Douglas Dynamics, Inc (PLOW) stock analysis

P/E below its 5-year median

Douglas Dynamics's P/E of 17.2 is below its own 5-year median of 21.7.

P/E below the industry

Douglas Dynamics's P/E of 17.2 is below the Construction, Mining, and Materials Handling median of 29.1.

EV/EBITDA below its 5-year median

Douglas Dynamics's EV/EBITDA of 9.9 is below its 5-year median of 10.2.

P/B above the industry

Douglas Dynamics's price-to-book of 2.91 is above the Construction, Mining, and Materials Handling median of 1.38.

Trading below fair value

The share price of $37.83 is below our fair value estimate of $41.79.

Margin of safety under 20%

The price is 9.5% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 2.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 6.3% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 20.1% over the last twelve months; the Construction, Mining, and Materials Handling median is 10.4%.

Guidance raised

Douglas Dynamics raised its 2026 Net Sales outlook on Aug 3, 2026.

Gross margin improving

Gross margin was 27.3% over the last twelve months, against 26.6% a year earlier.

Return on equity over 15%

Return on equity was 18.3% over the last twelve months and averaged 16.4% over five years.

Return on capital over 10%

Return on invested capital was 17.9%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Douglas Dynamics's return on equity of 18.3% is above the Construction, Mining, and Materials Handling median of 4.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 7.5% over the last twelve months, against a 5-year average of 6.6%.

Net margin above the industry

Douglas Dynamics's net margin of 7.5% is above the Construction, Mining, and Materials Handling median of 2.6%.

Low debt

Debt is 21.5% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 119% five years ago to 21.5%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 96.6% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.16 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.10; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Douglas Dynamics paid dividends worth 3.1% of the share price over the last twelve months.

Yield below Treasuries

The 3.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Douglas Dynamics yields 3.1%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 53.7% of net income.

Covered by free cash flow

Dividends take 57.4% of free cash flow.