DONALDSON CO INC (DCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DCI - US2576511099 - Common Stock
88.66 USD
-1.63 (-1.81%)
88.66 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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
In the past year DCI had a positive cash flow from operations.
Each year in the past 5 years DCI has been profitable.
In the past 5 years DCI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DCI (12.62%) is better 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.
The Return On Invested Capital of DCI (18.75%) is better than 93.94% 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 10.27%.
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 has a better Profit Margin (10.25%) than 71.97% of its industry peers.
DCI's Profit Margin has been stable in the last couple of years.
The Operating Margin of DCI (15.40%) is better than 71.97% of its industry peers.
In the last couple of years the Operating Margin of DCI has grown nicely.
DCI's Gross Margin of 34.96% is fine compared to the rest of the industry. DCI outperforms 63.64% 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 | 15.4% | ||
| 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.
The number of shares outstanding for DCI has been reduced compared to 1 year ago.
The number of shares outstanding for DCI has been reduced compared to 5 years ago.
DCI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.52 indicates that DCI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.52, DCI belongs to the top of the industry, outperforming 89.39% 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.
Looking at the Debt to FCF ratio, with a value of 1.69, DCI belongs to the top 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.
Looking at the Debt to Equity ratio, with a value of 0.44, DCI is in line with its industry, outperforming 52.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 7.52 |
ROIC/WACC2.01
WACC9.31%
2.3 Liquidity
A Current Ratio of 2.15 indicates that DCI has no problem at all paying its short term obligations.
The Current ratio of DCI (2.15) is comparable to the rest of the industry.
A Quick Ratio of 1.39 indicates that DCI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.39, DCI is in line with its industry, outperforming 59.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.29% over the past year.
DCI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.86% yearly.
DCI shows a small growth in Revenue. In the last year, the Revenue has grown by 2.37%.
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)2.37%
Revenue growth 3Y3.73%
Revenue growth 5Y7.41%
Sales Q2Q%3.92%
3.2 Future
The Earnings Per Share is expected to grow by 6.91% on average over the next years.
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 Y10.88%
EPS Next 2Y10.14%
EPS Next 3Y9.53%
EPS Next 5Y6.91%
Revenue Next Year4.38%
Revenue Next 2Y4.48%
Revenue Next 3Y4.37%
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
DCI is valuated rather expensively with a Price/Earnings ratio of 23.39.
The rest of the industry has a similar Price/Earnings ratio as DCI.
DCI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
With a Price/Forward Earnings ratio of 19.86, DCI is valued on the expensive side.
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 23.13, DCI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.39 | ||
| Fwd PE | 19.86 |
4.2 Price Multiples
DCI's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as DCI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.47 | ||
| EV/EBITDA | 15.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DCI does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of DCI may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)1.82
EPS Next 2Y10.14%
EPS Next 3Y9.53%
5. Dividend
5.1 Amount
DCI has a Yearly Dividend Yield of 1.32%.
DCI's Dividend Yield is a higher than the industry average which is at 0.98.
DCI's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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
DCI pays out 35.14% of its income as dividend. This is a 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.
DP35.14%
EPS Next 2Y10.14%
EPS Next 3Y9.53%
88.66
-1.63 (-1.81%)
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 Cap10.27B
Revenue(TTM)3.73B
Net Income(TTM)381.90M
Analysts70
Price Target92.43 (4.25%)
Short Float %1.41%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend1.12
Dividend Growth(5Y)5.89%
DP35.14%
Div Incr Years29
Div Non Decr Years34
Ex-DateN/A
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)13.53%
PT rev (3m)13.53%
EPS NQ rev (1m)-0.96%
EPS NQ rev (3m)-0.96%
EPS NY rev (1m)0.69%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.39 | ||
| Fwd PE | 19.86 | ||
| P/S | 2.76 | ||
| P/FCF | 25.47 | ||
| P/OCF | 21.79 | ||
| P/B | 6.77 | ||
| P/tB | 11.1 | ||
| EV/EBITDA | 15.97 |
EPS(TTM)3.79
EY4.27%
EPS(NY)4.46
Fwd EY5.04%
FCF(TTM)3.48
FCFY3.93%
OCF(TTM)4.07
OCFY4.59%
SpS32.17
BVpS13.09
TBVpS7.99
PEG (NY)2.15
PEG (5Y)1.82
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 | 7.52 |
F-Score6
WACC9.31%
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 Y10.88%
EPS Next 2Y10.14%
EPS Next 3Y9.53%
EPS Next 5Y6.91%
Revenue 1Y (TTM)2.37%
Revenue growth 3Y3.73%
Revenue growth 5Y7.41%
Sales Q2Q%3.92%
Revenue Next Year4.38%
Revenue Next 2Y4.48%
Revenue Next 3Y4.37%
Revenue Next 5Y4.22%
EBIT growth 1Y3.39%
EBIT growth 3Y8.25%
EBIT growth 5Y10.64%
EBIT Next Year26.75%
EBIT Next 3Y12.17%
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 for 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 financial health of DONALDSON CO INC (DCI) stock?
The financial health rating of DONALDSON CO INC (DCI) is 7 / 10.
What is the earnings growth outlook for DONALDSON CO INC?
The Earnings per Share (EPS) of DONALDSON CO INC (DCI) is expected to grow by 10.88% in the next year.