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Donaldson CompanyNYSE:DCI Stock Report

Market Cap







25 Sep, 2021


Company Financials +
DCI fundamental analysis
Snowflake Score
Future Growth2/6
Past Performance5/6
Financial Health5/6

DCI Overview

Donaldson Company, Inc. manufactures and sells filtration systems and replacement parts worldwide.

Donaldson Company Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Donaldson Company
Historical stock prices
Current Share PriceUS$60.17
52 Week HighUS$46.12
52 Week LowUS$69.35
1 Month Change-11.96%
3 Month Change-4.86%
1 Year Change30.92%
3 Year Change3.28%
5 Year Change61.18%
Change since IPO6,464.01%

Recent News & Updates

Sep 19

Donaldson: One Of The Best Dividend Aristocrats You Can Buy

Donaldson is one of the best dividend champions you can buy right now. DCI's steadily greater focus on recurring sales means both safer dividends over time, as well as higher multiples. In this overvalued market, DCI is one of the more reasonable and prudent fast-growing dividend champions, with about 2X the market's 5-year risk-adjusted expected returns.

Sep 02
Donaldson Company (NYSE:DCI) Might Become A Compounding Machine

Donaldson Company (NYSE:DCI) Might Become A Compounding Machine

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Aug 21
Is Now An Opportune Moment To Examine Donaldson Company, Inc. (NYSE:DCI)?

Is Now An Opportune Moment To Examine Donaldson Company, Inc. (NYSE:DCI)?

Donaldson Company, Inc. ( NYSE:DCI ), is not the largest company out there, but it saw a decent share price growth in...

Aug 20

Donaldson Leveraging Strong Demand And Easier Comps

Robust demand and production growth for on-highway and off-highway commercial vehicles are driving strong first-fit momentum for Donaldson, but component and labor shortages could start limiting upside. Trucking aftermarket demand could likewise be capped by driver shortages, though industrial demand is recovering nicely and aerospace has just bottomed. New product/market opportunities in food/beverage, chemicals/electronics, and life sciences/pharma remain attractive (and likely require M&A), but opportunities in markets like hydrogen fuel cells could be under-appreciated. Mid-single-digit revenue and high single-digit FCF growth support a modestly better-than-average mid-to-high single-digit prospective return, but Donaldson has an edge with quality, scarcity, and growth upside.

Aug 08
Donaldson Company (NYSE:DCI) Seems To Use Debt Quite Sensibly

Donaldson Company (NYSE:DCI) Seems To Use Debt Quite Sensibly

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

DCIUS MachineryUS Market

Return vs Industry: DCI underperformed the US Machinery industry which returned 37.4% over the past year.

Return vs Market: DCI underperformed the US Market which returned 35.3% over the past year.

Price Volatility

Is DCI's price volatile compared to industry and market?
DCI volatility
DCI Beta1.33
Industry Beta1.25
Market Beta1

Stable Share Price: DCI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: DCI's weekly volatility (3%) has been stable over the past year.

About the Company

191512,400Tod Carpenter

Donaldson Company, Inc. manufactures and sells filtration systems and replacement parts worldwide. It operates through two segments, Engine Products and Industrial Products. The Engine Products segment offers replacement filters for air and liquid filtration applications, air filtration systems, liquid filtration systems for fuel, lube and hydraulic applications, exhaust and emissions systems and sensors, indicators, and monitoring systems.

Donaldson Company Fundamentals Summary

How do Donaldson Company's earnings and revenue compare to its market cap?
DCI fundamental statistics
Market CapUS$7.56b
Earnings (TTM)US$286.90m
Revenue (TTM)US$2.85b


P/E Ratio


P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DCI income statement (TTM)
Cost of RevenueUS$1.88b
Gross ProfitUS$977.50m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date


Earnings per share (EPS)2.28
Gross Margin34.25%
Net Profit Margin10.05%
Debt/Equity Ratio44.8%

How did DCI perform over the long term?

