NEW YORK (TheStreet) -- Donaldson (DCI) - Get Donaldson Company, Inc. Report shares closed trading down by 0.82% to $31.31 on Monday afternoon, ahead of the release of the company's fourth quarter earnings results, due out tomorrow before the opening bell.

The Minneapolis, MN-based filtration systems manufacturer is expected to report earnings of 42 cents per share on revenue of $596.5 million.

Those totals are down from the year ago period when the company reported earnings of 51 cents per share on revenue of $668.2 million.

The company previously declared a regular cash dividend of 17 cents per share payable September 3 to shareholders of record on August 19.

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Separately, TheStreet Ratings team rates DONALDSON CO INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate DONALDSON CO INC (DCI) a HOLD. The primary factors that have impacted our rating are mixed – some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.05, which illustrates the ability to avoid short-term cash problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Machinery industry and the overall market, DONALDSON CO INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • 37.88% is the gross profit margin for DONALDSON CO INC which we consider to be strong. Regardless of DCI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DCI's net profit margin of 8.16% compares favorably to the industry average.
  • Net operating cash flow has declined marginally to $75.96 million or 3.23% when compared to the same quarter last year. Despite a decrease in cash flow DONALDSON CO INC is still fairing well by exceeding its industry average cash flow growth rate of -14.39%.
  • The share price of DONALDSON CO INC has not done very well: it is down 24.58% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • You can view the full analysis from the report here: DCI Ratings Report