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The Company Founded in 1915, Donaldson Company, Inc. (the Company or Donaldson) is a global leader in technology-led filtration products and solutions, serving a broad range of industries and advanced markets. Donaldson s diverse and skilled employees at more than 150 locations on six continents, 77 of which are manufacturing and/or distribution centers, partner with customers from small busine…
13.42% operating margin is respectable but not wide. ROIC at 17.19%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue growth slowed to 2.9%, essentially flat. Margins also contracted 1.7pp. This is a business that needs a catalyst.
Free cash flow declined 16% versus the prior year, cash generation momentum has weakened. ROIC dropped from 19.77% to 17.19%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$3.81B
▲ +2.9% YoY
Net Income (TTM)
$439M
▼ -11.4% YoY
Op. Margin
15.10%
▼ -1.7pp YoY
ROIC
19.90%
▼ -2.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$391M
▼ -16.5% YoY
Op. Cash Flow (TTM)
$462M
▼ -15.0% YoY
Net Debt
$404M
Cash & Equiv.
$204M
5Y CAGR: +7.4%
5Y CAGR: +5.3%
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