Douglas Dynamics (PLOW) AI Stock Analysis

• Market Cap: $663.79M
• Dividend Yield: 4.13%
• Average Volume (3M): 204.76K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.63
• Revenue Growth: 1.14%
• EPS Growth: 127.04%
• Country: US
• Employees: 1,673
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Auto - Parts
• EPS (TTM): 0.09
• Shares Outstanding: 23,209,427
• 10 Day Avg. Volume: 166,158
• 30 Day Avg. Volume: 204,764
• PEG Ratio: 0.67
• Price to Book (P/B): 2.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.87
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 5.97
• Enterprise Value/Ebitda: 2.27
• 1Y Price Target: $34.00
• Price Target Upside: 18.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: $34.00 ▲(18.88%Upside)

Douglas Dynamics exhibits strong financial health with revenue growth and profitability. Technical indicators show positive momentum, though there might be short-term overbought conditions. Valuation metrics suggest the stock is attractive, supported by a solid dividend yield. Despite some macroeconomic concerns, the company maintains a positive outlook, bolstered by new leadership.

Positive Factors

Financial Management

PLOW's cost actions remain on pace to deliver $9m of savings this year and $11-12m in annualized savings starting next year.

Inventory Management

Retail inventories made substantial progress this winter, indicating a positive trend for the company.

Leadership and Strategy

The company's new CEO has a vision to diversify the business away from snow-related activities, which is seen as a positive development.

Negative Factors

Financial Performance

Douglas Dynamics lowered guidance midpoints for revenue, EBITDA, and EPS, implying below-Street Q4 forecasts.

Market Challenges

Overall, end markets still remain challenging and lowered guidance midpoints could cause shares to pull back.

Revenue Impact

Lower snowfall continues to impact Attachments revenue, as multiple low snowfall years and elevated channel inventory continue to pressure results.

Douglas Dynamics Business Overview & Revenue Model

Company Description

Douglas Dynamics, Inc. (PLOW) is a leading manufacturer and upfitter of commercial work truck attachments and equipment. Headquartered in Milwaukee, Wisconsin, the company operates primarily in the snow and ice management industry. Douglas Dynamics is renowned for its high-quality brands, including Western, Fisher, SnowEx, and Henderson, which provide innovative solutions for snow and ice control, as well as other commercial vehicle attachments.

How the Company Makes Money

Douglas Dynamics makes money through the design, manufacturing, and sale of snow and ice control equipment, as well as other work truck attachments. The company generates revenue primarily by selling its products to a vast network of dealers and distributors who in turn sell them to end-users, including municipalities, governmental agencies, contractors, and commercial businesses. Additionally, the company offers parts and accessories, providing an ongoing stream of revenue from customers seeking to maintain or upgrade their equipment. Significant factors contributing to Douglas Dynamics' earnings include seasonal demand fluctuations, innovation in product offerings, and strategic partnerships with dealers and distributors that expand market reach and enhance customer service.

Douglas Dynamics Financial Statement Overview

Summary

Douglas Dynamics has shown strong financial performance with solid revenue growth, improved profitability, and effective cash flow management. The company's balance sheet is stable, although there is reliance on debt that should be monitored.

Income Statement

Douglas Dynamics has demonstrated solid performance with a consistent increase in revenues over recent periods, achieving a TTM revenue growth rate of 3.41%. The gross profit margin stands at 26.26% for TTM, indicating efficient cost management. The net profit margin has improved to 11.00% in TTM, suggesting enhanced profitability. However, there was a notable dip in EBIT margin to 16.73% from the previous year's 15.60%, indicating some operational challenges.

Balance Sheet

The company's balance sheet reflects a stable position with a debt-to-equity ratio of 0.97 in TTM, which is manageable but suggests reliance on debt financing. The equity ratio of 41.68% indicates a solid equity base relative to assets. Return on equity is strong at 24.97% in TTM, showcasing effective use of equity to generate profits. Some caution is advised due to the moderate leverage levels.

Cash Flow

Cash flow analysis reveals a healthy free cash flow growth rate of 59.23% in the TTM, reflecting strong cash generation capabilities. The operating cash flow to net income ratio is 0.95, demonstrating efficient conversion of net income into cash. The free cash flow to net income ratio of 0.82 suggests a robust cash position supporting operations despite substantial financing outflows.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	568.50M	568.18M	616.07M	541.45M	480.15M
Gross Profit	146.84M	134.27M	151.46M	141.87M	128.28M
EBITDA	107.04M	66.57M	79.16M	72.75M	-62.18M
Net Income	56.15M	23.72M	38.61M	30.69M	-86.55M
Balance Sheet
Total Assets	589.98M	593.42M	596.89M	572.48M	579.20M
Cash, Cash Equivalents and Short-Term Investments	5.12M	24.16M	20.67M	36.96M	41.03M
Total Debt	221.47M	256.70M	226.53M	239.88M	267.99M
Total Liabilities	325.77M	361.85M	359.79M	357.87M	379.00M
Stockholders Equity	264.21M	231.56M	237.10M	214.61M	200.20M
Cash Flow
Free Cash Flow	33.32M	1.95M	27.98M	49.33M	38.88M
Operating Cash Flow	41.13M	12.47M	40.03M	60.53M	53.37M
Investing Cash Flow	56.79M	-10.52M	-12.05M	-11.21M	-14.49M
Financing Cash Flow	-116.96M	1.54M	-44.28M	-53.39M	-33.51M

Douglas Dynamics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 28.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLOW, the sentiment is Neutral. The current price of 28.6 is below the 20-day moving average (MA) of 29.73, below the 50-day MA of 28.79, and above the 200-day MA of 25.52, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.98 is Neutral, neither overbought nor oversold. The STOCH value of 19.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PLOW.

Douglas Dynamics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLOW	79 Outperform	$663.79M	10.60	26.52%	4.13%	1.14%	127.04%
STRT	78 Outperform	$264.51M	12.82	9.91%	―	5.54%	398.82%
THRM	73 Outperform	$977.86M	31.60	4.72%	―	-0.78%	-51.80%
SMP	71 Outperform	$667.34M	11.73	9.00%	3.94%	13.53%	-4.76%
MLR	65 Neutral	$466.97M	8.65	14.19%	1.94%	-7.18%	-17.48%
SRI	59 Neutral	$205.23M	―	-6.63%	―	-8.90%	-346.80%
Sector *	57 Neutral	HK$25.05B	3.81	-1.95%	5.91%	-0.11%	-67.17%

Douglas Dynamics Corporate Events

Douglas Dynamics Appoints Mark Van Genderen as CEO

On February 28, 2025, Douglas Dynamics’ Board of Directors elected Mark Van Genderen as the new President and Chief Executive Officer, effective March 3, 2025. Van Genderen, who has been with the company for five years, succeeds Interim President & CEO James L. Janik, who will return to his role as Chairman of the Board. This leadership transition is expected to strengthen Douglas Dynamics’ position in the work truck industry, with Van Genderen’s strategic and operational expertise being pivotal for the company’s future growth.