DCI Stock Analysis — Donaldson Company
Sector: Industrials
AI Verdict
DCI is cheap for the growth you’re getting if their OEM relationships and proprietary tech keep earnings on pace, but there’s little margin for disappointment at this multiple.
Competitive Moat
Donaldson specializes in filtration systems for industrial and engine applications, with deep integration into OEM supply chains that creates high switching costs. Their proprietary filter media and long-term equipment contracts make it difficult for competitors to displace them once embedded.
Summary
DCI is notable right now for its 27.4% forward EPS growth expectation, well above the typical industrial peer.
Where It Stands
DCI trades at 20.3x next year's earnings, just above the 20x industrials sector median, with a trailing P/E of 25.9x and a PEG of 0.94 indicating growth supports the valuation.
Key Metrics
- Trailing P/E: 25.9x
- Forward P/E: 20.3x
- PEG Ratio: 0.94
- Earnings Growth: +0.3%
- Revenue Growth: +0.0%
- Dividend Yield: 0.01%
- 52-Week High: $112.84
- 52-Week Low: $67.70
Analyst Consensus
5 Buy · 7 Hold · 0 Sell (12 analysts)
Bull Case
With forward EPS expected to jump 27.4%, you’re paying a fair multiple for unusually strong earnings momentum in a sector where growth is scarce.
Bear Case
If the forward P/E of 20.3x compresses to the sector median of 20x, that’s a roughly 1.5% downside before considering any earnings misses or sentiment shifts.
Catalyst to Watch
Watch for upcoming earnings reports to confirm that the 27.4% EPS growth target is on track, as any miss could quickly erase the premium.