The Company
Dover Corporation (DOV) and its subsidiaries manufacture and sell a wide range of equipment and components, specialty systems, and support services. The company operates in four segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment. The Energy segment provides engineered solutions for the extraction and handling of oil and gas in the production, downstream, and drilling markets. The Engineered Systems segment manufactures products and systems serving the refrigeration and food equipment, and other industrial markets; and designs and manufactures pumps, compressors, and chemical proportioning and dispensing products. The Fluids segment focuses on the safe handling of critical fluids across the oil & gas, retail fueling, chemical, hygienic, and industrial end-markets. The Refrigeration & Food Equipment segment provides equipment and systems for the commercial refrigeration and food service industries. Dover Corporation was founded in 1947 and is headquartered in Downers Grove, Illinois. (Daily Chart) (Weekly Chart) | 6 November Price $80.97 1yr Target $89.69 Analysts 13 1yr Cap Gain 10.77% Dividend $1.60 Yield 1.97% 1yr EST Tot Return 12.74% Market Cap $13.44 Bil Beta 1.47 EPS (ttm) $4.91 Payout Ratio 42.58% EPS next yr $5.27 P/E 16.55 PEG 1.60 Forward P/E 15.41 Debt/Equity 0.69 ROA 8.60% ROE 18.90% ROI 13.20% Sales $8.23 Bil Income $837.40 Mil Profit Margin 10.17% |
The Fundamentals
"Downers Grove, IL, November 6, 2014 - The Board of Directors of Dover Corporation today declared a regular quarterly cash dividend of $0.40 (forty cents) per share, payable on December 15, 2014 to shareholders of record as of November 28, 2014." |
Year 2015 Est 2014 Est 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 | Revenues $8.51 Bil $8.07 Bil $8.72 Bil $8.10 Bil $7.36 Bil $6.10 Bil $5.34 Bil $7.56 Bil $7.22 Bil $6.51 Bil $6.07 Bil $5.48 Bil $4.41 Bil | Earnings $5.27 $4.77 $5.78 $4.41 $4.74 $3.70 $1.91 $3.12 $3.26 $2.73 $2.50 $2.02 $1.44 | Dividends $1.71 $1.55 $1.19 $1.09 $0.97 $0.88 $0.84 $0.74 $0.63 $0.58 $0.54 $0.51 $0.47 | Payout Ratio 32.44% 32.49% 20.58% 24.71% 20.46% 23.78% 43.97% 23.71% 19.32% 21.24% 21.60% 25.24% 32.63% |
Revenue Growth Rate 1 yr = 7.65% 2 yr = 8.84% 3 yr = 12.51% 4 yr = 13.04% 5 yr = 2.89% 10 yr = 7.05% | Earnings Growth Rate 1 yr = 31.06% 2 yr = 10.42% 3 yr = 15.85% 4 yr = 31.89% 5 yr = 13.12% 10 yr = 14.90% | Dividend Growth Rate 1 yr = 9.17% 2 yr = 10.76% 3 yr = 10.47% 4 yr = 9.09% 5 yr = 9.96% 10 yr = 9.73% |
The Technicals
With the Bollinger Bands at $71 and $83 and the 20 day moving average near $77, a price of $81 is too expensive for the short term swing trader. Looking at the weekly chart, investors looking to get into this stock for a lengthly holding period of several years will find this stock at this price a little more palatable. It's off its high in July and August but its still above the level it was 16 months ago. And it's starting to head back up.
The Competition
Conclusion
Any pullback below $80 would increase the dividend yield above 2% (desirable) and a pullback to the mid $70s would increase the estimated one year capital gain to near 20% (highly desirable). Only time will tell if this stock retreats this much, but doing so would place a great company at a very desirable selling price. I plan to monitor this company while maintaining sufficient funds to take advantage of any pullback in its price.