DONALDSON CO INC (DCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DCI - US2576511099 - Common Stock
91.53 USD
-1.06 (-1.14%)
91.53 USD
0 (0%)
Overall DCI gets a fundamental rating of 6 out of 10. We evaluated DCI against 132 industry peers in the Machinery industry. DCI gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
In the past 5 years DCI has always been profitable.
In the past 5 years DCI always reported a positive cash flow from operatings.
1.2 Ratios
DCI has a better Return On Assets (12.62%) than 89.39% of its industry peers.
DCI's Return On Equity of 25.18% is amongst the best of the industry. DCI outperforms 92.42% of its industry peers.
DCI's Return On Invested Capital of 18.75% is amongst the best of the industry. DCI outperforms 93.94% of its industry peers.
DCI had an Average Return On Invested Capital over the past 3 years of 18.70%. This is significantly above the industry average of 10.27%.
The 3 year average ROIC (18.70%) for DCI is below the current ROIC(18.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.62% | ||
| ROE | 25.18% | ||
| ROIC | 18.75% |
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
DCI's Profit Margin of 10.25% is fine compared to the rest of the industry. DCI outperforms 71.97% of its industry peers.
In the last couple of years the Profit Margin of DCI has remained more or less at the same level.
With a decent Operating Margin value of 15.40%, DCI is doing good in the industry, outperforming 71.97% of the companies in the same industry.
DCI's Operating Margin has improved in the last couple of years.
The Gross Margin of DCI (34.96%) is better than 62.88% of its industry peers.
DCI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.4% | ||
| PM (TTM) | 10.25% | ||
| GM | 34.96% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DCI is creating value.
DCI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DCI has been reduced compared to 5 years ago.
Compared to 1 year ago, DCI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.70 indicates that DCI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.70, DCI belongs to the top of the industry, outperforming 90.15% of the companies in the same industry.
The Debt to FCF ratio of DCI is 1.69, which is an excellent value as it means it would take DCI, only 1.69 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.69, DCI belongs to the best of the industry, outperforming 80.30% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that DCI is not too dependend on debt financing.
DCI has a Debt to Equity ratio (0.44) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 7.7 |
ROIC/WACC2.01
WACC9.33%
2.3 Liquidity
DCI has a Current Ratio of 2.15. This indicates that DCI is financially healthy and has no problem in meeting its short term obligations.
DCI has a Current ratio (2.15) which is in line with its industry peers.
DCI has a Quick Ratio of 1.39. This is a normal value and indicates that DCI is financially healthy and should not expect problems in meeting its short term obligations.
DCI's Quick ratio of 1.39 is in line compared to the rest of the industry. DCI outperforms 59.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
DCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.29%, which is quite good.
The Earnings Per Share has been growing by 12.86% on average over the past years. This is quite good.
Looking at the last year, DCI shows a small growth in Revenue. The Revenue has grown by 2.37% in the last year.
DCI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.41% yearly.
EPS 1Y (TTM)8.29%
EPS 3Y11.01%
EPS 5Y12.86%
EPS Q2Q%13.25%
Revenue 1Y (TTM)2.37%
Revenue growth 3Y3.73%
Revenue growth 5Y7.41%
Sales Q2Q%3.92%
3.2 Future
Based on estimates for the next years, DCI will show a small growth in Earnings Per Share. The EPS will grow by 6.91% on average per year.
Based on estimates for the next years, DCI will show a small growth in Revenue. The Revenue will grow by 4.22% on average per year.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DCI is valuated rather expensively with a Price/Earnings ratio of 24.15.
The rest of the industry has a similar Price/Earnings ratio as DCI.
When comparing the Price/Earnings ratio of DCI to the average of the S&P500 Index (26.50), we can say DCI is valued inline with the index average.
The Price/Forward Earnings ratio is 20.80, which indicates a rather expensive current valuation of DCI.
