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
We assign a fundamental rating of 6 out of 10 to DCI. DCI was compared to 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. 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.
- DCI had positive earnings in each of the past 5 years.
- Each year in the past 5 years DCI had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 12.62%, DCI belongs to the best of the industry, outperforming 90.15% of the companies in the same industry.
- With an excellent Return On Equity value of 25.18%, DCI belongs to the best of the industry, outperforming 92.42% of the companies in the same industry.
- DCI has a better Return On Invested Capital (18.75%) than 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 10.18%.
- 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
- Looking at the Profit Margin, with a value of 10.25%, DCI is in the better half of 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.
- Looking at the Operating Margin, with a value of 15.40%, DCI is in the better half of the industry, outperforming 71.21% of the companies in the same industry.
- In the last couple of years the Operating Margin of DCI has grown nicely.
- DCI has a Gross Margin of 34.96%. This is in the better half 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DCI is creating value.
- Compared to 1 year ago, DCI has less shares outstanding
- Compared to 5 years ago, DCI has less shares outstanding
- Compared to 1 year ago, DCI has a worse debt to assets ratio.
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.
- 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.
- The Debt to FCF ratio of DCI (1.69) is better than 81.06% of its industry peers.
- 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 53.03% of the companies in the same industry.
| 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.
- 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.
- DCI has a Quick ratio (1.39) which is in line with its industry peers.
| 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
- Based on estimates for the next years, DCI will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.19% on average per year.
- Based on estimates for the next years, DCI will show a small growth in Revenue. The Revenue will grow by 4.30% 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
- 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
- A Price/Earnings ratio of 26.90 indicates a quite expensive valuation of DCI.
- DCI's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, DCI is valued at the same level.
- Based on the Price/Forward Earnings ratio of 22.77, the valuation of DCI can be described as rather expensive.
- DCI's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, DCI is valued at the same level.
| 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.
- DCI has an outstanding profitability rating, which 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
- With a Yearly Dividend Yield of 1.16%, DCI has a reasonable but not impressive dividend return.
- DCI's Dividend Yield is a higher than the industry average which is at 1.01.
- Compared to the average S&P500 Dividend Yield of 1.83, DCI is paying slightly less dividend.
| 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 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
- 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 more than its dividend. This makes the dividend growth 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.