Is the business good?
How good a business is DCI?
Donaldson Company, Inc. earns 22% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
22%
Return on invested capital · cost of capital 9.0% · 13 points above what the capital costs: growth creates value
- Operating margin
- 15%
Operating margin · Specialty Industrial Machinery median 15% · 12 months to Q3 2026
- Cash conversion
- 0.89×
Cash conversion · 0.82× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −1.8%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 13% |
| FY2021 | 13% |
| FY2022 | 13% |
| FY2023 | 14% |
| FY2024 | 15% |
| FY2025 | 13% |
Details›
- Gross margin12 months to Q3 2026
- 34%
- Operating margin12 months to Q3 2026
- 15%
- Net margin12 months to Q3 2026
- 12%
- Free cash flow margin
- 10%
- R&D as % of revenue
- 2.1%
- Revenue, trailing twelve months
- $3.81B
- Free cash flow, trailing twelve months
- $391M
- Net income, trailing twelve months
- $439M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 22%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Specialty Industrial Machinery
Ranks #3 of 44 by Smart Score