Donaldson Co., Inc. (DCI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Donaldson Co., Inc. ?

High Management Efficiency with a high ROCE of 27.80%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.72 times

Poor long term growth as Net Sales has grown by an annual rate of 7.41% and Operating profit at 10.85% over the last 5 years

Flat results in Jul 25

OPERATING CASH FLOW(Y) Lowest at USD 418.8 MM
ROCE(HY) Lowest at 24.94%
INTEREST COVERAGE RATIO(Q) Lowest at 2,480.28

With ROCE of 28.41%, it has a very expensive valuation with a 5.34 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 28.07%, its profits have risen by 4.5% ; the PEG ratio of the company is 4.6

High Institutional Holdings at 91%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 2.16% over the previous quarter.

Market Beating Performance

The stock has generated a return of 28.07% in the last 1 year, much higher than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Donaldson Co., Inc. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Donaldson Co., Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Donaldson Co., Inc.

25.55%

1.05

24.91%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.92%

EBIT Growth (5y)

11.80%

EBIT to Interest (avg)

27.12

Debt to EBITDA (avg)

0.72

Net Debt to Equity (avg)

0.37

Sales to Capital Employed (avg)

1.71

Tax Ratio

24.80%

Dividend Payout Ratio

37.40%

Pledged Shares

Institutional Holding

93.39%

ROCE (avg)

27.80%

ROE (avg)

27.45%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

8.11

EV to EBIT

21.64

EV to EBITDA

18.55

EV to Capital Employed

6.43

EV to Sales

3.43

PEG Ratio

7.50

Dividend Yield

0.94%

ROCE (Latest)

29.71%

ROE (Latest)

29.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 5.57

RAW MATERIAL COST(Y)

Fallen by 0.23% (YoY

-8What is not working for the Company

INTEREST(HY)

At USD 14.2 MM has Grown at 31.48%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,361.97

DIVIDEND PAYOUT RATIO(Y)

Lowest at 31.03%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.63 times

Here's what is working for Donaldson Co., Inc.

Dividend per share

Highest at USD 5.57 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by 0.23% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Donaldson Co., Inc.

Interest Coverage Ratio

Lowest at 2,361.97

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At USD 14.2 MM has Grown at 31.48%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Inventory Turnover Ratio

Lowest at 4.63 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend Payout Ratio

Lowest at 31.03%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Non Operating Income

Highest at USD 0.1 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income