# Donaldson Company (DCI.US)

Canonical: https://gigainvestors.com/s/DCI

Analysis as of: 2026-10-16T07:27:56.347Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $87.77 per share; close as of 2026-10-15.

Estimated value: low $52.65 per share, central $76.12 per share, high $89.21 per share. Buy at or below the central value $76.12 per share. Valuation as of 2026-10-16T07:27:56.347Z; scenarios are not confidence intervals.

Expected annual return: 9.1% at the stated quote. About 9.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.05×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.14×

- FY2018: 0.14×

- FY2019: 0.14×

- FY2020: 0.13×

- FY2021: 0.13×

- FY2022: 0.13×

- FY2023: 0.14×

- FY2024: 0.15×

- FY2025: 0.15×

- FY2026: 0.15×

### moat: pass

- ROIC, median of available years: 26.0%

- ROIC, second-lowest year: 25.7%

- Typical minus recent gross margin: -0.5 pp

- Typical gross margin (annual median): 34.1%

- Recent gross margin (lower of latest and 3-year median): 34.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.6%

- ROIC including acquisitions, ten-year median: 19.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 25.8%

- FY2018: 25.8%

- FY2019: 26.4%

- FY2020: 22.9%

- FY2021: 25.9%

- FY2022: 26.2%

- FY2023: 26.9%

- FY2024: 30.6%

- FY2025: 28.7%

- FY2026: 25.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.04×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.0B

- Net income, five-year total: $1.9B

- Return on incremental invested capital: 66.3%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -1.9 pp

- Working capital / revenue, final three-year average: 21.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.03×

- FY2023: 1.00×

- FY2024: 1.03×

- FY2025: 1.06×

- FY2026: 1.09×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 25.8% vs 28.7%

- Per-share earnings: 1.42 to 3.38 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.3%

- Ordinary dilution, 5-year annual growth: -1.7%

- Market cap gain: $4.7B

- Cumulative retained earnings: $1.9B

- Diluted shares, 10-year annual growth: -1.3%

- Diluted shares, 5-year annual growth: -1.7%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 11.5%

- Per-share value change: $1.96

- Per-share value, starting three-year median: $1.42

- Per-share value, ending three-year median: $3.38

- Buybacks concentrated in cheaper years (correlation): 0.25

- Average buyback yield: 2.0%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $1.2B

- Cumulative net income, 10 years: $3.2B

- ROIC, first three-year median: 25.8%

- ROIC, last three-year median: 28.7%

Chart: Earnings per share; fiscal year observations.

- FY2017: $1.74

- FY2018: $1.36

- FY2019: $2.05

- FY2020: $2.00

- FY2021: $2.24

- FY2022: $2.66

- FY2023: $2.90

- FY2024: $3.38

- FY2025: $3.05

- FY2026: $3.85

### accounting: pass

- Sloan accruals: -1.0%

- Receivables to sales index (DSRI): 1.09×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 5.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.09×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.79×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -3.9%

- FY2018: -4.2%

- FY2019: -3.7%

- FY2020: -5.8%

- FY2021: -4.8%

- FY2022: 3.1%

- FY2023: -6.7%

- FY2024: -2.7%

- FY2025: -1.7%

- FY2026: -1.0%

## Holders

- [Allen Bond](https://gigainvestors.com/JIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 9.3% a year for ten years · sales +5.3%

Story as of 2026-10-16T09:58:37.082Z; price observation 2026-10-15.

Price needs cash profits to grow 9.3% a year for ten years

- 2025-08-27: Donaldson Co Inc (NYSE:DCI) Surpasses Q4 Estimates and Provides Strong Fiscal 2026 Outlook ([chartmill.com](https://www.chartmill.com/news/DCI/Chartmill-33669-Donaldson-Co-Inc-NYSEDCI-Surpasses-Q4-Estimates-and-Provides-Strong-Fiscal-2026-Outlook))

- 2026-06-02: Donaldson Narrows 2026 Guidance ([nasdaq.com](https://www.nasdaq.com/articles/donaldson-narrows-2026-guidance))

### Sales · FY2025–2026

sales +5.3%; source https://www.sec.gov/Archives/edgar/data/29644/000002964426000085/dci-20260731.htm; observed 2026-09-25.

