Donaldson Stock Buy Hold or Sell Recommendation

DCI Stock  USD 68.44  1.43  2.13%   
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Donaldson is 'Strong Hold'. The recommendation algorithm takes into account all of Donaldson's available fundamental, technical, and predictive indicators you will find on this site.
  
Check out Donaldson Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more detail on how to invest in Donaldson Stock please use our How to Invest in Donaldson guide.
In addition, we conduct extensive research on individual companies such as Donaldson and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Donaldson. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

Execute Donaldson Buy or Sell Advice

The Donaldson recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Donaldson. Macroaxis does not own or have any residual interests in Donaldson or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Donaldson's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell DonaldsonBuy Donaldson
Strong Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Very LowDetails

Economic Sensitivity

Follows the market closelyDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Donaldson has a Risk Adjusted Performance of (0.05), Jensen Alpha of (0), Total Risk Alpha of 0.0642 and Treynor Ratio of (0.12)
Macroaxis provides unbiased investment recommendation on Donaldson that should be used to complement current analysts and expert consensus on Donaldson. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Donaldson is not overpriced, please confirm all Donaldson fundamentals, including its number of shares shorted, ebitda, current ratio, as well as the relationship between the price to sales and cash per share . Given that Donaldson has a price to earning of 32.03 X, we urge you to verify Donaldson market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Donaldson Trading Alerts and Improvement Suggestions

Donaldson generated a negative expected return over the last 90 days
Over 88.0% of the company shares are held by institutions such as insurance companies
On 28th of February 2025 Donaldson paid $ 0.27 per share dividend to its current shareholders
Latest headline from thelincolnianonline.com: Alphabet Inc. Shares Sold by Donaldson Capital Management LLC

Donaldson Returns Distribution Density

The distribution of Donaldson's historical returns is an attempt to chart the uncertainty of Donaldson's future price movements. The chart of the probability distribution of Donaldson daily returns describes the distribution of returns around its average expected value. We use Donaldson price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Donaldson returns is essential to provide solid investment advice for Donaldson.
Mean Return
-0.08
Value At Risk
-2.15
Potential Upside
1.91
Standard Deviation
1.20
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Donaldson historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Donaldson Stock Institutional Investors

Shares
Fuller & Thaler Asset Management Inc2024-12-31
1.6 M
American Century Companies Inc2024-12-31
1.6 M
Amvescap Plc.2024-12-31
1.5 M
Td Asset Management Inc2024-12-31
1.4 M
Mairs & Power Inc2024-12-31
1.3 M
Hhg Plc2024-12-31
1.3 M
Bank Of New York Mellon Corp2024-12-31
1.3 M
Td Global Investment Solutions – Td Epoch2024-12-31
1.2 M
Northern Trust Corp2024-12-31
1.2 M
Vanguard Group Inc2024-12-31
12.7 M
Blackrock Inc2024-12-31
11.3 M
Note, although Donaldson's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Donaldson Cash Flow Accounts

202020212022202320242025 (projected)
Change To Inventory(56.3M)(147.8M)99.8M(65.6M)(59.0M)(56.1M)
Change In Cash(13.8M)(29.5M)(6.2M)45.6M41.0M43.1M
Free Cash Flow343.6M167.7M426.4M406.9M467.9M491.3M
Depreciation95.3M93.8M92.3M98.4M113.2M118.8M
Other Non Cash Items17.5M10.9M6.3M(1M)(900K)(945K)
Dividends Paid107.2M110.1M114.4M122.8M141.2M148.3M
Capital Expenditures58.3M85.1M118.1M85.6M98.4M67.4M
Net Income286.9M332.8M358.8M414M476.1M499.9M
End Period Cash Flow222.8M193.3M187.1M232.7M267.6M140.6M
Net Borrowings83.8M(17.7M)(131.1M)155.4M139.9M146.9M
Change To Netincome39.1M25.8M29.9M11.4M13.1M10.4M
Investments(58.3M)(154M)(327.3M)(86.9M)(78.2M)(82.1M)

Donaldson Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Donaldson or Machinery sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Donaldson's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Donaldson stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
-0.0048
β
Beta against Dow Jones0.75
σ
Overall volatility
1.25
Ir
Information ratio 0.02

Donaldson Volatility Alert

Donaldson exhibits very low volatility with skewness of -0.35 and kurtosis of 0.25. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Donaldson's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Donaldson's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Donaldson Fundamentals Vs Peers

Comparing Donaldson's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Donaldson's direct or indirect competition across all of the common fundamentals between Donaldson and the related equities. This way, we can detect undervalued stocks with similar characteristics as Donaldson or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Donaldson's fundamental indicators could also be used in its relative valuation, which is a method of valuing Donaldson by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Donaldson to competition
FundamentalsDonaldsonPeer Average
Return On Equity0.29-0.31
Return On Asset0.12-0.14
Profit Margin0.12 %(1.27) %
Operating Margin0.15 %(5.51) %
Current Valuation8.4 B16.62 B
Shares Outstanding119.52 M571.82 M
Shares Owned By Insiders0.55 %10.09 %
Shares Owned By Institutions87.75 %39.21 %
Number Of Shares Shorted2.03 M4.71 M
Price To Earning32.03 X28.72 X
Price To Book5.19 X9.51 X
Price To Sales2.25 X11.42 X
Revenue3.59 B9.43 B
Gross Profit1.3 B27.38 B
EBITDA655.1 M3.9 B
Net Income414 M570.98 M
Cash And Equivalents187.1 M2.7 B
Cash Per Share1.58 X5.01 X
Total Debt536.7 M5.32 B
Debt To Equity0.61 %48.70 %
Current Ratio2.23 X2.16 X
Book Value Per Share12.92 X1.93 K
Cash Flow From Operations492.5 M971.22 M
Short Ratio3.97 X4.00 X
Earnings Per Share3.42 X3.12 X
Price To Earnings To Growth2.16 X4.89 X
Target Price73.83
Number Of Employees14 K18.84 K
Beta1.04-0.15
Market Capitalization8.18 B19.03 B
Total Asset2.91 B29.47 B
Retained Earnings2.38 B9.33 B
Working Capital655.6 M1.48 B
Note: Disposition of 4295 shares by Thomas Scalf of Donaldson at 73.33 subject to Rule 16b-3 [view details]

Donaldson Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Donaldson . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Donaldson Buy or Sell Advice

When is the right time to buy or sell Donaldson? Buying financial instruments such as Donaldson Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Donaldson in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Airlines Thematic Idea Now

Airlines
Airlines Theme
Domestic and international airlines and airline services. The Airlines theme has 32 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Airlines Theme or any other thematic opportunities.
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When determining whether Donaldson offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Donaldson's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Donaldson Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Donaldson Stock:
Check out Donaldson Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more detail on how to invest in Donaldson Stock please use our How to Invest in Donaldson guide.
You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Is Industrial Machinery & Supplies & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Donaldson. If investors know Donaldson will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Donaldson listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.03)
Dividend Share
1.08
Earnings Share
3.42
Revenue Per Share
30.215
Quarterly Revenue Growth
(0.01)
The market value of Donaldson is measured differently than its book value, which is the value of Donaldson that is recorded on the company's balance sheet. Investors also form their own opinion of Donaldson's value that differs from its market value or its book value, called intrinsic value, which is Donaldson's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Donaldson's market value can be influenced by many factors that don't directly affect Donaldson's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Donaldson's value and its price as these two are different measures arrived at by different means. Investors typically determine if Donaldson is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Donaldson's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.