Logo image of DCI

DONALDSON CO INC (DCI) Stock Fundamental Analysis

NYSE:DCI - New York Stock Exchange, Inc. - US2576511099 - Common Stock - Currency: USD

71.19  -0.46 (-0.64%)

After market: 71.19 0 (0%)

Fundamental Rating

7

Taking everything into account, DCI scores 7 out of 10 in our fundamental rating. DCI was compared to 130 industry peers in the Machinery industry. DCI gets an excellent profitability rating and is at the same time showing great financial health properties. DCI has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

DCI had positive earnings in the past year.
DCI had a positive operating cash flow in the past year.
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.
DCI Yearly Net Income VS EBIT VS OCF VS FCFDCI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

1.2 Ratios

DCI has a better Return On Assets (13.83%) than 92.13% of its industry peers.
DCI's Return On Equity of 27.28% is amongst the best of the industry. DCI outperforms 91.34% of its industry peers.
The Return On Invested Capital of DCI (18.40%) is better than 92.13% 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 11.03%.
The 3 year average ROIC (18.29%) for DCI is below the current ROIC(18.40%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 13.83%
ROE 27.28%
ROIC 18.4%
ROA(3y)13.32%
ROA(5y)12.67%
ROE(3y)28.11%
ROE(5y)27.12%
ROIC(3y)18.29%
ROIC(5y)17.08%
DCI Yearly ROA, ROE, ROICDCI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

DCI has a better Profit Margin (11.56%) than 79.53% of its industry peers.
In the last couple of years the Profit Margin of DCI has grown nicely.
DCI has a Operating Margin of 15.25%. This is in the better half of the industry: DCI outperforms 74.80% of its industry peers.
In the last couple of years the Operating Margin of DCI has grown nicely.
DCI's Gross Margin of 35.63% is fine compared to the rest of the industry. DCI outperforms 62.99% of its industry peers.
DCI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 15.25%
PM (TTM) 11.56%
GM 35.63%
OM growth 3Y3.74%
OM growth 5Y2.29%
PM growth 3Y4.72%
PM growth 5Y4.21%
GM growth 3Y1.33%
GM growth 5Y1.35%
DCI Yearly Profit, Operating, Gross MarginsDCI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
DCI has a better debt/assets ratio than last year.
DCI Yearly Shares OutstandingDCI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
DCI Yearly Total Debt VS Total AssetsDCI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.2 Solvency

An Altman-Z score of 6.63 indicates that DCI is not in any danger for bankruptcy at the moment.
DCI's Altman-Z score of 6.63 is amongst the best of the industry. DCI outperforms 83.46% of its industry peers.
The Debt to FCF ratio of DCI is 1.89, which is an excellent value as it means it would take DCI, only 1.89 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.89, DCI belongs to the top of the industry, outperforming 83.46% of the companies in the same industry.
DCI has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.40, DCI perfoms like the industry average, outperforming 53.54% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 1.89
Altman-Z 6.63
ROIC/WACC1.93
WACC9.52%
DCI Yearly LT Debt VS Equity VS FCFDCI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B

2.3 Liquidity

DCI has a Current Ratio of 1.85. 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 Current ratio of 1.85. This is in the lower half of the industry: DCI underperforms 62.99% of its industry peers.
A Quick Ratio of 1.20 indicates that DCI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, DCI is in line with its industry, outperforming 45.67% of the companies in the same industry.
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 RankSector Rank
Current Ratio 1.85
Quick Ratio 1.2
DCI Yearly Current Assets VS Current LiabilitesDCI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 15.13% 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 9.03% yearly.
The Revenue has been growing slightly by 6.13% in the past year.
DCI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.74% yearly.
EPS 1Y (TTM)15.13%
EPS 3Y13.81%
EPS 5Y9.03%
EPS Q2Q%10.67%
Revenue 1Y (TTM)6.13%
Revenue growth 3Y7.91%
Revenue growth 5Y4.74%
Sales Q2Q%6.36%

3.2 Future

The Earnings Per Share is expected to grow by 7.14% on average over the next years.
DCI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.68% yearly.
EPS Next Y7.2%
EPS Next 2Y8.46%
EPS Next 3Y8.48%
EPS Next 5Y7.14%
Revenue Next Year4.05%
Revenue Next 2Y4.62%
Revenue Next 3Y4.77%
Revenue Next 5Y4.68%

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 stable.
DCI Yearly Revenue VS EstimatesDCI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B 4B
DCI Yearly EPS VS EstimatesDCI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3 4

5

4. Valuation

4.1 Price/Earnings Ratio

DCI is valuated rather expensively with a Price/Earnings ratio of 20.34.
Based on the Price/Earnings ratio, DCI is valued a bit cheaper than 66.93% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.46. DCI is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.70, which indicates a rather expensive current valuation of DCI.
Based on the Price/Forward Earnings ratio, DCI is valued a bit cheaper than 67.72% of the companies in the same industry.
DCI is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.56, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.34
Fwd PE 17.7
DCI Price Earnings VS Forward Price EarningsDCI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

61.42% of the companies in the same industry are more expensive than DCI, based on the Enterprise Value to EBITDA ratio.
62.20% of the companies in the same industry are more expensive than DCI, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 25
EV/EBITDA 13.59
DCI Per share dataDCI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DCI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.82
PEG (5Y)2.25
EPS Next 2Y8.46%
EPS Next 3Y8.48%

6

5. Dividend

5.1 Amount

DCI has a Yearly Dividend Yield of 1.51%.
Compared to an average industry Dividend Yield of 1.61, DCI pays a bit more dividend than its industry peers.
DCI's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
Industry RankSector Rank
Dividend Yield 1.51%

