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$53.34 - $105.98$73.95
Multi-Stage$63.61 - $69.72$66.61
Blended Fair Value$70.28
Current Price$84.25
Upside-16.58%
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 Rate7.44%7.44%7.44%
Growth Rate2.52%3.52%4.52%
Fair Value$53.34$73.95$105.98
Upside / Downside-36.68%-12.22%25.80%

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 Rate7.44%7.44%7.44%
Growth Rate2.52%3.52%4.52%
Year 1 PV (M)168.04169.68171.32
Year 2 PV (M)198.50202.40206.32
Year 3 PV (M)225.83232.50239.30
Year 4 PV (M)250.23260.14270.33
Year 5 PV (M)271.93285.45299.51
PV of Terminal Value (M)6,480.746,803.037,138.01
Equity Value (M)7,595.277,953.198,324.79
Shares Outstanding (M)119.40119.40119.40
Fair Value$63.61$66.61$69.72
Upside / Downside-24.50%-20.94%-17.24%

High-Yield Dividend Screener

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