📊 DCI Key Takeaways
Investment Thesis
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.
DCI 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
DCI 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
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
DCI Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.29x current ratio provides a solid financial cushion.
DCI Profitability Ratios
DCI vs Industrial Sector
How DONALDSON Co INC compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
DCI Balance Sheet & Liquidity
DCI 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 Growth Metrics (YoY)
DCI Quarterly 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.
DCI Capital Allocation
DCI SEC Filings
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 an AI rating of HOLD with 72% 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.
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.
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.