Donaldson Co Inc

Find Ratings Reports
DCI : NYSE : Industrial Goods
$35.54 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 801,400
07/25/16 - 4:02 PM ET

Financial Analysis


DONALDSON CO INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. DONALDSON CO INC has average liquidity. Currently, the Quick Ratio is 1.29 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 5.65% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)571.3575.6
EBITDA ($mil)98.395.35
EBIT ($mil)79.072.25
Net Income ($mil)54.847.8


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)247.4250.4
Total Assets ($mil)1824.71845.83
Total Debt ($mil)606.4553.47
Equity ($mil)799.6847.53


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin37.9338.18
EBITDA Margin17.216.56
Operating Margin13.8312.55
Sales Turnover1.231.32
Return on Assets10.2712.17
Return on Equity23.4526.5
Debt Q3 FY16 Q3 FY15
Current Ratio1.961.63
Debt/Capital0.430.4
Interest Expense5.33.9
Interest Coverage14.9118.53


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)133.11136.06
Div / share0.170.17
EPS0.410.34
Book value / share6.016.23
Institutional Own % n/a n/a
Avg Daily Volume808190.01053183.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 24.52 for the Machinery industry and a value on par with the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 5.86 indicates a significant premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 3.79. The current price-to-sales ratio is above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, DONALDSON CO INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DCI 25.32 Peers 24.52   DCI 18.40 Peers 16.07

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

DCI is trading at a valuation on par with its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

DCI is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DCI 21.99 Peers 21.65   DCI 7.56 Peers 3.66

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

DCI is trading at a valuation on par with its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

DCI trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DCI 5.86 Peers 3.79   DCI -12.03 Peers -27.70

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

DCI is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

DCI is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DCI 2.09 Peers 1.63   DCI -7.93 Peers -5.12

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

DCI is trading at a significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

DCI significantly trails its peers on the basis of sales growth

 

 

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