NYSE:DOV
DOVER Corp
Aerospace and industrial filtration leader delivering high-performance engineered components with a strong cash flow profile.
Key Metrics
Investment Thesis
Bull Case
DOVER is an attractive hold for investors seeking exposure to the resilient aerospace and industrial supply chain with a proven track record of profitability. The company's robust operating cash flow allows for consistent shareholder returns through dividends and buybacks even during cyclical downturns. Its proprietary technology and global presence provide a defensive characteristic within the industrial sector, offering stability against economic headwinds.
Bear Case
The stock carries significant valuation risk due to a large retained earnings deficit of $14.22B and substantial long-term debt obligations totaling $2.62B. Recent revenue contraction in 2024 suggests potential cyclicality that could persist if defense spending slows or commercial aviation demand weakens. High accounts receivable balances relative to cash flow increase the risk of bad debt if major customers face liquidity issues.
About DOVER Corp
DOVER Corp manufactures high-performance filtration products and engineered components primarily serving the global aerospace, defense, industrial, and automotive markets. The company leverages its proprietary technology and extensive manufacturing network to provide critical solutions for complex engineering challenges across these sectors. Key revenue streams include filtration systems, engine components, and specialized materials used in demanding industrial applications.
Analysis
Management Discussion
Despite a slight revenue dip in 2024 followed by a recovery in 2025, net income volatility remains a concern with a sharp spike in 2024 returning to pre-pandemic levels. However, operating cash flow of $1.33B significantly exceeds net income of $1.09B, indicating strong quality of earnings and efficient working capital management. The company continues to invest heavily in capex ($220.3M) and acquisitions ($663.3M) to grow its portfolio, while returning substantial cash to shareholders via buybacks and dividends.
Industry Overview
The global industrial filtration and aerospace components market is highly competitive but favors established players with proprietary technology and certified manufacturing capabilities. Regulatory pressures on emissions and fuel efficiency are driving demand for advanced filtration solutions, benefiting specialized manufacturers like DOVER. The industry is consolidating as larger OEMs seek single-source suppliers to reduce supply chain complexity.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $8.51B | $8.44B | $7.75B | $8.09B |
| Cost of Revenue | $5.44B | $5.35B | $4.79B | $4.87B |
| Gross Profit | $3.06B | $3.08B | $2.96B | $3.22B |
| Operating Expenses | $1.68B | $1.72B | $1.75B | $1.84B |
| Operating Income | $1.38B | $1.37B | $1.21B | $1.37B |
| R&D | $163.3M | $153.1M | $149.6M | $165.3M |
| G&A | $1.68B | $1.72B | $1.75B | $1.84B |
| Stock-Based Comp | $30.8M | $31.5M | $40.4M | $44.0M |
| D&A | $307.5M | $317.5M | $337.8M | $379.6M |
| Depreciation | $148.9M | $157.3M | $154.4M | $169.3M |
| Amortization | $158.6M | $160.1M | $183.4M | $210.3M |
| Other OpEx | $-163.3M | $-153.1M | $-149.6M | $-165.3M |
| Non-Operating Income | $-91.8M | $-96.3M | $550.7M | $891.0K |
| Interest Expense | $116.5M | $131.3M | — | — |
| Interest Income | $4.4M | $13.5M | $37.2M | $73.0M |
| Pre-Tax Income | $1.29B | $1.27B | $1.76B | $1.37B |
| Income Tax | $222.1M | $213.2M | $357.0M | $276.8M |
| Continuing Ops | $1.07B | $1.06B | $1.40B | $1.10B |
| Discontinued Ops | $0 | $0 | $1.30B | $-3.5M |
| Net Income | $1.07B | $1.06B | $2.70B | $1.09B |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $1.07B | $1.06B | $2.70B | $1.09B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $3.42B | $3.39B | $4.48B | $4.51B |
| Accounts Receivable | $1.52B | $1.43B | $1.35B | $1.37B |
| Inventory | $1.37B | $1.23B | $1.14B | $1.27B |
