NYSE:DCI

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record 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


Market Performance


7 Day Return

1.6%

NYSE:DCI

1.0%

US Machinery

-0.3%

US Market


1 Year Return

6.7%

NYSE:DCI

3.8%

US Machinery

3.4%

US Market

DCI matched the Machinery industry (7.1%) over the past year.

DCI outperformed the Market in United States of America which returned 4.1% over the past year.


Share holder returns

DCIIndustryMarket
7 Day1.6%1.0%-0.3%
30 Day1.9%3.1%2.9%
90 Day-8.8%-3.5%2.1%
1 Year8.5%6.7%6.0%3.8%5.7%3.4%
3 Year44.8%37.9%54.6%44.6%45.8%36.2%
5 Year30.6%19.7%44.4%26.6%58.9%41.3%

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 based on future cash flows and its price relative to the stock market?

20.19x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Donaldson Company's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Donaldson Company's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Donaldson Company is good value based on earnings compared to the US Machinery industry average.

Donaldson Company is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Donaldson Company is poor value based on expected growth next year.


Price Based on Value of Assets

Donaldson Company is overvalued based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

How is Donaldson Company expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Donaldson Company's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).

Donaldson Company's earnings are expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).

Donaldson Company's revenue growth is positive but not above the United States of America market average.

Donaldson Company's earnings growth is positive but not above the United States of America market average.

Donaldson Company's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Donaldson Company will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Donaldson Company performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Donaldson Company's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Donaldson Company's 1-year earnings growth exceeds its 5-year average (113.2% vs -1%)

Donaldson Company's earnings growth has exceeded the US Machinery industry average in the past year (113.2% vs 33.5%).


Return on Equity

Donaldson Company has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Donaldson Company used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Donaldson Company has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Donaldson Company's financial position?


Financial Position Analysis

Donaldson Company is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Donaldson Company's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Donaldson Company's level of debt (72.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (27.8% vs 72.6% today).

Debt is well covered by operating cash flow (47.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 19.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.7x debt.


Next Steps

Dividend

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

1.68%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Donaldson Company's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Donaldson Company's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).


Next Steps

Management

What is the CEO of Donaldson Company's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Tod Carpenter (60yo)

4.3yrs

Tenure

US$5,937,953

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

Tod's remuneration is about average for companies of similar size in United States of America.

Tod's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.8yrs

Average Tenure

53yo

Average Age

The tenure for the Donaldson Company management team is about average.


Board Age and Tenure

5.2yrs

Average Tenure

60yo

Average Age

The tenure for the Donaldson Company board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

SellUS$200,08001 Apr 19
Tod Carpenter
EntityIndividual
Role
Chairman
Chairman of the Board
Shares4,000
Max PriceUS$50.02
BuyUS$27,46814 Mar 19
Douglas Milroy
EntityIndividual
Role
Member of the Board of Directors
Shares560
Max PriceUS$49.05

Ownership Breakdown


Management Team

  • Tod Carpenter (60yo)

    Chairman

    • Tenure: 4.3yrs
    • Compensation: $5.94m
  • Scott Robinson (52yo)

    Senior VP & CFO

    • Tenure: 3.6yrs
    • Compensation: $1.79m
  • Peter Keller (50yo)

    Corporate Controller & Principal Accounting Officer

    • Tenure: 0.8yrs
  • Amy Becker (54yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 4.9yrs
    • Compensation: $1.18m
  • Brad Pogalz

    Director of Investor Relations

    • Tenure: 4.3yrs
  • Michael Wynblatt

    Vice President & CTO

    • Tenure: 1.7yrs
  • Kathryn Freytag

    Chief Information Officer & Vice President

    • Tenure: 2.5yrs
  • Jeff Spethmann (54yo)

    Senior Vice President of Industrial Products

    • Tenure: 3.3yrs
    • Compensation: $1.40m
  • Tom Scalf (53yo)

    Senior Vice President of Engine Products

    • Tenure: 5.3yrs
    • Compensation: $1.47m
  • Richard Lewis (47yo)

    Senior Vice President of Global Operations

    • Tenure: 3.9yrs

Board Members

  • Tod Carpenter (60yo)

    Chairman

    • Tenure: 1.7yrs
    • Compensation: $5.94m
  • Andy Cecere (58yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: $203.49k
  • Will Oberton (61yo)

    Lead Independent Director

    • Tenure: 1.7yrs
    • Compensation: $231.49k
  • Mike Hoffman (64yo)

    Director

    • Tenure: 13.7yrs
    • Compensation: $211.49k
  • Jim Owens (54yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: $201.49k
  • Ajita Rajendra (67yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: $208.48k
  • Trudy Rautio (67yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: $208.48k
  • Douglas Milroy (60yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: $203.49k
  • John Wiehoff (58yo)

    Director

    • Tenure: 16.0yrs
    • Compensation: $213.47k
  • Pilar Cruz (48yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: $208.00k

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$6.226b
  • Shares outstanding: 127.53m
  • Website: Click here

Number of Employees


Location

  • Donaldson Company, Inc.
  • 1400 West 94th Street
  • Minneapolis
  • 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 Engine Products and Industrial Products segments. The Engine Products segment offers r ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/17 23:36
End of Day Share Price2019/07/17 00:00
Earnings2019/04/30
Annual Earnings2018/07/31


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.