Operating Margin

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Price: 101.05 USD 0.43% Market Closed

Market Cap: $11.7B

15.4%

Improving

by 0.6%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

15.4%

Operating Income

$574m

Revenue

$3.7B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

15.4%

Operating Income

$574m

Revenue

$3.7B

Peer Comparison

Country		Company	Market Cap	Operating Margin
US		Donaldson Company Inc NYSE:DCI	11.7B USD	Loading...
JP	I	Ishii Iron Works Co Ltd TSE:6362	304.2T JPY	Loading...
US		Parker-Hannifin Corp NYSE:PH	117.8B USD	Loading...
SE		Atlas Copco AB STO:ATCO A	908.2B SEK	Loading...
JP		Mitsubishi Heavy Industries Ltd TSE:7011	14.9T JPY	Loading...
US		Barnes Group Inc NYSE:B	86.5B USD	Loading...
US		Illinois Tool Works Inc NYSE:ITW	74.8B USD	Loading...
SE		Sandvik AB STO:SAND	433.4B SEK	Loading...
CH		Schindler Holding AG SIX:SCHP	31.9B CHF	Loading...
FI	K	Kone Oyj OMXH:KNEBV	31.4B EUR	Loading...
JP		Fanuc Corp TSE:6954	5.7T JPY	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Donaldson Company Inc
Glance View

Economic Moat

None

Market Cap

11.7B USD

Industry

Machinery

In the bustling era of technological advancements and industrial sophistication, Donaldson Company Inc. has carved a reputation as a stalwart in the filtration solutions industry. Established in 1915, the company has grown from a modest operation into a global powerhouse, tasked with the mission of enhancing productivity and efficiency across a myriad of sectors. At the heart of Donaldson’s operations is its extensive array of filtration systems, which are critical in protecting the integrity of machinery and air quality, thereby ensuring operational reliability and compliance with environmental standards. By catering to diverse industries such as aerospace, agriculture, and industrial manufacturing, Donaldson adeptly marries innovation with practicality, offering solutions that are pivotal to safeguarding the components of modern-day industrial operations. The company's revenue stream is predominantly driven by the sale of its highly-engineered filtration products, which customers rely on for maintaining clean and efficient operations. Donaldson services a wide customer base by providing both first-fit products used in the original manufacturing of machines and aftermarket parts for maintenance and replacements. The consistent demand for replacements—driven by regulatory requirements and the operational necessity for clean air and liquids—ensures a steady flow of repeat business. With production facilities strategically located across the globe, Donaldson is able to swiftly respond to market demands and maintain its status as a leader in its field. Through continuous investment in research and development, Donaldson strives to push the boundaries of filtration technology, reinforcing its commitment to innovation and quality, key factors in its robust financial performance.

View DCI Analysis

DCI Intrinsic Value

Overvaluation 35%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Donaldson Company Inc
NYSE:DCI

Peer Comparison

Market Distribution

Other Profitability Ratios

Donaldson Company Inc
Glance View

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Donaldson Company Inc NYSE:DCI