Dover is not a popular company among investors. Mainly because it is not “hot” B2C business, but boring long term (it is Dividend KING, not only Aristocrat) value creating conglomerate manufacturer of different industrial products. Well I didn’t know company until my first post (read more) and even after that I didn’t closely follow company. Today I found an info about outlook being cut, so maybe it is a good opportunity. Let’s check.

First of all company cut outlook, EPS down to $3.00-$3.05 vs an earlier outlook for $3.35-$3.45. Quite a big difference taking into account that we know results after IH, which were weaker y/y, but as expected due to lower oil prices (lower investments in oil & gas industry).


Generally we can see that Dover, PPG Industries and some other companies are complaining on weaker investments in industry. It is quite interesting, because in economy data are generally good. Maybe expectations were simply too high?

Although share price dropped by 10% within few days valuation is still rather high (on next year consensus):

EV/EBITDA next year = 10 (maybe consensus is too high)

P/E next year = 17 (maybe consensus is too high)

Dividend yield = 2.6%, decent, but nothing special.


Summing up, at around $67 valuation is not superb attractive, but in case when company disappoints again/shares falls by another 10% I think it will be a buy opportunity. If you can buy a wonderful company (it is Dividend KING) at good price (at $60 it is 9 times EBITDA) then I think you should close your eyes and buy. In long term it must be a good entry point. In long term.


Disclaimer DOV – no position