1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
We are bumping our fair value estimate for narrow-moat rated Donaldson to $59 from $57 following the firm’s fiscal second-quarter earnings release. While nothing in Donaldson’s earnings results materially alters our long-term outlook for the firm, we’ve increased our fair value estimate due to an improved near-term outlook, time value of money, and reversing the implementation of a probability-weighted change in the U.S. statutory tax rate in our model.
Donaldson is a leading manufacturer of filtration systems and replacement parts (including air filtration systems, liquid filtration systems, and dust, fume, and mist collectors). The company serves a diverse range of end markets, including construction, mining, agriculture, truck, and industrial. Its business is organized into two segments: engine products and industrial products. Donaldson generated approximately $2.9 billion in revenue and $385 million in operating income in its fiscal 2021.
