Donaldson Company, Inc. research snapshot
DCI AI stock analysis currently reads Donaldson Company as a durable, technology-led filtration franchise with strong aftermarket exposure, record fiscal Q3 2026 sales and adjusted margins, and a recently closed Facet Filtration acquisition. At the July 12, 2026 data cutoff, DCI closed near $89.24 on July 10 with a verified market capitalization near $10.34 billion. The stock is no longer near its 52-week high of $112.84, so the setup mixes quality business fundamentals with a more constructive entry zone than earlier peaks, yet mid-single-digit organic growth and a roughly mid-20s earnings multiple still require discipline. This page uses scenario ranges and source checks, not a certain stock price prediction, and is for informational use only.
Current price
$89.24
Market cap
$10.34 billion
AI score
69 / 100
Rating
High-quality filtration compounder with aftermarket resilience; fair valuation, moderate growth
Trend status
Pullback from 52-week highs: about 20.9% below $112.84, price above the 20-day and 50-day averages
Data cutoff (updated weekly)
July 12, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Donaldson designs and sells filtration systems and replacement parts across Mobile Solutions, Industrial Solutions, and Life Sciences, with aftermarket filters and service creating recurring demand after OEM installs. | High |
| Moat | Moat comes from OEM specification, installed bases, aftermarket replacement cycles, filtration IP and application know-how, global scale, and channel reach. It is a durable portfolio moat, not a single product monopoly. | Medium-high |
| Management | CEO Rich Lewis has emphasized diversified segment execution, operating expense leverage, capital returns (dividends and buybacks), and the May 2026 Facet acquisition to deepen industrial filtration. Proof points are Facet integration and sustained adjusted margins. | Medium-high |
| Financial trend | Q3 fiscal 2026 sales were a record $995.1 million (+5.8% y/y), adjusted operating margin hit an all-time high 16.6%, adjusted EPS was $1.06, and nine-month sales reached $2.827 billion. Organic FY2026 sales guidance is +3% to +5% with organic adjusted EPS $3.94 to $4.01. | High |
| Valuation | At $89.24, DCI screens near 24.0x TTM EPS of $3.72, about 22.5x the $3.975 midpoint of organic FY2026 adjusted EPS guidance, roughly 6.1x book value, about 3.1% FCF yield on annualized free cash flow, and a ~1.3% dividend yield. | High |
| Technical trend | Price has pulled back from the $112.84 52-week high into the high $80s, trading above the 20-day average near $87.61 and the 50-day average near $85.72, which is a repair regime rather than a fresh breakout. | Medium-high |
| Risk level | Main risks include industrial and truck cycle softness, Facet integration and higher interest expense, aerospace and defense project timing, gross margin headwinds in power generation, FX, tariffs and input costs, competition in filtration, and multiple compression if growth disappoints. | Medium-high |
| AI confidence | High for descriptive company facts and audited calculations; medium for forward scenarios and day-to-day chart levels. | High data confidence |
| Investment certainty | Medium certainty. The page frames scenarios and monitoring rules, not a buy or sell instruction. | Medium |
DCI AI stock forecast
The DCI AI stock forecast uses scenario math around the $89.24 quote and organic FY2026 adjusted EPS guidance near $3.94 to $4.01 (about $3.975 at the midpoint), before Facet dilution of roughly $0.03. The tool-audited three-year framework used 10%/6%/2% EPS growth with 26x/22x/16x terminal PE and produced a bullish area near $138, a base area near $104, and a bearish area near $68 before dividends. These are research ranges, not promises.
$130 to $140 before dividends
More likely if organic sales sustain high-single-digit second-half momentum, adjusted operating margin holds near 16%, Facet contributes accretive industrial filtration with limited dilution, Life Sciences stays double-digit, and investors re-rate DCI toward the mid-20s PE on rising EPS.
$100 to $110 before dividends
More likely if Donaldson delivers mid-single-digit organic growth, organic adjusted EPS near $4.00, free cash flow conversion in the 85% to 95% guided band, steady dividends and modest buybacks, and the market values the stock near low-20s earnings multiples.
$65 to $72 before dividends
More likely if truck or industrial OE demand rolls over, Facet integration raises leverage without margin lift, aerospace and defense stays soft, gross margins compress further, or the stock is repriced closer to mid-teens PE on stalled EPS growth.
