DONALDSON CO INC (DCI)
US2576511099 - Common Stock
We assign a fundamental rating of 7 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DCI was profitable.
In the past year DCI had a positive cash flow from operations.
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
With an excellent Return On Assets value of 14.21%, DCI belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
Looking at the Return On Equity, with a value of 27.80%, DCI belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
DCI's Return On Invested Capital of 19.38% is amongst the best of the industry. DCI outperforms 95.38% of its industry peers.
DCI had an Average Return On Invested Capital over the past 3 years of 18.25%. This is significantly above the industry average of 10.90%.
The last Return On Invested Capital (19.38%) for DCI is above the 3 year average (18.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.21% | ||
| ROE | 27.8% | ||
| ROIC | 19.38% |
ROA(3y)13.32%
ROA(5y)12.67%
ROE(3y)28.11%
ROE(5y)27.12%
ROIC(3y)18.25%
ROIC(5y)17.05%
1.3 Margins
DCI's Profit Margin of 11.54% is fine compared to the rest of the industry. DCI outperforms 79.23% of its industry peers.
In the last couple of years the Profit Margin of DCI has grown nicely.
The Operating Margin of DCI (15.17%) is better than 75.38% of its industry peers.
In the last couple of years the Operating Margin of DCI has grown nicely.
With a decent Gross Margin value of 35.54%, DCI is doing good in the industry, outperforming 63.08% of the companies in the same industry.
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 | 15.17% | ||
| PM (TTM) | 11.54% | ||
| GM | 35.54% |
OM growth 3Y3.5%
OM growth 5Y2.14%
PM growth 3Y4.72%
PM growth 5Y4.21%
GM growth 3Y1.23%
GM growth 5Y1.29%
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.
The debt/assets ratio for DCI has been reduced compared to a year ago.
2.2 Solvency
DCI has an Altman-Z score of 6.70. This indicates that DCI is financially healthy and has little risk of bankruptcy at the moment.
DCI has a better Altman-Z score (6.70) than 85.38% of its industry peers.
DCI has a debt to FCF ratio of 1.32. This is a very positive value and a sign of high solvency as it would only need 1.32 years to pay back of all of its debts.
DCI has a Debt to FCF ratio of 1.32. This is amongst the best in the industry. DCI outperforms 87.69% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that DCI is not too dependend on debt financing.
DCI has a Debt to Equity ratio of 0.34. This is comparable to the rest of the industry: DCI outperforms 56.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.32 | ||
| Altman-Z | 6.7 |
ROIC/WACC2.17
WACC8.93%
2.3 Liquidity
DCI has a Current Ratio of 1.84. This is a normal value and indicates that DCI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.84, DCI is doing worse than 62.31% of the companies in the same industry.
DCI has a Quick Ratio of 1.23. 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 of 1.23. This is comparable to the rest of the industry: DCI outperforms 46.15% of its industry peers.
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 | 1.84 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
DCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.13%, which is quite good.
The Earnings Per Share has been growing by 9.03% 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 4.53% in the last year.
Measured over the past years, DCI shows a small growth in Revenue. The Revenue has been growing by 4.74% on average per year.
EPS 1Y (TTM)15.13%
EPS 3Y13.81%
EPS 5Y9.03%
EPS Q2Q%10.67%
Revenue 1Y (TTM)4.53%
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.
Based on estimates for the next years, DCI will show a small growth in Revenue. The Revenue will grow by 4.68% on average per year.
EPS Next Y6.87%
EPS Next 2Y8.49%
EPS Next 3Y8.48%
EPS Next 5Y7.14%
Revenue Next Year3.72%
Revenue Next 2Y4.54%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.43, the valuation of DCI can be described as rather expensive.
Based on the Price/Earnings ratio, DCI is valued a bit cheaper than 66.92% of the companies in the same industry.
DCI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.73.
With a Price/Forward Earnings ratio of 16.90, DCI is valued correctly.
70.00% of the companies in the same industry are more expensive than DCI, based on the Price/Forward Earnings ratio.
DCI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.43 | ||
| Fwd PE | 16.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DCI is valued a bit cheaper than 61.54% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DCI is valued a bit cheaper than the industry average as 70.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.02 | ||
| EV/EBITDA | 13.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of DCI may justify a higher PE ratio.
PEG (NY)2.83
PEG (5Y)2.15
EPS Next 2Y8.49%
EPS Next 3Y8.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.49%, DCI has a reasonable but not impressive dividend return.
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 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
The dividend of DCI has a limited annual growth rate of 5.51%.
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)5.51%
Div Incr Years28
Div Non Decr Years33
5.3 Sustainability
DCI pays out 29.66% of its income as dividend. This is a sustainable payout ratio.
