Donaldson Company, Inc.
Rank #125HypergrowthDCI · NYSE · Industrials
Donaldson Company, Inc. (DCI) — Rank #125 by gross profitability (GP/assets 0.42) · ROE 21.6% · Piotroski F-Score 7 / 9.
As-of 2026-09-15 · CIK 0000029644 · all metrics point-in-time as of the filing date.
About
Donaldson Company, Inc. manufactures and sells filtration systems and replacement parts worldwide.
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The company operates through Mobile Solutions, Industrial Solutions, and Life Sciences segments. The Mobile Solutions segment provides replacement filters for air and liquid filtration applications, such as air filtration systems, fuel, lube and hydraulic systems, emissions systems and sensors, indicators, and monitoring systems. This segment sells its products to original equipment manufacturers (OEMs) in the construction, mining, agriculture, and transportation markets; and to independent distributors, and OEM dealer networks. The Industrial Solutions segment offers dust, fume, and mist collectors; compressed air and industrial gasses purification systems; air inlet systems and filtration for power generation; ancillary components; replacement parts; performance monitoring and service; and hydraulic and lubricated rotating equipment applications, as well as gas and liquid filtration for industrial processes and connected services. It also sells aerospace and defense products comprising of air, fuel, lubrication and hydraulic filtration for fixed-wing and rotorcraft aerospace applications and ground defense vehicle and naval platforms. This segment sells its products to various distributors, OEMs, and end-users. The Life Sciences segment provides micro-environment gas and liquid filtration for food, beverage, and industrial processes; bioprocessing equipment that includes bioreactors and fermenters; and bioprocessing consumables, such as chromatography devices, reagents and filters, and polytetrafluoroethylene membrane-based products, as well as specialized air and gas filtration systems for applications, including hard disk drives, semi-conductor manufacturing and sensors, battery systems, and powertrain components to OEMs and various end-users.
The company was founded in 1915 and is headquartered in Bloomington, Minnesota.
- Industry
- Specialty Industrial Machinery
- Sector
- Industrials
- State
- DE
- Filer Category
- Large accelerated filer
- Fiscal Year End
- July 31
- Website
- donaldson.com
Price History
Company Snapshot
P/S is the primary valuation lens — earnings are reinvested, not available for P/E.
Market Cap
$10.08B
P/E (annual)
28.5
P/S (annual)
2.7
P/B
5.9
P/OCF (annual)
24.1
Shareholder Yield
10.2%
Employees
15,000
Industry
Specialty Industrial Machinery
Exchange
NYSE
Signal Flags
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
2/3 passGrowth
2/2 passTerry Smith quality gate
Passes 2/5 Terry Smith thresholds1 of 5 threshold not computable from filed data.
What Growth Is Priced In
Implied revenue growth (10Y)
13.6%
The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).
Buyback tailwind: -8.9% — per-share value needs a total required return of 4.7% once share-count change is priced in.
vs. own 6-year median revenue growth: 9.8%
within its own historyCost-of-equity sensitivity (implied growth at different discount rates)
r = 8%
8.9%
r = 10% (base)
13.6%
r = 12%
17.6%
Net debt / market cap: 4.3%
Note: current FCF margin is 1.6σ above its historical mean — implied growth may understate valuation risk if the margin reverts.
Valuation History
Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.
P / E
Price / diluted EPS
P / S
Price / revenue per share
P / B
Price / book value per share
P / GP
Price / gross profit per share
P / FCF
Price / free cash flow per share
Earnings bubble check
Current margins may be above sustainable levels — a P/E based on peak earnings can overstate cheapness.
Disclosure regression check
2 previously-disclosed line items are no longer reported. Worth checking the filing for why.
Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.
Profitability
Gross profitability (GP / assets)
0.42
Primary signal (Novy-Marx).
89th pctl of 36 SIC 35 peers
Return on equity
21.6%
Gross margin
34.8%
23rd pctl of 36 SIC 35 peers
Revenue growth (YoY)
35.0%
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|
| Revenue vs COGS | ||||
| Revenue vs OpEx | ||||
| Op. Income vs Revenue |
Growth
Revenue CAGR (3Y)
—
Revenue CAGR (5Y)
7.4%
Earnings CAGR (3Y)
3.3%
FCF CAGR (3Y)
—
Anti-fragile safety
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
0.82
54th pctl of 36 SIC 35 peers (best = lowest)
Current ratio
2.35×
66th pctl of 36 SIC 35 peers
Quick ratio
1.36×
Net cash
-$446.20M
Cash & equivalents minus total debt.
Cash-flow health
Free cash flow
$339.90M
Operating cash flow minus capex.
Positive free cash flow
FCF / net income
-0.07
Cash-backing of earnings.
FCF/NI divergence
Unfavorable divergence (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
0.7%
Stock-based comp intensity.
Dividend safety
Composite score
3.5 / 5
Piotroski F-Score
F-Score
7 / 9
Fundamental-strength score (0-9).