DONALDSON CO INC (DCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DCI - US2576511099 - Common Stock
92.44 USD
-1.72 (-1.83%)
92.44 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to DCI. DCI was compared to 130 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making DCI a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, DCI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year DCI was profitable.
DCI had a positive operating cash flow in the past year.
DCI had positive earnings in each of the past 5 years.
Each year in the past 5 years DCI had a positive operating cash flow.
1.2 Ratios
DCI's Return On Assets of 12.33% is amongst the best of the industry. DCI outperforms 87.69% of its industry peers.
The Return On Equity of DCI (25.25%) is better than 91.54% of its industry peers.
DCI has a Return On Invested Capital of 19.02%. This is amongst the best in the industry. DCI outperforms 94.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DCI is significantly above the industry average of 10.46%.
The last Return On Invested Capital (19.02%) for DCI is above the 3 year average (18.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.33% | ||
| ROE | 25.25% | ||
| ROIC | 19.02% |
ROA(3y)13.16%
ROA(5y)12.85%
ROE(3y)26.74%
ROE(5y)26.96%
ROIC(3y)18.7%
ROIC(5y)17.86%
1.3 Margins
The Profit Margin of DCI (9.94%) is better than 71.54% of its industry peers.
In the last couple of years the Profit Margin of DCI has remained more or less at the same level.
Looking at the Operating Margin, with a value of 15.28%, DCI is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
In the last couple of years the Operating Margin of DCI has grown nicely.
DCI has a Gross Margin of 35.02%. This is in the better half of the industry: DCI outperforms 63.08% of its industry peers.
In the last couple of years the Gross Margin of DCI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.28% | ||
| PM (TTM) | 9.94% | ||
| GM | 35.02% |
OM growth 3Y4.36%
OM growth 5Y3.01%
PM growth 3Y-0.4%
PM growth 5Y-0.02%
GM growth 3Y2.72%
GM growth 5Y0.74%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DCI is creating value.
Compared to 1 year ago, DCI has less shares outstanding
The number of shares outstanding for DCI has been reduced compared to 5 years ago.
The debt/assets ratio for DCI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.59 indicates that DCI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.59, DCI belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
The Debt to FCF ratio of DCI is 1.97, which is an excellent value as it means it would take DCI, only 1.97 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.97, DCI is doing good in the industry, outperforming 79.23% of the companies in the same industry.
DCI has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
DCI has a Debt to Equity ratio of 0.46. This is comparable to the rest of the industry: DCI outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 7.59 |
ROIC/WACC2.03
WACC9.35%
2.3 Liquidity
DCI has a Current Ratio of 1.93. This is a normal value and indicates that DCI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.93, DCI is in line with its industry, outperforming 42.31% of the companies in the same industry.
DCI has a Quick Ratio of 1.25. This is a normal value and indicates that DCI is financially healthy and should not expect problems in meeting its short term obligations.
DCI has a Quick ratio of 1.25. This is comparable to the rest of the industry: DCI outperforms 53.08% of its industry peers.
The current and quick ratio evaluation for DCI is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.29% over the past year.
Measured over the past years, DCI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.86% on average per year.
Looking at the last year, DCI shows a small growth in Revenue. The Revenue has grown by 2.92% in the last year.
Measured over the past years, DCI shows a small growth in Revenue. The Revenue has been growing by 7.41% on average per year.
EPS 1Y (TTM)8.29%
EPS 3Y11.01%
EPS 5Y12.86%
EPS Q2Q%13.25%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y3.73%
Revenue growth 5Y7.41%
Sales Q2Q%3.92%
3.2 Future
DCI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.91% yearly.
The Revenue is expected to grow by 4.22% on average over the next years.
EPS Next Y10.13%
EPS Next 2Y9.36%
EPS Next 3Y9.03%
EPS Next 5Y6.91%
Revenue Next Year4.16%
Revenue Next 2Y4.33%
Revenue Next 3Y4.2%
Revenue Next 5Y4.22%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.39 indicates a rather expensive valuation of DCI.
DCI's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of DCI to the average of the S&P500 Index (26.49), we can say DCI is valued inline with the index average.
The Price/Forward Earnings ratio is 21.00, which indicates a rather expensive current valuation of DCI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DCI is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, DCI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.39 | ||
| Fwd PE | 21 |
4.2 Price Multiples
DCI's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DCI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.5 | ||
| EV/EBITDA | 16.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of DCI may justify a higher PE ratio.
PEG (NY)2.41
PEG (5Y)1.9
EPS Next 2Y9.36%
EPS Next 3Y9.03%
5. Dividend
5.1 Amount
DCI has a Yearly Dividend Yield of 1.27%.
Compared to an average industry Dividend Yield of 1.84, DCI pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.27, DCI pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
The dividend of DCI has a limited annual growth rate of 5.89%.
DCI has been paying a dividend for at least 10 years, so it has a reliable track record.
DCI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.89%
Div Incr Years29
Div Non Decr Years34
5.3 Sustainability
35.94% of the earnings are spent on dividend by DCI. This is a low number and sustainable payout ratio.