- FY2017: $2.4B 

- FY2018: $2.7B 

- FY2019: $2.8B 

- FY2020: $2.6B 

- FY2021: $2.9B 

- FY2022: $3.3B 

- FY2023: $3.4B 

- FY2024: $3.6B 

- FY2025: $3.7B 

- FY2026: $3.9B 

### Gross margin · FY2026

gross margin 34.6%; source https://www.sec.gov/Archives/edgar/data/29644/000002964426000085/dci-20260731.htm; observed 2026-09-25.

- FY2017: 34.7% 

- FY2018: 34.2% 

- FY2019: 33.3% 

- FY2020: 33.8% 

- FY2021: 34.0% 

- FY2022: 32.3% 

- FY2023: 33.8% 

- FY2024: 35.5% 

- FY2025: 34.8% 

- FY2026: 34.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty industrial machinery; annual sales are USD 3.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/29644/000002964426000085/dci-20260731.htm (filed 2026-09-25); FY2026: revenue 3885600000; grossProfit 1345900000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DCI.US: Donaldson Company, Inc. manufactures and sells filtration systems and replacement parts worldwide. The company operates through Mobile Solutions, Industrial Solutions, and Life Sciences segments. The Mobile Solutions segment provides replacement filters for air and liquid filtration applications, such as air filtration systems, fuel, lube and hydraulic systems, emissions systems and sensors, indicators, and monitoring systems. This segment sells its products to original equipment manufacturers (OEMs) in the construction, mining, agriculture, and transportation markets; and to independent distributors, and OEM dealer networks. The Industrial Solutions segment offers dust, fume, and mist collectors; compressed air and industrial gasses purification systems; air inlet systems and filtration for power generation; ancillary components; replacement parts; performance monitoring and service; and hydraulic and lubricated rotating equipment applications, as well as gas and liquid filtration for industrial processes and connected services. It also sells aerospace and defense products comprising of air, fuel, lubrication and hydraulic filtration for fixed-wing and rotorcraft aerospace platforms, missile systems, and ground defense vehicles and naval platforms. This segment sells its products to various distributors, OEMs, and direct-to-consumer. The Life Sciences segment provides micro-environment gas and liquid filtration for food, beverage, and industrial processes; bioprocessing equipment that includes bioreactors and fermenters; and bioprocessing consumables, such as chromatography devices, reagents and filters, and polytetrafluoroethylene membrane-based products, as well as specialized air and gas filtration systems for applications, including hard disk drives, semi-conductor manufacturing and sensors, battery systems, and powertrain components to OEMs and various end-users. The company was founded in 1915 and is headquartered in Bloomington, Minnesota.

### Why customers stay

Margins ranged from 34.6% to 35.5% during 2024–26; it earns 26% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-25); FY2024: grossProfit / revenue = 35.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-25); FY2025: grossProfit / revenue = 34.8%.