DCI AI technical analysis
DCI AI technical analysis as of the July 12, 2026 data cutoff is a post-peak repair setup. Yahoo Finance daily data show a July 10 close of $89.24, with the 20-day average near $87.61, the 50-day average near $85.72, and 14-day RSI near 60.5. The 52-week range is $69.03 to $112.84, so price sits about 20.9% below the high and well above the low.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $89.24 | Yahoo Finance chart close on July 10, 2026. Recent sessions included $87.68 on July 8 and $88.52 on July 9. |
| Near support | $87 to $88 | Clustered with the 20-day moving average near $87.61 and the July 8 to July 9 closes. A hold here keeps the short-term repair intact. |
| Deeper support | $85 to $86 | Aligned with the 50-day moving average near $85.72. A loss of this band would weaken the intermediate trend repair. |
| Major support | $69.03 | 52-week low from Yahoo Finance metadata. A break would signal a broader trend failure, not only a normal pullback. |
| Near resistance | $91 to $95 | July 6 close near $91.37 and overhead supply after the pullback. Reclaiming the mid-$90s on rising volume would improve the short-term trend read. |
| Upper resistance | $112.84 | 52-week high from Yahoo Finance. A return to that area needs both earnings delivery and multiple expansion. |
| Momentum | 14-day RSI near 60.5 | Computed from Yahoo Finance daily closes through July 10, 2026. Momentum is constructive but not extreme after the drawdown from highs. |
| Volume | 20-day average volume near 0.82 million shares | Yahoo Finance 20-session average volume near 822,000 shares, so moves well above that level carry more signal. |
| Volatility | About 20.9% below 52-week high; beta near 0.94 | Beta near 0.9 to 0.95 implies market-like risk, while the wide 52-week band shows investors still reprice industrial filtration multiples quickly. |
| Invalidation | Close below $85 | A decisive close under the 50-day average near $85.72 would weaken the repair thesis and raise odds of a deeper retest toward the high $70s or lower. |
DCI AI trading strategy
The DCI AI trading strategy is a rules-based research framework for a quality filtration compounder that has already corrected from highs. It is not personal advice and should be paired with fresh chart data, segment results, Facet updates, position sizing, and a defined invalidation level.
Watch for DCI to hold the $87 to $88 zone above the 20-day average, then reclaim $91 to $95 on volume above the roughly 0.82 million share average. A later push through $100 would need confirmation from Q4 or full-year fiscal 2026 results, organic growth, and Facet contribution.
A close below $85 (near the 50-day average), or a failed reclaim of $95 after the next earnings update, should invalidate the near-term trend setup.
If DCI pulls toward the $85 to $86 50-day band without a negative guidance reset, compare price action with Mobile aftermarket trends, Industrial Filtration Solutions orders, Life Sciences growth, free cash flow conversion, and net leverage after Facet before treating the dip as normal.
Do not average down without a maximum loss rule. Quality industrials can still re-rate lower when OE cycles or acquisition leverage surprise the market.
Track organic sales by Mobile, Industrial, and Life Sciences; adjusted operating margin; Facet sales and EPS dilution; free cash flow conversion versus the 85% to 95% guide; debt and interest expense; buyback pace; and aerospace and defense timing.
Reduce confidence if EPS growth relies mainly on buybacks or one-time items while organic volume, gross margin, and cash conversion weaken.
Investment research summary
Customers pay Donaldson to keep engines, factories, aerospace systems, power-generation equipment, food and beverage processes, and disk-drive or life-science lines free of harmful particles and contaminants. The essential model is technology-led filters and systems plus a large replacement aftermarket once equipment is installed.
The moat is multi-layered: OEM design-ins, replacement filter cycles, global manufacturing and distribution, brand trust in mission-critical filtration, and application engineering. Facet adds fuel and fluid filtration niches in aerospace, defense, and power generation. Switching can be slow when filters are specified into platforms, but competitors such as Parker, Mann+Hummel, and OEM captive filtration still press pricing.
The thesis fails if Mobile OE and aftermarket utilization fall together, Industrial Filtration and aerospace stay soft, Facet fails to earn its $829 million cost of capital, leverage rises without margin lift, or investors refuse mid-20s multiples for mid-single-digit growth. Historical analogs are industrial compounders that looked safe until a cycle and acquisition combination compressed both earnings and PE.
