Latest news with #DouglasDynamics
Yahoo
25-06-2025
- Business
- Yahoo
Estimating The Fair Value Of Douglas Dynamics, Inc. (NYSE:PLOW)
The projected fair value for Douglas Dynamics is US$33.39 based on 2 Stage Free Cash Flow to Equity Current share price of US$29.20 suggests Douglas Dynamics is potentially trading close to its fair value Analyst price target for PLOW is US$33.67 which is similar to our fair value estimate In this article we are going to estimate the intrinsic value of Douglas Dynamics, Inc. (NYSE:PLOW) by estimating the company's future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. There's really not all that much to it, even though it might appear quite complex. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$34.7m US$44.3m US$45.2m US$46.2m US$47.4m US$48.6m US$49.9m US$51.3m US$52.8m US$54.3m Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 2.00% Est @ 2.28% Est @ 2.48% Est @ 2.62% Est @ 2.71% Est @ 2.78% Est @ 2.83% Est @ 2.86% Present Value ($, Millions) Discounted @ 8.3% US$32.0 US$37.8 US$35.6 US$33.6 US$31.8 US$30.1 US$28.6 US$27.1 US$25.7 US$24.4 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$307m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 8.3%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$54m× (1 + 2.9%) ÷ (8.3%– 2.9%) = US$1.0b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$1.0b÷ ( 1 + 8.3%)10= US$468m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$775m. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of US$29.2, the company appears about fair value at a 13% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Douglas Dynamics as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.3%, which is based on a levered beta of 1.240. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Douglas Dynamics Strength Earnings growth over the past year exceeded the industry. Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Weakness Dividend is low compared to the top 25% of dividend payers in the Machinery market. Opportunity Current share price is below our estimate of fair value. Threat Annual earnings are forecast to decline for the next 2 years. Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. DCF models are not the be-all and end-all of investment valuation. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Douglas Dynamics, we've compiled three pertinent aspects you should further examine: Risks: For example, we've discovered 4 warning signs for Douglas Dynamics (1 shouldn't be ignored!) that you should be aware of before investing here. Future Earnings: How does PLOW's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
24-06-2025
- Automotive
- Yahoo
Is Douglas Dynamics (PLOW) Outperforming Other Auto-Tires-Trucks Stocks This Year?
For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Douglas Dynamics (PLOW) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Auto-Tires-Trucks sector should help us answer this question. Douglas Dynamics is one of 102 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst. The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Douglas Dynamics is currently sporting a Zacks Rank of #2 (Buy). Over the past three months, the Zacks Consensus Estimate for PLOW's full-year earnings has moved 16.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive. Based on the most recent data, PLOW has returned 22.1% so far this year. Meanwhile, the Auto-Tires-Trucks sector has returned an average of -11% on a year-to-date basis. This shows that Douglas Dynamics is outperforming its peers so far this year. Ferrari (RACE) is another Auto-Tires-Trucks stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 8.5%. In Ferrari's case, the consensus EPS estimate for the current year increased 6.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy). Looking more specifically, Douglas Dynamics belongs to the Automotive - Replacement Parts industry, which includes 7 individual stocks and currently sits at #26 in the Zacks Industry Rank. Stocks in this group have lost about 3.1% so far this year, so PLOW is performing better this group in terms of year-to-date returns. On the other hand, Ferrari belongs to the Automotive - Original Equipment industry. This 52-stock industry is currently ranked #74. The industry has moved -0.3% year to date. Douglas Dynamics and Ferrari could continue their solid performance, so investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to these stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Douglas Dynamics, Inc. (PLOW) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Shake Shack, Inc. (SHAK) : Free Stock Analysis Report Ferrari N.V. (RACE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
10-06-2025
- Business
- Yahoo
3 Dividend Stocks To Consider With Yields Up To 6.4%
The United States market has shown a positive trend, rising 1.5% over the past week and 12% over the last year, with earnings projected to grow by 14% annually in the coming years. In this environment, dividend stocks with attractive yields can offer investors a way to potentially benefit from both income and capital appreciation. Name Dividend Yield Dividend Rating Valley National Bancorp (VLY) 4.92% ★★★★★☆ Universal (UVV) 5.39% ★★★★★★ Southside Bancshares (SBSI) 5.05% ★★★★★☆ First Interstate BancSystem (FIBK) 6.75% ★★★★★★ Ennis (EBF) 5.36% ★★★★★★ Dillard's (DDS) 6.45% ★★★★★★ CompX International (CIX) 5.01% ★★★★★★ Columbia Banking System (COLB) 6.00% ★★★★★★ Citizens & Northern (CZNC) 5.97% ★★★★★☆ Chevron (CVX) 4.86% ★★★★★★ Click here to see the full list of 143 stocks from our Top US Dividend Stocks screener. Let's take a closer look at a couple of our picks from the screened companies. Simply Wall St Dividend Rating: ★★★★★☆ Overview: Polaris Inc. designs, engineers, manufactures, and markets powersports vehicles across the United States, Canada, and internationally with a market cap of approximately $2.31 billion. Operations: Polaris Inc.'s revenue is derived from its Marine segment at $472.80 million, On-Road segment at $932.40 million, and Off-Road segment at approximately $5.57 billion. Dividend Yield: 6.4% Polaris Inc. declared a quarterly dividend of $0.67 per share, reflecting its stable and reliable 10-year dividend history, although the high payout ratio of 372.5% suggests dividends are not well covered by earnings. Despite a top-tier yield of 6.44%, financial challenges include interest payments not being well-covered by earnings and declining profit margins from last year, raising concerns