- Source: https://www.sec.gov/Archives/edgar/data/29644/000002964426000085/dci-20260731.htm (filed 2026-09-25); FY2026: grossProfit / revenue = 34.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-25); 10-year return on capital observations [[2017,0.2584548270437702],[2018,0.2578826477343913],[2019,0.26367000070158103],[2020,0.2286939673523759],[2021,0.25878700015990946],[2022,0.26161437007282257],[2023,0.2686374591054499],[2024,0.30577379976154095],[2025,0.2870667199021688],[2026,0.2567671177515735]]; median 0.260200685116366. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 32% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/29644/000002964426000085/dci-20260731.htm (filed 2026-09-25); Gross margin observations: [[2021,0.34048144644171136],[2022,0.32280892759934676],[2023,0.338288445843535]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 111.2 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-25); FY2017: growth capex 0; upkeep 63500000; owner earnings 244500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-25); FY2018: growth capex 19200000; upkeep 76700000; owner earnings 180300000. Growth capex / owner earnings = 0.1064891846921797.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-25); FY2019: growth capex 22309204.589973047; upkeep 128090795.41002695; owner earnings 220209204.58997303. Growth capex / owner earnings = 0.1013091375154482.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-25); FY2020: growth capex 0; upkeep 122400000; owner earnings 222200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-25); FY2021: growth capex 0; upkeep 58300000; owner earnings 323900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-25); FY2022: growth capex 0; upkeep 85100000; owner earnings 342000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-25); FY2023: growth capex 25800000; upkeep 92300000; owner earnings 358800000. Growth capex / owner earnings = 0.07190635451505016.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-25); FY2024: growth capex 0; upkeep 85600000; owner earnings 426800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-25); FY2025: growth capex 0; upkeep 78900000; owner earnings 387600000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/29644/000002964426000085/dci-20260731.htm (filed 2026-09-25); FY2026: growth capex 0; upkeep 67400000; owner earnings 492400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-25); Dividend observations: [[2017,92400000],[2018,94700000],[2019,99700000],[2020,106400000],[2021,107200000],[2022,110100000],[2023,114400000],[2024,122800000],[2025,131900000],[2026,141200000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/29644/000002964426000085/dci-20260731.htm (filed 2026-09-25); FY2026: cash repurchases 111200000 USD.

### Are managers owners

Insiders own 0.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DCI.US SharesStats.PercentInsiders = 0.577 percentage points; cache date 2026-10-16.

### What could break it

Any additional tariffs in the United States or retaliatory tariffs imposed by other governments could exacerbate the impact.

- Source: https://www.sec.gov/Archives/edgar/data/29644/000002964426000085/dci-20260731.htm (filed 2026-09-25); Steps taken by governments to consider applying additional or new tariffs have the potential to disrupt existing supply chains, impose additional costs on our business, and could lead to other countries attempting to retaliate by imposing tariffs, which would make our products more expensive for customers, and, in turn, could make our products less competitive. Any additional tariffs in the United States or retaliatory tariffs imposed by other governments could exacerbate the impact. Any new, substantial tariff increases on imports to the United States from Mexico, China and the European Union (EU), should they be implemented and sustained for an extended period of time, could have a material adverse effect on our business and our supply chain.

### What the price says

The price assumes cash profits grow 9.3% yearly over ten years; actual growth was 11.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-25); Ten-year compound average after fade. Initial solved rate 0.15670187799598334. Price 87.77; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2016 owner earnings/share 1.4302670623145401 → FY2026 4.176420695504665. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $36.52 per share

