ScoreWhy is Donaldson Co., Inc. ?
1
High Management Efficiency with a high ROCE of 27.80%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.72 times
3
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
4
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
5
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
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.
7
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 ReportHow much should you buy?
- 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.
24.97%
1.05
24.91%
S&P 500
25.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.92%
EBIT Growth (5y)
11.86%
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
0
Institutional Holding
100.00%
ROCE (avg)
27.80%
ROE (avg)
27.45%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
28
Industry P/E
Price to Book Value
7.66
EV to EBIT
21.76
EV to EBITDA
18.60
EV to Capital Employed
6.09
EV to Sales
3.35
PEG Ratio
7.73
Dividend Yield
0.95%
ROCE (Latest)
28.00%
ROE (Latest)
27.47%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 5.39
DIVIDEND PAYOUT RATIO(Y)
Highest at 64%
RAW MATERIAL COST(Y)
Fallen by -0.03% (YoY
NET SALES(Q)
Highest at USD 995.1 MM
OPERATING PROFIT(Q)
Highest at USD 188.4 MM
OPERATING PROFIT MARGIN(Q)
Highest at 18.93 %
PRE-TAX PROFIT(Q)
Highest at USD 163.8 MM
NET PROFIT(Q)
Highest at USD 124.97 MM
EPS(Q)
Highest at USD 1
-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.39 times
Here's what is working for Donaldson Co., Inc.
Dividend per share
Highest at USD 5.39 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 995.1 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 188.4 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 18.93 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 163.8 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 124.97 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 1
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Dividend Payout Ratio
Highest at 64%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -0.03% (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.
Debtors Turnover Ratio
Lowest at 5.39 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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