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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Visteon Corp.

Autoliv, Inc.

Gentex Corp.

Donaldson Co., Inc.

Lear Corp.

Brunswick Corp.

Dana, Inc.

Allison Transmission Holdings, Inc.

Adient plc

Fox Factory Holding Corp.

Aptiv Plc

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 20.53%, 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.

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, Medium Return

Absolute

Risk Adjusted

Volatility

Donaldson Co., Inc.

28.35%

0.80

23.50%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.41%

EBIT Growth (5y)

10.85%

EBIT to Interest (avg)

27.12

Debt to EBITDA (avg)

0.72

Net Debt to Equity (avg)

0.37

Sales to Capital Employed (avg)

1.73

Tax Ratio

24.80%

Dividend Payout Ratio

30.80%

Pledged Shares

Institutional Holding

91.00%

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

6.95

EV to EBIT

18.80

EV to EBITDA

16.00

EV to Capital Employed

5.34

EV to Sales

2.94

PEG Ratio

4.61

Dividend Yield

1.29%

ROCE (Latest)

28.41%

ROE (Latest)

28.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Mildly Bearish

Mildly 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

5What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 5.64

NET SALES(Q)

Highest at USD 980.7 MM

PRE-TAX PROFIT(Q)

Highest at USD 149.7 MM

EPS(Q)

Highest at USD 0.97

-11What is not working for the Company

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

CASH AND EQV(HY)

Lowest at USD 358.9 MM

INTEREST(Q)

Highest at USD 7.1 MM

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

Dividend per share

Highest at USD 5.64 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 980.7 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 149.7 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

EPS

Highest at USD 0.97

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

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

Operating Cash Flow

Lowest at USD 418.8 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

At USD 7.1 MM has Grown at 24.56%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 2,480.28

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 7.1 MM

in the last five periods and Increased by 24.56% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Cash and Eqv

Lowest at USD 358.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents