| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 2/6 |
| Past Performance | 5/6 |
| Financial Health | 5/6 |
| Dividends | 5/6 |
DCI Overview
Donaldson Company, Inc. manufactures and sells filtration systems and replacement parts worldwide.
Donaldson Company Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$60.17 |
| 52 Week High | US$46.12 |
| 52 Week Low | US$69.35 |
| Beta | 1.33 |
| 1 Month Change | -11.96% |
| 3 Month Change | -4.86% |
| 1 Year Change | 30.92% |
| 3 Year Change | 3.28% |
| 5 Year Change | 61.18% |
| Change since IPO | 6,464.01% |
Recent News & Updates
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.
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...
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...
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.
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
| DCI | US Machinery | US Market | |
|---|---|---|---|
| 7D | -0.2% | -0.06% | 0.1% |
| 1Y | 30.9% | 37.4% | 35.3% |
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
| DCI volatility | |
|---|---|
| DCI Beta | 1.33 |
| Industry Beta | 1.25 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1915 | 12,400 | Tod Carpenter | https://www.donaldson.com |
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
| DCI fundamental statistics | |
|---|---|
| Market Cap | US$7.56b |
| Earnings (TTM) | US$286.90m |
| Revenue (TTM) | US$2.85b |
26.3x
P/E Ratio2.6x
P/S RatioIs DCI overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| DCI income statement (TTM) | |
|---|---|
| Revenue | US$2.85b |
| Cost of Revenue | US$1.88b |
| Gross Profit | US$977.50m |
| Expenses | US$690.60m |
| Earnings | US$286.90m |
Last Reported Earnings
Jul 31, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 2.28 |
| Gross Margin | 34.25% |
| Net Profit Margin | 10.05% |
| Debt/Equity Ratio | 44.8% |
How did DCI perform over the long term?
See historical performance and comparisonDividends
1.5%
Current Dividend Yield38%
Payout RatioValuation
Is Donaldson Company undervalued compared to its fair value and its price relative to the market?
2.8%
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?
9.2%
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?
7.2%
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
Dividend
What is Donaldson Company current dividend yield, its reliability and sustainability?
1.46%
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
Management
How experienced are the management team and are they aligned to shareholders interests?
5.8yrs
Average management tenure
CEO
Tod Carpenter (62 yo)
6.42yrs
Tenure
US$5,483,229
Compensation
Mr. Tod E. Carpenter has been the Chief Executive Officer and President of Donaldson Company, Inc. since April 1, 2015. He serves as Independent Director at AMETEK, Inc. since June 17, 2019. Mr. Carpenter...
CEO Compensation Analysis
Compensation vs Market: Tod's total compensation ($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).
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.
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: https://www.donaldson.com
Number of Employees
Location
- Donaldson Company, Inc.
- 1400 West 94th Street
- Bloomington
- Minnesota
- 55431
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/25 22:06 |
| End of Day Share Price | 2021/09/24 00:00 |
| Earnings | 2021/07/31 |
| Annual Earnings | 2021/07/31 |
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.