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1. Company Snapshot

1.a. Company Description

Dover Corporation provides equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services worldwide.The Engineered Products segment provides various equipment, component, software, solution, and services that are used in aftermarket vehicle service, solid waste handling, industrial automation, aerospace and defense, industrial winch and hoist, and fluid dispensing end-market.This segment also offers manual and power clamp, rotary and linear mechanical indexer, conveyor, pick and place unit, glove port, and manipulator, as well as end-of-arm robotic gripper, slide, and end effector.


Its Clean Energy & Fueling segment offers component, equipment, and software and service solution enabling safe transport of traditional and clean fuel, and other hazardous substance along with supply chain, as well as operation of convenience retail, retail fueling, and vehicle wash establishment.The Imaging and Identification segment provides precision marking and coding; packaging intelligence; product traceability equipment; brand protection; and digital textile printing equipment, as well as related consumable, software, and service to packaged and consumer good, pharmaceutical, industrial manufacturing, fashion and apparel, and other end-market.Its Pumps and Process Solutions segment manufactures specialty pump, connector, and flow meter, fluid connecting solution, plastics and polymer processing equipment, and engineered components for rotating and reciprocating machines.


The Climate & Sustainability Technologies segment manufactures refrigeration system, refrigeration display case, commercial glass refrigerator and freezer door, and brazed plate heat exchanger for industrial heating and cooling, and residential climate control applications.It sells its products directly and through a network of distributors.The company was incorporated in 1947 and is headquartered in Downers Grove, Illinois.

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1.b. Last Insights on DOV

Dover Corporation's recent performance was driven by strong Q3 earnings, beating estimates with $2.62 per share, a 10% year-over-year increase. Acquisitions and solid demand offset divestitures, contributing to the positive results. The company raised its 2025 EPS outlook, citing stronger margins and cash flow. Additionally, Dover's international revenue trends are being closely watched, with a focus on their impact on Wall Street forecasts. The company's strategic acquisitions, including SIKORA AG and Site IQ LLC, have also been viewed positively.

1.c. Company Highlights

2. Dover's Q3 Earnings: A Strong Performance Across the Board

Dover's third-quarter revenue rose 5% year-over-year, driven by growth in short-cycle components and secular growth end markets, as well as contributions from recent acquisitions. The company reported a record consolidated EBITDA margin of 26.1%, up 170 basis points from the prior year, with all five segments posting margin improvements. Adjusted EPS was up 15% in the quarter and 17% year-to-date, with the actual EPS coming in at $2.62, beating estimates of $2.5.

Publication Date: Oct -26

📋 Highlights
  • Revenue Growth: 5% YoY driven by short-cycle components, secular end markets, and recent acquisitions.
  • EBITDA Margin: hit record 26.1% (up 170 bps), with all five segments improving margins.
  • Adjusted EPS: rose 15% QoQ and 17% YTD, leading to full-year guidance increase to $9.50–$9.60.
  • Free Cash Flow: reached $631M YTD, with 14%–16% of revenue expected by 2025.
  • Segment Highlights: include 6% organic growth in Pumps & Process Solutions and $60–70M serialization software opportunity in Imaging.

Segment Performance

In terms of segment performance, Engineered Products revenue declined due to lower volumes in vehicle services, but segment profit improved on cost management and productivity initiatives. Clean Energy & Fueling revenue rose 5% organically, driven by strong shipments in clean energy components and fluid transport. Imaging & ID revenue grew 3% organically, with growth in core marking and coding business and serialization software. Pumps & Process Solutions revenue rose 6% organically, driven by growth in single-use biopharma components and thermal connectors. Climate & Sustainability Technologies revenue declined due to lower volumes in food retail cases, but the segment posted record quarterly volumes in CO2 systems and double-digit growth in heat exchangers.

Cash Flow and Balance Sheet

Dover generated $631 million in free cash flow year-to-date, with an expectation to reach 14%-16% of revenue for 2025. The company's balance sheet remains strong, providing flexibility for investments in high-ROI capital projects, targeted acquisitions, and opportunistic capital return strategies.

Outlook and Valuation

The company is increasing its full-year adjusted EPS guidance to $9.50-$9.60 and expects a strong fourth quarter, with organic growth driven by secular growth businesses and a sequential recovery in certain capital goods end markets. For 2026, Dover has a constructive outlook, with underlying end market demand healthy across much of the portfolio. With a P/E Ratio of 10.83 and an EV/EBITDA of 14.25, the market seems to have priced in a reasonable level of growth. Analysts estimate next year's revenue growth at 5.7%, which is slightly above the company's long-term expectations.

Growth Opportunities

Tobin is excited about growth potential in several areas, including the fueling business, which is expected to see a 2- to 3-year CapEx cycle. Refrigeration is also expected to grow, driven by brazed plate heat exchangers. The Imaging business has a serialization software opportunity worth $60-70 million, primarily driven by pharma demand. The company expects to benefit from reshoring of pharma production.

