Douglas Dynamics (PLOW) AI Stock Analysis

• Market Cap: $722.33M
• Dividend Yield: 3.79%
• Average Volume (3M): 121.74K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.80
• Revenue Growth: 9.99%
• EPS Growth: -23.93%
• Country: US
• Employees: 1,673
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.40
• Shares Outstanding: 23,040,878
• 10 Day Avg. Volume: 169,372
• 30 Day Avg. Volume: 121,740
• PEG Ratio: 0.07
• Price to Book (P/B): 2.06
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 16.36
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 1.66
• Enterprise Value/Gross Profit: 6.30
• Enterprise Value/Ebitda: 12.37
• 1Y Price Target: $39.00
• Price Target Upside: 31.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.14
• Revenue Forecast (FY): $641.33M

• Rating: 68 Neutral
• Price Target: $32.00 ▲(7.93% 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 Business Overview & Revenue Model

Company Description

Douglas Dynamics, Inc. (PLOW) is a leading manufacturer and supplier of snow and ice control equipment and accessories for commercial, municipal, and residential applications. The company operates primarily in the equipment sector, focusing on snow plows, spreaders, and related products under well-known brands such as Western, Fisher, and Blizzard. Douglas Dynamics serves a diverse customer base, including contractors, municipalities, and homeowners, providing innovative solutions designed to improve snow and ice management efficiency.

How the Company Makes Money

Douglas Dynamics generates revenue primarily through the sale of its snow and ice control products, which include various types of snow plows and spreaders. The company operates on a direct sales model, distributing its products through a network of dealers and distributors across North America. Key revenue streams include the sale of equipment, parts, and accessories, as well as aftermarket services and support. Additionally, Douglas Dynamics benefits from seasonal demand, with a significant portion of its sales occurring in the fall and winter months when snow and ice management is critical. The company also engages in strategic partnerships with suppliers and manufacturers to enhance its product offerings and expand market reach, further contributing to its revenue generation.

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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 29.65
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 29.65 is below the 20-day moving average (MA) of 31.01, below the 50-day MA of 31.34, and above the 200-day MA of 28.04, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 51.16 is Neutral, neither overbought nor oversold. The STOCH value of 80.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLOW.

Douglas Dynamics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLOW	68 Neutral	$722.33M	17.88	15.29%	3.79%	9.99%	-23.93%
AXL	66 Neutral	$770.34M	18.50	6.01%	―	-6.02%	42.35%
SMP	65 Neutral	$856.65M	12.67	10.49%	3.25%	23.96%	11.01%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MNRO	57 Neutral	$544.26M	―	-3.04%	6.53%	-2.58%	-179.55%
CPS	56 Neutral	$555.21M	17.33	―	―	-0.53%	―

Douglas Dynamics Corporate Events

Douglas Dynamics Reports Strong Q3 2025 Growth

Douglas Dynamics, Inc., a leading manufacturer and upfitter of work truck attachments and equipment in North America, has reported its financial results for the third quarter of 2025, showcasing significant growth in net sales and strategic advancements.

Douglas Dynamics Reports Strong Q2 2025 Results

Douglas Dynamics, Inc. is a leading manufacturer and upfitter of commercial work truck attachments and equipment in North America, known for its innovation and commitment to enhancing operational efficiency and profitability for businesses. The company operates through two main segments: Work Truck Attachments and Work Truck Solutions.

Douglas Dynamics’ Earnings Call Highlights Growth and Challenges

Douglas Dynamics’ recent earnings call painted a generally positive picture, highlighting strong performance in its Work Truck Solutions segment and an improved financial position. Despite facing challenges such as a decline in consolidated net sales and pressures in the commercial business, the company remains optimistic with increased guidance and innovative product launches.