Douglas Dynamics (PLOW) AI Stock Analysis

• Market Cap: $569.96M
• Dividend Yield: 4.67%
• Average Volume (3M): 156.94K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.84
• Revenue Growth: 0.06%
• EPS Growth: 137.74%
• Country: US
• Employees: 1,804
• Sector: Consumer Cyclical
• Sector Strength: 49
• Industry: Vehicles
• EPS (TTM): 2.33
• Shares Outstanding: 23,094,048
• 10 Day Avg. Volume: 193,304
• 30 Day Avg. Volume: 156,940
• PEG Ratio: 0.08
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.03
• Price to Cash Flow (P/CF): 2.00
• P/FCF Ratio: 2.10
• 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: $31.00
• Price Target Upside: 25.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Douglas Dynamics is performing well financially with strong profitability and cash flow management, though flat revenue growth is a concern. The stock appears undervalued, offering a good dividend yield, which is attractive to investors. However, technical indicators suggest caution in the short term due to bearish momentum. The positive earnings call and new CEO appointment add to the optimism for future growth. Investors should weigh the solid financials and potential undervaluation against the current market sentiment and challenges in specific segments.

Positive Factors

Cost Savings

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

Negative Factors

Guidance

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

Weather 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 work truck attachments and equipment. The company specializes in snow and ice control equipment, offering a range of products such as snowplows, salt spreaders, and related accessories. With a focus on providing innovative solutions for the commercial work truck industry, Douglas Dynamics operates primarily in North America and serves a diverse customer base, including professional contractors, municipalities, and other governmental entities.

How the Company Makes Money

Douglas Dynamics makes money through the design, manufacture, and sale of snow and ice control products, primarily targeting the commercial work truck market. The company's revenue model is centered around the sale of these products, with key revenue streams including snowplows under the brands like Western, Fisher, and SnowEx, as well as ice control equipment. Additionally, Douglas Dynamics generates revenue from aftermarket parts and accessories, providing ongoing support and maintenance options for its equipment. The company also benefits from strategic partnerships and a robust distribution network, ensuring widespread availability and service support for its products. Seasonal demand, particularly in regions with harsh winter climates, significantly contributes to the company's earnings, as does its focus on innovation and product quality.

Douglas Dynamics Financial Statement Overview

Summary

Douglas Dynamics demonstrates solid profitability and cash flow management, with significant improvements in gross and net profit margins and free cash flow. The reduction in debt levels and improved return on equity add to the financial stability. However, the flat revenue growth may pose challenges in sustaining long-term expansion. Overall, the company is on a stable financial footing but should focus on strategies to drive revenue growth.

Income Statement

Douglas Dynamics shows strong profitability with a gross profit margin of 25.82% and a net profit margin of 9.87% in 2024. EBIT margin improved significantly to 15.60% from 7.90% in 2023, indicating better operational efficiency. However, the revenue has been relatively flat with a slight growth of 0.06% over the last year, which could be a concern for future scalability.

Balance Sheet

The company's financial leverage has improved, with a debt-to-equity ratio reduced to 0.27 in 2024 from 1.11 in 2023, indicating a healthier balance sheet. Return on equity increased to 21.24% in 2024 from 10.24% in 2023, suggesting enhanced profitability for shareholders. Equity ratio stands at a solid 44.78%, reflecting a balanced capital structure, though total assets slightly decreased, which should be monitored.

Cash Flow

Free cash flow improved substantially to $33.32 million in 2024 from $1.95 million in 2023, reflecting strong cash generation capabilities. The operating cash flow to net income ratio is robust at 0.73, suggesting effective cash management. The free cash flow to net income ratio is also strong at 0.59, indicating good conversion of earnings to cash flow, despite the slight decline in operating cash flow compared to 2022.

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
	EBIT
88.71M	44.91M	58.75M	51.13M	52.82M
	EBITDA
88.71M	66.57M	79.16M	72.75M	-62.18M
	Net Income Common Stockholders
56.15M	23.72M	38.61M	30.69M	-86.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.12M	24.16M	20.67M	36.96M	41.03M
	Total Assets
589.98M	593.42M	596.89M	572.48M	579.20M
	Total Debt
72.18M	256.70M	226.53M	239.88M	267.99M
	Net Debt
67.06M	232.55M	205.86M	202.92M	226.96M
	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: Negative
• Last Price: 24.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 24.68 is below the 20-day moving average (MA) of 26.01, below the 50-day MA of 25.25, and below the 200-day MA of 25.18, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 39.20 is Neutral, neither overbought nor oversold. The STOCH value of 10.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLOW.

Douglas Dynamics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEX	78 Outperform	$2.70B	8.27	19.13%	1.67%	-0.47%	-34.74%
PCAR	74 Outperform	$58.02B	13.93	24.93%	1.11%	-4.29%	-9.76%
PLOW	73 Outperform	$569.96M	10.68	22.04%	4.67%	0.06%	137.74%
LCII	72 Outperform	$2.45B	17.56	10.42%	4.37%	-1.15%	121.43%
OSK	68 Neutral	$6.26B	9.50	17.34%	1.95%	11.36%	13.78%
Sector *	60 Neutral	$12.39B	10.47	1.07%	3.58%	1.64%	-18.33%
AGCO	55 Neutral	$7.65B	46.40	-10.11%	1.13%	-19.08%	-136.41%

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.

Douglas Dynamics Appoints New President of Work Truck Attachments

On February 19, 2025, Douglas Dynamics, Inc. announced the election of Chris Bernauer as President of Work Truck Attachments, effective February 28, 2025. This change allows Mark Van Genderen to focus on his role as Chief Operating Officer, maintaining his current compensation, which may impact the company’s operational efficiency.

Douglas Dynamics Announces Retirement of HR Chief

Douglas Dynamics has announced that Linda R. Evans, its Chief Human Resources Officer, will retire effective January 2, 2025, with her executive role concluding on December 31, 2024. In connection with her retirement, the company and Ms. Evans signed a Separation Agreement that allows her to receive extended COBRA continuation coverage at active employee rates for up to eighteen months, in exchange for her release of claims against the company and reaffirmation of confidentiality and non-competition obligations.