Donaldson Co Inc

Find Ratings Reports
DCI : NYSE : Industrial Goods
$45.43 | %
Today's Range: 45.23 - 45.63
Avg. Daily Volume: 411700.0
09/22/17 - 4:02 PM ET

Financial Analysis


DONALDSON CO INC's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. DONALDSON CO INC has strong liquidity. Currently, the Quick Ratio is 1.67 which shows 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 increased by 11.35% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)660.1593.8
EBITDA ($mil)113.7112.6
EBIT ($mil)94.393.6
Net Income ($mil)68.259.5


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)308.4243.2
Total Assets ($mil)1979.71788.6
Total Debt ($mil)611.2568.5
Equity ($mil)854.5767.4


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin37.7138.58
EBITDA Margin17.2218.96
Operating Margin14.2915.76
Sales Turnover1.21.24
Return on Assets11.7510.66
Return on Equity27.2424.86
Debt Q4 FY17 Q4 FY16
Current Ratio2.381.86
Debt/Capital0.420.43
Interest Expense5.14.9
Interest Coverage18.4919.1


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)131.06132.89
Div / share0.180.18
EPS0.510.44
Book value / share6.525.77
Institutional Own % n/a n/a
Avg Daily Volume417089.0546196.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 125.40 for the Machinery industry and a value on par with the S&P 500 average of 24.88. Conducting a second comparison, its price-to-book ratio of 6.86 indicates a significant premium versus the S&P 500 average of 3.10 and a premium versus the industry average of 6.16. The current price-to-sales ratio is above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DCI 25.70 Peers 125.40   DCI 18.89 Peers 19.02

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

DCI is trading at a significant discount to its peers.

 

Average. 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 valuation on par 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 21.81 Peers 22.16   DCI 3.20 Peers 1.21

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 6.86 Peers 6.16   DCI 22.53 Peers 16.67

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 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 2.47 Peers 2.07   DCI 6.82 Peers 6.91

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 premium to its industry on this measurement.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

DCI is keeping pace with its peers on the basis of sales growth.

 

 

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