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Douglas Dynamics (PLOW)
NYSE:PLOW
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Douglas Dynamics
(NYSE:PLOW)
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Rating:69Neutral
Price Target:
$33.00
▲(4.13% Upside)
Douglas Dynamics' overall stock score is driven by strong earnings call guidance and reasonable valuation metrics. Financial performance is solid but hampered by negative revenue growth and cash flow challenges. Technical analysis shows a neutral trend, with no significant momentum.
Positive Factors
Strong Segment Performance
Consistent record performance in the Work Truck Solutions segment indicates strong demand and operational efficiency, contributing to long-term growth.
Municipal Demand Growth
Increasing municipal demand and planned capacity expansion by 10% by 2026 suggest a solid growth trajectory in a stable market segment.
Improved Leverage
Improved leverage ratio enhances financial stability and flexibility, supporting potential strategic investments and growth initiatives.
Negative Factors
Revenue Growth Challenges
Negative revenue growth indicates potential market saturation or competitive pressures, which could hinder long-term expansion efforts.
Softening Commercial Demand
Softening demand in the commercial segment due to economic and competitive pressures could impact revenue stability and growth prospects.
Interest Rate Impact
Rising interest rates may reduce customer purchasing power, affecting sales and potentially leading to slower growth in key segments.
Douglas Dynamics (PLOW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$716.11M
Dividend Yield3.72%
Average Volume (3M)107.36K
Price to Earnings (P/E)11.5
Beta (1Y)0.73
Revenue Growth1.47%
EPS Growth131.61%
CountryUS
Employees1,673
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.14
Shares Outstanding23,040,878
10 Day Avg. Volume90,765
30 Day Avg. Volume107,365
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 Cap1.35
Enterprise Value/Revenue1.66
Enterprise Value/Gross Profit6.23
Enterprise Value/Ebitda8.35
Forecast
1Y Price Target
$37.00Price Target Upside16.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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 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 Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 03, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong performance in the Work Truck Solutions segment and the positive outlook for municipal demand, supported by a strong backlog and improved balance sheet. However, challenges in the Work Truck Attachments segment due to decreased sales and softening commercial demand, along with interest rate challenges, present headwinds. Despite some challenges, the overall outlook remains positive with raised guidance.Q2-2025 Updates
Positive Updates
Record Performance in Work Truck Solutions
The Work Truck Solutions segment delivered its fifth consecutive record performance, with net sales increasing by 5.4% to $86.2 million and adjusted EBITDA growing by 39.8% to $11 million. The adjusted EBITDA margin of 12.8% is a record since 2017.
Favorable Dealer Sentiment
Dealer sentiment and financial health remain positive, with dealer inventories adjusting to expected levels, positioning the company well for the upcoming winter season.
Strong Backlog and Municipal Demand
The backlog in the Solutions segment remains strong, driven by robust municipal demand. The company is adding approximately 10% of additional municipal capacity, expected to come online next year.
Improved Balance Sheet and Leverage
The leverage ratio improved to 2.0x from 3.3x last year, with expectations to maintain around this level. This is within the company's goal range of 1.5x to 3x.
Raised Guidance
Douglas Dynamics raised its guidance based on preseason orders in line with expectations and a strong backlog. The company now expects net sales between $630 million and $660 million, and adjusted EPS between $1.65 and $2.15.
Negative Updates
Decreased Net Sales in Attachments
Consolidated net sales decreased by 2.8% compared to 2024 due to expected lower volumes at Attachments related to the timing of preseason shipments.
Softening Commercial Business
The commercial side of the business is experiencing softer order patterns at the local dealer level due to economic and competitive pressures, with dealers having a fair amount of inventory on the ground.
Interest Rate Challenges
Higher interest rates compared to previous years are making smaller customers more price-conscious and hesitant, impacting demand.
Company Guidance
During the Douglas Dynamics Second Quarter 2025 Earnings Conference Call, the company provided increased guidance for the fiscal year, anticipating net sales between $630 million and $660 million, with adjusted EBITDA projected to range from $82 million to $97 million. Adjusted earnings per share are expected to be between $1.65 and $2.15. This optimistic outlook is based on strong performance in their Work Truck Solutions segment, which delivered its fifth consecutive record quarter with net sales increasing by 5.4% to $86.2 million and adjusted EBITDA growing by 39.8% to $11 million. The Work Truck Attachments segment experienced a slight decrease in net sales due to the timing of preseason shipments, yet is still on track with historical shipment ratios expected to revert to the traditional 55% to 45% split between the second and third quarters. The company also indicated that its municipal demand remains robust, with plans to increase municipal capacity by 10% by 2026. Despite challenges like high interest rates and economic pressures, the company remains confident in its strategic pillars of optimizing operations, expanding geographically and in product offerings, and reactivating M&A opportunities, aiming for long-term growth and profitability.Douglas Dynamics Financial Statement Overview
Summary
Douglas Dynamics shows solid financial performance with consistent revenue growth, strong profitability, and effective cash flow management. However, the reliance on debt financing and a dip in EBIT margin indicate some operational challenges.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.75
Positive
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.68
Positive
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.60
Neutral
| 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 | -98.16M | -116.96M | 1.54M | -44.28M | -53.39M | -33.51M |
Douglas Dynamics Technical Analysis
Positive
31.69
Price Trends
31.87
Negative
30.46
Positive
27.52
Positive
Market Momentum
-0.17
Negative
56.25
Neutral
90.22
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 31.69 is above the 20-day moving average (MA) of 30.82, below the 50-day MA of 31.87, and above the 200-day MA of 27.52, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 56.25 is Neutral, neither overbought nor oversold. The STOCH value of 90.22 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $892.70M | 14.03 | 9.90% | 2.95% | 17.98% | 9.41% | |
69 Neutral | $716.11M | 11.47 | 25.41% | 3.72% | 1.47% | 131.61% | |
67 Neutral | $733.34M | 18.54 | 6.38% | ― | -6.73% | 4900.00% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $643.97M | 23.27 | ― | ― | -2.70% | ― | |
55 Neutral | $548.61M | -26.18 | -3.03% | 6.15% | -3.20% | -163.24% |
* Consumer Cyclical Sector Average
PLOW
Douglas Dynamics
31.69
7.11
28.93%
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6.38
0.38
6.33%
MNRO
Monro Muffler
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SMP
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41.39
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46.83%
CPS
Cooper-Standard Holdings
37.60
24.16
179.76%
AIIO
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1.00
0.06
6.38%
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.