Stock fact sheet · data as of
Donaldson Company, Inc. (DCI): fair value, margin of safety and Wheel Score
Industrials · Industrial - Machinery · United States · Blend
Is DCI undervalued?
Donaldson Company, Inc. (DCI) closed at 87.77 on 16 Oct 2026, 53% above the GLS average fair value of 57.36. 7 of the 9 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
The 9 models disagree widely: DDM gives 18.25 while Graham Growth gives 104.00. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files DCI under Blend.
Nine valuation models for DCI
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 65.46 | -25% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 36.65 | -58% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 104.00 | +18% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 36.53 | -58% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 29.49 | -66% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 99.92 | +14% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 82.43 | -6% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 18.25 | -79% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 43.54 | -50% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -4.77 | -105% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 96.50 | +10% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health DCI scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 7.3 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are high - ROIC 14.4%, ROE 25.7%, ROA 11.4% - with debt at 0.78 times equity and a free-cash-flow yield of 4.2%.
The dividend yield is 1.41% with a payout ratio of 31% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Mobile Solutions 60%, Industrial Solutions 32%, Life Sciences 9% (quarter Q4 FY2026).
Institutional ownership scores 10/10, insider activity 4/10 and Congressional trading 1/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 14.4% |
|---|---|---|---|
| GLS Moat | 7.3 / 10 | ROE | 25.7% |
| Debt / equity | 0.78 | ROA | 11.4% |
| Free-cash-flow yield | 4.2% | Payout ratio | 31% |
| Institutions | 10 / 10 | Insiders · Congress | 4 · 1 / 10 |
Wheel Score 61: Fair
DCI scores 61 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 0/25, Health 16/20, Moat 11/15, Premium 17/20, Stability 17/20. Value (0/25) is where the points are missing.
Implied volatility is 32% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (17 of 20 points). Chain open interest is thin - 1,610 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 708k shares a day on a market cap of $10.2B, with a beta of 0.87; the Stability part of the Wheel Score gives that 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -53% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 11 / 15 | moat 7.3/10 | |
| Premium | 17 / 20 | implied volatility 32% | |
| Stability | 17 / 20 | 708k shares/day, $10.2B cap, beta 0.87 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 3 Dec 2026, 48 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Industrial - Machinery
The 12 companies below are the closest to Donaldson Company, Inc. by market cap within the Industrial - Machinery industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| RRX Regal Rexnord Corporation | 157.06 | 118.20 | -33% | 64Fair | $10.5B |
| FLS Flowserve Corporation | 70.77 | 69.84 | -1% | 74Good | $9.0B |
| GNRC Generac Holdings Inc. | 198.40 | 143.86 | -38% | 58Fair | $11.7B |
| WTS Watts Water Technologies, Inc. | 352.10 | 189.99 | -85% | 61Fair | $11.8B |
| MAIR Madison Air Solutions Corporation | 23.47 | 4.80 | -389% | 42Weak | $11.8B |
| CR Crane Company | 205.73 | 95.92 | -114% | 51Fair | $11.9B |
| INIO INNIO N.V. Ordinary Shares | 16.50 | 6.18 | -167% | 40Weak | $12.4B |
| LII Lennox International Inc. | 358.50 | 480.26 | +25% | 85Prime | $12.4B |
| PNR Pentair plc | 52.11 | 70.59 | +26% | 89Prime | $8.3B |
| MOD Modine Manufacturing Company | 154.01 | 77.34 | -99% | 50Fair | $8.2B |
| AOS A. O. Smith Corporation | 59.47 | 74.36 | +20% | 82Prime | $8.1B |
| ZWS Zurn Elkay Water Solutions Corporation | 47.09 | 44.58 | -6% | 74Good | $7.8B |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about DCI
Is DCI undervalued right now?
No: at 87.77 the stock trades 53% above the GLS average fair value of 57.36 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of DCI and what does it mean?
DCI scores 61 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for DCI?
57.36 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Donaldson Company, Inc. report earnings next?
The next earnings report is due on 3 Dec 2026 (before the open), 48 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does DCI have listed options, and how liquid are they?
Yes. The nightly snapshot found 182 listed contracts with 1,610 open interest across all expiries and implied volatility of 32% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.