DONALDSON CO INC (DCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DCI - US2576511099 - Common Stock
89.93 USD
+1.27 (+1.43%)
89.93 USD
0 (0%)
Taking everything into account, DCI scores 6 out of 10 in our fundamental rating. DCI was compared to 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
DCI had positive earnings in the past year.
In the past year DCI had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 12.62%, DCI belongs to the top of the industry, outperforming 89.39% of the companies in the same industry.
Looking at the Return On Equity, with a value of 25.18%, DCI belongs to the top of the industry, outperforming 92.42% of the companies in the same industry.
DCI's Return On Invested Capital of 18.75% is amongst the best of 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 10.21%.
The last Return On Invested Capital (18.75%) for DCI is above the 3 year average (18.70%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 10.25%, DCI is doing good in the industry, outperforming 71.97% of the companies in the same industry.
DCI's Profit Margin has been stable in the last couple of years.
The Operating Margin of DCI (15.40%) is better than 71.21% of its industry peers.
DCI's Operating Margin has improved in the last couple of years.
DCI has a better Gross Margin (34.96%) 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
DCI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.58 indicates that DCI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.58, DCI belongs to the best 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.
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.
With a Debt to Equity ratio value of 0.44, DCI perfoms like the industry average, outperforming 52.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 7.58 |
ROIC/WACC2
WACC9.36%
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.
Looking at the Current ratio, with a value of 2.15, DCI is in line with its industry, outperforming 56.82% of the companies in the same industry.
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.
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.
The Earnings Per Share has been growing by 12.86% on average over the past years. This is quite good.
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
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.
The Revenue is expected to grow by 4.22% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 23.73, the valuation of DCI can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of DCI is on the same level as its industry peers.
When comparing the Price/Earnings ratio of DCI to the average of the S&P500 Index (26.60), we can say DCI is valued inline with the index average.
A Price/Forward Earnings ratio of 20.14 indicates a rather expensive valuation of DCI.
The rest of the industry has a similar Price/Forward Earnings ratio as DCI.
DCI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.73 | ||
| Fwd PE | 20.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DCI is on the same level as its industry peers.
DCI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.83 | ||
| EV/EBITDA | 16.19 |
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.
DCI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.18
PEG (5Y)1.85
EPS Next 2Y10.14%
EPS Next 3Y9.53%
5. Dividend
5.1 Amount
DCI has a Yearly Dividend Yield of 1.35%. Purely for dividend investing, there may be better candidates out there.
DCI's Dividend Yield is a higher than the industry average which is at 0.85.
DCI's Dividend Yield is slightly below the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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 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.
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 2Y10.14%
EPS Next 3Y9.53%
89.93
+1.27 (+1.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.28%
Inst Owner Change0%
Ins Owners0.51%
Ins Owner Change1.5%
Market Cap10.42B
Revenue(TTM)3.73B
Net Income(TTM)381.90M
Analysts70
Price Target92.43 (2.78%)
Short Float %1.41%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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)-0.8%
EPS NQ rev (3m)-0.96%
EPS NY rev (1m)0.69%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.73 | ||
| Fwd PE | 20.14 | ||
| P/S | 2.8 | ||
| P/FCF | 25.83 | ||
| P/OCF | 22.1 | ||
| P/B | 6.87 | ||
| P/tB | 11.26 | ||
| EV/EBITDA | 16.19 |
EPS(TTM)3.79
EY4.21%
EPS(NY)4.46
Fwd EY4.96%
FCF(TTM)3.48
FCFY3.87%
OCF(TTM)4.07
OCFY4.52%
SpS32.17
BVpS13.09
TBVpS7.99
PEG (NY)2.18
PEG (5Y)1.85
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 | 7.58 |
F-Score6
WACC9.36%
ROIC/WACC2
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.