect dealer markets and smaller customer purchasing decisions.
Interest Expense and Debt Management
Interest expense decreased by 16% but was partially offset by floor plan interest on higher chassis inventory. The leverage ratio stands at 1.9x, with expectations to remain close to 2x by year-end.
Company Guidance
During the Douglas Dynamics Third Quarter 2025 Earnings Conference Call, the company provided optimistic guidance for the upcoming periods. They revised their full-year 2025 net sales forecast to range from $635 million to $660 million, up from a previous range of $630 million to $660 million. Adjusted EBITDA guidance was increased to between $87 million and $102 million from the earlier $82 million to $97 million. Additionally, adjusted earnings per share are now projected to be between $1.85 and $2.25, compared to the prior expectation of $1.65 to $2.15. The company's performance was driven by strong demand, particularly in their Work Truck Solutions segment, which saw net sales and adjusted EBITDA grow by over 30%, and preseason shipments for Attachments in line with expectations. The guidance assumes stable economic and supply chain conditions, with average snowfall anticipated in their core markets.Douglas Dynamics Financial Statement Overview
Summary
Douglas Dynamics demonstrates solid revenue growth and improved leverage, contributing to a strong financial position. However, operational efficiency and cash flow management present areas for improvement. The company is well-positioned in the auto parts industry, but maintaining operational margins and enhancing cash flow efficiency will be key to sustaining growth.Income Statement
Douglas Dynamics shows a solid revenue growth rate of 5.62% TTM, indicating positive momentum. The gross profit margin is stable at 26.38%, while the net profit margin is at 6.82%, reflecting decent profitability. However, the EBIT margin has decreased from 15.68% in 2024 to 8.74% TTM, suggesting some operational challenges. Overall, the income statement reflects a healthy revenue trajectory but with some pressure on operational efficiency.75
Positive
Balance Sheet
The debt-to-equity ratio has improved to 0.50 TTM from 0.84 in 2024, indicating better leverage management. Return on equity is at 15.66% TTM, showing strong shareholder returns. The equity ratio stands at 39.61%, suggesting a balanced capital structure. While the balance sheet shows improved leverage, maintaining this trend will be crucial to mitigate financial risks.70
Positive
Cash Flow
Free cash flow growth is positive at 10.57% TTM, and the free cash flow to net income ratio is robust at 78.57%, indicating good cash conversion. However, the operating cash flow to net income ratio is relatively low at 27.36%, suggesting potential cash flow management challenges. Overall, cash flow generation is strong, but operational cash flow efficiency needs attention.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 615.06M | 568.50M | 568.18M | 616.07M | 541.45M | 480.15M |
| Gross Profit | 162.28M | 146.84M | 134.27M | 151.46M | 141.87M | 128.28M |
| EBITDA | 82.61M | 107.04M | 66.57M | 79.55M | 66.74M | -58.85M |
| Net Income | 41.97M | 56.15M | 23.72M | 38.61M | 30.69M | -86.55M |
Balance Sheet | ||||||
| Total Assets | 694.94M | 589.98M | 593.42M | 596.89M | 572.48M | 579.20M |
| Cash, Cash Equivalents and Short-Term Investments | 11.52M | 5.12M | 24.16M | 20.67M | 36.96M | 41.03M |
| Total Debt | 296.01M | 221.47M | 256.70M | 226.53M | 239.88M | 267.99M |
| Total Liabilities | 419.61M | 325.77M | 361.85M | 359.79M | 357.87M | 379.00M |
| Stockholders Equity | 275.33M | 264.21M | 231.56M | 237.10M | 214.61M | 200.20M |
Cash Flow | ||||||
| Free Cash Flow | 41.28M | 33.32M | 1.95M | 27.98M | 49.33M | 38.88M |
| Operating Cash Flow | 53.17M | 41.13M | 12.47M | 40.03M | 60.53M | 53.37M |
| Investing Cash Flow | -11.80M | 56.79M | -10.52M | -12.05M | -11.21M | -14.49M |
| Financing Cash Flow | -39.14M | -116.96M | 1.54M | -44.28M | -53.39M | -33.51M |
Douglas Dynamics Technical Analysis
Positive
36.08
Price Trends
32.48
Positive
31.99
Positive
29.55
Positive
Market Momentum
1.05
Negative
75.94
Negative
94.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLOW, the sentiment is Positive. The current price of 36.08 is above the 20-day moving average (MA) of 34.26, above the 50-day MA of 32.48, and above the 200-day MA of 29.55, indicating a bullish trend. The MACD of 1.05 indicates Negative momentum. The RSI at 75.94 is Negative, neither overbought nor oversold. The STOCH value of 94.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLOW.
Douglas Dynamics Risk Analysis
Douglas Dynamics disclosed 26 risk factors in its most recent earnings report. Douglas Dynamics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Douglas Dynamics Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $840.99M | 20.82 | 15.29% | 3.52% | 9.99% | -23.93% | |
65 Neutral | $922.27M | 23.17 | 6.01% | ― | -6.02% | 42.35% | |
65 Neutral | $865.89M | 12.81 | 10.49% | 3.32% | 23.96% | 11.01% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $624.41M | -30.63 | -3.04% | 5.50% | -2.58% | -179.55% | |
56 Neutral | $579.55M | 18.14 | ― | ― | -0.53% | ― |
* Consumer Cyclical Sector Average
PLOW
Douglas Dynamics
36.92
13.42
57.11%
AXL
American Axle
7.80
1.81
30.22%
MNRO
Monro Muffler
21.30
0.83
4.05%
SMP
Standard Motor Products
40.12
9.83
32.45%
CPS
Cooper-Standard Holdings
32.95
17.72
116.35%
AIIO
Roboai
0.27
-0.40
-59.76%
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.