- 2016-11: $40.56 per share

- 2016-12: $42.08 per share

- 2017-01: $42.25 per share

- 2017-02: $42.95 per share

- 2017-03: $45.52 per share

- 2017-04: $46.28 per share

- 2017-05: $47.96 per share

- 2017-06: $45.54 per share

- 2017-07: $47.49 per share

- 2017-08: $47.25 per share

- 2017-09: $45.94 per share

- 2017-10: $47.21 per share

- 2017-11: $49.90 per share

- 2017-12: $48.95 per share

- 2018-01: $50.66 per share

- 2018-02: $47.46 per share

- 2018-03: $45.05 per share

- 2018-04: $44.26 per share

- 2018-05: $47.20 per share

- 2018-06: $45.12 per share

- 2018-07: $47.70 per share

- 2018-08: $50.60 per share

- 2018-09: $58.26 per share

- 2018-10: $51.28 per share

- 2018-11: $56.04 per share

- 2018-12: $43.39 per share

- 2019-01: $47.28 per share

- 2019-02: $51.59 per share

- 2019-03: $50.06 per share

- 2019-04: $53.54 per share

- 2019-05: $47.45 per share

- 2019-06: $50.86 per share

- 2019-07: $49.95 per share

- 2019-08: $48.36 per share

- 2019-09: $52.08 per share

- 2019-10: $52.74 per share

- 2019-11: $56.08 per share

- 2019-12: $57.62 per share

- 2020-01: $51.85 per share

- 2020-02: $45.08 per share

- 2020-03: $38.63 per share

- 2020-04: $43.83 per share

- 2020-05: $47.45 per share

- 2020-06: $46.52 per share

- 2020-07: $48.34 per share

- 2020-08: $50.36 per share

- 2020-09: $46.42 per share

- 2020-10: $47.50 per share

- 2020-11: $53.24 per share

- 2020-12: $55.88 per share

- 2021-01: $59.44 per share

- 2021-02: $58.91 per share

- 2021-03: $58.16 per share

- 2021-04: $62.88 per share

- 2021-05: $61.59 per share

- 2021-06: $63.53 per share

- 2021-07: $66.19 per share

- 2021-08: $67.75 per share

- 2021-09: $57.41 per share

- 2021-10: $60.01 per share

- 2021-11: $56.43 per share

- 2021-12: $59.26 per share

- 2022-01: $55.66 per share

- 2022-02: $54.27 per share

- 2022-03: $51.93 per share

- 2022-04: $49.04 per share

- 2022-05: $52.28 per share

- 2022-06: $48.14 per share

- 2022-07: $54.41 per share

- 2022-08: $51.35 per share

- 2022-09: $49.01 per share

- 2022-10: $57.45 per share

- 2022-11: $60.92 per share

- 2022-12: $58.87 per share

- 2023-01: $62.35 per share

- 2023-02: $63.25 per share

- 2023-03: $65.34 per share

- 2023-04: $63.55 per share

- 2023-05: $58.53 per share

- 2023-06: $62.51 per share

- 2023-07: $62.83 per share

- 2023-08: $63.87 per share

- 2023-09: $59.64 per share

- 2023-10: $57.66 per share

- 2023-11: $60.84 per share

- 2023-12: $65.35 per share

- 2024-01: $64.59 per share

- 2024-02: $71.62 per share

- 2024-03: $74.68 per share

- 2024-04: $72.20 per share

- 2024-05: $73.68 per share

- 2024-06: $71.56 per share

- 2024-07: $74.82 per share

- 2024-08: $72.73 per share

- 2024-09: $73.70 per share

- 2024-10: $73.16 per share

- 2024-11: $78.05 per share

- 2024-12: $67.35 per share

- 2025-01: $71.19 per share

- 2025-02: $69.09 per share

- 2025-03: $67.06 per share

- 2025-04: $65.73 per share

- 2025-05: $69.55 per share

- 2025-06: $69.35 per share

- 2025-07: $71.97 per share

- 2025-08: $79.67 per share

- 2025-09: $81.85 per share

- 2025-10: $84.25 per share

- 2025-11: $89.90 per share

- 2025-12: $88.66 per share

- 2026-01: $101.94 per share

- 2026-02: $92.76 per share

- 2026-03: $84.87 per share

- 2026-04: $88.17 per share

- 2026-05: $81.87 per share

- 2026-06: $89.77 per share

- 2026-07: $94.24 per share

- 2026-08: $90.89 per share

- 2026-09: $87.04 per share

- 2026-10: $87.77 per share

## Annual estimated value (USD per share)

- FY2017: low $19.93 per share, central $22.45 per share, high $25.80 per share

- FY2018: low $23.07 per share, central $27.99 per share, high $32.48 per share

- FY2019: low $23.95 per share, central $31.55 per share, high $36.79 per share

- FY2020: low $23.32 per share, central $29.17 per share, high $33.85 per share

- FY2021: low $25.74 per share, central $32.59 per share, high $37.89 per share

- FY2022: low $29.37 per share, central $36.49 per share, high $42.46 per share

- FY2023: low $38.73 per share, central $50.85 per share, high $59.38 per share

- FY2024: low $42.23 per share, central $56.27 per share, high $65.70 per share

- FY2025: low $45.70 per share, central $63.55 per share, high $74.43 per share

- FY2026: low $51.72 per share, central $74.78 per share, high $87.63 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/29644/000002964426000085/dci-20260731.htm); period 2026-07-31, filed 2026-09-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.