DONALDSON CO INC (DCI) Stock Fundamental Analysis
USA - NYSE:DCI - US2576511099 - Common Stock
86.54 USD
+0.62 (+0.72%)
We assign a fundamental rating of 6 out of 10 to DCI. DCI was compared to 130 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making DCI a very profitable company, without any liquidiy or solvency issues. DCI has a expensive valuation and it also scores bad on growth.
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.
Each year in the past 5 years DCI has been profitable.
DCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.33%, DCI belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
The Return On Equity of DCI (25.25%) is better than 91.54% of its industry peers.
The Return On Invested Capital of DCI (19.02%) is better than 94.62% 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 10.24%.
The 3 year average ROIC (18.70%) for DCI is below the current ROIC(19.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.33% | ||
| ROE | 25.25% | ||
| ROIC | 19.02% |
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 9.94%, DCI is doing good in the industry, outperforming 71.54% of the companies in the same industry.
DCI's Profit Margin has been stable in the last couple of years.
DCI has a Operating Margin of 15.28%. This is in the better half of the industry: DCI outperforms 71.54% of its industry peers.
DCI's Operating Margin has improved in the last couple of years.
DCI has a Gross Margin of 35.02%. This is in the better half of the industry: DCI outperforms 61.54% 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 | 15.28% | ||
| PM (TTM) | 9.94% | ||
| GM | 35.02% |
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.
The number of shares outstanding for DCI has been reduced compared to 1 year ago.
Compared to 5 years ago, DCI has less shares outstanding
DCI has a worse debt/assets ratio than last year.
2.2 Solvency
DCI has an Altman-Z score of 7.30. This indicates that DCI is financially healthy and has little risk of bankruptcy at the moment.
DCI has a better Altman-Z score (7.30) than 89.23% of its industry peers.
DCI has a debt to FCF ratio of 1.97. This is a very positive value and a sign of high solvency as it would only need 1.97 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.97, DCI is in the better half of the industry, outperforming 77.69% of the companies in the same industry.
DCI has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of DCI (0.46) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 7.3 |
ROIC/WACC2.01
WACC9.46%
2.3 Liquidity
DCI has a Current Ratio of 1.93. 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 (1.93) which is in line with its industry peers.
DCI has a Quick Ratio of 1.25. 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 (1.25) which is comparable to the rest of the industry.
DCI does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.60% 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 2.92%.
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)7.6%
EPS 3Y11.01%
EPS 5Y12.86%
EPS Q2Q%9.57%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y3.73%
Revenue growth 5Y7.41%
Sales Q2Q%4.84%
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.
Based on estimates for the next years, DCI will show a small growth in Revenue. The Revenue will grow by 4.22% on average per year.
EPS Next Y10.13%
EPS Next 2Y9.36%
EPS Next 3Y8.99%
EPS Next 5Y6.91%
Revenue Next Year4.14%
Revenue Next 2Y4.33%
Revenue Next 3Y4.19%
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.
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
A Price/Earnings ratio of 23.52 indicates a rather expensive valuation of DCI.
DCI's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.67, DCI is valued at the same level.
With a Price/Forward Earnings ratio of 21.35, DCI is valued on the expensive side.
DCI's Price/Forward Earnings is on the same level as the industry average.
DCI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 31.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.52 | ||
| Fwd PE | 21.35 |
4.2 Price Multiples
DCI's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DCI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.49 | ||
| EV/EBITDA | 15.69 |
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)2.32
PEG (5Y)1.83
EPS Next 2Y9.36%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
DCI has a Yearly Dividend Yield of 1.43%.
Compared to an average industry Dividend Yield of 1.83, DCI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, DCI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
The dividend of DCI has a limited annual growth rate of 5.89%.
DCI has paid a dividend for at least 10 years, which is 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 35.94% 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.
