Donaldson Co Inc

Industrials
Pollution Control Equipment
ir.donaldson.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $8.70B
PE 21
Debt $616.80M
Cash $221.20M
EV $9.09B
FCF $340.00M

Earnings

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Sales & Net Margins

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Earnings	$420.90M
EBIT	$550.30M
ROE	27%
ROA	18%
FCF	$340.00M
Equity	$1.54B
Growth Stability	86%
PE	20.66
PEG	1.66
PB	5.64
P/FCF	25.58
P/S	2.39
Price/Cash	0.03
Debt/Equity	0.4
Debt/FCF	1.81
Net Margins	11%
Gross Margins	36%
Op. Margins	15%
Earnings CAGR	10%
Sales Growth YoY	6%
Sales Growth QoQ	-4%
Sales CAGR	6%
FCF CAGR	9%
Equity CAGR	7%
Earnings Stability	0.76
Earnings Growth YoY	7%
Earnings Growth QoQ	-10%
Earnings CAGR 5Y	12%

Sales CAGR 5Y	8%
FCF CAGR 5Y	11%
Equity CAGR 5Y	10%
Earnings CAGR 3Y	5%
Sales CAGR 3Y	5%
FCF CAGR 3Y	42%
Equity CAGR 3Y	14%
Market Cap	$8.70B
Revenue	$3.64B
Dividend Yield	1%
Payout Ratio	30%
Assets	$3.04B
Total Debt	$616.80M
Cash	$221.20M
Shares Outstanding	119.9M
EV	9.09B
Earnings Score	90%
Moat Score	95%
Safety Score	93%
Final Score	93%
Working Capital	678.8M
Current Ratio	1.85
Gross Profit	$1.29B
Shares Growth 3y	-1%
Equity Growth QoQ	4%
Equity Growth YoY	15%

Assets & ROA

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Stockholders Equity & ROE

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Donaldson is a leading manufacturer of filtration systems and replacement parts (including air filtration systems, liquid filtration systems, and dust, fume, and mist collectors). The company serves a diverse range of end markets, including construction, mining, agriculture, truck, and industrial. Its business is organized into two segments: engine products and industrial products. Donaldson generated approximately $2.9 billion in revenue and $385 million in operating income in its fiscal 2021.

SEC Filings

Direct access to Donaldson Co Inc (DCI) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Oct 31
- 10-K Jul 31
- 10-Q Apr 30
- 10-Q Jan 31
2023
- 10-Q Oct 31
- 10-K Jul 31
- 10-Q Apr 30
- 10-Q Jan 31
2022
- 10-Q Oct 31
- 10-K Jul 31
- 10-Q Apr 30
- 10-Q Jan 31

Sector Comparison

How does Donaldson Co Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Donaldson Co Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 10%

Stability 76%

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Donaldson Co Inc Discounted Cash Flow

Fully customizable DCF calculator online for Donaldson Co Inc.

Years

Calculation mode

= $6.2B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$340M	$369M	$401M	$436M	$473M	$514M	$558M	$606M	$658M	$715M	$776M	$7.8B
DCF		$336M	$331M	$327M	$323M	$319M	$315M	$311M	$307M	$303M	$299M	$3B
Value	$6.2B

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	07/2024	TTM
Net Margins	9%	9%	10%	7%	9%	10%	10%	10%	10%	12%	11%
ROA	-	16%	17%	19%	18%	16%	16%	17%	18%	19%	18%
ROE	-	25%	27%	21%	30%	26%	25%	29%	27%	28%	27%

Good Net Margins (11%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

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	07/2024	TTM
Debt over FCF	-	2.6	2.53	3.28	3.51	2.4	1.49	3.89	1.76	1.32	1.81
Debt over Equity	0.74	0.74	0.75	0.63	0.77	0.64	0.45	0.57	0.57	0.36	0.4
Growth Stability	-	-	-	86%	100%	100%	100%	100%	100%	100%	86%

Good Debt/FCF ratio (1.81)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.4)

The company is not overleveraged and has a good balance between equity and debt.

Neutral Graham’s Stability (86%)

The company has a stability in its earnings that is not too good nor too bad.

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	07/2015	07/2016	07/2017	07/2018	07/2019	07/2020	07/2021	07/2022	07/2023	07/2024	CAGR 5Y
Revenue YoY growth	-	-6%	7%	15%	4%	-9%	11%	16%	4%	5%	8%
Earnings YoY growth	-	-8%	22%	-23%	48%	-4%	12%	16%	8%	15%	12%
Equity YoY growth	-	-1%	11%	0%	4%	11%	15%	-0%	17%	13%	10%
FCF YoY growth	-	83%	15%	-34%	18%	35%	31%	-51%	155%	-4%	11%