about long-term sustainability despite positive cash flow coverage at an 89.2% payout ratio. Click to explore a detailed breakdown of our findings in Polaris' dividend report. Upon reviewing our latest valuation report, Polaris' share price might be too optimistic. Simply Wall St Dividend Rating: ★★★★★☆ Overview: Douglas Dynamics, Inc. is a North American manufacturer and upfitter of commercial work truck attachments and equipment with a market cap of $645.45 million. Operations: Douglas Dynamics generates its revenue from two primary segments: Work Truck Solutions, contributing $319.29 million, and Work Truck Attachments, adding $268.63 million. Dividend Yield: 4.1% Douglas Dynamics declared a quarterly dividend of $0.295 per share, maintaining its stable 10-year dividend history. Despite a high debt level, dividends are well-covered by earnings and cash flows with payout ratios of 42.7% and 51.9%, respectively. Earnings grew significantly over the past year, but future declines are expected. The company trades below fair value estimates; however, its dividend yield of 4.14% is lower than the top quartile in the US market at 4.7%. Dive into the specifics of Douglas Dynamics here with our thorough dividend report. In light of our recent valuation report, it seems possible that Douglas Dynamics is trading behind its estimated value. Simply Wall St Dividend Rating: ★★★★★☆ Overview: Virtus Investment Partners, Inc. is a publicly owned investment manager with a market cap of $1.18 billion. Operations: Virtus Investment Partners generates revenue primarily from its asset management services, amounting to $902.84 million. Dividend Yield: 5.1% Virtus Investment Partners offers a dividend yield of 5.14%, ranking in the top 25% of US payers, but its sustainability is questionable due to a high cash payout ratio of 240.6%. Despite stable and growing dividends over the past decade, they are not well covered by free cash flows. The company recently declared a quarterly dividend of $2.25 per share and trades at a discount to estimated fair value, though revenue and net income have slightly declined year-over-year. Unlock comprehensive insights into our analysis of Virtus Investment Partners stock in this dividend report. Insights from our recent valuation report point to the potential undervaluation of Virtus Investment Partners shares in the market. Access the full spectrum of 143 Top US Dividend Stocks by clicking on this link. Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks. Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PII PLOW and VRTS. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
03-06-2025
- Business
- Yahoo
REV Group (REVG) Reports Earnings Tomorrow: What To Expect
Speciality vehicle provider REV (NYSE:REVG) will be reporting results tomorrow before market hours. Here's what to expect. REV Group beat analysts' revenue expectations by 6.5% last quarter, reporting revenues of $525.1 million, down 10.4% year on year. It was an incredible quarter for the company, with an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. Is REV Group a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting REV Group's revenue to decline 3.3% year on year to $596.7 million, improving from the 9.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.57 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. REV Group has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 4.3% on average. Looking at REV Group's peers in the heavy transportation equipment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Douglas Dynamics delivered year-on-year revenue growth of 20.3%, beating analysts' expectations by 6.7%, and Shyft reported revenues up 3.4%, topping estimates by 2.8%. Douglas Dynamics traded up 4.4% following the results while Shyft was also up 18.1%. Read our full analysis of Douglas Dynamics's results here and Shyft's results here. There has been positive sentiment among investors in the heavy transportation equipment segment, with share prices up 5.4% on average over the last month. REV Group is up 2.5% during the same time and is heading into earnings with an average analyst price target of $35 (compared to the current share price of $36.53). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
03-06-2025
- Business
- Yahoo
2 Small-Cap Stocks to Consider Right Now and 1 to Brush Off
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings. However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats. Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here are two small-cap stocks that could amplify your portfolio's returns and one best left ignored. Market Cap: $632.2 million Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE:PLOW) offers snow and ice equipment for the roads and sidewalks. Why Should You Sell PLOW? Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 2.4% annually Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5 percentage points Douglas Dynamics is trading at $27.24 per share, or 14.1x forward P/E. Read our free research report to see why you should think twice about including PLOW in your portfolio, it's free. Market Cap: $429.1 million Founded when its founder patented a unique design for a vacuum system used in the sugar refining process, Graham (NYSE:GHM) provides vacuum and heat transfer equipment for the energy, petrochemical, refining, and chemical sectors. Why Are We Bullish on GHM? Impressive 17% annual revenue growth over the last five years indicates it's winning market share this cycle Earnings per share grew by 298% annually over the last two years and trumped its peers Free cash flow margin jumped by 5.6 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends At $39.36 per share, Graham Corporation trades at 33x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free. Market Cap: $8.59 billion Helping build race cars at one point, Allison Transmission (NYSE:ALSN) offers transmissions to original equipment manufacturers and fleet operators. Why Could ALSN Be a Winner? Superior product capabilities and pricing power result in a best-in-class gross margin of 47.7% Healthy operating margin of 28.8% shows it's a well-run company with efficient processes, and it turbocharged its profits by achieving some fixed cost leverage Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends Allison Transmission's stock price of $102.01 implies a valuation ratio of 10x forward EV-to-EBITDA. Is now the time to initiate a position? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