The rest of the industry has a similar Price/Forward Earnings ratio as DCI.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.93, DCI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.15 | ||
| Fwd PE | 20.8 |
4.2 Price Multiples
DCI's Enterprise Value to EBITDA is on the same level as the industry average.
DCI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.29 | ||
| EV/EBITDA | 16.65 |
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)2.39
PEG (5Y)1.88
EPS Next 2Y9.36%
EPS Next 3Y9.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.30%, DCI has a reasonable but not impressive dividend return.
DCI's Dividend Yield is a higher than the industry average which is at 1.04.
DCI's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
The dividend of DCI has a limited annual growth rate of 5.89%.
DCI has paid a dividend for at least 10 years, which is 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
35.14% of the earnings are spent on dividend by DCI. This is a low number and sustainable payout ratio.
DCI's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP35.14%
EPS Next 2Y9.36%
EPS Next 3Y9.03%
91.53
-1.06 (-1.14%)
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 Change1.5%
Market Cap10.60B
Revenue(TTM)3.73B
Net Income(TTM)381.90M
Analysts70
Price Target90.6 (-1.02%)
Short Float %1.68%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend1.12
Dividend Growth(5Y)5.89%
DP35.14%
Div Incr Years29
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.56%
Min EPS beat(2)0.26%
Max EPS beat(2)0.85%
EPS beat(4)3
Avg EPS beat(4)0.39%
Min EPS beat(4)-3.03%
Max EPS beat(4)3.49%
EPS beat(8)7
Avg EPS beat(8)3.09%
EPS beat(12)10
Avg EPS beat(12)2.46%
EPS beat(16)10
Avg EPS beat(16)0.65%
Revenue beat(2)2
Avg Revenue beat(2)1.19%
Min Revenue beat(2)0.35%
Max Revenue beat(2)2.04%
Revenue beat(4)2
Avg Revenue beat(4)-0.77%
Min Revenue beat(4)-5.17%
Max Revenue beat(4)2.04%
Revenue beat(8)4
Avg Revenue beat(8)-0.61%
Revenue beat(12)4
Avg Revenue beat(12)-0.91%
Revenue beat(16)8
Avg Revenue beat(16)-0.21%
PT rev (1m)11.28%
PT rev (3m)11.28%
EPS NQ rev (1m)-1.17%
EPS NQ rev (3m)-1.17%
EPS NY rev (1m)0%
EPS NY rev (3m)3.08%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.15 | ||
| Fwd PE | 20.8 | ||
| P/S | 2.85 | ||
| P/FCF | 26.29 | ||
| P/OCF | 22.5 | ||
| P/B | 6.99 | ||
| P/tB | 11.46 | ||
| EV/EBITDA | 16.65 |
EPS(TTM)3.79
EY4.14%
EPS(NY)4.4
Fwd EY4.81%
FCF(TTM)3.48
FCFY3.8%
OCF(TTM)4.07
OCFY4.45%
SpS32.17
BVpS13.09
TBVpS7.99
PEG (NY)2.39
PEG (5Y)1.88
Graham Number33.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.62% | ||
| ROE | 25.18% | ||
| ROCE | 24.71% | ||
| ROIC | 18.75% | ||
| ROICexc | 20.62% | ||
| ROICexgc | 28.62% | ||
| OM | 15.4% | ||
| PM (TTM) | 10.25% | ||
| GM | 34.96% | ||
| FCFM | 10.82% |
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 Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.69 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 69.28% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 24.53 | ||
| Cash Conversion | 70.1% | ||
| Profit Quality | 105.58% | ||
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 7.7 |
F-Score6
WACC9.33%
ROIC/WACC2.01
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)2.37%
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 1Y3.39%
EBIT growth 3Y8.25%
EBIT growth 5Y10.64%
EBIT Next Year26%
EBIT Next 3Y11.45%
EBIT Next 5Y8.67%
FCF growth 1Y-10.54%
FCF growth 3Y26.65%
FCF growth 5Y5.3%
OCF growth 1Y-16.48%
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 24.15 and the Price/Book (PB) ratio is 6.99.
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 35.14%.