Donaldson carries a high-quality industrial franchise with a 28% return on equity and a perfect balance sheet health score, but the stock has effectively reached its analyst price target with virtually no remaining upside, making the risk/reward unattractive for new positions at current levels.
Thesis pillars
- High Quality Industrial Franchise→Stable
- Fcf Below Net Income→Stable
- Price At Analyst Target→Stable
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Sep 25, 2026· older than 90 days
Donaldson Company, Inc. (DCI) Stock Analysis
Range Bound setup · Catalyst-Driven edge
Industrials · Specialty Industrial Machinery
Sell if holding. Analyst target reached at $85.90 — A.R:R 0.3:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: Mobile Solutions segment (62.3%).
Donaldson makes filtration products and systems in three segments: Mobile Solutions (62.3% of fiscal 2026 net sales; engine air, fuel, lube, hydraulic and emissions filters), Industrial Solutions (29.1%) and Life Sciences (8.6%). It sells to OEMs, independent distributors,... Read more
Sell if holding. Analyst target reached at $85.90 — A.R:R 0.3:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: Mobile Solutions segment (62.3%). Chart setup: RSI 45 mid-range, Bollinger mid-band. Score 5.5/10, moderate confidence.
Passes 5/9 gates (positive momentum, clean insider activity, earnings proximity 29d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: moderate.
About Donaldson Company, Inc.
About Donaldson Company, Inc.
Donaldson's Mobile Solutions segment represented 62.3% of fiscal 2026 net sales, ahead of Industrial Solutions at 29.1% and Life Sciences at 8.6%. By region, the U.S. and Canada contributed 42.5% of fiscal 2026 revenue, EMEA 29.2%, Asia Pacific 17.7%, and Latin America 10.6%. The filtration company had approximately 15,500 full-time employees at July 31, 2026, with 60% in production roles, across more than 150 locations on six continents.
Mobile Solutions sells replacement air, fuel, lube, and hydraulic filters and emissions products for construction, mining, agriculture, and transportation equipment, to original equipment manufacturers, independent distributors, and OEM dealer networks. Industrial Solutions covers dust, fume, and mist collectors, compressed air and industrial gas purification, power generation air inlet systems, and aerospace and defense filtration for fixed-wing aircraft, rotorcraft, missile systems, ground defense vehicles, and naval platforms. Life Sciences sells food and beverage, disk drive, microelectronics, membrane, and bioprocessing products, mainly to large OEMs and direct to end users. The company owns over 3,100 issued patents and performs substantially all research and development in-house, with proprietary media such as PowerCore and Ultra-Web. Its strategy names three priorities: extending market access, expanding technologies and solutions, and pursuing strategic acquisitions in high-margin areas.
Show full overview
Input costs and cyclical end markets shape the risk profile. The principal raw materials are steel, filter media, and petrochemical-based plastic, rubber, and adhesive products, and purchased raw materials represent approximately 67% of cost of sales; the company tries to offset increases through selective price increases and cost reduction. No customer accounted for 10% or more of net sales in fiscal 2026, 2025, or 2024, but the filing notes that many customers sit in similar cyclical industries, including construction, agriculture, mining, oil and gas, transportation, power generation, and disk drive, so a downturn in several of them at once could reduce demand for both original equipment and replacement parts.
See also: Industrials · Specialty Industrial Machinery
From Donaldson Company, Inc.'s most recent 10-K filing, extracted October 18, 2026.
Recent developments
No fresh coverage since Aug 25, 2026
Recent Developments — Donaldson Company, Inc.
Latest news
- NEWS Meiji Yasuda Asset Management Co Ltd. Purchases Shares of 33,845 Donaldson Company, Inc. $DCI - MarketBeat — MarketBeat Aug 25, 2026 neutral
- NEWS Donaldson (DCI) Q2 Earnings: What To Expect - TradingView — TradingView Aug 25, 2026 neutral
- NEWS Donaldson (DCI) Latest Quarter: The Bottom-Line Figure Outpaces Its Comparison in Latest Trading; Investor Response: The — vinanet.vn Aug 20, 2026 positive
- NEWS Donaldson (DCI) Earnings Reading: EPS Prints Above Forecast in the Latest Reading; Price Reaction - vinanet.vn — vinanet.vn Aug 20, 2026 positive
- NEWS Donaldson (DCI) Latest Quarter: The Bottom-Line Figure Beats Its Comparison; Price Reaction: Shares Close 1.25% Lower on — vinanet.vn Aug 20, 2026 positive
Latest item Aug 25, 2026 · Generated 2026-11-04T11:54:37Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHProductMobile Solutions segment62%10-K Item 1: 'The Mobile Solutions segment, which represents 62.3% of net sales in fiscal 2026'
- MEDIUMGeographicU.S. and Canada43%10-K Item 1: 'their contributing share of fiscal year 2026 revenue are as follows: the U.S. and Canada 42.5%'
- MEDIUMCommoditysteel, filter media and petrochemical-based raw materials10-K Item 1: 'The principal raw materials the Company uses are steel, filter media and petrochemical-based products including plastic, rubber and adhesive products.'
Material Events(8-K, last 90d)
- 2026-07-24Item 5.02LOWDirector Douglas A. Milroy, on the Board since 2016, resigned effective July 31, 2026. No reason cited.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
10 dimensions · all in-band
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $85.90 — A.R:R 0.3:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: Mobile Solutions segment (62.3%). Chart setup: RSI 45 mid-range, Bollinger mid-band. Prior stop was $82.04. Score 5.5/10, moderate confidence.
Analyst target: $87.35 (+1.7% upside). Prior stop was $82.04. Stop-loss: $82.04.
Concentration risk — Product: Mobile Solutions segment (62.3%); Analyst target reached - limited upside remaining; Sector modifier (Industrials): -0.7.
Donaldson Company, Inc. trades at a P/E of 22.3 (forward 17.7). TrendMatrix value score: 5.7/10. Verdict: Sell.
12 analysts rate DCI, with a consensus score of 3.7/5. 5 analysts publish price targets averaging $100.
What does Donaldson Company, Inc. do?Donaldson makes filtration products and systems in three segments: Mobile Solutions (62.3% of fiscal 2026 net sales;...
Donaldson makes filtration products and systems in three segments: Mobile Solutions (62.3% of fiscal 2026 net sales; engine air, fuel, lube, hydraulic and emissions filters), Industrial Solutions (29.1%) and Life Sciences (8.6%). It sells to OEMs, independent distributors, dealers and end users from more than 150 locations on six continents. Replacement filters and in-house fine-fiber media technology support its position.