DONALDSON CO INC (DCI) Stock Fundamental Analysis
USA - NYSE:DCI - US2576511099 - Common Stock
84.25 USD
+0.56 (+0.67%)
84.25 USD
0 (0%)
Taking everything into account, DCI scores 6 out of 10 in our fundamental rating. DCI was compared to 130 industry peers in the Machinery industry. DCI gets an excellent profitability rating and is at the same time showing great financial health properties. DCI does not seem to be growing, but still is valued expensively.
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
DCI's Return On Assets of 12.33% is amongst the best of the industry. DCI outperforms 90.00% of its industry peers.
The Return On Equity of DCI (25.25%) is better than 92.31% of its industry peers.
With an excellent Return On Invested Capital value of 19.02%, DCI belongs to the best of the industry, outperforming 95.38% 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 10.00%.
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
DCI has a Profit Margin of 9.94%. This is in the better half of the industry: DCI outperforms 72.31% of its industry peers.
DCI's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 15.28%, DCI is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
DCI's Operating Margin has improved in the last couple of years.
DCI's Gross Margin of 35.02% is fine compared to the rest of the industry. DCI outperforms 61.54% of its industry peers.
DCI's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DCI 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
Compared to 1 year ago, DCI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.22 indicates that DCI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.22, DCI belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 1.97, DCI is doing good in the industry, outperforming 78.46% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that DCI is not too dependend on debt financing.
DCI has a Debt to Equity ratio (0.46) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 7.22 |
ROIC/WACC2.03
WACC9.39%
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.
With a Current ratio value of 1.93, DCI perfoms like the industry average, outperforming 43.85% of the companies in the same industry.
A Quick Ratio of 1.25 indicates that DCI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.25, DCI is in line with its industry, outperforming 49.23% of the companies in the same industry.
The current and quick ratio evaluation for DCI is rather negative, while it does have 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.
DCI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.86% yearly.
Looking at the last year, DCI shows a small growth in Revenue. The Revenue has grown by 2.92% 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)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.
The Revenue is expected to grow by 4.22% on average over the next years.
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
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.
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
Based on the Price/Earnings ratio of 22.89, the valuation of DCI can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as DCI.
DCI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.10.
DCI is valuated rather expensively with a Price/Forward Earnings ratio of 20.79.
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 (22.52), we can say DCI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.89 | ||
| Fwd PE | 20.79 |
4.2 Price Multiples
DCI's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as DCI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.71 | ||
| EV/EBITDA | 15.4 |
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)2.26
PEG (5Y)1.78
EPS Next 2Y9.36%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
DCI has a Yearly Dividend Yield of 1.43%. Purely for dividend investing, there may be better candidates out there.
DCI's Dividend Yield is a higher than the industry average which is at 1.81.
Compared to the average S&P500 Dividend Yield of 2.37, DCI is paying slightly less dividend.
| 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 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
35.94% of the earnings are spent on dividend by DCI. This is a low number and sustainable payout ratio.
The dividend of DCI is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP35.94%
EPS Next 2Y9.36%
EPS Next 3Y8.99%
84.25
+0.56 (+0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners89.77%
Inst Owner Change-9.83%
Ins Owners0.49%
Ins Owner Change1.59%
Market Cap9.76B
Revenue(TTM)3.69B
Net Income(TTM)367.00M
Analysts53.33
Price Target81.42 (-3.36%)
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 | 22.89 | ||
| Fwd PE | 20.79 | ||
| P/S | 2.64 | ||
| P/FCF | 28.71 | ||
| P/OCF | 23.3 | ||
| P/B | 6.71 | ||
| P/tB | 11.31 | ||
| EV/EBITDA | 15.4 |
EPS(TTM)3.68
EY4.37%
EPS(NY)4.05
Fwd EY4.81%
FCF(TTM)2.93
FCFY3.48%
OCF(TTM)3.62
OCFY4.29%
SpS31.86
BVpS12.55
TBVpS7.45
PEG (NY)2.26
PEG (5Y)1.78
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 | 7.22 |
F-Score6
WACC9.39%
ROIC/WACC2.03
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 22.89 and the Price/Book (PB) ratio is 6.71.
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%.