Narrow-moat-rated Donaldson reported flat sales and EPS growth, after adjusting for restructuring charges, in its fiscal first quarter of 2024. While nothing in the earnings release has altered our long-term view of the business, we've raised our fair value estimate to $65 from $63 due to time value of money.
Donaldson generates a healthy stream of recurring revenue, as aftermarket parts and consumables account for over 60% of sales, which helps mitigate the firm’s exposure to cyclical end markets.
In the long run, the advent of electric powertrains poses a threat to Donaldson’s engine segment.
|
Metric
|
DCI
|
ITT
|
HUBB
|
|---|---|---|---|
Price/Earnings (Normalized) | 20.20 | 21.36 | 21.13 |
Price/Book Value | 5.54 | 3.76 | 5.94 |
Price/Sales | 2.21 | 2.83 | 3.12 |
Price/Cash Flow | 16.31 | 16.23 | 18.65 |
|
Metric
|
DCI
|
ITT
|
HUBB
|
|---|---|---|---|
Quick Ratio | 1.04 | 1.08 | 1.35 |
Current Ratio | 1.70 | 1.71 | 2.16 |
Interest Coverage | 25.41 | 50.04 | 25.23 |
|
Metric
|
DCI
|
ITT
|
HUBB
|
|---|---|---|---|
Return on Assets (Normalized) | 14.28% | 11.29% | 13.91% |
Return on Equity (Normalized) | 30.75% | 18.82% | 30.72% |
Return on Invested Capital (Normalized) | 21.06% | 15.73% | 19.59% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
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