Donaldson Co (Donaldson Co) GF Value Rank : 5 (As of May. 05, 2024)

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What is Donaldson Co GF Value Rank?

Donaldson Co has the GF Value Rank of 5.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Donaldson Co's GF Value Rank

For the Specialty Industrial Machinery subindustry, Donaldson Co's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Donaldson Co's GF Value Rank Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Donaldson Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Donaldson Co's GF Value Rank falls into.

Donaldson Co GF Value Rank Related Terms

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Donaldson Co (Donaldson Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Donaldson Co Inc (NYSE:DCI) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

DNZ:Germany

Address

1400 West 94th Street, Minneapolis, MN, USA, 55431

Website

https://ir.donaldson.com

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 three segments: mobile solutions, industrial solutions, and life sciences. Donaldson generated approximately $3.4 billion in revenue and $480 million in operating income in its fiscal 2023.

Executives

Willard D Oberton	director	2001 THEURER BLVD, WINONA MN 55987
Ajita G Rajendra	director	A. O. SMITH WATER PRODUCTS COMPANY, 500 LINDAHL PARKWAY, ASHLAND CITY TN 37015
Guillermo Briseno	officer: President	PO BOX 1299, MINNEAPOLIS MN 55440
James Owens	director	1200 WILLOW LAKE BOULEVARD, P.O. BOX 64683, ST. PAUL MN 55164-0683
Douglas A. Milroy	director	PO BOX 1299, MINNEAPOLIS MN 55440
Amy C Becker	officer: Vice President	P.O. BOX 1299, MINNEAPOLIS MN 55440-1299
Scott J. Robinson	officer: Senior Vice President	P.O. BOX 1299, MINNEAPOLIS MN 55440-1299
Christopher M. Hilger	director	PO BOX 1299, MINNEAPOLIS MN 55440
Thomas R Scalf	officer: Senior Vice President	P.O. BOX 1299, MINNEAPOLIS MN 55440-1299
Andrew C Dahlgren	officer: President	PO BOX 1299, MINNEAPOLIS MN 55440
Wim Vermeersch	officer: Vice President	P.O. BOX 1299, MINNEAPOLIS MN 55440-1299
Tod E. Carpenter	director, officer: Chairman, President and CEO	P.O. BOX 1299, MINNEAPOLIS MN 55440-1299
Jeffrey E Spethmann	officer: Senior Vice President	P.O. BOX 1299, MINNEAPOLIS MN 55440-1299
Sheila G. Kramer	officer: Vice President	P.O. BOX 1299, MINNEAPOLIS MN 55440-1299
Richard Brent Lewis	officer: Senior Vice President	PO BOX 1299, MINNEAPOLIS MN 55440