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
Donaldson Company, Inc. (DCI) Stock Analysis
Recovery setup
Industrials · Specialty Industrial Machinery
Sell if holding. Analyst target reached at $87.21 — A.R:R 0.0:1 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 (62.1%).
Donaldson makes filtration products and systems for engine, industrial and life-sciences markets, operating in four regions with about 15,000 employees. Mobile Solutions is 62.1% of fiscal 2025 net sales, Industrial Solutions 29.9% and Life Sciences 8.0%; no customer reached 10%... Read more
Sell if holding. Analyst target reached at $87.21 — A.R:R 0.0:1 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 (62.1%). Chart setup: Death cross but MACD improving, RSI 53. Score 5.4/10, moderate confidence.
Passes 6/9 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 49d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: moderate.
About Donaldson Company, Inc.
About Donaldson Company, Inc.
Donaldson Company's Mobile Solutions segment generated 62.1% of fiscal 2025 net sales, Industrial Solutions 29.9%, and Life Sciences 8.0%, from operations at more than 150 locations on six continents. The U.S. and Canada represented 44.2% of fiscal 2025 revenue, EMEA 27.8%, APAC 17.2%, and Latin America 10.8%. About 15,000 full-time employees support the platform, and 90-day backlog stood at $552.2 million as of July 31, 2025, compared to $574.7 million a year earlier.
Donaldson earns revenue from OEM equipment sales and aftermarket replacement filters distributed through OEM dealer networks and independent distributors, alongside direct industrial sales. Mobile Solutions — spanning Off-Road, On-Road, and Aftermarket business units — serves construction, mining, agriculture, and transportation OEMs; the Aftermarket unit provides recurring replacement filter demand from existing installed equipment. Industrial Solutions sells through OEM, distributor, and direct channels serving metals, chemicals, food and beverage, and pharmaceutical markets. Life Sciences targets large OEMs and direct end users in bioprocessing, microelectronics, and food manufacturing. Purchased raw materials — steel, filter media, and petrochemical-based products — represent approximately 67% of cost of sales, and the 10-K discloses that the company often concentrates sourcing of some materials from single or few suppliers, which could expose operations to delivery disruptions if those suppliers fail to meet requirements.
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Donaldson's supply chain faces compounding risk from two directions. The 10-K states that new tariffs on imports from Mexico, China, and the EU — if "implemented and sustained for an extended period of time" — could materially affect the company's supply chain and cost structure given its international manufacturing footprint. At the same time, the electrification of off-road and on-road equipment may reduce long-term demand for diesel-related filtration products; the company acknowledges these disruptive technologies could adversely affect its Mobile Solutions segment if adoption accelerates faster than Donaldson can reposition toward alternative power filtration offerings.
See also: Industrials · Specialty Industrial Machinery
From Donaldson Company, Inc.'s most recent 10-K filing, extracted October 11, 2026.
Recent developments
updated 2026-10-15Recent Developments — Donaldson Company, Inc.
Latest news
- NEWS Chad Mosteller appointed new DCI Director for South Dakota - DRGNews — DRGNews neutral
- NEWS Bitdeer selects DCI to build 180 MW AI data center in Norway - MSN — MSN positive
- NEWS Donaldson (DCI) Projected to Announce Quarterly Earnings on Wednesday - MarketBeat — MarketBeat neutral
- NEWS Donaldson Company Inc (DCI) Dividends & Stock Splits: Historical Payouts and Event Timeline - TradingKey — TradingKey neutral
- NEWS DCI Group Adds Six New Hires Across Client Services, Digital, and Strategic Communications - PR Newswire — PR Newswire positive
Generated 2026-10-15T11:42:22Z.
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 62.1% of net sales in fiscal 2025'
- MEDIUMGeographicU.S. and Canada region44%10-K Item 1: 'the U.S. and Canada 44.2%'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
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Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $87.21 — A.R:R 0.0:1 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 (62.1%). Chart setup: Death cross but MACD improving, RSI 53. Prior stop was $83.91. Score 5.4/10, moderate confidence.
Take-profit target: $87.35 (+0.2% upside). Prior stop was $83.91. Stop-loss: $83.91.
Concentration risk — Product: Mobile Solutions segment (62.1%); Analyst target reached - limited upside remaining; Sector modifier (Industrials): -0.7.
Donaldson Company, Inc. trades at a P/E of 22.6 (forward 17.9). TrendMatrix value score: 5.6/10. Verdict: Sell.
12 analysts cover DCI with a consensus score of 3.7/5. Average price target: $100.
What does Donaldson Company, Inc. do?Donaldson makes filtration products and systems for engine, industrial and life-sciences markets, operating in four...
Donaldson makes filtration products and systems for engine, industrial and life-sciences markets, operating in four regions with about 15,000 employees. Mobile Solutions is 62.1% of fiscal 2025 net sales, Industrial Solutions 29.9% and Life Sciences 8.0%; no customer reached 10% of net sales.