Dover (DOV) AI Stock Analysis

• Market Cap: $20.76B
• Dividend Yield: 1.36%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 7.8
• Beta (1Y): 1.21
• Revenue Growth: -2.99%
• EPS Growth: 159.26%
• Country: US
• Employees: 24,000
• Sector: Industrials
• Sector Strength: 64
• Industry: Industrial - Machinery
• EPS (TTM): 19.45
• Shares Outstanding: 137,062,270
• 10 Day Avg. Volume: 1,161,782
• 30 Day Avg. Volume: 1,114,264
• PEG Ratio: 0.05
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.01
• Price to Cash Flow (P/CF): 14.00
• P/FCF Ratio: 14.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $198.08
• Price Target Upside: 31.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Dover Corporation shows strong financial performance with excellent profitability and balance sheet health, despite technical analysis indicating current downward pressure. The company is undervalued with significant growth prospects and strategic initiatives highlighted in recent earnings and corporate events.

Positive Factors

Earnings

4Q adjusted EPS of $2.20 was above estimate and consensus.

Growth Potential

Potential upside to organic growth underpinned by strong bookings momentum.

Strategic Moves

The company is poised for an attractive multi-year setup driven by significant portfolio transformation with reduced capital goods exposure and higher-growth additions.

Negative Factors

Organic Growth

Organic growth has been disappointing, but Dover has absorbed a number of post-COVID 'cliffs' across its portfolio.

Secular Growth

There are limited secular growth drivers due to the diverse end markets, making re-rating difficult.

Valuation

The stock trades at a discount to the broader industrial complex, consistent with the trend favoring simplification over portfolio complexity.

Dover Business Overview & Revenue Model

Company Description

Dover Corporation provides equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services worldwide. The Engineered Products segment provides various equipment, component, software, solution, and services that are used in aftermarket vehicle service, solid waste handling, industrial automation, aerospace and defense, industrial winch and hoist, and fluid dispensing end-market. This segment also offers manual and power clamp, rotary and linear mechanical indexer, conveyor, pick and place unit, glove port, and manipulator, as well as end-of-arm robotic gripper, slide, and end effector. Its Clean Energy & Fueling segment offers component, equipment, and software and service solution enabling safe transport of traditional and clean fuel, and other hazardous substance along with supply chain, as well as operation of convenience retail, retail fueling, and vehicle wash establishment. The Imaging and Identification segment provides precision marking and coding; packaging intelligence; product traceability equipment; brand protection; and digital textile printing equipment, as well as related consumable, software, and service to packaged and consumer good, pharmaceutical, industrial manufacturing, fashion and apparel, and other end-market. Its Pumps and Process Solutions segment manufactures specialty pump, connector, and flow meter, fluid connecting solution, plastics and polymer processing equipment, and engineered components for rotating and reciprocating machines. The Climate & Sustainability Technologies segment manufactures refrigeration system, refrigeration display case, commercial glass refrigerator and freezer door, and brazed plate heat exchanger for industrial heating and cooling, and residential climate control applications. It sells its products directly and through a network of distributors. The company was incorporated in 1947 and is headquartered in Downers Grove, Illinois.

How the Company Makes Money

Dover Corporation makes money through the manufacturing and sale of its wide range of products and services across its various business segments. Its revenue streams are primarily derived from the sale of industrial products, including pumps, compressors, refrigeration systems, and printing and identification equipment. Additionally, the company earns through the provision of aftermarket services, including maintenance and support. Significant partnerships and long-term contracts with industries in energy, food and beverage, and transportation further bolster their revenue. Additionally, Dover leverages its innovative capabilities and global reach to maintain a competitive edge in the industrial manufacturing sector.

Dover Financial Statement Overview

Summary

Dover demonstrates strong profitability and a robust balance sheet. There is a slight concern over declining revenue and free cash flow, which needs monitoring.

Income Statement

Dover shows a solid performance with a strong gross profit margin and net profit margin, indicating good profitability. However, revenue has decreased from the previous year, reflecting a revenue decline trend which could be a concern. The EBIT and EBITDA margins remain healthy, showcasing operational efficiency.

Balance Sheet

The balance sheet is robust with a healthy equity ratio, indicating financial stability. The debt-to-equity ratio has improved, signifying better leverage management. Return on Equity has significantly improved, showcasing effective use of shareholder funds.

Cash Flow

Dover exhibits strong cash flow generation with substantial free cash flow and a favorable operating cash flow to net income ratio. However, the free cash flow has decreased from the previous year, which may require attention if the trend continues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.75B	8.44B	8.51B	7.91B	6.68B
	Gross Profit
2.96B	3.08B	3.06B	2.97B	2.47B
	EBIT
1.21B	1.37B	1.38B	1.28B	932.99M
	EBITDA
1.21B	1.72B	1.71B	1.80B	1.23B
	Net Income Common Stockholders
2.70B	1.06B	1.07B	1.12B	683.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.84B	398.56M	380.87M	385.50M	513.08M
	Total Assets
12.51B	11.35B	10.90B	10.40B	9.15B
	Total Debt
2.93B	3.68B	3.68B	3.12B	3.11B
	Net Debt
1.08B	3.28B	3.30B	2.74B	2.60B
	Total Liabilities
5.56B	6.24B	6.61B	6.21B	5.77B
	Stockholders Equity
6.95B	5.11B	4.29B	4.19B	3.39B
Cash Flow		Free Cash Flow
580.85M	1.14B	584.76M	944.40M	939.12M
	Operating Cash Flow
748.38M	1.34B	805.72M	1.12B	1.10B
	Investing Cash Flow
1.96B	-726.63M	-540.92M	-992.75M	-481.38M
	Financing Cash Flow
-1.27B	-568.06M	-260.26M	-249.88M	-506.29M

Dover Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 151.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOV, the sentiment is Negative. The current price of 151.14 is below the 20-day moving average (MA) of 175.21, below the 50-day MA of 188.64, and below the 200-day MA of 188.04, indicating a bearish trend. The MACD of -4.12 indicates Positive momentum. The RSI at 38.28 is Neutral, neither overbought nor oversold. The STOCH value of 25.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DOV.

Dover Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOV	77 Outperform	$20.76B	7.79	24.30%	1.36%	-2.99%	159.26%
XYL	74 Outperform	$25.23B	28.37	8.55%	1.43%	16.23%	34.42%
NDSN	73 Outperform	$9.72B	21.75	16.15%	1.77%	0.78%	-8.42%
IR	70 Outperform	$27.39B	32.99	8.40%	0.12%	5.22%	8.01%
ROK	69 Neutral	$25.68B	28.26	26.22%	2.25%	-11.28%	-23.69%
IEX	67 Neutral	$12.31B	24.49	13.77%	1.69%	-0.16%	-15.42%
Sector *	62 Neutral	$7.16B	12.21	3.05%	3.43%	3.62%	-14.48%

Dover Corporate Events

Dover Reports Modest Revenue Growth and Earnings Surge

Dover reported its financial results for the fourth quarter and full year ending December 31, 2024. The company saw a modest revenue increase of 1% for both the quarter and the year, generating $1.9 billion and $7.7 billion respectively. Despite a slight decline in GAAP earnings from continuing operations for the quarter, annual earnings showed significant growth, with a 48% increase. The company remains optimistic about 2025, expecting continued margin improvements and robust demand across its markets, supported by strategic acquisitions and a strong cash position.