Donaldson Company Inc. Common Stock (DCI)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-style investor, I look for a durable business at a sensible price. Donaldson is a global filtration franchise: it sells original equipment filtration and, importantly, replacement parts into Mobile, Industrial, and Life Sciences markets. That replacement demand can be sticky and recurring, which is a modest competitive advantage. The financials show quality. In fiscal 2026, the year ended 2026-07-31, revenue was $3.9B, net income $453.8M, and diluted EPS $3.85, up from $3.7B, $367.0M, and $3.05 in fiscal 2025. The latest filed quarter, fiscal Q3 2026 ended 2026-04-30, had revenue $995.1M, net income $118.1M, and diluted EPS $1.00. FairStock's calculations show ROE 28.21%, ROCE 10.92%, Piotroski 8/9, Altman 6.49, and FCF yield 3.8%, so the balance sheet and cash generation look solid. However, at the 2026-10-13 close of $87.16, the P/E is 22.64, P/B 5.73, EV/EBITDA 15.13, and dividend yield 1.43%. FairStock's Graham Number is $35.60, implying a negative margin of safety of -144.83%; the price is far above a conservative asset-and-earnings value. PEG of 0.22 looks attractive only if the recent profit spurt persists. Lynch category is STALWART: steady 5-year profit growth of 9.6% and revenue growth of 6.4%. Donaldson is a good business, but the price already reflects much of that quality. I would want a wider discount before calling it a bargain.

In plain English: Donaldson makes filtration systems and replacement parts for vehicles, industrial equipment, and life sciences uses. The business looks financially strong, with rising sales and profits in the latest full year and debt that is not extreme. At the October 13, 2026 closing price, the shares look expensive versus several simple value measures, even though the company is profitable and growing.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-04-30) · fiscal Q2 2026 10-Q (period ended 2026-01-31) · fiscal Q1 2026 10-Q (period ended 2025-10-31) · fiscal Q3 2025 10-Q (period ended 2025-04-30) · FY2026 10-K (period ended 2026-07-31) · FY2025 10-K (period ended 2025-07-31) · FY2024 10-K (period ended 2024-07-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer