Douglas Dynamics (PLOW) AI Stock Analysis

• Market Cap: $751.36M
• Dividend Yield: 3.65%
• Average Volume (3M): 186.63K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.72
• Revenue Growth: 1.47%
• EPS Growth: 131.61%
• Country: US
• Employees: 1,673
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Auto - Parts
• EPS (TTM): 1.14
• Shares Outstanding: 23,040,878
• 10 Day Avg. Volume: 182,335
• 30 Day Avg. Volume: 186,628
• 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: 1.29
• Enterprise Value/Revenue: 1.66
• Enterprise Value/Gross Profit: 6.23
• Enterprise Value/Ebitda: 8.35
• 1Y Price Target: $37.00
• Price Target Upside: 9.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 81 Outperform
• Price Target: $37.00 ▲(9.31% Upside)

Douglas Dynamics receives a strong overall score driven by robust technical indicators and positive earnings call guidance. The solid financial performance and attractive valuation further support the stock's potential, although some caution is warranted due to operational challenges and high RSI levels.

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. 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 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 shows solid financial performance with positive revenue growth, strong profitability, and effective cash flow management. However, reliance on debt and operational challenges reflected in the EBIT margin dip are concerns.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	582.34M	568.50M	568.18M	616.07M	541.45M	480.15M
Gross Profit	155.05M	146.84M	134.27M	151.46M	141.87M	128.28M
EBITDA	115.73M	107.04M	66.57M	79.16M	72.75M	-62.18M
Net Income	66.27M	56.15M	23.72M	38.61M	30.69M	-86.55M
Balance Sheet
Total Assets	671.47M	589.98M	593.42M	596.89M	572.48M	579.20M
Cash, Cash Equivalents and Short-Term Investments	7.98M	5.12M	24.16M	20.67M	36.96M	41.03M
Total Debt	276.54M	221.47M	256.70M	226.53M	239.88M	267.99M
Total Liabilities	398.21M	325.77M	361.85M	359.79M	357.87M	379.00M
Stockholders Equity	273.26M	264.21M	231.56M	237.10M	214.61M	200.20M
Cash Flow
Free Cash Flow	40.30M	33.32M	1.95M	27.98M	49.33M	38.88M
Operating Cash Flow	47.52M	41.13M	12.47M	40.03M	60.53M	53.37M
Investing Cash Flow	54.42M	56.79M	-10.52M	-12.05M	-11.21M	-14.49M
Financing Cash Flow	-113.28M	-116.96M	1.54M	-44.28M	-53.39M	-33.51M

Douglas Dynamics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 33.85 is above the 20-day moving average (MA) of 30.48, above the 50-day MA of 29.87, and above the 200-day MA of 26.00, indicating a bullish trend. The MACD of 0.90 indicates Negative momentum. The RSI at 70.01 is Negative, neither overbought nor oversold. The STOCH value of 78.87 is Neutral, 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	81 Outperform	$751.36M	11.81	25.41%	3.65%	1.47%	131.61%
SMP	80 Outperform	$823.44M	12.69	9.90%	3.14%	17.98%	9.41%
STRT	78 Outperform	$276.85M	14.77	8.85%	―	5.08%	12.98%
THRM	73 Outperform	$1.06B	36.01	4.72%	―	-0.78%	-51.80%
MLR	68 Neutral	$491.55M	11.72	10.64%	1.80%	-24.48%	-40.73%
Sector *	67 Neutral	¥282.84B	15.30	6.82%	2.46%	5.05%	-19.57%
SRI	55 Neutral	$222.37M	―	-11.20%	―	-6.99%	-1688.02%

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.