Date of Award
Spring 5-13-2021
Document Type
Project (696 or 796 registration)
Degree Name
Master of Science in Accounting & Finance
Department
Graduate Studies
Committee Chair
Mohamed Elbannan
Keywords
Douglas Dynamics, industry, analysis, valuation, growth, ratio
Abstract
Douglas Dynamics, Inc. was founded in 1977 and is one of the many construction machinery companies in the industry. Their headquarters is located in Milwaukee, WI, but they sell products in the United States, Canada, Northern Europe, and Asia. The company consist of two segments, a Work Truck Attachment, and a Work Truck Solutions. Having these two segments allow the company to reach into different markets, but the main market is snow and ice management. They have been able to stay ahead of the competition by acquiring other construction machinery businesses and innovating their current products. In the beginning of 2019, the company appointed a new President and CEO, Robert McCormick. He has had various roles in the company for the last 15 years. This report comprises historical financial analysis from 2014 to 2019 and current valuation of the business. There are also financial comparisons to another company, which is a member of the same industry and is located in the same region. Since 2014, the company has had steady quality of earnings ratio and activity ratios. In all of these years’ annual reports, there were no material deficiencies reported in the test of internal controls, and external auditors gave unqualified opinions on the financials. Based on the analysis, I believe this stock is undervalued. I recommend that you buy this stock as I believe it is worth more than the current price on 12/31/2020. Purchasing this stock at lower cost than valued, there is opportunity for long term profit as it is expected to increase in price.
Recommended Citation
Lhotak, Jessicca, "Douglas Dynamics, Inc. A Financial Analysis and Valuation Report" (2021). Dissertations, Theses, and Projects. 545.
https://red.mnstate.edu/thesis/545