The dividend of DCI is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP35.94%
EPS Next 2Y9.36%
EPS Next 3Y9.03%
92.44
-1.72 (-1.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners89.89%
Inst Owner Change-11.64%
Ins Owners0.51%
Ins Owner Change1.48%
Market Cap10.71B
Revenue(TTM)3.69B
Net Income(TTM)367.00M
Analysts70
Price Target90.6 (-1.99%)
Short Float %1.98%
Short Ratio3.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend1.12
Dividend Growth(5Y)5.89%
DP35.94%
Div Incr Years29
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.88%
Min EPS beat(2)0.26%
Max EPS beat(2)3.49%
EPS beat(4)3
Avg EPS beat(4)0.2%
Min EPS beat(4)-3.03%
Max EPS beat(4)3.49%
EPS beat(8)7
Avg EPS beat(8)3.36%
EPS beat(12)9
Avg EPS beat(12)2.23%
EPS beat(16)10
Avg EPS beat(16)1.17%
Revenue beat(2)1
Avg Revenue beat(2)0.88%
Min Revenue beat(2)-0.28%
Max Revenue beat(2)2.04%
Revenue beat(4)2
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-5.17%
Max Revenue beat(4)2.04%
Revenue beat(8)3
Avg Revenue beat(8)-0.91%
Revenue beat(12)4
Avg Revenue beat(12)-0.81%
Revenue beat(16)8
Avg Revenue beat(16)-0.17%
PT rev (1m)11.28%
PT rev (3m)12.12%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)0.68%
EPS NY rev (1m)0%
EPS NY rev (3m)3.08%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.39 | ||
| Fwd PE | 21 | ||
| P/S | 2.9 | ||
| P/FCF | 31.5 | ||
| P/OCF | 25.57 | ||
| P/B | 7.37 | ||
| P/tB | 12.41 | ||
| EV/EBITDA | 16.83 |
EPS(TTM)3.79
EY4.1%
EPS(NY)4.4
Fwd EY4.76%
FCF(TTM)2.93
FCFY3.17%
OCF(TTM)3.62
OCFY3.91%
SpS31.86
BVpS12.55
TBVpS7.45
PEG (NY)2.41
PEG (5Y)1.9
Graham Number32.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.33% | ||
| ROE | 25.25% | ||
| ROCE | 25.4% | ||
| ROIC | 19.02% | ||
| ROICexc | 20.68% | ||
| ROICexgc | 28.94% | ||
| OM | 15.28% | ||
| PM (TTM) | 9.94% | ||
| GM | 35.02% | ||
| FCFM | 9.21% |
ROA(3y)13.16%
ROA(5y)12.85%
ROE(3y)26.74%
ROE(5y)26.96%
ROIC(3y)18.7%
ROIC(5y)17.86%
ROICexc(3y)20.62%
ROICexc(5y)19.83%
ROICexgc(3y)30.71%
ROICexgc(5y)28.28%
ROCE(3y)24.98%
ROCE(5y)23.85%
ROICexgc growth 3Y4.61%
ROICexgc growth 5Y6.47%
ROICexc growth 3Y2.95%
ROICexc growth 5Y5.14%
OM growth 3Y4.36%
OM growth 5Y3.01%
PM growth 3Y-0.4%
PM growth 5Y-0.02%
GM growth 3Y2.72%
GM growth 5Y0.74%
F-Score6
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.97 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 79.3% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 25.4 | ||
| Cash Conversion | 63.13% | ||
| Profit Quality | 92.62% | ||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 7.59 |
F-Score6
WACC9.35%
ROIC/WACC2.03
Cap/Depr(3y)98.22%
Cap/Depr(5y)89.55%
Cap/Sales(3y)2.66%
Cap/Sales(5y)2.53%
Profit Quality(3y)103.21%
Profit Quality(5y)95.88%
High Growth Momentum
Growth
EPS 1Y (TTM)8.29%
EPS 3Y11.01%
EPS 5Y12.86%
EPS Q2Q%13.25%
EPS Next Y10.13%
EPS Next 2Y9.36%
EPS Next 3Y9.03%
EPS Next 5Y6.91%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y3.73%
Revenue growth 5Y7.41%
Sales Q2Q%3.92%
Revenue Next Year4.16%
Revenue Next 2Y4.33%
Revenue Next 3Y4.2%
Revenue Next 5Y4.22%
EBIT growth 1Y2.92%
EBIT growth 3Y8.25%
EBIT growth 5Y10.64%
EBIT Next Year26%
EBIT Next 3Y11.45%
EBIT Next 5Y8.67%
FCF growth 1Y-16.47%
FCF growth 3Y26.65%
FCF growth 5Y5.3%
OCF growth 1Y-14.96%
OCF growth 3Y18.33%
OCF growth 5Y1.59%
DONALDSON CO INC / DCI FAQ
What is the fundamental rating for DCI stock?
ChartMill assigns a fundamental rating of 6 / 10 to DCI.
What is the valuation status of DONALDSON CO INC (DCI) stock?
ChartMill assigns a valuation rating of 3 / 10 to DONALDSON CO INC (DCI). This can be considered as Overvalued.
Can you provide the profitability details for DONALDSON CO INC?
DONALDSON CO INC (DCI) has a profitability rating of 8 / 10.
What is the valuation of DONALDSON CO INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DONALDSON CO INC (DCI) is 24.39 and the Price/Book (PB) ratio is 7.37.
Can you provide the dividend sustainability for DCI stock?
The dividend rating of DONALDSON CO INC (DCI) is 6 / 10 and the dividend payout ratio is 35.94%.