Dover Corp. (DOV) generates high returns and cash flow, with management allocating capital in ways that maximize value for shareholders, as evidenced with their Knowles spin-off into a publicly traded venture for the first quarter of 2014, said Vincent Sellecchia, Managing Director and Portfolio Manager at Tocqueville Asset Management L.P.
“To me, that’s another example of management trying to realize value for the shareholders. Dover has high returns — the EBITDA margins of Dover are over 20% with operating margins north of 15%. They generate quite a bit of free cash flow, which they have allocated to growing the company and share repurchase,” Sellecchia said.
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Sellecchia says DOV has a strong management team, and their decisions are strengthening the company. He says their decisions to maintain and spin-off parts of the company result in a strong portfolio of assets.
“I think they have an excellent management team. Bob Livingston has proven to be a strong manager, their businesses have high returns, and they have been strengthening their portfolio of businesses. They just closed a few months ago on the acquisition of Anthony, which fits nicely with their refrigeration business,” Sellecchia said.
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