Douglas Dynamics Inc.
Find Ratings ReportsDOUGLAS DYNAMICS INC's gross profit margin for the fourth quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. DOUGLAS DYNAMICS INC has weak liquidity. Currently, the Quick Ratio is 0.95 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.33% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 134.25 | 159.81 |
EBITDA ($mil) | 18.19 | 21.98 |
EBIT ($mil) | 12.7 | 16.67 |
Net Income ($mil) | 7.08 | 11.51 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 24.16 | 20.67 |
Total Assets ($mil) | 593.42 | 596.89 |
Total Debt ($mil) | 256.7 | 226.53 |
Equity ($mil) | 231.57 | 237.1 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 24.1 | 25.39 |
EBITDA Margin | 13.54 | 13.75 |
Operating Margin | 9.46 | 10.43 |
Sales Turnover | 0.96 | 1.03 |
Return on Assets | 3.99 | 6.46 |
Return on Equity | 10.24 | 16.28 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 2.21 | 2.52 |
Debt/Capital | 0.53 | 0.49 |
Interest Expense | 4.47 | 3.4 |
Interest Coverage | 2.84 | 4.9 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 22.98 | 22.89 |
Div / share | 0.3 | 0.29 |
EPS | 0.29 | 0.49 |
Book value / share | 10.08 | 10.36 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 192542.0 | 100752.0 |
HOLD. The current P/E ratio indicates a significant discount compared to an average of 34.89 for the Machinery Manufacturing subsector and a discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 2.29 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 15.81. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, DOUGLAS DYNAMICS INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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PLOW 24.03 | Peers 34.89 | PLOW 42.52 | Peers 35.56 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. PLOW is trading at a significant discount to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. PLOW is trading at a premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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PLOW 10.73 | Peers 25.65 | PLOW 0.39 | Peers 5.15 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. PLOW is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. PLOW trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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PLOW 2.29 | Peers 15.81 | PLOW -40.75 | Peers 20.44 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. PLOW is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, PLOW is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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PLOW 0.93 | Peers 8.34 | PLOW -7.78 | Peers 14.92 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. PLOW is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. PLOW significantly trails its peers on the basis of sales growth. |
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