Judge management on organic growth quality, adjusted margin sustainability near the mid-teens, Facet integration, free cash flow conversion, dividend growth, buyback timing after leverage from the deal, and whether Life Sciences becomes a meaningful third growth engine rather than a small cyclical add-on.
Long-duration demand for cleaner air, stricter emissions, industrial dust collection, power generation filtration, food and beverage purity, and semiconductor or disk-drive process cleanliness supports filtration as a civilization-level need. End markets remain cyclical with truck production, construction equipment, factory capex, and project timing.
At about 22x to 24x earnings on mid-single-digit organic growth, DCI is priced as a quality compounder, not as a distressed turnaround. Margin of safety improves if price holds near or below the 50-day average while organic guidance, margins, and cash conversion stay intact after Facet closes into the run-rate.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| DCI price | July 10, 2026 close $89.24; prior closes $88.52 (July 9) and $87.68 (July 8) | Yahoo Finance daily chart | July 12, 2026 |
| Market capitalization | $10.34 billion, verified as $89.24 x 115.91 million shares (0.04% variance vs reported $10.34B) | financial_rigor.py market cap verification | July 12, 2026 |
| Shares outstanding | 115.91 million shares (Yahoo Finance / StockAnalysis / Motley Fool); CompaniesMarketCap listed about 115.6 million (0.27% variance) | Multi-source share count cross-check | July 12, 2026 |
| Q3 fiscal 2026 sales and EPS | Net sales $995.1 million (+5.8% y/y); GAAP diluted EPS $1.00; adjusted diluted EPS $1.06; adjusted operating margin 16.6% | Donaldson Q3 fiscal 2026 results release | July 12, 2026 |
| Nine-month fiscal 2026 results | Sales $2,826.8 million (+4.3%); net earnings $324.5 million; free cash flow $241.3 million; dividends $104.0 million; buybacks about 1.2% of shares for $108.5 million | Donaldson Q3 fiscal 2026 results release | July 12, 2026 |
| Segment sales (Q3 fiscal 2026) | Mobile Solutions $629.9M (+8.1%), Industrial Solutions $281.7M (-0.6%), Life Sciences $83.5M (+12.7%) | Donaldson Q3 fiscal 2026 segment detail | July 12, 2026 |
| Fiscal 2026 organic guidance | Organic sales +3% to +5%; organic adjusted EPS $3.94 to $4.01; adjusted operating margin 15.8% to 16.2%; Facet sales $25M to $30M with about $0.03 net EPS dilution | Donaldson Q3 fiscal 2026 outlook | July 12, 2026 |
| Cash, debt, and equity (April 30, 2026) | Cash $204.1 million; long-term debt $591.6 million plus short-term borrowings $10.3 million and current maturities $6.4 million; stockholders equity $1,695.3 million; net debt about $404 million | Donaldson condensed consolidated balance sheet | July 12, 2026 |
| TTM revenue and net income | Revenue about $3.81 billion; net income about $438.8 million; TTM EPS about $3.72 (cross-validated across StockAnalysis, Yahoo Finance, Motley Fool) | Multi-source TTM fundamentals | July 12, 2026 |
| Valuation ratios (tool-audited) | Trailing PE 23.99x on $3.72 EPS; earnings yield 4.17%; PB about 6.10x on $14.63 book value per share; FCF yield about 3.1% on annualized free cash flow; dividend yield about 1.34% on $1.20 annualized dividend | financial_rigor.py valuation verification | July 12, 2026 |
| Moving averages and RSI | 20-day SMA about $87.61; 50-day SMA about $85.72; 14-day RSI about 60.5; 20-day average volume about 822,000 shares (Yahoo daily series through July 10, 2026) | Yahoo Finance daily chart calculations | July 12, 2026 |
| Facet acquisition | Closed May 4, 2026 all-cash acquisition of Facet Filtration for $829 million; results report in Industrial Solutions from Q4 fiscal 2026 | Donaldson Q3 fiscal 2026 results release | July 12, 2026 |
| 52-week range and beta | 52-week range $69.03 to $112.84; beta about 0.93 to 0.94 | Yahoo Finance and MarketWatch snapshots | July 12, 2026 |
This DCI AI stock analysis is an informational research tool only. It is not investment advice, financial advice, or a recommendation to buy or sell Donaldson Company, Inc. stock. Forecast scenarios are based on available public data, assumptions, and valuation ranges as of the stated data cutoff and can be wrong. Always verify figures with primary filings and current market data before making decisions.
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