Donaldson Co Inc

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DCI : NYSE : Industrial Goods
$42.24 up 0.1 | 0.24%
Today's Range: 41.71 - 42.27
Avg. Daily Volume: 674600.0
02/17/17 - 4:02 PM ET

Financial Analysis


DONALDSON CO INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. DONALDSON CO INC has average liquidity. Currently, the Quick Ratio is 1.20 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 increased by 6.11% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)553.0538.0
EBITDA ($mil)95.384.2
EBIT ($mil)76.465.6
Net Income ($mil)58.038.5


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)262.2207.8
Total Assets ($mil)1794.11800.1
Total Debt ($mil)569.7635.9
Equity ($mil)780.6735.6


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin38.5437.16
EBITDA Margin17.2315.65
Operating Margin13.8212.19
Sales Turnover1.251.28
Return on Assets11.7210.59
Return on Equity26.9425.92
Debt Q1 FY17 Q1 FY16
Current Ratio1.761.73
Debt/Capital0.420.46
Interest Expense4.85.0
Interest Coverage15.9213.12


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)131.97132.64
Div / share0.180.17
EPS0.430.29
Book value / share5.915.55
Institutional Own % n/a n/a
Avg Daily Volume669032.0622039.0

Valuation


BUY. DONALDSON CO INC's P/E ratio indicates a discount compared to an average of 27.61 for the Machinery industry and a value on par with the S&P 500 average of 26.35. For additional comparison, its price-to-book ratio of 7.12 indicates a significant premium versus the S&P 500 average of 2.94 and a significant premium versus the industry average of 4.81. The price-to-sales ratio is above the S&P 500 average and well above 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 27.01 Peers 27.61   DCI 17.05 Peers 14.98

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 24.08 Peers 23.80   DCI 2.13 Peers 2.18

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

DCI is trading at a premium to its peers.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DCI 7.12 Peers 4.81   DCI 13.04 Peers -9.61

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 2.49 Peers 1.95   DCI -3.35 Peers -2.72

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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