5.2 History

The dividend of DCI has a limited annual growth rate of 5.51%.
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)5.51%
Div Incr Years28
Div Non Decr Years33
DCI Yearly Dividends per shareDCI Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

DCI pays out 29.70% of its income as dividend. This is a sustainable payout ratio.
DCI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP29.7%
EPS Next 2Y8.46%
EPS Next 3Y8.48%
DCI Yearly Income VS Free CF VS DividendDCI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
DCI Dividend Payout.DCI Dividend Payout, showing the Payout Ratio.DCI Dividend Payout.PayoutRetained Earnings

DONALDSON CO INC

NYSE:DCI (1/31/2025, 6:30:00 PM)

After market: 71.19 0 (0%)

71.19

-0.46 (-0.64%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)12-03 2024-12-03/bmo
Earnings (Next)N/A N/A
Inst Owners87.85%
Inst Owner Change1.6%
Ins Owners0.53%
Ins Owner Change2.18%
Market Cap8.50B
Analysts70
Price Target78.54 (10.32%)
Short Float %1.19%
Short Ratio2.27
Dividend
Industry RankSector Rank
Dividend Yield 1.51%
Yearly Dividend1.02
Dividend Growth(5Y)5.51%
DP29.7%
Div Incr Years28
Div Non Decr Years33
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.54%
Min EPS beat(2)-0.09%
Max EPS beat(2)5.16%
EPS beat(4)3
Avg EPS beat(4)5.76%
Min EPS beat(4)-0.09%
Max EPS beat(4)9.09%
EPS beat(8)6
Avg EPS beat(8)3.47%
EPS beat(12)6
Avg EPS beat(12)0.73%
EPS beat(16)9
Avg EPS beat(16)1.85%
Revenue beat(2)1
Avg Revenue beat(2)-0.81%
Min Revenue beat(2)-1.77%
Max Revenue beat(2)0.15%
Revenue beat(4)2
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-1.77%
Max Revenue beat(4)0.31%
Revenue beat(8)2
Avg Revenue beat(8)-0.99%
Revenue beat(12)6
Avg Revenue beat(12)-0.04%
Revenue beat(16)9
Avg Revenue beat(16)0.61%
PT rev (1m)0.79%
PT rev (3m)0.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.12%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
Industry RankSector Rank
PE 20.34
Fwd PE 17.7
P/S 2.34
P/FCF 25
P/OCF 19.89
P/B 5.51
P/tB 9.5
EV/EBITDA 13.59
EPS(TTM)3.5
EY4.92%
EPS(NY)4.02
Fwd EY5.65%
FCF(TTM)2.85
FCFY4%
OCF(TTM)3.58
OCFY5.03%
SpS30.48
BVpS12.92
TBVpS7.49
PEG (NY)2.82
PEG (5Y)2.25
Profitability
Industry RankSector Rank
ROA 13.83%
ROE 27.28%
ROCE 24.75%
ROIC 18.4%
ROICexc 20.34%
ROICexgc 29.43%
OM 15.25%
PM (TTM) 11.56%
GM 35.63%
FCFM 9.34%
ROA(3y)13.32%
ROA(5y)12.67%
ROE(3y)28.11%
ROE(5y)27.12%
ROIC(3y)18.29%
ROIC(5y)17.08%
ROICexc(3y)20.31%
ROICexc(5y)19.16%
ROICexgc(3y)29.87%
ROICexgc(5y)27.08%
ROCE(3y)24.03%
ROCE(5y)22.48%
ROICexcg growth 3Y10.71%
ROICexcg growth 5Y4.17%
ROICexc growth 3Y5.64%
ROICexc growth 5Y1.68%
OM growth 3Y3.74%
OM growth 5Y2.29%
PM growth 3Y4.72%
PM growth 5Y4.21%
GM growth 3Y1.33%
GM growth 5Y1.35%
F-Score7
Asset Turnover1.2
Health
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 1.89
Debt/EBITDA 0.94
Cap/Depr 87.75%
Cap/Sales 2.4%
Interest Coverage 25.24
Cash Conversion 65.27%
Profit Quality 80.78%
Current Ratio 1.85
Quick Ratio 1.2
Altman-Z 6.63
F-Score7
WACC9.52%
ROIC/WACC1.93
Cap/Depr(3y)102.18%
Cap/Depr(5y)102.09%
Cap/Sales(3y)2.81%
Cap/Sales(5y)3.06%
Profit Quality(3y)89.09%
Profit Quality(5y)97.8%
High Growth Momentum
Growth
EPS 1Y (TTM)15.13%
EPS 3Y13.81%
EPS 5Y9.03%
EPS Q2Q%10.67%
EPS Next Y7.2%
EPS Next 2Y8.46%
EPS Next 3Y8.48%
EPS Next 5Y7.14%
Revenue 1Y (TTM)6.13%
Revenue growth 3Y7.91%
Revenue growth 5Y4.74%
Sales Q2Q%6.36%
Revenue Next Year4.05%
Revenue Next 2Y4.62%
Revenue Next 3Y4.77%
Revenue Next 5Y4.68%
EBIT growth 1Y14.36%
EBIT growth 3Y11.95%
EBIT growth 5Y7.13%
EBIT Next Year27.75%
EBIT Next 3Y12.78%
EBIT Next 5Y9.79%
FCF growth 1Y46.05%
FCF growth 3Y5.87%
FCF growth 5Y15.84%
OCF growth 1Y30.27%
OCF growth 3Y7.01%
OCF growth 5Y7.33%