📊 DCI Key Takeaways
Is DONALDSON Co INC (DCI) a Good Investment?
Donaldson demonstrates solid financial health with strong liquidity (2.29x current ratio), healthy leverage (0.43x debt/equity), and excellent interest coverage (16.6x), positioning it well financially. However, revenue growth is modest at 2.9% YoY while net income declined 11.4% YoY, indicating margin compression and slowing profitability momentum that warrants caution despite fundamentally sound operations.
Donaldson shows solid core fundamentals with healthy margins, good returns on capital, strong liquidity, and manageable leverage. However, the latest period shows only modest revenue growth while net income, EPS, and operating cash flow appear weaker, suggesting some pressure on earnings quality and near-term profitability momentum. Overall, the business looks financially sound, but current fundamental trends support a neutral stance rather than an aggressive positive rating.
Why Buy DONALDSON Co INC Stock? DCI Key Strengths
- Strong liquidity position with 2.29x current ratio and 1.46x quick ratio indicating solid short-term financial flexibility
- Excellent leverage metrics with 0.43x debt/equity ratio and 16.6x interest coverage providing substantial financial stability
- Healthy free cash flow generation of $129.2M with 7.1% FCF margin supporting dividend capacity and capital flexibility
- Reasonable profitability margins (34.3% gross, 14.6% operating, 11.3% net) demonstrating operational efficiency in manufacturing
- Strong profitability profile with 34.3% gross margin, 14.6% operating margin, and 11.3% net margin
- Healthy balance sheet with 2.29x current ratio, 1.46x quick ratio, and moderate 0.43x debt-to-equity
- Positive free cash flow generation and strong 16.6x interest coverage indicate solid financial resilience
DCI Stock Risks: DONALDSON Co INC Investment Risks
- Net income declining 11.4% YoY despite 2.9% revenue growth signals margin compression and operational challenges
- Modest revenue growth at 2.9% YoY suggests limited organic growth momentum in the industrial equipment sector
- Return on equity of 13.1% and ROA of 6.7% are moderate for an industrial manufacturer, indicating capital deployment challenges
- Operating income growth not keeping pace with revenue suggests pricing pressure or rising operating costs requiring management attention
- Net income declined 11.4% YoY and diluted EPS fell 9.8% YoY despite revenue growth
- Revenue growth of 2.9% YoY is modest, which may limit operating leverage if demand softens
- Operating cash flow of $158.4M trails reported net income, which could signal weaker cash conversion if sustained
Key Metrics to Watch
- Gross margin trend - monitor for stabilization or further compression from current 34.3%
- Operating cash flow sustainability relative to capital expenditure allocation
- Revenue growth acceleration - need to see improvement from current 2.9% YoY to support operational leverage
- Operating margin expansion - critical indicator of whether profitability decline was temporary or structural
- Operating cash flow and free cash flow conversion
- Net margin and EPS trend versus revenue growth
DONALDSON Co INC (DCI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.29x current ratio provides a solid financial cushion.
DCI Profit Margin, ROE & Profitability Analysis
DCI vs Industrial Sector: How DONALDSON Co INC Compares
How DONALDSON Co INC compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is DONALDSON Co INC Stock Overvalued? DCI Valuation Analysis 2026
Based on fundamental analysis, DONALDSON Co INC has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
DONALDSON Co INC Balance Sheet: DCI Debt, Cash & Liquidity
DCI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: DONALDSON Co INC's revenue has grown significantly by 29% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.90 reflects profitable operations.
DCI Revenue Growth, EPS Growth & YoY Performance
DCI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $870.0M | $92.5M | $0.78 |
| Q1 2026 | $900.1M | $99.0M | $0.81 |
| Q3 2025 | $927.9M | $57.8M | $0.48 |
| Q2 2025 | $870.0M | $95.9M | $0.79 |
| Q1 2025 | $846.3M | $92.1M | $0.75 |
| Q3 2024 | $875.7M | $93.7M | $0.76 |
| Q2 2024 | $828.3M | $86.0M | $0.70 |
| Q1 2024 | $846.3M | $87.2M | $0.70 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DONALDSON Co INC Dividends, Buybacks & Capital Allocation
DCI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for DONALDSON Co INC (CIK: 0000029644)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DCI
What is the AI rating for DCI?
DONALDSON Co INC (DCI) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DCI's key strengths?
Claude: Strong liquidity position with 2.29x current ratio and 1.46x quick ratio indicating solid short-term financial flexibility. Excellent leverage metrics with 0.43x debt/equity ratio and 16.6x interest coverage providing substantial financial stability. ChatGPT: Strong profitability profile with 34.3% gross margin, 14.6% operating margin, and 11.3% net margin. Healthy balance sheet with 2.29x current ratio, 1.46x quick ratio, and moderate 0.43x debt-to-equity.
What are the risks of investing in DCI?
Claude: Net income declining 11.4% YoY despite 2.9% revenue growth signals margin compression and operational challenges. Modest revenue growth at 2.9% YoY suggests limited organic growth momentum in the industrial equipment sector. ChatGPT: Net income declined 11.4% YoY and diluted EPS fell 9.8% YoY despite revenue growth. Revenue growth of 2.9% YoY is modest, which may limit operating leverage if demand softens.
What is DCI's revenue and growth?
DONALDSON Co INC reported revenue of $1.8B.
Does DCI pay dividends?
DONALDSON Co INC pays dividends, with $69.3M distributed to shareholders in the trailing twelve months.
Where can I find DCI SEC filings?
Official SEC filings for DONALDSON Co INC (CIK: 0000029644) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DCI's EPS?
DONALDSON Co INC has a diluted EPS of $1.75.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DCI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, DONALDSON Co INC has a HOLD rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DCI stock overvalued or undervalued?
Valuation metrics for DCI: ROE of 13.1% (sector avg: 15%), net margin of 11.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy DCI stock in 2026?
Our dual AI analysis gives DONALDSON Co INC a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is DCI's free cash flow?
DONALDSON Co INC's operating cash flow is $158.4M, with capital expenditures of $29.2M. FCF margin is 7.1%.
How does DCI compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 11.3% (avg: 10%), ROE 13.1% (avg: 15%), current ratio 2.29 (avg: 1.8).