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
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 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.
- DCI had a positive operating cash flow in the past year.
- In the past 5 years DCI has always been profitable.
- Each year in the past 5 years DCI had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of DCI (12.62%) is better than 89.39% 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.
- Looking at the Return On Invested Capital, with a value of 18.75%, DCI belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for DCI is significantly above the industry average of 10.18%.
- 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
- 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.
- In the last couple of years the Profit Margin of DCI has remained more or less at the same level.
- 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.
- 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.
- 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.
- The Debt to FCF ratio of DCI (1.69) is better than 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/WACC1.96
WACC9.56%
2.3 Liquidity
- A Current Ratio of 2.15 indicates that DCI has no problem at all paying its short term obligations.
- With a Current ratio value of 2.15, DCI perfoms like the industry average, 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.
- With a Quick ratio value of 1.39, DCI perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
- DCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.29%, which is quite good.
- 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.
- Looking at the last year, DCI shows a small growth in Revenue. The Revenue has grown by 2.37% in the last year.
- The Revenue has been growing slightly by 7.41% on average over the past years.
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.
- DCI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.30% yearly.
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
- Based on the Price/Earnings ratio of 26.90, the valuation of DCI can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as DCI.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, DCI is valued at the same level.
- The Price/Forward Earnings ratio is 22.77, which indicates a rather expensive current valuation of DCI.
- The rest of the industry has a similar Price/Forward Earnings ratio as DCI.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. DCI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.9 | ||
| Fwd PE | 22.77 |
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 is on the same level as 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
- 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.
- 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 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.
- 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.