DCI
DONALDSON Co INC
Next earnings Aug 25, 2026 (after close) · consensus $1.14 EPS, $1.05B rev
Last earnings +4.7% on 2026-06-02
$89.09
▲ +0.78%$89.09▲ +29.83%
over 1Y
L $68.40H $109.86
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+0.8%
1W-0.0%
1M+4.4%
3M+4.9%
YTD-0.3%
1Y+29.8%
Hold
Conviction
Horizon
Long (>12mo)
12-mo target
$•••
Street · 12 analysts
Buy
High-quality filtration franchise with 25% ROE and steady cash return, but a FY2025 earnings dip and 28x multiple leave it fairly priced.
Return on equity 25.2% · FY2025
The read
Middling fundamentals and a rich price (~68% above fair value) leave little margin of safety — a wait-and-see.
Donaldson is a durable, recurring-revenue filtration business with attractive economics — a 34.8% gross margin, 13.4% operating margin, and a standout 25.2% return on equity. Its model benefits from a large replacement-filter aftermarket that smooths demand, and the company has compounded revenue steadily from $2.85B (FY2021) to $3.69B (FY2025, up 2.9%). Leverage is modest (liabilities/equity 1.05x) and capital return is generous: FY2025 buybacks doubled to $332M (cutting shares 3.2%) and the dividend rose 7.4% to $132M.
The near-term blemish is an earnings dip. FY2025 net income fell 11.4% to $367M, operating income declined 9.0% to $495M, and EPS slipped 9.8% to $3.05, breaking the prior multi-year uptrend (net income had risen every year to $414M in FY2024). Operating cash flow also fell 15.0% to $419M and cash declined 22.5% to $180M, while long-term debt rose 25.5% to $640M — partly to fund the elevated buyback. This looks like a cyclical/margin soft patch rather than structural deterioration, but it does interrupt the growth story.
Is DCI a buy? The one-page verdict, explained →
The options angle
model · matches our verdictCovered call~90d expiry
- Long 100 shares @ ~89.09
- Short call 94 @ ~2.98 est
debit $8,611max +$789max −$8,610BE 86.11
HOLD means own it, don't chase it — harvesting premium against the position matches the verdict.
Educational template, not a trade recommendation. Strikes and premiums are Black-Scholes model estimates from the last close and 30-day realized volatility — real chains, spreads and IV will differ. Options involve substantial risk.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $2.85B | $3.31B | $3.43B | $3.59B | $3.69B |
| Gross profit | $972M | $1.07B | $1.16B | $1.27B | $1.29B |
| Operating income | $385M | $444M | $480M | $544M | $495M |
| Net income | $287M | $333M | $359M | $414M | $367M |
| Diluted EPS | $2.24 | $2.66 | $2.90 | $3.38 | $3.05 |
| Net margin | 10.1% | 10.1% | 10.5% | 11.5% | 9.9% |
10-year statements — income, cash flow, balance sheet & CSV export →
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$10.8B
EV / EBITDA18.2
EV / Sales2.9
EV / FCF31.8
P / FCF30.4
PEG (trailing)—
Earnings yield3.6%
FCF yield3.3%
Quality & risk
ROIC (est.)18.4%
Free cash flow$340M
Total debt$671M
Net cash-$491M
Altman Z-Score7.37 safe
Piotroski F-Score6/9
Capital returns
Buyback yield3.2%
Dividend yield (est.)1.3%
Shareholder yield4.5%
Shares Δ YoY-3.2%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsSome governance/structural items recently, but no outright red flags.
Recent filings
all on EDGAR ↗11-KPeriod ending 2025-12-312026-06-18open ↗10-QPeriod ending 2026-04-302026-06-02open ↗8-KPeriod ending 2026-06-022026-06-02open ↗SDFiling2026-05-28open ↗SCHEDULE 13GFiling2026-04-29open ↗SCHEDULE 13GFiling2026-04-29open ↗4Period ending 2026-04-102026-04-14open ↗144Filing2026-04-14open ↗144Filing2026-04-13open ↗144Filing2026-04-10open ↗8-KPeriod ending 2026-04-082026-04-10open ↗4Period ending 2026-04-032026-04-06open ↗
Frequently asked
- Is DONALDSON Co INC (DCI) a buy?
- DCI currently carries a Hold rating with 3/5 conviction, derived from its latest SEC filings. High-quality filtration franchise with 25% ROE and steady cash return, but a FY2025 earnings dip and 28x multiple leave it fairly priced.
- What is DCI's fair value?
- A Modified-Graham model based on DCI's SEC fundamentals estimates a fair value of about $28.52. It is an estimate from reported earnings, not a price target.
- Is DCI overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, DCI currently appears overvalued relative to its SEC-grounded earnings power.
- What is DONALDSON Co INC's quality score?
- DCI scores 64.31370030625425/100 (grade C+) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0000029644, latest 10-Q filed 2026-06-02) · EODHD · Proprietary analysis · as of 6/21/2026, 8:48:35 PM.
About this recommendation — produced by TENK/calls (tenkcalls.com), Luxembourg · not investment advice
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 21, 2026, 4:48 PM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.