Investment Thesis
Dover demonstrates solid operational fundamentals with stable 39.8% gross margins, strong interest coverage of 37.8x, and healthy liquidity (1.79x current ratio), but faces significant headwinds from a dramatic 59.4% net income decline despite 4.5% revenue growth, suggesting margin compression and one-time charges that warrant clarity before upgrading conviction.
DOV Strengths
- Strong gross margin of 39.8% indicates pricing power and operational efficiency in machinery manufacturing
- Excellent liquidity position with 1.79x current ratio and 1.7B cash provides financial flexibility
- Conservative leverage at 0.45x debt-to-equity with exceptional 37.8x interest coverage demonstrates financial stability
- Solid ROE of 14.8% and ROA of 8.2% show reasonable capital deployment despite recent earnings decline
DOV Risks
- Severe 59.4% YoY net income decline despite revenue growth signals significant margin compression or one-time charges requiring investigation
- Weak free cash flow margin of 1.9% indicates limited cash generation relative to revenue scale despite 370M operating cash flow
- Operating cash flow of 370M covers capex with only 150M free cash flow, limiting flexibility for shareholder returns or acquisitions
- 17 Form 4 insider filings in last 90 days warrants monitoring for unusual trading patterns or confidence shifts
Key Metrics to Watch
- Quarterly net income trend and operating margin sustainability to determine if decline is structural or temporary
- Free cash flow conversion and working capital efficiency as revenue grows
- Segment profitability breakdown to identify which business units are driving margin compression
DOV Financial Metrics
DOV Profitability Ratios
DOV Balance Sheet & Liquidity
DOV 5-Year Financial Trend
5-Year Trend Summary: DOVER Corp's revenue has shown modest growth of 2% over the 5-year period. The most recent EPS of $7.52 reflects profitable operations.
DOV Growth Metrics (YoY)
DOV Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.0B | $302.0M | $2.19 |
| Q2 2025 | $1.9B | $279.1M | $2.02 |
| Q1 2025 | $1.9B | $230.8M | $1.67 |
| Q3 2024 | $2.0B | $289.8M | $2.06 |
| Q2 2024 | $2.1B | $242.2M | $1.72 |
| Q1 2024 | $2.1B | $228.6M | $1.63 |
| Q3 2023 | $2.2B | $286.0M | $2.00 |
| Q2 2023 | $2.1B | $242.2M | $1.72 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DOV Capital Allocation
DOV SEC Filings
Access official SEC EDGAR filings for DOVER Corp (CIK: 0000029905)