Donaldson Company Inc. (NYSE:DCI): A Fundamentally Weighted Stock for Long-Term Investors

Donaldson Company Inc. (NYSE:DCI) has a beta of 1.33, a 12-month trailing P/E ratio of 29.48, and a growth ratio of 2.95. The stock’s Relative Strength Index (RSI) is 45.97, with weekly volatility at 1.56% and ATR at 1.16. The DCI stock’s 52-week price range has touched low of $42.58 and a $65.47 high. Its shares traded lower over the last trading session, losing -0.70% on 06/17/21. The shares fell to a low of $60.78 before closing at $61.37. Intraday shares traded counted 0.46 million, which was 6.26% higher than its 30-day average trading volume of 490.83K. DCI’s previous close was $61.80 while the outstanding shares total 126.40M.

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Investors have identified the Specialty Industrial Machinery company Donaldson Company Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $7.67 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Donaldson Company Inc. (DCI) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For DCI, the company has in raw cash 215.3 million on their books with 19.4 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 1.2 billion total, with 548.8 million as their total liabilities.

DCI were able to record 265.4 million as free cash flow during the 09/09/2021 quarter of the year, this saw their quarterly net cash flow reduce by -21.3 million. In cash movements, the company had a total of 305.6 million as operating cash flow.

Potential earnings growth for Donaldson Company Inc. (DCI)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 09/09/2021 quarter of the year, Donaldson Company Inc. recorded a total of 765.0 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 17.69% coming in sequential stages and their sales for the 09/09/2021 quarter increasing by 11.23%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 507.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 258.0 million. This allows shareholders to hold on to 126.40M with the recently reported earning now reading 0.67 cents per share. This is a figure that compared to analyst’s prediction for their 09/09/2021 (0.66 cents a share).

Having a look at the company’s valuation, the company is expected to record 2.68 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on DCI sounds very interesting.

Is the stock of DCI attractive?

In related news, Director, OBERTON WILLARD D sold 10,000 shares of the company’s stock in a transaction that recorded on Jun 04. The sale was performed at an average price of 64.20, for a total value of 642,000. As the sale deal closes, the Director, HOFFMAN MICHAEL J now sold 14,400 shares of the company’s stock, valued at 917,424. Also, Chairman, President and CEO, Carpenter Tod E. sold 21,398 shares of the company’s stock in a deal that was recorded on Mar 15. The shares were price at an average price of 61.45 per share, with a total market value of 1,314,907. Following this completion of acquisition, the Chairman, President and CEO, Carpenter Tod E. now holds 500 shares of the company’s stock, valued at 30,755. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.30%.

1 out of 7 analysts covering the stock have rated it a Buy, while 4 have maintained a Hold recommendation on Donaldson Company Inc.. 0 analysts has assigned a Sell rating on the DCI stock. The 12-month mean consensus price target for the company’s shares has been set at $69.25.