3. NewsRoom

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Here Are Thursday’s Top Wall Street Analyst Research Calls: AutoZone, BXP, Fiserv, Meta Platforms, PayPal, Salesforce, Toast and More

Dec -04

Source:

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SWEP Introduces New Products for Future Demands of Data Center Cooling and Heat Reuse

Dec -03

Source: prnewswire.com

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Dover Corporation (DOV) Presents at UBS Global Industrials and Transportation Conference Transcript

Dec -02

Source: seekingalpha.com

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Dover Corporation (NYSE:DOV) Receives Consensus Rating of “Moderate Buy” from Analysts

Nov -29

Source: defenseworld.net

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Dover Corporation $DOV Stock Position Lowered by Boston Partners

Nov -27

Source: defenseworld.net

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Dover to Present at the UBS Global Industrials and Transportation Conference 2025

Nov -25

Source: prnewswire.com

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Bank Julius Baer & Co. Ltd Zurich Has $3.97 Million Stock Holdings in Dover Corporation $DOV

Nov -22

Source: defenseworld.net

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Vehicle Service Group Introduces 2-Post Lift with AV Arms for the EMEA Market

Nov -19

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.37%)

6. Segments

Engineered Products

Expected Growth: 3.5%

Dover Corporation's Engineered Products segment growth of 3.5% is driven by increasing demand for pumps and valves in the oil and gas industry, expansion in the industrial pumps market, and growth in the aerospace and defense sector. Additionally, the segment benefits from Dover's strategic acquisitions and investments in digital technologies, enhancing operational efficiency and driving innovation.

Clean Energy & Fueling

Expected Growth: 5.0%

Dover Corporation's Clean Energy & Fueling segment growth is driven by increasing adoption of alternative fuels, government regulations and incentives promoting sustainable energy, rising demand for electric vehicle charging infrastructure, and strategic acquisitions expanding product offerings and geographic reach.

Climate & Sustainability Technologies

Expected Growth: 6.0%

Dover Corporation's Climate & Sustainability Technologies segment growth is driven by increasing demand for energy-efficient solutions, stringent regulations on emissions, and rising adoption of renewable energy sources. Additionally, growing concerns over climate change and water scarcity are fueling investments in sustainable technologies, contributing to the 6.0% growth rate.

Pumps & Process Solutions

Expected Growth: 3.0%

Dover Corporation's Pumps & Process Solutions segment growth is driven by increasing demand for efficient fluid handling systems in oil and gas, chemical processing, and water treatment industries. Additionally, the segment benefits from Dover's strategic acquisitions, expanding product portfolios, and investments in digitalization and IoT technologies, enabling customers to optimize their operations and reduce costs.

Imaging & Identification

Expected Growth: 4.5%

Dover Corporation's Imaging & Identification segment growth of 4.5% is driven by increasing demand for digital printing and marking technologies, expansion in e-commerce and packaging industries, and growing adoption of product identification and tracking solutions. Additionally, strategic acquisitions and investments in emerging markets contribute to the segment's growth.

Intersegment Eliminations

Expected Growth: 2.0%

Dover Corporation's 2.0% Intersegment Eliminations growth is driven by increasing demand for industrial products, strategic acquisitions, and operational efficiencies. The company's diversified portfolio, including refrigeration, food equipment, and pumps, benefits from a rebound in industrial production and infrastructure investments. Additionally, Dover's focus on digitalization and cost savings initiatives contributes to the growth.

7. Detailed Products

Pumps and Compressors

Dover Corporation's Pumps and Compressors segment provides a range of pumps, compressors, and related equipment for various industries such as oil and gas, chemical, power generation, and water treatment.

Refrigeration and Food Equipment

This segment offers refrigeration systems, display cases, and food service equipment for supermarkets, convenience stores, and food service providers.

Fluid Solutions

Dover Corporation's Fluid Solutions segment provides a range of pumps, valves, and dispensing systems for various industries such as fueling, chemical, and industrial processes.

Engineered Systems

This segment provides a range of engineered systems, including automation and control systems, for various industries such as oil and gas, chemical, and power generation.

8. Dover Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Dover Corporation operates in a niche market with limited substitutes, but there are some alternatives available, making the threat of substitutes moderate.

Bargaining Power Of Customers

Dover Corporation's customers have limited bargaining power due to the company's diversified product portfolio and strong brand presence.

Bargaining Power Of Suppliers

Dover Corporation's suppliers have moderate bargaining power due to the company's dependence on a few key suppliers, but the company's large scale of operations helps to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in Dover Corporation's industries, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry in Dover Corporation's industries is high due to the presence of several established competitors, leading to a competitive market environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.89%
Debt Cost 4.29%
Equity Weight 58.11%
Equity Cost 10.21%
WACC 7.73%
Leverage 72.10%

11. Quality Control: Dover Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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AMETEK

A-Score: 5.4/10

Value: 1.7

Growth: 6.1

Quality: 8.1

Yield: 1.0

Momentum: 6.0

Volatility: 9.3

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A-Score: 5.3/10

Value: 2.4

Growth: 3.1

Quality: 6.5

Yield: 4.0

Momentum: 7.0

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A-Score: 5.0/10

Value: 2.6

Growth: 5.7

Quality: 7.4

Yield: 1.0

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Dover

A-Score: 4.9/10

Value: 3.7

Growth: 4.9

Quality: 7.4

Yield: 2.0

Momentum: 3.0

Volatility: 8.7

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Value: 4.4

Growth: 4.4

Quality: 5.7

Yield: 3.0

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A-Score: 4.3/10

Value: 1.8

Growth: 7.6

Quality: 6.6

Yield: 0.0

Momentum: 2.5

Volatility: 7.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

191.09$

Current Price

191.09$

Potential

-0.00%

Expected Cash-Flows