Dover Corporation

Financial Performance

5Y price score: 27

10Y return: 279.1%

DATE RANGE:

US$ Per
Share

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158.9

52-week range

237.5

206.66

Your model inputs

Required return / cost of capital

FCFF terminal growth rate

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

4.1 %

Dividend Yield TTM

1 %

Market cap $

$ 27,833

Price / Earnings TTM

Price / Book TTM

3.6

PEG TTM

(0.4)

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

14.2 %

26.3 %

279.1 %

Free cash flow per share growth

93.4 %

25.4 %

89.3 %

Earnings per share growth

(59.3) %

68.5 %

45.1 %

Founded: 1,955

Employees: 24,000

Business Summary:Dover Corporation operates as a global enterprise, supplying a wide array of industrial equipment, essential components, consumable products, replacement parts, software and digital platforms, and comprehensive support services. Its Engineered Products division delivers diverse machinery, parts, software, and solutions tailored for various industries, including automotive aftermarket service, waste management, industrial automation, aerospace and defense, heavy-duty winching and hoisting, and fluid dispensing. This segment also manufactures specific items such as manual and power clamps, rotary and linear mechanical indexers, conveyors, robotic pick-and-place units, glove ports, manipulators, and end-of-arm tooling like grippers, slides, and end effectors. The Clean Energy & Fueling segment focuses on providing components, equipment, software, and services crucial for the secure transportation of both traditional and sustainable fuels, along with other hazardous materials, throughout the supply chain. It further supports the operations of convenience retail outlets, fuel stations, and vehicle wash establishments. Through its Imaging and Identification segment, Dover offers solutions for precision marking and coding, intelligent packaging, product traceability, brand protection, and digital textile printing equipment. These offerings, along with associated consumables, software, and services, cater to markets like packaged and consumer goods, pharmaceuticals, industrial manufacturing, and fashion and apparel. The Pumps and Process Solutions segment is responsible for producing specialized pumps, connectors, flow meters, fluid connection systems, plastics and polymer processing machinery, and custom-engineered components for rotating and reciprocating equipment. Finally, the Climate & Sustainability Technologies segment manufactures advanced refrigeration systems, commercial refrigeration display cases, glass doors for refrigerators and freezers, and brazed plate heat exchangers, serving applications in industrial heating and cooling as well as residential climate control. Dover distributes its extensive product portfolio through both direct sales channels and a broad network of distributors. The company was founded in 1947 and maintains its headquarters in Downers Grove, Illinois.

Fair Value Reference Estimate

Latest Earnings Call Takeaways

2026 Q2 (Jul 23, 2026)

1) Strong Financial Performance
- Revenue grew by 7% overall and 5% organically, with all five segments showing positive organic growth.
- Adjusted EBITDA margin expanded by 80 basis points to 25.9%, driven by operational execution and a favorable product mix.
- Adjusted EPS reached $2.74, marking a 12% increase year-over-year.
- Book-to-bill ratio stood at 1.06, indicating strong order momentum and improved visibility for the second half of the year.

2) Segment Highlights and Growth Drivers
- Engineered Products: Up 2% organically, driven by aerospace and defense demand, with margin expansion of 100 basis points.
- Clean Energy and Fueling: Grew 9% organically, with strong demand in clean energy components and retail fueling equipment, leading to a 170 basis points margin expansion.
- Imaging and Identification: Increased by 3% organically, with margin improvement of 150 basis points due to productivity gains.
- Climate and Sustainability Technologies: Grew 8% organically, with strong performance in heat exchangers for data centers, although faced challenges in refrigeration.

3) Operational Challenges and Headwinds
- Refrigeration segment faced throughput issues due to facility consolidation, impacting production and resulting in a 1% to 1.5% shortfall in organic growth.
- The company is actively working to resolve these issues and expects improvements in throughput and margins in the second half of the year.
- Despite these challenges, there has been no significant loss of market share reported.

4) Strategic Outlook and Guidance
- Full-year adjusted EPS guidance has been raised, reflecting confidence in continued double-digit growth.
- The company remains committed to disciplined capital allocation, with a focus on investing in high-return segments and maintaining balance sheet flexibility for potential acquisitions.
- The management anticipates strong demand in secular growth markets, including aerospace, biopharma, and data centers, which are expected to drive future growth.

5) Investor Considerations
- The earnings call transcript lacks specific forward-looking guidance for Q3 and Q4, particularly regarding revenue growth expectations.
- Overall, the company is optimistic about its ability to navigate operational challenges and capitalize on strong market demand, but detailed quarterly projections were not provided.

Bottom line: Dover's solid financial performance, driven by broad-based demand across its segments, positions the company well for continued growth despite operational challenges in refrigeration. The raised EPS guidance and strong order momentum suggest a favorable outlook for shareholders.

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