The Unprecedented Rise of Donaldson Company Inc. (NYSE:DCI)

The Unprecedented Rise of Donaldson Company Inc. (NYSE:DCI)


The Donaldson Company Inc. (DCI) shares are trading at higher $45.47 and the avg recommendation for the stock is Hold. The current analyst price target stands at $51.33.

To add more color to this target, the company’s high over the last year is $58.32 and the low is $31.08. Over the last 52 weeks, DCI is down -22.03% while the S&P 500 is down -2.38%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, DCI reported a profit of $209.2 million. Donaldson Company Inc. also saw revenues increase to $629.7 million. In addition, DCI has free cash flow of $159.0 million as of 04-2020 The company’s EBITDA came in at $106.3 million which compares well with its peers.

DCI booked profit margins of 9.30%, its Return on Equity (ROE) is 27.30%, and its Return on Assets is 11.10%. All told, it is clear that, DCI needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. DCI has a short ratio of 3.39 and outstanding shares of 126.90M.

Company Outlook

DCI has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.99 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 2.10. Donaldson Company Inc. DCI also noted assets of $2.34 billion at the end of the last quarter. Investors should also keep an eye on sector updates as DCI has historically followed its peers on positive news.

All told, Donaldson Company Inc. DCI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, DCI represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Donaldson Company Inc. DCI is now commanding a market cap of 5.57B and a float of 125.65M. DCI is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of DCI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in DCI, either long or short, and we have not been compensated for this article.