Low Price-to-Earnings Ratio
Reasonable Price-to-Sales Ratio
Strong Return on Equity
High Net Profit Margin
Strong Liquidity Position
Low Debt Levels
📈 Strong Financial Performance
🏆 Solid Market Position
🚀 Positive Growth Outlook
🔍 Robust Acquisition Pipeline
High Price-to-Cash-Flow Ratio
Moderate Gross Profit Margin
High Interest Coverage
🌍 Currency Headwinds
Dover's earnings call reflects strong business quality with a diversified portfolio and solid financial performance. The company is well-positioned for future growth, although potential currency headwinds could pose challenges. Overall, the outlook for 2025 appears positive with a focus on both organic and inorganic growth strategies.
Analysis Date: January 30, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$124.38
Current Market Price: $25.21
IV/P Ratio: 4.93x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
80.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for DOV
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (47.53)
P/B ratio ≤ 1.5 (18.43)
Current ratio ≥ 2.0 (2.04x)
Long-term debt < Net current assets (1.11x)
Margin of safety (80.0%)
DOV does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
DOV's Return on Equity (ROE) stands at 46.57%, indicating high efficiency in generating profits from shareholders' equity.
A net profit margin of 32.95% showcases the company's ability to convert revenue into actual profit effectively.
The gross profit margin of 37.96% is decent but may indicate room for improvement compared to higher-margin competitors.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
46.57%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
11.48%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
37.96%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
32.95%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
The current ratio of 2.04 and quick ratio of 1.52 imply that DOV has sufficient liquidity to cover its short-term liabilities.
A debt-to-equity ratio of 0.42 suggests that DOV is not heavily reliant on debt financing, which contributes to financial stability.
While an interest coverage ratio of 10.06 is good, it also highlights that the company may be over-leveraged in terms of interest payments, indicating caution in financial commitments.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.42x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
2.04x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Dover's top line performance was broad-based with four out of five segments posting positive organic growth. Bookings were up 7% organically, and adjusted EPS grew 14% in the fourth quarter, reflecting solid financial health.
Dover's diverse portfolio across various sectors, including Clean Energy, Pumps, and Imaging, positions it well to capitalize on secular growth trends. The company has a flexible business model and a proven execution playbook, enhancing its competitive advantages.
Dover is optimistic about 2025 with double-digit EPS growth expected through a combination of organic growth, margin improvement, and disciplined capital allocation. The company identifies strong demand in biopharma components and clean energy markets.
With a significant cash position, Dover is well-equipped to pursue value-creating acquisitions and organic investments, particularly in high-growth, high-margin areas. The company has already completed two acquisitions in its priority segments.
The strengthening U.S. dollar poses a risk as it impacts foreign currency translations, which could affect financial results. This is noted as a concern for maintaining full-year guidance.