DONALDSON CO INC (DCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DCI - US2576511099 - Common Stock
101.56 USD
+0.83 (+0.82%)
101.56 USD
0 (0%)
DCI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 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.
- DCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- DCI has a better Return On Assets (12.62%) than 89.39% of its industry peers.
- DCI's Return On Equity of 25.18% is amongst the best of 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.
- The Average Return On Invested Capital over the past 3 years for DCI is significantly above the industry average of 10.24%.
- 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
- 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.
- With a decent Operating Margin value of 15.40%, DCI is doing good in 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 62.88% 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
- 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.
- 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 8.07 indicates that DCI is not in any danger for bankruptcy at the moment.
- DCI's Altman-Z score of 8.07 is amongst the best of the industry. DCI outperforms 89.39% 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.
- Looking at the Debt to FCF ratio, with a value of 1.69, DCI belongs to the top of the industry, outperforming 81.06% of the companies in the same industry.
- DCI has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of DCI (0.44) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 8.07 |
ROIC/WACC2.01
WACC9.35%
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.
- DCI has a Current ratio (2.15) which is in line with its industry peers.
- A Quick Ratio of 1.39 indicates that DCI should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.39, DCI perfoms like the industry average, 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
- 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.
- The Earnings Per Share has been growing by 12.86% on average over the past years. This is quite good.
- Looking at the last year, DCI shows a small growth in Revenue. The Revenue has grown by 2.37% in the last year.
- 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
- The Earnings Per Share is expected to grow by 8.19% on average over the next years. This is quite good.
- DCI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.30% yearly.
EPS Next Y10.88%
EPS Next 2Y10.14%
EPS Next 3Y9.53%
EPS Next 5Y8.19%
Revenue Next Year4.38%
Revenue Next 2Y4.48%
Revenue Next 3Y4.37%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- DCI is valuated quite expensively with a Price/Earnings ratio of 26.80.
- Compared to the rest of the industry, the Price/Earnings ratio of DCI is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, DCI is valued at the same level.
- Based on the Price/Forward Earnings ratio of 22.75, the valuation of DCI can be described as rather expensive.
- DCI's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of DCI to the average of the S&P500 Index (24.26), we can say DCI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.8 | ||
| Fwd PE | 22.75 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.18 | ||
| EV/EBITDA | 18.05 |
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)2.46
PEG (5Y)2.08
EPS Next 2Y10.14%
EPS Next 3Y9.53%
5. Dividend
5.1 Amount
- DCI has a Yearly Dividend Yield of 1.29%.
- Compared to an average industry Dividend Yield of 0.80, DCI pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.89, DCI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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.
- The dividend of DCI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.14%
EPS Next 2Y10.14%
EPS Next 3Y9.53%
101.56
+0.83 (+0.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)12-04 2025-12-04/bmo
Earnings (Next)02-25 2026-02-25
Inst Owners90.28%
Inst Owner Change0%
Ins Owners0.51%
Ins Owner Change1.83%
Market Cap11.76B
Revenue(TTM)3.73B
Net Income(TTM)381.90M
Analysts70
Price Target92.43 (-8.99%)
Short Float %1.41%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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)2.03%
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 | 26.8 | ||
| Fwd PE | 22.75 | ||
| P/S | 3.16 | ||
| P/FCF | 29.18 | ||
| P/OCF | 24.96 | ||
| P/B | 7.76 | ||
| P/tB | 12.71 | ||
| EV/EBITDA | 18.05 |
EPS(TTM)3.79
EY3.73%
EPS(NY)4.46
Fwd EY4.4%
FCF(TTM)3.48
FCFY3.43%
OCF(TTM)4.07
OCFY4.01%
SpS32.17
BVpS13.09
TBVpS7.99
PEG (NY)2.46
PEG (5Y)2.08
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 | 8.07 |
F-Score6
WACC9.35%
ROIC/WACC2.01
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 5Y8.19%
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 5Y4.3%
EBIT growth 1Y3.39%
EBIT growth 3Y8.25%
EBIT growth 5Y10.64%
EBIT Next Year26.75%
EBIT Next 3Y12.17%
EBIT Next 5Y9.33%
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.