Donaldson Gross Profit vs. Current Valuation
| DCI Stock | USD 72.14 0.50 0.69% |
Gross Profit | First Reported 1985-10-31 | Previous Quarter 334.8 M | Current Value 319.6 M | Quarterly Volatility 80.9 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.26 | 0.3554 |
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| Net Profit Margin | 0.0601 | 0.1154 |
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| Operating Profit Margin | 0.088 | 0.1517 |
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| Pretax Profit Margin | 0.088 | 0.1493 |
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| Return On Assets | 0.088 | 0.1421 |
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| Return On Equity | 0.18 | 0.278 |
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For Donaldson profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Donaldson to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Donaldson utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Donaldson's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Donaldson over time as well as its relative position and ranking within its peers.
Donaldson |
Donaldson's Revenue Breakdown by Earning Segment
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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 0.216 | Earnings Share 3.42 | Revenue Per Share 29.713 | Quarterly Revenue Growth 0.064 | Return On Assets 0.1207 |
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.
Donaldson Current Valuation vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Donaldson's current stock value. Our valuation model uses many indicators to compare Donaldson value to that of its competitors to determine the firm's financial worth. Donaldson is rated # 4 in gross profit category among its peers. It is rated below average in current valuation category among its peers reporting about 7.82 of Current Valuation per Gross Profit. As of now, Donaldson's Gross Profit is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Donaldson's earnings, one of the primary drivers of an investment's value.Donaldson's Earnings Breakdown by Geography
Donaldson Current Valuation vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Donaldson |
| = | 1.16 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Donaldson |
| = | 9.1 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Donaldson Current Valuation vs Competition
Donaldson is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is currently estimated at about 175.19 Billion. Donaldson holds roughly 9.1 Billion in current valuation claiming about 5% of equities under Industrials industry.
Donaldson Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Donaldson, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Donaldson will eventually generate negative long term returns. The profitability progress is the general direction of Donaldson's change in net profit over the period of time. It can combine multiple indicators of Donaldson, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -198.9 M | -189 M | |
| Operating Income | 544.1 M | 571.3 M | |
| Income Before Tax | 535.3 M | 562.1 M | |
| Total Other Income Expense Net | -8.8 M | -8.4 M | |
| Net Income | 414 M | 434.7 M | |
| Income Tax Expense | 121.3 M | 61.4 M | |
| Net Income Applicable To Common Shares | 412.6 M | 211.3 M | |
| Net Income From Continuing Ops | 414 M | 292.7 M | |
| Non Operating Income Net Other | 8.8 M | 9.2 M | |
| Interest Income | 17.3 M | 11.8 M | |
| Net Interest Income | -21.4 M | -22.5 M | |
| Change To Netincome | 13.1 M | 10.4 M | |
| Net Income Per Share | 3.43 | 3.60 | |
| Income Quality | 1.19 | 1.44 | |
| Net Income Per E B T | 0.77 | 0.54 |
Donaldson Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Donaldson. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Donaldson position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Donaldson's important profitability drivers and their relationship over time.
Use Donaldson in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Donaldson position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Donaldson will appreciate offsetting losses from the drop in the long position's value.Donaldson Pair Trading
Donaldson Pair Trading Analysis
The ability to find closely correlated positions to Donaldson could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Donaldson when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Donaldson - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Donaldson to buy it.
The correlation of Donaldson is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Donaldson moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Donaldson moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Donaldson can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Donaldson position
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?
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Check out Investing Opportunities. For more detail on how to invest in Donaldson Stock please use our How to Invest in Donaldson guide.You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
To fully project Donaldson's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Donaldson at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Donaldson's income statement, its balance sheet, and the statement of cash flows.