Dover Corp

DOV

Construction, Mining & Materials Handling Machinery & Equip

Mkt Cap

$25.49B

PE

17.46

Debt

$3.942B

Cash

$930M

EV

$28.51B

FCF

$1.073B

Market Cap

$25.49B

P/E Ratio

17.46

Debt

$3.942B

Cash

$930M

EV

$28.51B

FCF

$1.073B

Charts data: {"Earnings":[{"time":"2014-12-30","value":775235000},{"time":"2015-12-30","value":869829000},{"time":"2016-12-30","value":508892000},{"time":"2017-12-30","value":811665000},{"time":"2018-12-30","value":570267000},{"time":"2019-12-30","value":677918000},{"time":"2020-12-30","value":683451000},{"time":"2021-12-30","value":1123818000},{"time":"2022-12-30","value":1065376000},{"time":"2023-12-30","value":1056828000}],"Sales":[{"time":"2014-12-30","value":7752728000},{"time":"2015-12-30","value":6956311000},{"time":"2016-12-30","value":6043224000},{"time":"2017-12-30","value":6820886000},{"time":"2018-12-30","value":6992118000},{"time":"2019-12-30","value":7136397000},{"time":"2020-12-30","value":6683760000},{"time":"2021-12-30","value":7907081000},{"time":"2022-12-30","value":8508088000},{"time":"2023-12-30","value":8438134000}],"Net Margins":[{"time":"2014-12-30","value":0.09999512429689265},{"time":"2015-12-30","value":0.12504170673220333},{"time":"2016-12-30","value":0.08420869390246001},{"time":"2017-12-30","value":0.11899700420150695},{"time":"2018-12-30","value":0.08155854921212714},{"time":"2019-12-30","value":0.09499443486678222},{"time":"2020-12-30","value":0.10225546698265647},{"time":"2021-12-30","value":0.14212804952927635},{"time":"2022-12-30","value":0.12521920318642685},{"time":"2023-12-30","value":0.12524427794107085}],"Assets":[{"time":"2014-12-30","value":9090385000},{"time":"2015-12-30","value":8619763000},{"time":"2016-12-30","value":10115991000},{"time":"2017-12-30","value":10657653000},{"time":"2018-12-30","value":8365771000},{"time":"2019-12-30","value":8669477000},{"time":"2020-12-30","value":9152074000},{"time":"2021-12-30","value":10403627000},{"time":"2022-12-30","value":10896519000},{"time":"2023-12-30","value":11348513000}],"Stockholders Equity":[{"time":"2014-12-30","value":3700725000},{"time":"2015-12-30","value":3644575000},{"time":"2016-12-30","value":3799746000},{"time":"2017-12-30","value":4383180000},{"time":"2018-12-30","value":2768666000},{"time":"2019-12-30","value":3032660000},{"time":"2020-12-30","value":3385773000},{"time":"2021-12-30","value":4189528000},{"time":"2022-12-30","value":4286366000},{"time":"2023-12-30","value":5106605000}],"ROE":[{"time":"2014-12-30","value":0.2094819258388559},{"time":"2015-12-30","value":0.2386640417606991},{"time":"2016-12-30","value":0.13392789939116984},{"time":"2017-12-30","value":0.185177200114985},{"time":"2018-12-30","value":0.2059717567955109},{"time":"2019-12-30","value":0.22353907131033482},{"time":"2020-12-30","value":0.2018596639526631},{"time":"2021-12-30","value":0.26824453733212905},{"time":"2022-12-30","value":0.24854993717288723},{"time":"2023-12-30","value":0.20695315184941854}],"ROA":[{"time":"2014-12-30","value":0.13485633446768205},{"time":"2015-12-30","value":0.10815680199095962},{"time":"2016-12-30","value":0.08162650599432127},{"time":"2017-12-30","value":0.10499975932787453},{"time":"2018-12-30","value":0.10236354784275113},{"time":"2019-12-30","value":0.11245130473268457},{"time":"2020-12-30","value":0.1042027195147242},{"time":"2021-12-30","value":0.1448672660025201},{"time":"2022-12-30","value":0.12884490909436308},{"time":"2023-12-30","value":0.12347970170188817}]}

Dover Corporation provides equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services worldwide. The company's 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 company's Imaging & 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 & 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 company's 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.

Sector

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6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Dover Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$1.073B	$1.107B	$1.141B	$1.177B	$1.214B	$1.252B	$1.291B	$1.332B	$1.374B	$1.417B	$1.461B	$14.61B
DCF		$962.3M	$863M	$773.9M	$694.1M	$622.5M	$558.3M	$500.7M	$449M	$402.7M	$361.1M	$3.611B
Value	$9.799B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 7%

Earnings Stability 42%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	13%	8.4%	12%	8.2%	9.5%	10%	14%	13%	13%	17%
ROA	11%	8.2%	10%	10%	11%	10%	14%	13%	12%	16%
ROE	24%	13%	19%	21%	22%	20%	27%	25%	21%	28%

What is the average Net Margin?

The average Net Margin over the past 5 years is +11.19%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +11.94%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.56%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +22.59%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.42%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	3.48	5.22	6.27	5.12	4.05	3.31	3.31	6.29	3.03	3.67
Debt Equity	0.76	0.96	0.89	1.14	1.01	0.92	0.75	0.86	0.68	0.77
MIN
Graham Stability	-	-	100%	78%	100%	100%	100%	100%	100%	78%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 3.67.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.11.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.78.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	4.9%	3.8%	8.1%	-0.82%	1.7%
Net Income	11%	13%	16%	-0.8%	1.6%
Stockholders Equity	4.3%	13%	15%	19%	2.4%
FCF	7.3%	13%	6.8%	96%	5.8%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +3.83%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.7%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +13.13%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +1.62%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +13.02%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +2.37%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +13.09%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +5.77%.