Donaldson Co Inc
DCI
Industrial & Commercial Fans & Blowers & Air Purifing Equip
Mkt Cap
$7.148BPE
19.92Debt
$748.4MCash
$187.1MEV
$7.709BFCF
$426MP/E Ratio
19.92Debt
$748.4MCash
$187.1MEV
$7.709BFCF
$426MDonaldson Company, Inc. manufactures and sells filtration systems and replacement parts worldwide. The company operates through two segments, Engine Products and Industrial Products. Its Engine Products segment provides 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. This segment sells its products to original equipment manufacturers (OEMs) in the construction, mining, agriculture, aerospace, defense, and transportation markets; and to independent distributors, OEM dealer networks, private label accounts, and large fleets. The company's Industrial Products segment offers dust, fume, and mist collectors; compressed air purification systems; gas and liquid filtration for food, beverage, and industrial processes; air filtration systems for gas turbines; polytetrafluoroethylene membrane-based products; and specialized air and gas filtration systems for applications, including hard disk drives, semi-conductor manufacturing and sensors, indicators, and monitoring systems. This segment sells its products to various dealers, distributors, and OEMs and end-users. The company was founded in 1915 and is headquartered in Bloomington, Minnesota.
Sector
DCF
Discounted Cash Flow Valuation of Donaldson Co Inc
Value
Growth
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Discount
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Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $426M | $459.3M | $493.8M | $529.3M | $565.7M | $602.8M | $640.5M | $678.5M | $716.7M | $754.8M | $792.5M | $7.925B |
| DCF | $399.4M | $373.4M | $348M | $323.4M | $299.7M | $276.9M | $255.1M | $234.3M | $214.6M | $195.9M | $1.959B | |
| Value | $4.879B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 7.6%
Earnings Stability 57%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 07-2015 | 07-2016 | 07-2017 | 07-2018 | 07-2019 | 07-2020 | 07-2021 | 07-2022 | 07-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 8.8% | 8.6% | 9.8% | 6.6% | 9.4% | 10% | 10% | 10% | 10% | 10% |
| ROA | 17% | 16% | 17% | 19% | 18% | 16% | 16% | 17% | 18% | 18% |
| ROE | 27% | 25% | 27% | 21% | 30% | 26% | 25% | 29% | 27% | 27% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +9.42%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.61%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +17.51%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -0.33%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +26.43%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +0.81%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 07-2015 | 07-2016 | 07-2017 | 07-2018 | 07-2019 | 07-2020 | 07-2021 | 07-2022 | 07-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 4.86 | 2.60 | 2.53 | 3.28 | 3.51 | 2.40 | 1.49 | 3.89 | 1.76 | 1.76 |
| Debt Equity | 0.74 | 0.74 | 0.75 | 0.63 | 0.77 | 0.64 | 0.45 | 0.57 | 0.57 | 0.57 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 86% | 100% | 100% | 100% | 100% | 100% | 86% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 1.76.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.21.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.86.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 07-2016 | 07-2018 | 07-2020 | 07-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 6.4% | 4.6% | 9.9% | 3.8% | 1.4% |
| Net Income | 9.4% | 15% | 12% | 7.8% | 3% |
| Stockholders Equity | 8% | 9% | 10% | 17% | 2.9% |
| FCF | 10% | 21% | 18% | 150% | 8.3% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +4.64%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +1.35%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +14.75%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +3.04%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +9.01%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +2.93%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +20.83%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +8.3%.