Industrial & Commercial Fans & Blowers & Air Purifing Equip
Donaldson 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.
Discounted Cash Flow Valuation of Donaldson Co Inc
In the chart Earnings are multiplied by this value.
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.
The average Net Margin over the past 5 years is +9.42%.
The trend of Net Margin over the past 5 years is +0.61%.
The average ROA over the past 5 years is +17.51%.
The trend of ROA over the past 5 years is -0.33%.
The average ROE over the past 5 years is +26.43%.
The trend of ROE over the past 5 years is +0.81%.
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.
The Debt/FCF trailing twelve month is 1.76.
The trend of Debt/FCF over the past 5 years is -0.21.
Graham’s Stability measure stands at 0.86.
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.
The Revenue CAGR over the past 5 years is +4.64%.
The trend of Revenue growth rate over the past 5 years is +1.35%.
The Earnings CAGR over the past 5 years is +14.75%.
The trend of Earnings growth rate over the past 5 years is +3.04%.
The Equity CAGR over the past 5 years is +9.01%.
The trend of Equity growth rate over the past 5 years is +2.93%.
The FCF CAGR over the past 5 years is +20.83%.
The trend of FCF growth rate over the past 5 years is +8.3%.