Donaldson Co Inc

DCI: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$73.00	Gczjwq	Rgfvnnjy

No Major Surprises in Donaldson’s Fiscal Q4 Earnings; Maintaining FVE

Krzysztof Smalec

Sep 1, 2022

We have maintained our $59 fair value estimate for narrow-moat-rated Donaldson as nothing in its fiscal fourth-quarter earnings release materially alters our long-term outlook for the firm. Despite supply-chain constraints and cost inflation, Donaldson grew its fiscal fourth-quarter adjusted EPS 27% year over year, to $0.84 from $0.66. We’ve rolled our model forward one year, but time value of money was offset by our slightly more muted near-term revenue growth projections, mostly due to foreign currency headwinds.

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