DONALDSON CO INC (DCI) Stock Fundamental Analysis
USA - NYSE:DCI - US2576511099 - Common Stock
80.85 USD
-0.76 (-0.93%)
80.85 USD
0 (0%)
DCI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. While DCI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DCI is valued expensive and it does not seem to be growing.
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.
Each year in the past 5 years DCI had a positive operating cash flow.
1.2 Ratios
DCI has a Return On Assets of 12.33%. This is amongst the best in the industry. DCI outperforms 89.84% of its industry peers.
The Return On Equity of DCI (25.25%) is better than 92.19% of its industry peers.
With an excellent Return On Invested Capital value of 18.95%, DCI belongs to the best of the industry, outperforming 95.31% 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 10.02%.
The 3 year average ROIC (18.63%) for DCI is below the current ROIC(18.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.33% | ||
| ROE | 25.25% | ||
| ROIC | 18.95% |
ROA(3y)13.16%
ROA(5y)12.85%
ROE(3y)26.74%
ROE(5y)26.96%
ROIC(3y)18.63%
ROIC(5y)17.82%
1.3 Margins
DCI's Profit Margin of 9.94% is fine compared to the rest of the industry. DCI outperforms 71.09% of its industry peers.
In the last couple of years the Profit Margin of DCI has remained more or less at the same level.
The Operating Margin of DCI (15.22%) is better than 72.66% of its industry peers.
In the last couple of years the Operating Margin of DCI has grown nicely.
DCI's Gross Margin of 34.96% is fine compared to the rest of the industry. DCI outperforms 61.72% 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 | 15.22% | ||
| PM (TTM) | 9.94% | ||
| GM | 34.96% |
OM growth 3Y3.96%
OM growth 5Y2.77%
PM growth 3Y-0.4%
PM growth 5Y-0.02%
GM growth 3Y2.55%
GM growth 5Y0.64%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DCI is creating value.
The number of shares outstanding for DCI has been reduced compared to 1 year ago.
DCI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DCI is higher compared to a year ago.
2.2 Solvency
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 77.34% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that DCI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.46, DCI is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | N/A |
ROIC/WACC1.92
WACC9.87%
2.3 Liquidity
A Current Ratio of 1.93 indicates that DCI should not have too much problems paying its short term obligations.
The Current ratio of DCI (1.93) is comparable to the rest of the industry.
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.
With a Quick ratio value of 1.25, DCI perfoms like the industry average, outperforming 50.78% of the companies in the same industry.
| 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.
DCI shows a small growth in Revenue. In the last year, the Revenue has grown by 2.92%.
The Revenue has been growing slightly by 7.41% on average over the past years.
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
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 Y6.83%
EPS Next 2Y7.73%
EPS Next 3Y8.99%
EPS Next 5Y6.91%
Revenue Next Year3.54%
Revenue Next 2Y4.33%
Revenue Next 3Y4.32%
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
With a Price/Earnings ratio of 21.97, DCI is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of DCI indicates a somewhat cheap valuation: DCI is cheaper than 61.72% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DCI to the average of the S&P500 Index (27.30), we can say DCI is valued inline with the index average.
With a Price/Forward Earnings ratio of 20.57, DCI is valued on the expensive side.
DCI's Price/Forward Earnings ratio is in line with the industry average.
DCI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.97 | ||
| Fwd PE | 20.57 |
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 | 27.72 | ||
| EV/EBITDA | 15.07 |
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)3.22
PEG (5Y)1.71
EPS Next 2Y7.73%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
DCI has a Yearly Dividend Yield of 1.47%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.78, DCI pays a bit more dividend than its industry peers.
DCI's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
5.2 History
The dividend of DCI has a limited annual growth rate of 5.85%.
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)5.85%
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 2Y7.73%
EPS Next 3Y8.99%
80.85
-0.76 (-0.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners91.07%
Inst Owner Change7.99%
Ins Owners0.5%
Ins Owner Change0.08%
Market Cap9.42B
Analysts53.33
Price Target81.42 (0.71%)
Short Float %2.35%
Short Ratio4.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Yearly Dividend1.11
Dividend Growth(5Y)5.85%
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)9.09%
PT rev (3m)13.58%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)0.81%
EPS NY rev (3m)1.53%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-4.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.97 | ||
| Fwd PE | 20.57 | ||
| P/S | 2.55 | ||
| P/FCF | 27.72 | ||
| P/OCF | 22.49 | ||
| P/B | 6.48 | ||
| P/tB | 10.92 | ||
| EV/EBITDA | 15.07 |
EPS(TTM)3.68
EY4.55%
EPS(NY)3.93
Fwd EY4.86%
FCF(TTM)2.92
FCFY3.61%
OCF(TTM)3.59
OCFY4.45%
SpS31.68
BVpS12.47
TBVpS7.4
PEG (NY)3.22
PEG (5Y)1.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.33% | ||
| ROE | 25.25% | ||
| ROCE | 25.3% | ||
| ROIC | 18.95% | ||
| ROICexc | 20.6% | ||
| ROICexgc | 28.83% | ||
| OM | 15.22% | ||
| PM (TTM) | 9.94% | ||
| GM | 34.96% | ||
| FCFM | 9.21% |
ROA(3y)13.16%
ROA(5y)12.85%
ROE(3y)26.74%
ROE(5y)26.96%
ROIC(3y)18.63%
ROIC(5y)17.82%
ROICexc(3y)20.54%
ROICexc(5y)19.78%
ROICexgc(3y)30.6%
ROICexgc(5y)28.22%
ROCE(3y)24.88%
ROCE(5y)23.8%
ROICexcg growth 3Y4.21%
ROICexcg growth 5Y6.22%
ROICexc growth 3Y2.55%
ROICexc growth 5Y4.9%
OM growth 3Y3.96%
OM growth 5Y2.77%
PM growth 3Y-0.4%
PM growth 5Y-0.02%
GM growth 3Y2.55%
GM growth 5Y0.64%
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 | 250 | ||
| Cash Conversion | 63.34% | ||
| Profit Quality | 92.62% | ||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | N/A |
F-Score6
WACC9.87%
ROIC/WACC1.92
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 Y6.83%
EPS Next 2Y7.73%
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 Year3.54%
Revenue Next 2Y4.33%
Revenue Next 3Y4.32%
Revenue Next 5Y4.22%
EBIT growth 1Y2.52%
EBIT growth 3Y7.84%
EBIT growth 5Y10.39%
EBIT Next Year21.9%
EBIT Next 3Y11.46%
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%