The dividend of DCI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP29.66%
EPS Next 2Y8.49%
EPS Next 3Y8.48%
DONALDSON CO INC
NYSE:DCI (12/20/2024, 8:04:54 PM)
After market: 68.02 0 (0%)68.02
-0.26 (-0.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners80.29%
Inst Owner Change-0.69%
Ins Owners1.9%
Ins Owner Change2.25%
Market Cap8.15B
Analysts70
Price Target77.93 (14.57%)
Short Float %1.05%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Dividend Growth(5Y)5.51%
DP29.66%
Div Incr Years28
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.13%
Min EPS beat(2)5.16%
Max EPS beat(2)9.09%
EPS beat(4)4
Avg EPS beat(4)6.53%
Min EPS beat(4)2.99%
Max EPS beat(4)9.09%
EPS beat(8)6
Avg EPS beat(8)3.24%
EPS beat(12)7
Avg EPS beat(12)1.5%
EPS beat(16)10
Avg EPS beat(16)2.28%
Revenue beat(2)1
Avg Revenue beat(2)-0.73%
Min Revenue beat(2)-1.77%
Max Revenue beat(2)0.31%
Revenue beat(4)1
Avg Revenue beat(4)-1.03%
Min Revenue beat(4)-2%
Max Revenue beat(4)0.31%
Revenue beat(8)2
Avg Revenue beat(8)-0.83%
Revenue beat(12)6
Avg Revenue beat(12)0.04%
Revenue beat(16)9
Avg Revenue beat(16)0.76%
PT rev (1m)0%
PT rev (3m)-0.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.43 | ||
| Fwd PE | 16.9 | ||
| P/S | 2.27 | ||
| P/FCF | 20.02 | ||
| P/OCF | 16.54 | ||
| P/B | 5.47 | ||
| P/tB | 9.71 | ||
| EV/EBITDA | 13.16 |
EPS(TTM)3.5
EY5.15%
EPS(NY)4.03
Fwd EY5.92%
FCF(TTM)3.4
FCFY5%
OCF(TTM)4.11
OCFY6.05%
SpS29.95
BVpS12.44
TBVpS7
PEG (NY)2.83
PEG (5Y)2.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.21% | ||
| ROE | 27.8% | ||
| ROCE | 25.52% | ||
| ROIC | 19.38% | ||
| ROICexc | 21.72% | ||
| ROICexgc | 32.78% | ||
| OM | 15.17% | ||
| PM (TTM) | 11.54% | ||
| GM | 35.54% | ||
| FCFM | 11.35% |
ROA(3y)13.32%
ROA(5y)12.67%
ROE(3y)28.11%
ROE(5y)27.12%
ROIC(3y)18.25%
ROIC(5y)17.05%
ROICexc(3y)20.26%
ROICexc(5y)19.13%
ROICexgc(3y)29.8%
ROICexgc(5y)27.03%
ROCE(3y)23.97%
ROCE(5y)22.44%
ROICexcg growth 3Y10.46%
ROICexcg growth 5Y4.03%
ROICexc growth 3Y5.39%
ROICexc growth 5Y1.54%
OM growth 3Y3.5%
OM growth 5Y2.14%
PM growth 3Y4.72%
PM growth 5Y4.21%
GM growth 3Y1.23%
GM growth 5Y1.29%
F-Score8
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.32 | ||
| Debt/EBITDA | 0.8 | ||
| Cap/Depr | 86.99% | ||
| Cap/Sales | 2.39% | ||
| Interest Coverage | 23.25 | ||
| Cash Conversion | 76.65% | ||
| Profit Quality | 98.29% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 6.7 |
F-Score8
WACC8.93%
ROIC/WACC2.17
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 Y6.87%
EPS Next 2Y8.49%
EPS Next 3Y8.48%
EPS Next 5Y7.14%
Revenue 1Y (TTM)4.53%
Revenue growth 3Y7.91%
Revenue growth 5Y4.74%
Sales Q2Q%6.36%
Revenue Next Year3.72%
Revenue Next 2Y4.54%
Revenue Next 3Y4.77%
Revenue Next 5Y4.68%
EBIT growth 1Y13.31%
EBIT growth 3Y11.69%
EBIT growth 5Y6.99%
EBIT Next Year27.02%
EBIT Next 3Y12.78%
EBIT Next 5Y9.79%
FCF growth 1Y-4.48%
FCF growth 3Y5.87%
FCF growth 5Y15.84%
OCF growth 1Y-9.55%
OCF growth 3Y7.01%
OCF growth 5Y7.33%