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Fundamental analysis: Donaldson Company, Inc. (DCI)

Awarener score: 6.6

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

• Business has been slightly shrinking. It's been similar to peer companies.
• Donaldson Company, Inc. business trend stability is good. The higher the stability, the lower the risk. It looks slightly better than rivals.

Margins score: 7.5

• DCI profit margins -on goods and services sold- are usually sufficient. They stand slightly worse than rival companies.
• Business profit on sales tends to be excellent. It's encouraging in relation to competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually good. They remain a slight improvement compared to peers.
• Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still well ranked against similar companies.
• Profits -before income taxes- are usually very good considering total sales, and remain more than average in relation to rivals.
• Total net profit tends to be very good when confronted to sales. Company stands more than average in relation to comparable firms.

Growth score: 3.7

• Donaldson Company, Inc. profit -on goods and services sold- has been growing at a very low pace. It's been close to average when compared to competitors.
• In recent years, earnings -on operations- have been growing at a very low step, which has been slightly worse than comparable firms.
• Profits -available to repay debt and purchase properties- have been growing at a very low pace, which compares below average when measured against peer enterprises.
• Growth on earnings -before income taxes and interests on loans taken- have been almost stagnant. It turns to be in a weak position compared to similar stocks.
• In past years, profits -before income taxes- grew at a very low speed. It was somewhat worse than rivals.
• In the previous years, growth on total net profit has been almost null, and weak when measured against peer companies.
• Earnings per share have grown at a very low rhythm in past years. It's been in a weak position compared to industry peers.

Miscellaneous score: 7.7

• DCI had to pay substantial income taxes in relation to profits made in the past years. It's been somewhat worse than peers.
• Research and development expenses hardly consume a portion of revenues. It's great when measured against competitors.
• The company shows very good business growth in relation to research and development efforts. It stands excellent in relation to rival companies.

Profitability score: 10.0

• Donaldson Company, Inc. usually gets huge returns on the resources it controls. It proves top tier when measured against peer firms.
• The company normally gets huge proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
• Profitability -in relation to owned resources- is usually paramount. It ranks top tier when measured against competitors.
• In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's more than average in relation to comparable enterprises.

Usage of Funds score: 6.1

• DCI usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands more than average in relation to rival firms.
• The company is usually somewhat investing in new property, plant, and equipment, to improve its operating capabilities, which is great when measured against industry peers.
• In the past twelve months it paid run-of-the-mill dividends, considering the current stock price. It came better than most competitors.
• Has increased dividend payments in the past years. Business prospects may have improved. The company has behaved in good shape compared to similar firms.
• The company usually uses some portion of genuine funds generated to pay dividends. Dividend payments should be safe, unless business prospects take a nosedive. Sustainability looks somewhat worse than comparable companies.
• The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains in good shape compared to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in good shape compared to rivals.
• The company uses a large portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks weak when measured against competitors.

Balance Sheet score: 5.5

• Donaldson Company, Inc. intangible assets (like brands and goodwill) represent some portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be encouraging in relation to peer companies.
• The company has roughly triple short-term resources than short-term obligations. Liquidity concerns are most likely unimportant. It turns to be rather normal in relation to similar firms.
• Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains slightly better than rival firms.
• Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks more than average in relation to rivals.
• For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's a slight improvement compared to peer firms.
• For every dollar of short-term obligations, the company has few cents of cash and equivalents, which is slightly worse than similar enterprises.
• Usually, sales are on slightly higher than two months credit. It still ranks almost average when measured against peers.
• Normally has approximately three months of sales worth in inventory. It comes up as in good shape compared to competitors.
• On average, it takes higher than five months from the purchase to charging customers. It happens to be well ranked against peers.
• On average pays suppliers two months after the purchase. It ranks below average when measured against industry peers.
• The company pays its suppliers roughly three months before charging its customers, so there's sufficient money invested in working capital. It's rather normal in relation to similar companies.
• Net interest expenses consume a slight portion of usual business earnings, and are very easily bearable. It stands well ranked against rival firms.
• Business earnings have usually been very good when measured against loans taken. Cutting back reinvesting in the business, it could take less than two years to repay the obligations with current profitability. It ranks great when measured against comparable enterprises.
• Revenues are reasonable in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks close to average when compared to similar firms.
• Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still top-notch against peer companies.

Valuation score: 5.8

• Donaldson Company, Inc. looks somewhat expensive in relation to profits and financial position. It happens to be encouraging in relation to competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains close to average when compared to peers.
• In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands somewhat better than similar companies.
• The company usually generates reasonably more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be fair. It's still similar to industry firms.
• In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up impressive in relation to peer ventures.
• The company has neither net debt nor net cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks somewhat better than similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation is somewhat high. Improvement expectations are already in the stock price, which presents some risks. It ranks encouraging in relation to peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a three or four to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks close to average when compared to rival firms.
• The relation between the stock price and accounting book value is really high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains worse than most peer firms.
• In the past twelve months, the operating business earned some money when compared to the current stock price and financial position. It happens to be encouraging in relation to industry peers.
• In an alternate metric of bang for the buck, the company has usually shown a good earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 6.5

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Awarener score: 6.6

Conclusion

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