PLOW - Douglas Dynamics: Priced For (Potentially) Attractive Returns

2024-05-01 20:36:57 ET

Summary

• Douglas Dynamics' stock price has declined by nearly half since the start of 2021 due to declining sales and EBITDA.
• The company's Work Truck Attachments segment has been affected by external headwinds, including lower snowfall levels, destocking, and macro headwinds.
• Should weather reverse course, and both their WTA and WTS segment maintain their margins, PLOW is priced to generate attractive IRRs for investors.

Introduction

Douglas Dynamics ( PLOW ) has seen its stock price get cut by nearly half since the start of 2021, piquing the interest of myself and other investors I know. This price decline isn’t totally unreasonable from a fundamental perspective, however, as sales and EBITDA has declined materially throughout 2023 after a battled 2022....

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