Douglas Dynamics, Inc.
Douglas Dynamics, Inc. Fundamental Analysis
Douglas Dynamics, Inc. (PLOW) shows weak financial fundamentals with a PE ratio of 24.31, profit margin of 6.82%, and ROE of 15.66%. The company generates $0.6B in annual revenue with weak year-over-year growth of 0.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PLOW's fundamental strength across five key dimensions:
Efficiency Score
WeakPLOW struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPLOW trades at attractive valuation levels.
Growth Score
WeakPLOW faces weak or negative growth trends.
Financial Health Score
ModeratePLOW shows balanced financial health with some risks.
Profitability Score
ModeratePLOW maintains healthy but balanced margins.
Key Financial Metrics
Is PLOW Expensive or Cheap?
P/E Ratio
PLOW trades at 24.31 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PLOW's PEG of -0.66 indicates potential undervaluation.
Price to Book
The market values Douglas Dynamics, Inc. at 3.71 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.39 times EBITDA. This is generally considered low.
How Well Does PLOW Make Money?
Net Profit Margin
For every $100 in sales, Douglas Dynamics, Inc. keeps $6.82 as profit after all expenses.
Operating Margin
Core operations generate 10.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.66 in profit for every $100 of shareholder equity.
ROA
Douglas Dynamics, Inc. generates $6.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Douglas Dynamics, Inc. generates limited operating cash flow of $50.95M, signaling weaker underlying cash strength.
Free Cash Flow
Douglas Dynamics, Inc. produces free cash flow of $39.57M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.72 in free cash annually.
FCF Yield
PLOW converts 4.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.007
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How PLOW Stacks Against Its Sector Peers
| Metric | PLOW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.31 | 24.85 | Neutral |
| ROE | 15.66% | 1165.00% | Weak |
| Net Margin | 6.82% | 752.00% | Weak |
| Debt/Equity | 1.08 | 0.76 | Weak (High Leverage) |
| Current Ratio | 2.01 | 9.23 | Strong Liquidity |
| ROA | 6.04% | 1280.00% | Weak |
PLOW outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Douglas Dynamics, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-1.83%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
12.75%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-47.47%
Industry Style: Cyclical, Growth, Discretionary
Declining