Donaldson Company manufactures and sell filtration systems and replacement parts. The company operates through two segments, Engine Products and Industrial Products. The company was founded in 1915 and is based in Minneapolis, Minnesota.
DCI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Donaldson Co Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Donaldson Co Inc ranked in the 32th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Donaldson Co Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 20.26 -- which is good for besting 87.6% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
The business' balance sheet suggests that 9% of the company's capital is sourced from debt; this is greater than merely 23.05% of the free cash flow producing stocks we're observing.
DCI's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 36.63% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DCI, try ADT, CMI, NL, REVG, and SVT.
MINNEAPOLIS--(BUSINESS WIRE)---- $DCI--Donaldson Company, Inc. (NYSE: DCI), a leading worldwide provider of innovative filtration products and solutions, today announced that members of its management team will participate in a fireside chat and investor meetings at Morgan Stanley’s virtual 8th annual Laguna Conference on Wednesday, September 16. The fireside chat will begin at approximately 12:45 p.m. EDT. WEBCAST: To listen to a live webcast of the fireside chat, visit the “Events & Presentations”