DP35.94%
EPS Next 2Y9.36%
EPS Next 3Y8.99%
NYSE:DCI (11/7/2025, 3:03:55 PM)
86.54
+0.62 (+0.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners89.77%
Inst Owner Change-10.43%
Ins Owners0.49%
Ins Owner Change1.59%
Market Cap10.02B
Revenue(TTM)3.69B
Net Income(TTM)367.00M
Analysts53.33
Price Target81.42 (-5.92%)
Short Float %1.64%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend1.12
Dividend Growth(5Y)5.89%
DP35.94%
Div Incr Years29
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.88%
Min EPS beat(2)0.26%
Max EPS beat(2)3.49%
EPS beat(4)3
Avg EPS beat(4)0.2%
Min EPS beat(4)-3.03%
Max EPS beat(4)3.49%
EPS beat(8)7
Avg EPS beat(8)3.36%
EPS beat(12)9
Avg EPS beat(12)2.23%
EPS beat(16)10
Avg EPS beat(16)1.17%
Revenue beat(2)1
Avg Revenue beat(2)0.88%
Min Revenue beat(2)-0.28%
Max Revenue beat(2)2.04%
Revenue beat(4)2
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-5.17%
Max Revenue beat(4)2.04%
Revenue beat(8)3
Avg Revenue beat(8)-0.91%
Revenue beat(12)4
Avg Revenue beat(12)-0.81%
Revenue beat(16)8
Avg Revenue beat(16)-0.17%
PT rev (1m)0%
PT rev (3m)9.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.73%
EPS NY rev (1m)0%
EPS NY rev (3m)3.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.52 | ||
| Fwd PE | 21.35 | ||
| P/S | 2.72 | ||
| P/FCF | 29.49 | ||
| P/OCF | 23.93 | ||
| P/B | 6.9 | ||
| P/tB | 11.62 | ||
| EV/EBITDA | 15.69 |
EPS(TTM)3.68
EY4.25%
EPS(NY)4.05
Fwd EY4.68%
FCF(TTM)2.93
FCFY3.39%
OCF(TTM)3.62
OCFY4.18%
SpS31.86
BVpS12.55
TBVpS7.45
PEG (NY)2.32
PEG (5Y)1.83
Graham Number32.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.33% | ||
| ROE | 25.25% | ||
| ROCE | 25.4% | ||
| ROIC | 19.02% | ||
| ROICexc | 20.68% | ||
| ROICexgc | 28.94% | ||
| OM | 15.28% | ||
| PM (TTM) | 9.94% | ||
| GM | 35.02% | ||
| FCFM | 9.21% |
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 Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.97 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 79.3% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 25.4 | ||
| Cash Conversion | 63.13% | ||
| Profit Quality | 92.62% | ||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 7.3 |
F-Score6
WACC9.46%
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)7.6%
EPS 3Y11.01%
EPS 5Y12.86%
EPS Q2Q%9.57%
EPS Next Y10.13%
EPS Next 2Y9.36%
EPS Next 3Y8.99%
EPS Next 5Y6.91%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y3.73%
Revenue growth 5Y7.41%
Sales Q2Q%4.84%
Revenue Next Year4.14%
Revenue Next 2Y4.33%
Revenue Next 3Y4.19%
Revenue Next 5Y4.22%
EBIT growth 1Y2.92%
EBIT growth 3Y8.25%
EBIT growth 5Y10.64%
EBIT Next Year25.67%
EBIT Next 3Y11.23%
EBIT Next 5Y8.67%
FCF growth 1Y-16.47%
FCF growth 3Y26.65%
FCF growth 5Y5.3%
OCF growth 1Y-14.96%
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 of DONALDSON CO INC (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 valuation of DONALDSON CO INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DONALDSON CO INC (DCI) is 23.52 and the Price/Book (PB) ratio is 6.9.
Can you provide the dividend sustainability for DCI stock?
The dividend rating of DONALDSON CO INC (DCI) is 6 / 10 and the dividend payout ratio is 35.94%.