NYSE:DCI

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Donaldson Company's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DCI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: DCI's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.4%

DCI

3.6%

US Machinery

1.8%

US Market


1 Year Return

-1.9%

DCI

19.4%

US Machinery

20.4%

US Market

Return vs Industry: DCI underperformed the US Machinery industry which returned 17.6% over the past year.

Return vs Market: DCI underperformed the US Market which returned 19% over the past year.


Shareholder returns

DCIIndustryMarket
7 Day1.4%3.6%1.8%
30 Day5.9%10.1%6.0%
90 Day7.2%18.3%6.8%
1 Year-0.3%-1.9%22.6%19.4%23.2%20.4%
3 Year18.3%12.8%35.4%25.7%47.4%37.6%
5 Year93.2%77.4%125.3%100.0%91.9%70.8%

Long-Term Price Volatility Vs. Market

How volatile is Donaldson Company's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

27.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DCI ($54.86) is trading above our estimate of fair value ($48.31)

Significantly Below Fair Value: DCI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DCI is good value based on its PE Ratio (27.1x) compared to the US Machinery industry average (29.6x).

PE vs Market: DCI is poor value based on its PE Ratio (27.1x) compared to the US market (19.5x).


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 (7x) compared to the US Machinery industry average (2.7x).


Next Steps

Future Growth

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

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DCI's forecast earnings growth (9.8% per year) is above the savings rate (2.2%).

Earnings vs Market: DCI's earnings (9.8% per year) are forecast to grow slower than the US market (21.9% per year).

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

Revenue vs Market: DCI's revenue (6.7% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: DCI's revenue (6.7% 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 (33.7%)


Next Steps

Past Performance

How has Donaldson Company performed over the past 5 years?

7.5%

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%) are higher than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: DCI's earnings have grown by 7.5% per year over the past 5 years.

Accelerating Growth: DCI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DCI had negative earnings growth (-3.8%) over the past year, making it difficult to compare to the Machinery industry average (-15.7%).


Return on Equity

High ROE: DCI's Return on Equity (25.6%) is considered high.


Next Steps

Financial Health

How is Donaldson Company's financial position?


Financial Position Analysis

Short Term Liabilities: DCI's short term assets ($1.1B) exceed its short term liabilities ($406.8M).

Long Term Liabilities: DCI's short term assets ($1.1B) exceed its long term liabilities ($834.0M).


Debt to Equity History and Analysis

Debt Level: DCI's debt to equity ratio (62.5%) is considered high.

Reducing Debt: DCI's debt to equity ratio has reduced from 74.3% to 62.5% over the past 5 years.

Debt Coverage: DCI's debt is well covered by operating cash flow (61.7%).

Interest Coverage: DCI's interest payments on its debt are well covered by EBIT (19.7x coverage).


Balance Sheet


Next Steps

Dividend

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

1.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DCI's dividend (1.53%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: DCI's dividend (1.53%) is low compared to the top 25% of dividend payers in the US market (4.15%).


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 (41.5%), 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 (31.6% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Tod Carpenter (61 yo)

5.58yrs

Tenure

US$5,483,229

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Tod's total compensation ($USD5.48M) is about average for companies of similar size in the US market ($USD6.90M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tod Carpenter
Chairman5.58yrsUS$5.48m0.15%
$ 10.4m
Scott Robinson
Senior VP & CFO4.92yrsUS$1.76m0.023%
$ 1.6m
Amy Becker
VP, General Counsel & Corporate Secretary6.25yrsUS$1.16m0.031%
$ 2.1m
Thomas Scalf
Senior Vice President of Engine Products6.58yrsUS$1.56m0.024%
$ 1.7m
Jeffrey Spethmann
Senior Vice President of Industrial Products4.58yrsUS$1.39m0.019%
$ 1.3m
Richard Lewis
Senior Vice President of Global Operations5.25yrsno data0.0091%
$ 628.9k
Peter Keller
Corporate Controller & Principal Accounting Officer2.08yrsno data0.0017%
$ 118.6k
Michael Wynblatt
VP & CTO3yrsno datano data
Kathryn Freytag
VP & Chief Information Officer3.83yrsno datano data
Brad Pogalz
Director of Investor Relations5.67yrsno datano data
Sheila Kramer
VP & Chief Human Resources Officer5.08yrsUS$606.60k0.014%
$ 936.8k
Robert Van Nelson
Treasurerno datano datano data

5.1yrs

Average Tenure

54yo

Average Age

Experienced Management: DCI's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tod Carpenter
Chairman5.58yrsUS$5.48m0.15%
$ 10.4m
Michael Hoffman
Independent Director15yrsUS$212.32k0.035%
$ 2.4m
Willard Oberton
Lead Independent Director3yrsUS$237.32k0.0051%
$ 356.4k
Andrew Cecere
Independent Director7.17yrsUS$209.32k0.0034%
$ 237.1k
Ajita Rajendra
Independent Director10.67yrsUS$207.33k0.023%
$ 1.6m
John Wiehoff
Independent Director17.33yrsUS$219.33k0.0037%
$ 259.3k
Trudy Rautio
Independent Director5.83yrsUS$214.35k0.0034%
$ 237.1k
Douglas Milroy
Independent Director4.67yrsUS$214.32k0.0047%
$ 326.6k
James Owens
Independent Director7.67yrsUS$207.32k0.0034%
$ 237.1k
Pilar Cruz
Independent Director3yrsUS$209.34k0.0034%
$ 237.1k

6.5yrs

Average Tenure

61yo

Average Age

Experienced Board: DCI's board of directors are considered experienced (6.5 years average tenure).


Ownership

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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Donaldson Company, Inc.'s company bio, 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$6.934b
  • Shares outstanding: 126.40m
  • Website: https://www.donaldson.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DCINYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
DNZDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969

Biography

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 off...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 00:06
End of Day Share Price2020/11/24 00:00
Earnings2020/07/31
Annual Earnings2020/07/31


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.