Investopedia: Is Dover Worth The Trouble?

Multi-line industrial conglomerates like Dover (NYSE:DOV) often trade at a discount to their underlying cash-flow generating capabilities. To some extent this is a byproduct of straddling many different industry groups - they are harder to track and forecast, and many analysts and institutions decide they do not need the hassle. This is old hat for investors in names like Illinois Tool Works (NYSE:ITW), Danaher (NYSE:DHR) and so on, though sometimes these conglomerates do come into favor as a sector play. 


In the case of Dover in particular, the company does not exactly make it easy for investors - the company's press release does not even often include an income statement or balance sheet. True, the company does offer a good amount of information, but it requires some effort. The real question for investors, then, is whether the stock is worth the work and the hassle.

A Solid Quarter Across the Board
Business is going well at Dover. Overall revenue growth of 24% was underlined by 19% organic growth (made up completely of volume growth). Growth was also relatively balanced - the company's Engineered Systems segment was the laggard with 16% revenue growth (if that can be called lagging), while Industrial Products, Fluid Management and Electronic Technologies grew 21%, 34% and 28% respectively. (For more, see Conglomerates: Cash Cows Or Corporate Chaos?)


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http://stocks.investopedia.com/stock-analysis/2011/Is-Dover-Worth-The-Trouble-DOV-DHR-ETN-GE-A-ITW0426.aspx