DOVER Corp (NYSE: DOV)

Sector: Industrials Industry: Specialty Industrial Machinery CIK: 0000029905
Market Cap 31.94 Bn
P/B 4.31
P/E 29.19
P/S 3.95
ROIC (Qtr) 10.41
Div Yield % 0.89
Rev 1y % (Qtr) 8.77
Total Debt (Qtr) 3.33 Bn
Debt/Equity (Qtr) 0.45
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About

Dover Corporation (DOV), a diversified global manufacturer and solutions provider, has been delivering innovative equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services since its inception in 1947. The company operates in five key segments: Engineered Products, Clean Energy & Fueling, Imaging & Identification, Pumps & Process Solutions, and Climate & Sustainability Technologies. It serves a wide array of industries, including solid waste handling, aftermarket vehicle service, industrial...

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Investment thesis

Bull case

  • Strong operating cash flow of 1.34B provides robust 0.40x coverage of total debt 3.33B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 1.68B provide 2.37x coverage of short-term debt 706.68M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 1.34B provides exceptional 12.19x coverage of interest expenses 109.77M, showing strong debt service capability.
  • Operating cash flow of 1.34B provides strong 30.42x coverage of stock compensation 43.98M, indicating sustainable incentive practices.
  • Robust free cash flow of 1.12B exceeds capital expenditure of 220.26M by 5.07x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 1.34B barely covers its investment activities of (886.59M), with a coverage ratio of -1.51, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.34B provides thin coverage of dividend payments of (283.01M) with a -4.73 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 1.68B provide limited coverage of acquisition spending of (657.27M), which is -2.55x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 1.34B barely covers operating expenses of (4.64M) with a -288.11 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Retained earnings of 14.22B provide limited buffer against comprehensive income items of (174.95M), which is -81.28x, indicating elevated exposure to market risks.

Business Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Specialty Industrial Machinery
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GEV GE Vernova Inc. 224.93 Bn 194.57 6.14 0.00 Bn
2 ETN Eaton Corp plc 153.13 Bn 38.99 5.75 11.22 Bn
3 PH Parker-Hannifin Corp 135.87 Bn 165.29 12.09 9.87 Bn
4 EMR Emerson Electric Co 111.68 Bn 47.10 4.65 13.41 Bn
5 ITW Illinois Tool Works Inc 86.68 Bn 28.27 5.40 8.97 Bn
6 CMI Cummins Inc 82.13 Bn 28.89 2.44 7.55 Bn
7 AME Ametek Inc/ 53.79 Bn 36.34 7.27 2.28 Bn
8 ROK Rockwell Automation, Inc 43.80 Bn 44.24 5.11 3.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.49 2.28
EV to Cash from Ops. EV/CFO 25.00 37.14
EV to Debt EV to Debt 10.05 34.39
EV to EBIT EV/EBIT 22.60 27.71
EV to EBITDA EV/EBITDA 19.03 25.34
EV to Free Cash Flow [EV/FCF] EV/FCF 29.93 133.36
EV to Market Cap EV to Market Cap 1.05 1.04
EV to Revenue EV/Rev 4.13 39.88
Price to Book Value [P/B] P/B 4.31 6.22
Price to Earnings [P/E] P/E 29.19 143.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.87 2.57
Dividend Payout Ratio % Div Payout % (Qtr) 26.00 15.73
Dividend per Basic Share Div per Share (Qtr) 2.08 0.91
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 25.42 82.53
Interest Coverage Int. cover (Qtr) 13.49 12.34
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -31.47 -45.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -9.11 118.48
Dividend Growth (1y) % Div 1y % (Qtr) 1.22 10.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -58.00 -283.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -17.95 -36.87
EBIT Growth (1y) % EBIT 1y % (Qtr) -53.52 -80.72
EBT Growth (1y) % EBT 1y % (Qtr) -55.12 -120.93
EPS Growth (1y) % EPS 1y % (Qtr) -59.19 -39.22
FCF Growth (1y) % FCF 1y % (Qtr) 21.45 85.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 8.77 0.87
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.60 0.62
Cash Payout Ratio Cash Payout (Qtr) 0.18 0.10
Cash Ratio Cash Ratio (Qtr) 0.67 3.01
Current Ratio Curr Ratio (Qtr) 1.79 4.97
Debt to Equity Ratio Debt/Equity (Qtr) 0.45 0.38
Interest Cover Ratio Int Coverage (Qtr) 13.49 12.34
Times Interest Earned Times Interest Earned (Qtr) 13.49 12.34
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 23.00 -7,291.27
EBIT Margin % EBIT Margin % (Qtr) 18.30 -7,413.30
EBT Margin % EBT Margin % (Qtr) 16.94 -9,015.79
Gross Margin % Gross Margin % (Qtr) 39.80 -32.61
Net Profit Margin % Net Margin % (Qtr) 13.50 -7,962.06