Dover Corporation (DOV - Get Rating) is a diversified global manufacturer and solutions provider. It delivers equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services. For the third quarter of 2024, the company reported a total consolidated revenue of $1.98 billion, of which its Clean Energy & Fueling revenue grew 7.2% year-over-year to $500.69 million.

The company and its subsidiaries continue to offer a diverse range of industrial products and solutions to customers, alongside introducing innovative products that target the evolving demands of consumers.

Caldera, a part of DOV, recently unveiled the version 18 raster image processor software for large-format digital printing and cutting, which is embedded with enhanced features. Also, Malema™, part of PSG and DOV, launched the new Malema CIFM-88 Series DuraMassFlow™ PFA Coriolis Industrial Flow Meter. Likewise, its other subsidiary, Dover Fueling Solutions, introduced the Wayne PWR™ DC fast charger.

With its ever-expanding product portfolio, Dover is delivering products for every need and is poised for continued consumer demand and growth in the future. Also, DOV’s financial results show that it has maintained strong profitability and is strengthening its financial standing. The company recently paid a regular quarterly dividend of $0.515 on December 16.

Boasting on its solid financial performance, the company provided its full-year 2024 guidance. DOV expects to generate EPS from continuing operations between $10.11 and $10.21. Its adjusted EPS from continuing operations is expected to be $8.08 – $8.18, based on full-year revenue growth of 1% to 3%.

Shares of DOV have surged 3.2% over the past six months and 23.1% over the past year to close its last trading session at $190.33.

Let’s look at factors that could influence DOV’s performance in the upcoming months.

Positive Recent Developments

On December 19, DOV’s Caldera launched Version 18 of its award-winning raster image processor software for large-format digital printing and cutting. CalderaRIP Version 18 introduced a wide range of features and enhancements in the market, designed to boost productivity, streamline workflows, and improve print quality for professional printers.

Also, on December 11, DOV’s wholly owned subsidiary Markem-Imaje released its Ultraply ribbons and self-adhesive labels range. Amid the ongoing rise of e-commerce and direct-to-consumer models, the new range addresses the growing demand for high-quality, phone-scannable 2D barcodes with its innovative Print and Apply (P&A) labelers.

Robust Financials

DOV’s revenue increased marginally year-over-year to $1.98 billion during the third quarter that ended September 30, 2024. Its gross profit grew 3.2% from the year-ago value to $763.19 million. The company’s earnings before the provision of income taxes of $386.33 million indicate a growth of 21.4% from the prior year’s quarter.

In addition, the company’s adjusted earnings from continuing operations amounted to $313.99 million or $2.27 per share, up 4.2% and 6.1% from the prior year’s quarter, respectively. Its free cash flow increased 8.6% from the year-ago value to $315.49 million.

Solid Historical Growth

DOV’s revenue and EBITDA have grown at respective CAGRs of 3.3% and 3.8% over the past three years. The company’s EBIT has increased 3.4% over the same timeframe, while its net income and EPS have improved at CAGRs of 18.2% and 19.9%, respectively.

In addition, the company’s normalized net income and total assets have grown at respective CAGRs of 3.8% and 6.4% over the past three years, respectively.

Favorable Analyst Estimates

Analysts expect DOV’s EPS for the first quarter (ending March 2025) to increase 4.9% year-over-year to $2.05, and its revenue estimate is $1.95 billion for the same quarter. Furthermore, the company has maintained an impressive earning surprise history, having topped the consensus EPS estimate in all of the trailing four quarters.

Additionally, Street expects the company’s revenue and EPS for the fiscal year 2025 to increase 5.1% and 14.9% year-over-year to $8.20 billion and $9.39, respectively.

High Profitability

DOV’s trailing-12-month gross profit margin and EBIT margin of 37.58% and 16.81% are 18.1% and 60.7% higher than the respective industry averages of 31.83% and 10.46%, respectively. Its trailing-12-month net income margin of 18.38% is considerably higher than the industry average of 6.58%.

Furthermore, the stock’s trailing-12-month ROCE, ROTC, and ROTA of 29.11%, 10.43%, and 13.07% favorably compares to the industry averages of 13.33%, 7.06%, and 5.19%, respectively. Similarly, its trailing-12-month levered FCF margin of 10% is 48.5% higher than the industry average of 6.74%.

POWR Ratings Reflect Promise

DOV’s solid fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, translating to a Buy in our proprietary system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. DOV has a B grade for Sentiment and Quality, which is in sync with its optimistic analysts’ estimates and higher-than-industry profitability.

DOV is ranked #30 in the 79-stock A-rated Industrial – Machinery industry.

Beyond what I have stated above, we have also given DOV grades for Growth, Value, Momentum, and Stability. Get access to all the DOV Ratings here.

Bottom Line

DOV is continuously strengthening its market share and position. The company recently announced multiple product additions and innovations through its subsidiaries like Caldera, Malema™, Markem-Imaje, and Dover Fueling Solutions. Dover’s financial statements also reflected its continued growth.

Moreover, the company paid a regular quarterly dividend of $0.515 per share, reflecting its robust financial position.

Considering DOV’s high profitability, strong financials, and growth prospects, now might be the ideal time to consider adding DOV to one’s investment portfolio.

How Does Dover Corporation (DOV) Stack Up Against Its Peers?

While DOV has an overall POWR Rating of B, investors could also check out these other stocks within the A-rated Industrial – Machinery industry with A (Strong Buy) or B (Buy) ratings: Amada Co. Ltd. ADR (AMDLY - Get Rating), TechnoPro Holdings Inc. ADR (TCCPY - Get Rating), and Taylor Devices, Inc. (TAYD - Get Rating).

For exploring more A and B-rated industrial stocks, click here.

What To Do Next?

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DOV shares were trading at $191.13 per share on Thursday afternoon, up $0.80 (+0.42%). Year-to-date, DOV has gained 25.67%, versus a 28.23% rise in the benchmark S&P 500 index during the same period.

About the Author: Rjkumari Saxena

Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions. More...

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