DONALDSON CO INC (DCI) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:DCI • US2576511099
101.94 USD
-1.38 (-1.34%)
At close: Jan 30, 2026
101.94 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
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. DCI is valied quite expensively at the moment, while it does show a decent growth rate.
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.
- DCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of DCI (12.62%) is better than 90.15% of its industry peers.
- DCI has a Return On Equity of 25.18%. This is amongst the best in the industry. DCI outperforms 92.42% of its industry peers.
- DCI has a Return On Invested Capital of 18.75%. This is amongst the best in the industry. DCI outperforms 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 10.18%.
- 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 Profit Margin of 10.25%. This is in the better half of the industry: DCI outperforms 71.97% of its industry peers.
- DCI's Profit Margin has been stable in the last couple of years.
- DCI's Operating Margin of 15.40% is fine compared to the rest of the industry. DCI outperforms 71.21% of its industry peers.
- DCI's Operating Margin has improved in the last couple of years.
- The Gross Margin of DCI (34.96%) is better than 63.64% 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
- DCI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
- The debt/assets ratio for DCI is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 8.13 indicates that DCI is not in any danger for bankruptcy at the moment.
- DCI's Altman-Z score of 8.13 is amongst the best of the industry. DCI outperforms 90.91% of its industry peers.
- DCI has a debt to FCF ratio of 1.69. This is a very positive value and a sign of high solvency as it would only need 1.69 years to pay back of all of its debts.
- DCI has a Debt to FCF ratio of 1.69. This is amongst the best in the industry. DCI outperforms 81.06% of its industry peers.
- DCI has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
- DCI has a Debt to Equity ratio (0.44) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 8.13 |
ROIC/WACC1.97
WACC9.53%
2.3 Liquidity
- A Current Ratio of 2.15 indicates that DCI has no problem at all paying its short term obligations.
- DCI has a Current ratio of 2.15. This is comparable to the rest of the industry: DCI outperforms 56.82% of 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.
- The Quick ratio of DCI (1.39) is comparable to the rest of the 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.
- 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.
- The Revenue has been growing slightly by 2.37% in the past 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
- DCI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.19% yearly.
- Based on estimates for the next years, DCI will show a small growth in Revenue. The Revenue will grow by 4.30% on average per year.
EPS Next Y11.05%
EPS Next 2Y10.3%
EPS Next 3Y9.91%
EPS Next 5Y8.19%
Revenue Next Year4.46%
Revenue Next 2Y4.59%
Revenue Next 3Y4.64%
Revenue Next 5Y4.3%
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
- The Price/Earnings ratio is 26.90, which means the current valuation is very expensive for DCI.
- Compared to the rest of the industry, the Price/Earnings ratio of DCI is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 28.32. DCI is around the same levels.
- With a Price/Forward Earnings ratio of 22.77, DCI is valued on the expensive side.
- DCI's Price/Forward Earnings ratio is in line with the industry average.
- DCI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.9 | ||
| Fwd PE | 22.77 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as DCI.
- DCI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.29 | ||
| EV/EBITDA | 18.26 |
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)2.43
PEG (5Y)2.09
EPS Next 2Y10.3%
EPS Next 3Y9.91%
5. Dividend
5.1 Amount
- DCI has a Yearly Dividend Yield of 1.16%.
- DCI's Dividend Yield is a higher than the industry average which is at 1.01.
- DCI's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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, but earnings are growing more, so the dividend growth is sustainable.
DP35.14%
EPS Next 2Y10.3%
EPS Next 3Y9.91%
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 11.05% in the next year.