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- PLOW has decent fundamentals, but they look better compared to their true competitors.
- Their product
Douglas Dynamics: Buy Now, Winter Is Coming
Summary
- PLOW has good fundamentals compared to competitors and DCF indicates the current share price is at fair value.
- PLOW has grown a 3.43% dividend and is a market leader in a niche product line with demand.
- Consistent snow fall over the last 40 years means the demand for snow equipment will always be apparent.
- Risks in supply chain, commodity, and senior management reliance are being addressed.
- Recent earnings show improvements despite issues in 2020.
The author is a mechanical engineer. He holds a B.S. in Mechanical Engineering and an M.B.A in Finance. He employs evidence and factor-based investing in his personal portfolio.He will sometimes seculate for fun and take small positions in individual stocks he believes are trading at a discount.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in PLOW over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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