Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Donaldson Company, Inc. (DCI)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$37.03 - $60.82$47.62
Multi-Stage$41.77 - $45.68$43.69
Blended Fair Value$45.65
Current Price$84.25
Upside-45.81%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS4.39%3.76%1.101.030.960.920.900.890.840.790.770.76
YoY Growth--7.41%7.34%3.91%2.71%0.75%6.72%5.28%2.49%1.32%-0.02%
Dividend Yield--1.31%1.41%1.66%1.61%1.47%1.88%1.58%1.55%1.64%2.09%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)381.90
(-) Cash Dividends Paid (M)134.20
(=) Cash Retained (M)247.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)76.3847.7428.64
Cash Retained (M)247.70247.70247.70
(-) Cash Required (M)-76.38-47.74-28.64
(=) Excess Retained (M)171.32199.96219.06
(/) Shares Outstanding (M)119.40119.40119.40
(=) Excess Retained per Share1.431.671.83
LTM Dividend per Share1.121.121.12
(+) Excess Retained per Share1.431.671.83
(=) Adjusted Dividend2.562.802.96
WACC / Discount Rate9.61%9.61%9.61%
Growth Rate2.52%3.52%4.52%
Fair Value$37.03$47.62$60.82
Upside / Downside-56.05%-43.48%-27.81%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)381.90395.36409.29423.71438.65454.10467.73
Payout Ratio35.14%46.11%57.08%68.06%79.03%90.00%92.50%
Projected Dividends (M)134.20182.31233.64288.36346.65408.69432.65

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.61%9.61%9.61%
Growth Rate2.52%3.52%4.52%
Year 1 PV (M)164.72166.33167.93
Year 2 PV (M)190.73194.47198.25
Year 3 PV (M)212.70218.98225.39
Year 4 PV (M)231.02240.17249.58
Year 5 PV (M)246.09258.33271.05
PV of Terminal Value (M)3,942.134,138.174,341.94
Equity Value (M)4,987.405,216.455,454.14
Shares Outstanding (M)119.40119.40119.40
Fair Value$41.77$43.69$45.68
Upside / Downside-50.42%-48.14%-45.78%

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