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what it is
Dover sells the pumps, printers, heat exchangers, and factory gear that keep industrial systems running.
how it gets paid
Last year Dover made $8.1B in revenue. Pumps & Process Solutions was the main engine at $2.10B, or 26% of sales.
why it's growing
Revenue grew 4.5% last year. Additionally, continued portfolio mix shift toward higher-margined platforms, scaling of shared services, digitalization, and ai-enabled productivity should support durable margin expansion.
what just happened
Dover's latest quarter showed revenue around $2.1B and EPS of $2.51, ahead of the $2.39 estimate.
At a glance
A balance sheet — strong enough to weather a downturn
95/100 earnings predictability — you can trust these numbers
21.0x trailing p/e — priced about right
1.1% dividend yield — cash in your pocket every quarter
12.0% return on capital — nothing to write home about
xvary composite: 74/100 — average
What they do
Dover sells the pumps, printers, heat exchangers, and factory gear that keep industrial systems running.
Dover wins by living inside boring machines you cannot afford to shut off. It posts a 26.5% operating margin, which means every $100 of sales leaves $26.50 after operating costs. When your pump, coding system, or fueling hardware is built into your workflow, switching vendors is a project, not a purchase.
How they make money
$8.1B
annual revenue · their business grew +4.5% last year
Clean Energy & Fueling
$2.03B
+6.0%
Pumps & Process Solutions
$2.10B
+5.0%
Engineered Products
$1.62B
+2.0%
Imaging & Identification
$1.21B
+4.0%
Climate & Sustainability Technologies
$1.14B
+6.0%
The products that matter
industrial equipment portfolio
Core industrial platforms
$8.1B revenue · 26.5% operating margin
this is the whole $8.1B machine. the key insight is the 26.5% operating margin. that tells you the portfolio is doing more than moving boxes.
core earnings engine
service, parts, and replacement demand
Aftermarket and installed-base support
supports margin durability
this matters because service and replacement work usually holds up better when customers delay new equipment orders. the page does not break it out, but it helps explain why margin quality matters more here than raw growth.
recurring layer
higher-value engineered systems
Engineered systems exposure
4.5% revenue growth · 17.0% net margin
the data is thin, so this is the cautious read: higher-value work is likely part of why 4.5% revenue growth still became a 17.0% net margin. same company. very different economic quality than a plain parts distributor.
mix driver
Key numbers
2.5%
sales outlook
Expected sales growth is 2.5% versus a 4.0% historical pace, which means you are buying a slower company after a stock run.
26.5%
operating margin
Operating margin → profit left after running the business → so what: Dover keeps $26.50 from every $100 of sales before interest and taxes.
12.0%
return on capital
Return on capital → profit earned on the money tied up in the business → so what: Dover is solid, but not elite, at turning assets into profits.
1.1%
dividend yield
Dividend yield → cash paid to you each year at today's stock price → so what: the income stream is too small to offset much downside.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 90 / 100
- long-term debt $2.7B (9% of capital)
- net profit margin 17.5% — keeps 18 cents of every dollar in revenue
- return on equity 13% — $0.13 profit for every $1 investors have put in
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in DOV 3 years ago → it's now worth $15,470.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Dover's latest quarter showed revenue around $2.1B and EPS of $2.51, ahead of the $2.39 estimate.
The beat was modest on EPS at 5.02%, but the bigger point is that quarterly sales were still growing. Gross margin held at 40.0%, which supports the case that execution is still clean.
$2.1B
revenue
$2.51
eps
40.0%
gross margin
the number that mattered
The 40.0% gross margin matters most because it shows Dover is defending pricing and mix even while growth slows.
-
dover corp.’s stock price shot up 17% since our early october review.
-
the company delivered impressive third-quarter top- and bottom-line growth, as sales rose 4% to $2.08 billion and share earnings increased 15% to $2.62.
-
what’s more, the company likely closed out 2025 in similar fashion.accelerating earnings momentum, expanding margins, and improving visibility probably prompted investors to bid up the equity price over the last three months. rising bookings pointed to a stronger fourth quarter, with momentum set to be healthy heading into 2026. the industrial equipment manufacturer has meaningful tailwinds that ought to drive sales and earnings higher this year. strong exposure to secular growth markets such as data centers, electrification, clean energy, and biopharma justifies recent valuation expansion. as well, improving volumes, disciplined cost control, strong acquisitions, and effective capital deployment has underpinned favorable performance and sentiment. all told, margin expansion should continue as productivity initiatives, shared services scale, and footprint optimization boosts savings, including restructuring benefits extending into 2027. improving conditions in previously weak capital goods markets, such as vehicle services and refrigerated door cases, should support incremental volume leverage over the next several quarters. the aforementioned factors are likely to generate strong and steady operational growth out to late decade.
-
sales and earnings should be driven by sustained exposure to structurally growing end markets.additionally, continued portfolio mix shift toward higher-margined platforms, scaling of shared services, digitalization, and ai-enabled productivity should support durable margin expansion. macroeconomic drivers include energy transition, ai infrastructure build-out, and reshoring of industrial capacity, all of which further support demand fundamentals over the long haul.
-
the stock is currently trading within our target price range over the pull to 2028–2030.the risk-adjusted prospects over the 18-month span may be worth it, but overall dov holds limited appeal.
source: company earnings report, 2026
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What could go wrong
dover's 26.5% operating margin and 21.0x trailing p/e are doing a lot of work together. if industrial demand softens or mix slips, you are suddenly paying a quality multiple for a merely decent cycle-exposed business.
med
industrial capex slowdown
nearly all of dover's $8.1B revenue is tied, directly or indirectly, to customers spending on equipment, maintenance, or production upgrades.
if that spending freezes, the whole income statement feels it — not just one segment.
med
mix shifts the wrong way
a 26.5% operating margin is a big part of the thesis. if lower-margin equipment sales lead and higher-value work slows, the premium look fades fast.
the stock at 21.0x earnings gives you less room for a margin giveback than a cheaper industrial would.
med
institutional demand stays soft
institutions have been net sellers for two straight quarters. that is not a business crisis, but it can cap upside if the story stays merely good instead of great.
two more quarters of weak sponsorship would matter more if EPS stalls around the current $10.50 level.
the so-what is simple: a slowdown would hit a broad revenue base, and a margin slip would pressure the exact numbers supporting today's quality multiple.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next quarterly margin print
26.5% operating margin is the number carrying the story. if that starts slipping, the multiple deserves less respect.
metric
revenue growth versus EPS growth
Q3 gave you 4% sales growth and 15% EPS growth. if that spread narrows, mix and productivity are doing less heavy lifting.
risk
order activity in cyclical industrial markets
dover can handle a soft patch. it gets less comfortable if customers start delaying equipment orders across multiple end markets at once.
trend
institutional flow
440 buyers versus 450 sellers is not dramatic. it still matters because quality industrials rerate faster when big money is adding, not trimming.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts think this is moving with the market, not outrunning it.
risk profile
better than most
stability score 2 — safer than roughly 80% of stocks. not risk-free, just steadier than the average name on your screen.
chart momentum
below average
technical score 4 — the chart says this is a quality name, not a momentum darling.
earnings predictability
95 / 100
management's earnings pattern is unusually consistent. if you dislike surprises, this is the part you will like.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 440 buyers vs. 450 sellers in 3q2025. total institutional holdings: 0.1B shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$164
$297
$200
current price
$231
target midpoint · +16% from current · 3-5yr high: $235 (+20% · 5% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive