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
Donaldson Company, Inc. (DCI) Stock Analysis
Industrials · Specialty Industrial Machinery
Sell if holding. Analyst target reached at $85.29 — A.R:R 0.5:1 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 $85.29 — A.R:R 0.5:1 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: No clear chart pattern; technical signals are mixed. Score 5.3/10, moderate confidence.
Passes 5/9 gates (clean insider activity, news events none recent, earnings proximity 33d 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'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
updated 2026-10-30Recent 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 2026-10-30T11:22:45Z.
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
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
1 floor-breaker
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $85.29 — A.R:R 0.5:1 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: No clear chart pattern; technical signals are mixed. Prior stop was $82.19. Score 5.3/10, moderate confidence.
Analyst target: $87.35 (+2.4% upside). Prior stop was $82.19. Stop-loss: $82.19.
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 22.2 (forward 17.6). TrendMatrix value score: 5.7/10. 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 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.