Donaldson Company, Inc.
Donaldson Company, Inc. Fundamental Analysis
Donaldson Company, Inc. (DCI) shows moderate financial fundamentals with a PE ratio of 26.31, profit margin of 10.09%, and ROE of 25.19%. The company generates $3.8B in annual revenue with weak year-over-year growth of 2.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze DCI's fundamental strength across five key dimensions:
Efficiency Score
ExcellentDCI demonstrates superior asset utilization.
Valuation Score
ModerateDCI shows balanced valuation metrics.
Growth Score
WeakDCI faces weak or negative growth trends.
Financial Health Score
ExcellentDCI maintains a strong and stable balance sheet.
Profitability Score
ModerateDCI maintains healthy but balanced margins.
Key Financial Metrics
Is DCI Expensive or Cheap?
P/E Ratio
DCI trades at 26.31 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DCI's PEG of 0.26 indicates potential undervaluation.
Price to Book
The market values Donaldson Company, Inc. at 6.32 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.15 times EBITDA. This signals the market has high growth expectations.
How Well Does DCI Make Money?
Net Profit Margin
For every $100 in sales, Donaldson Company, Inc. keeps $10.09 as profit after all expenses.
Operating Margin
Core operations generate 13.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.19 in profit for every $100 of shareholder equity.
ROA
Donaldson Company, Inc. generates $12.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Donaldson Company, Inc. produces operating cash flow of $414.67M, showing steady but balanced cash generation.
Free Cash Flow
Donaldson Company, Inc. produces free cash flow of $350.35M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.03 in free cash annually.
FCF Yield
DCI converts 3.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How DCI Stacks Against Its Sector Peers
| Metric | DCI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.31 | 25.84 | Neutral |
| ROE | 25.19% | 1279.00% | Weak |
| Net Margin | 10.09% | -43714.00% (disorted) | Strong |
| Debt/Equity | 0.43 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 2.29 | 10.62 | Strong Liquidity |
| ROA | 12.37% | -1537441.00% (disorted) | Strong |
DCI outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Donaldson Company, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
52.83%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
52.67%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
15.69%
Industry Style: Cyclical, Value, Infrastructure
High Growth