| Prepaid Expenses | $159.1M | $141.5M | $140.6M | $186.0M |
| Other Current Assets | $380.9M | $591.2M | $1.84B | $1.68B |
| Long-Term Assets | $7.47B | $7.96B | $8.02B | $8.92B |
| PP&E (Net) | $1.00B | $1.03B | $987.9M | $1.12B |
| Intangibles | $1.33B | $1.48B | $1.58B | $1.76B |
| Goodwill | $4.67B | $4.88B | $4.91B | $5.43B |
| Operating Leases | $197.1M | $209.7M | $208.4M | $229.0M |
| Other LT Assets | $267.9M | $351.1M | $341.8M | $377.2M |
| Total Assets | $10.90B | $11.35B | $12.51B | $13.42B |
| Current Liabilities | $2.77B | $2.41B | $2.20B | $2.52B |
| Accounts Payable | $1.07B | $958.5M | $848.0M | $875.7M |
| Current Debt | — | — | $399.4M | $706.7M |
| Current Leases | $42.6M | $48.8M | $49.6M | $52.4M |
| Deferred Revenue | $256.9M | $211.3M | $198.6M | $155.0M |
| Taxes Payable | $31.4M | $36.9M | $34.2M | $60.7M |
| Other Current Liab | $1.37B | $1.16B | $666.6M | $668.0M |
| Long-Term Liabilities | $3.84B | $3.83B | $3.36B | $3.50B |
| Long-Term Debt | $2.94B | $2.99B | $2.53B | $2.62B |
| LT Operating Leases | $165.7M | $173.0M | $174.9M | $194.5M |
| Other LT Liab | $-70.5M | $615.8M | $643.8M | $678.5M |
| Total Liabilities | $6.61B | $6.24B | $5.56B | $6.02B |
| Shareholders' Equity | $4.29B | $5.11B | $6.95B | $7.41B |
| Retained Earnings | $10.22B | $11.00B | $13.41B | $14.22B |
| AOCI | $-266.2M | $-237.9M | $-327.8M | $-175.0M |
| Treasury Stock | $6.80B | — | — | — |
| Total L&E | $10.90B | $11.35B | $12.51B | $13.42B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $1.07B | $1.06B | $2.70B | $1.09B |
| Non-Cash Adjustments | $-540.7M | $717.7M | $-2.03B | $359.1M |
| Working Capital Changes | $281.0M | $-438.1M | $80.1M | $-119.5M |
| Cash from Operations | $805.7M | $1.34B | $748.4M | $1.33B |
| Capital Expenditures | $221.0M | $192.6M | $167.5M | $220.3M |
| Cash from Investing | $-540.9M | $-726.6M | $1.96B | $-896.4M |
| Debt Issuances | — | — | — | $631.2M |
| Debt Repayments | — | — | — | $400.0M |
| Share Buybacks | $585.0M | $0 | $500.0M | $540.7M |
| Dividends Paid | $287.6M | $284.3M | $283.1M | $283.0M |
| Cash from Financing | $-260.3M | $-568.1M | $-1.27B | $-624.9M |
| FX Effect | $-9.2M | $-6.7M | $-6.3M | $19.6M |
| Net Change in Cash | $-4.6M | $35.0M | $1.43B | $-168.1M |
| Beginning Cash | $385.5M | $380.9M | $398.6M | $1.84B |
| Ending Cash | $380.9M | $398.6M | $1.84B | $1.68B |
Frequently Asked Questions
How does DOVER Corp make money?
The company's revenue is driven by four main segments: Aerospace & Defense (high-value filtration for aircraft engines), Industrial Filtration (process fluids and hydraulic systems), Automotive (emissions control and fuel systems), and Specialty Materials (advanced composites and seals). Financials indicate a significant portion of gross profit comes from high-margin engineered components sold to major global OEMs, with substantial R&D investment supporting product innovation.
What are the main risks for DOV?
Concentration risk in the aerospace and defense sectors makes the company vulnerable to budget cuts or delays in major government programs. Rising raw material costs and supply chain disruptions could impact margins despite pricing power, especially if competitors offer cheaper alternatives. The large goodwill balance of $5.43B exposes the stock to potential impairment charges if market conditions deteriorate significantly. Currency fluctuations from international operations can erode reported earnings given the company's global exposure.
What is DOV's competitive advantage?
DOVER maintains a moat through proprietary filtration technology that offers superior durability and efficiency in harsh environments, creating high switching costs for customers. The company benefits from a global manufacturing footprint that ensures supply chain resilience and rapid response to customer needs. Its long-standing relationships with top-tier aerospace and defense contractors provide stable, recurring revenue streams less sensitive to commodity price fluctuations.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.