DCI

Industrials

Donaldson Company, Inc. · Industrial - Machinery · $10B

UQS Score — Balanced Preset
57.4
Good

Donaldson Company, Inc. scores 57.4/100 using the Balanced preset.

UQS vs Industrials Sector
DCI
57.4
Sector avg
42.4
Quality
Good
Moat
Weak
Growth
Neutral
Risk
Strong
Valuation
Good

What is Donaldson Company, Inc.?

Donaldson Company is a global manufacturer of filtration systems and replacement parts, serving industries from construction and mining to semiconductors and food processing. Founded in 1915 and headquartered in Bloomington, Minnesota, the company has built a broad industrial footprint over more than a century.

Donaldson operates through two segments: Engine Products and Industrial Products. The Engine Products segment supplies air, fuel, lube, and hydraulic filtration systems alongside exhaust and emissions solutions to OEMs in construction, agriculture, aerospace, defense, and transportation. The Industrial Products segment covers dust and fume collectors, compressed air purification, gas turbine air filtration, and specialized clean-room filtration for semiconductor and hard disk drive manufacturing. Revenue flows from both direct OEM relationships and a broad aftermarket replacement-parts business.

Donaldson was founded in 1915 and remains headquartered in Bloomington, Minnesota.

  • Engine air and liquid filtration systems for OEM and aftermarket
  • Dust, fume, and mist collection systems for industrial facilities
  • Compressed air purification and gas filtration equipment
  • Gas turbine inlet air filtration systems
  • Specialized filtration for semiconductor and hard disk drive manufacturing

Is DCI a Good Stock to Buy?

UQS Score rates DCI as Good overall, reflecting a balanced profile across its five analytical pillars.

The Risk pillar stands out as the clearest strength, suggesting Donaldson carries a conservative financial structure relative to sector peers. The Quality and Valuation pillars also register as Good, indicating the business generates respectable returns and is not obviously stretched on price relative to its fundamentals.

The Moat pillar registers as Weak, pointing to limited pricing power or competitive differentiation compared to higher-rated industrials peers. Growth is rated Neutral, suggesting the business expands at a measured rather than accelerating pace.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does DCI pay dividends?

Yes — Donaldson Company, Inc. pays a dividend.

Donaldson pays a regular dividend, consistent with its long operating history and stable cash generation across industrial cycles. The dividend reflects management's confidence in recurring aftermarket revenue — replacement filters must be replenished regardless of broader capex environments. Income-oriented investors can verify the current yield and payout cadence on Donaldson's investor relations page.

When does DCI report earnings?

Donaldson Company reports earnings on a quarterly cadence, typical for US-listed large-cap industrials.

The company's dual-segment structure means results are shaped by both OEM equipment demand cycles and the steadier aftermarket replacement business. Industrial filtration demand can vary with broader manufacturing activity, while the aftermarket component tends to provide more predictable revenue across economic conditions.

For the most recent quarter's results and guidance, visit Donaldson Company's official investor relations page.

DCI Price History

+54.9% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Donaldson Company, Inc.?

$
Today it would be worth
$15,731
That's a +57.3% total return, or +9.5% annualized.

Based on Donaldson Company, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

DCI Long-term Outlook

Donaldson's Neutral Growth pillar suggests the business is expected to expand in line with broader industrial activity rather than outpace it. The Strong Risk profile provides a degree of downside resilience — a conservative balance sheet can support the company through demand softness in cyclical end markets. The Good Valuation pillar indicates the market is not pricing in a dramatic re-rating, leaving room for steady compounding if execution remains consistent.

Growth drivers

  • Recurring aftermarket replacement filter demand across a large installed base
  • Industrial filtration needs tied to semiconductor and clean-manufacturing expansion
  • Emissions and environmental regulation driving engine filtration upgrades

Key risks

  • Cyclical OEM demand in construction, mining, and agriculture can compress volumes
  • Weak Moat rating suggests pricing pressure from lower-cost filtration alternatives
  • Slower global industrial activity could weigh on the Industrial Products segment

DCI vs Peers

Donaldson competes across industrial fluid and air management with several specialized peers.

WTSDCI scores lower
Watts Water Technologies, Inc.

Watts focuses on water quality and flow-control products for commercial and residential buildings, a narrower end-market than Donaldson's broad industrial and engine filtration reach.

FLSSimilar UQS
Flowserve Corporation

Flowserve specializes in pumps, valves, and seals for process industries, competing with Donaldson primarily in industrial fluid management rather than air and engine filtration.

GTLSDCI scores higher
Chart Industries, Inc.

Chart Industries concentrates on engineered equipment for gas processing and clean energy, overlapping with Donaldson mainly in gas and industrial filtration applications.

Frequently Asked Questions

What does Donaldson Company do?

Donaldson manufactures filtration systems and replacement parts for a wide range of industries. Its Engine Products segment serves construction, agriculture, aerospace, and transportation OEMs, while its Industrial Products segment covers dust collection, compressed air purification, gas turbine filtration, and clean-room applications for semiconductor manufacturing.

