DONALDSON CO INC (DCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DCI - US2576511099 - Common Stock
95.02 USD
+2 (+2.15%)
We assign a fundamental rating of 6 out of 10 to DCI. DCI was compared to 132 industry peers in the Machinery industry. DCI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DCI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DCI was profitable.
DCI had a positive operating cash flow in the past year.
DCI had positive earnings in each of the past 5 years.
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.
The Return On Equity of DCI (25.18%) is better than 92.42% of its industry peers.
With an excellent Return On Invested Capital value of 18.75%, DCI belongs to the best 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 10.21%.
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
The Profit Margin of DCI (10.25%) is better than 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.
DCI has a Operating Margin of 15.40%. This is in the better half of the industry: DCI outperforms 71.21% of its industry peers.
DCI's Operating Margin has improved in the last couple of years.
The Gross Margin of DCI (34.96%) is better than 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
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
Compared to 5 years ago, DCI has less shares outstanding
The debt/assets ratio for DCI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.72 indicates that DCI is not in any danger for bankruptcy at the moment.
DCI's Altman-Z score of 7.72 is amongst the best of the industry. DCI outperforms 89.39% 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.
Looking at the Debt to FCF ratio, with a value of 1.69, DCI belongs to the top of the industry, outperforming 80.30% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that DCI is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.44, DCI perfoms like the industry average, outperforming 52.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 7.72 |
ROIC/WACC1.97
WACC9.53%
2.3 Liquidity
A Current Ratio of 2.15 indicates that DCI has no problem at all paying its short term obligations.
The Current ratio of DCI (2.15) is comparable to the rest of the 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 59.85% 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.
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.
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
DCI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.91% yearly.
The Revenue is expected to grow by 4.22% on average over the next years.
EPS Next Y10.88%
EPS Next 2Y10.14%
EPS Next 3Y9.53%
EPS Next 5Y6.91%
Revenue Next Year4.38%
Revenue Next 2Y4.48%
Revenue Next 3Y4.37%
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.
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
DCI is valuated quite expensively with a Price/Earnings ratio of 25.07.
Compared to the rest of the industry, the Price/Earnings ratio of DCI is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.00. DCI is around the same levels.
A Price/Forward Earnings ratio of 21.28 indicates a rather expensive valuation of DCI.
DCI's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of DCI to the average of the S&P500 Index (23.70), we can say DCI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.07 | ||
| Fwd PE | 21.28 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as DCI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.3 | ||
| EV/EBITDA | 16.72 |
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)2.3
PEG (5Y)1.95
EPS Next 2Y10.14%
EPS Next 3Y9.53%
5. Dividend
5.1 Amount
DCI has a Yearly Dividend Yield of 1.35%.
Compared to an average industry Dividend Yield of 0.85, DCI pays a bit more dividend than its industry peers.
DCI's Dividend Yield is slightly below the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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.
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.
DP35.14%
EPS Next 2Y10.14%
EPS Next 3Y9.53%
NYSE:DCI (1/9/2026, 10:11:50 AM)
95.02
+2 (+2.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.28%
Inst Owner Change0%
Ins Owners0.51%
Ins Owner Change1.5%
Market Cap11.01B
Revenue(TTM)3.73B
Net Income(TTM)381.90M
Analysts70
Price Target92.43 (-2.73%)
Short Float %1.41%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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)13.53%
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 | 25.07 | ||
| Fwd PE | 21.28 | ||
| P/S | 2.95 | ||
| P/FCF | 27.3 | ||
| P/OCF | 23.35 | ||
| P/B | 7.26 | ||
| P/tB | 11.89 | ||
| EV/EBITDA | 16.72 |
EPS(TTM)3.79
EY3.99%
EPS(NY)4.46
Fwd EY4.7%
FCF(TTM)3.48
FCFY3.66%
OCF(TTM)4.07
OCFY4.28%
SpS32.17
BVpS13.09
TBVpS7.99
PEG (NY)2.3
PEG (5Y)1.95
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 | 7.72 |
F-Score6
WACC9.53%
ROIC/WACC1.97
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 5Y6.91%
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 5Y4.22%
EBIT growth 1Y3.39%
EBIT growth 3Y8.25%
EBIT growth 5Y10.64%
EBIT Next Year26.75%
EBIT Next 3Y12.17%
EBIT Next 5Y8.67%
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.