See historical performance and comparison



Current Dividend Yield


Payout Ratio


Is Donaldson Company undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: DCI ($60.17) is trading below our estimate of fair value ($61.9)

Significantly Below Fair Value: DCI is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: DCI is good value based on its PE Ratio (26.3x) compared to the US Machinery industry average (29.4x).

PE vs Market: DCI is poor value based on its PE Ratio (26.3x) compared to the US market (17.9x).

Price to Earnings Growth Ratio

PEG Ratio: DCI is poor value based on its PEG Ratio (2.8x)

Price to Book Ratio

PB vs Industry: DCI is overvalued based on its PB Ratio (6.6x) compared to the US Machinery industry average (2.8x).

Future Growth

How is Donaldson Company forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DCI's forecast earnings growth (9.2% per year) is above the savings rate (2%).

Earnings vs Market: DCI's earnings (9.2% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: DCI's earnings are forecast to grow, but not significantly.

Revenue vs Market: DCI's revenue (6.1% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: DCI's revenue (6.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: DCI's Return on Equity is forecast to be high in 3 years time (29.3%)

Past Performance

How has Donaldson Company performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DCI has high quality earnings.

Growing Profit Margin: DCI's current net profit margins (10.1%) are higher than last year (10%).

Past Earnings Growth Analysis

Earnings Trend: DCI's earnings have grown by 7.2% per year over the past 5 years.

Accelerating Growth: DCI's earnings growth over the past year (11.6%) exceeds its 5-year average (7.2% per year).

Earnings vs Industry: DCI earnings growth over the past year (11.6%) underperformed the Machinery industry 22.1%.

Return on Equity

High ROE: DCI's Return on Equity (25.2%) is considered high.

Financial Health

How is Donaldson Company's financial position?

Financial Position Analysis

Short Term Liabilities: DCI's short term assets ($1.2B) exceed its short term liabilities ($606.6M).

Long Term Liabilities: DCI's short term assets ($1.2B) exceed its long term liabilities ($656.5M).

Debt to Equity History and Analysis

Debt Level: DCI's debt to equity ratio (44.8%) is considered high.

Reducing Debt: DCI's debt to equity ratio has reduced from 73.3% to 44.8% over the past 5 years.

Debt Coverage: DCI's debt is well covered by operating cash flow (78.9%).

Interest Coverage: DCI's interest payments on its debt are well covered by EBIT (30x coverage).

Balance Sheet


What is Donaldson Company current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DCI's dividend (1.46%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: DCI's dividend (1.46%) is low compared to the top 25% of dividend payers in the US market (3.6%).

Stability and Growth of Payments

Stable Dividend: DCI's dividends per share have been stable in the past 10 years.

Growing Dividend: DCI's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.9%), DCI's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: DCI's dividends in 3 years are forecast to be well covered by earnings (28.4% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Tod Carpenter (62 yo)





Mr. Tod E. Carpenter has been the Chief Executive Officer and President of Donaldson Company, Inc. since April 1, 2015. He serves as Independent Director at AMETEK, Inc. since June 17, 2019. Mr. Carpenter...

CEO Compensation Analysis

Compensation vs Market: Tod's total compensation ($USD5.48M) is about average for companies of similar size in the US market ($USD6.40M).

Compensation vs Earnings: Tod's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: DCI's management team is seasoned and experienced (5.8 years average tenure).

Board Members

Experienced Board: DCI's board of directors are considered experienced (7.3 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

Donaldson Company, Inc.'s employee growth, exchange listings and data sources

Key Information

  • Name: Donaldson Company, Inc.
  • Ticker: DCI
  • Exchange: NYSE
  • Founded: 1915
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$7.556b
  • Shares outstanding: 125.58m
  • Website:

Number of Employees


  • Donaldson Company, Inc.
  • 1400 West 94th Street
  • Bloomington
  • Minnesota
  • 55431
  • United States


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 22:06
End of Day Share Price2021/09/24 00:00
Annual Earnings2021/07/31

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.