Does DCI pay dividends?

Yes, Donaldson pays a regular dividend. The company's long operating history and recurring aftermarket revenue support a consistent dividend program. Investors should check Donaldson's investor relations page for the current yield and payment schedule.

When does DCI report earnings?

Donaldson reports on a quarterly cadence, as is standard for US-listed large-cap industrials. For the exact timing of upcoming earnings releases, refer to the company's investor relations page.

Is DCI a good stock to buy?

UQS Score rates DCI as Good overall. The Risk pillar is the standout strength, and both Quality and Valuation also score as Good. The Moat pillar is rated Weak, which is worth monitoring. The complete pillar breakdown is available to UQS Pro members.

Is DCI overvalued?

The UQS Valuation pillar for DCI is rated Good, suggesting the stock is not obviously expensive relative to its fundamentals when compared to sector peers. Valuation is one of five pillars — Pro members can view the full scoring detail.

How does DCI compare to its competitors?

Donaldson's closest peers include Watts Water Technologies, Flowserve, and Chart Industries. Each focuses on different aspects of industrial fluid and gas management. Donaldson's breadth across engine and industrial filtration — including a large aftermarket business — distinguishes it from more narrowly focused competitors.

What is DCI's market cap bracket?

Donaldson Company is classified as a large-cap stock, reflecting its scale as a global filtration manufacturer with operations across multiple continents and end markets.

Who founded Donaldson Company?

Donaldson Company was founded in 1915. Founding history and early leadership information is widely available through the company's official corporate history and public records.

Is DCI a long-term quality stock?

As a long-term quality indicator, DCI's Good UQS Score reflects a business with stable risk characteristics and consistent quality metrics. The Neutral Growth and Weak Moat ratings suggest investors should weigh competitive dynamics carefully. Pro members can access the full pillar breakdown to inform a longer-term view.

What is the main competitive advantage of Donaldson Company?

Donaldson's primary advantage lies in its large installed base of filtration equipment, which generates recurring aftermarket replacement-parts revenue. This aftermarket stream provides more predictable cash flow than pure OEM equipment sales, partially insulating the business from capital expenditure cycles in its end markets.

What sector does DCI belong to?

Donaldson Company is classified in the Industrials sector. Within that sector, it operates as a specialized manufacturer of filtration and separation systems, serving both cyclical OEM customers and more stable aftermarket channels.

Is DCI a growth stock or value stock?

Based on UQS pillar labels, DCI leans toward value characteristics — the Valuation pillar is rated Good and Growth is Neutral, indicating the stock is not priced for rapid expansion. It may appeal more to investors seeking quality and income than those seeking high-growth exposure.

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Pro Analysis

DCI — Score History

50556065Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 26 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 23, 202657.473.936.040.180.165.90.0
May 21, 202657.473.936.040.180.166.2-0.1
May 20, 202657.573.936.040.180.166.7+0.1
May 19, 202657.473.936.040.180.166.3-0.1
May 16, 202657.573.936.040.180.166.5+0.1
May 14, 202657.473.936.040.180.165.8+0.1
May 13, 202657.373.936.040.180.165.50.0
May 12, 202657.373.936.040.180.165.20.0
May 11, 202657.373.936.040.180.165.1+1.1
May 10, 202656.268.736.040.180.166.6-1.1

DCI — Pillar Breakdown

Quality

73.9/100 (25%)

Donaldson Company, Inc. shows solid profitability with healthy returns on capital and reasonable margins.

Capital Efficiency (ROIC)Strong

How effectively capital is deployed to generate returns.

Return on EquityStrong

Profitability relative to shareholders' equity.

Operating ProfitabilityModerate

Ability to convert revenue into operating profit.

Net ProfitabilityModerate

Bottom-line profit as a share of revenue.

Gross Profit / AssetsStrong

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationModerate

Free cash flow relative to market value.

Growth

40.1/100 (20%)

Donaldson Company, Inc. shows steady but unspectacular growth, typical for mature companies.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookModerate

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

80.1/100 (15%)

Donaldson Company, Inc. carries minimal financial risk with conservative leverage and strong solvency.

Financial LeverageModerate

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioStrong

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageStrong

Earnings capacity relative to interest payments.

Valuation

66.1/100 (15%)

Donaldson Company, Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.

Earnings YieldModerate

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowModerate

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorModerate

Enterprise value multiple relative to sector median.

Moat

36/100 (25%)

Donaldson Company, Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for DCI.

Score Composition

Quality
73.9×25%18.5
Growth
40.1×20%8.0
Risk
80.1×15%12.0
Valuation
66.1×15%9.9
Moat
36.0×25%9.0
Total
57.4Good

Financial Data

More Stock Analysis

How is the DCI UQS Score Calculated?

The UQS (Unified Quality Score) for Donaldson Company, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Donaldson Company, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Donaldson Company, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.