Yahoo Finance What Do Analysts Think About Donaldson Company, Inc.’s (NYSE:DCI) Future?
On 31 January 2019, Donaldson Company, Inc. (NYSE:DCI) announced its earnings update. Overall, the consensus outlook from analysts appear fairly confident, as a 2.6% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of -4.4%. Currently with trailing-twelve-month earnings of US$180m, we can expect this to reach US$185m by 2020. Below is a brief commentary around Donaldson Company’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
See our latest analysis for Donaldson Company
Exciting times ahead?
The view from 7 analysts over the next three years is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of DCI’s earnings growth over these next few years.
By 2022, DCI’s earnings should reach US$207m, from current levels of US$180m, resulting in an annual growth rate of 5.6%. This leads to an EPS of $2.82 in the final year of projections relative to the current EPS of $1.38. With a current profit margin of 6.6%, this movement will result in a margin of 6.7% by 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Donaldson Company, there are three fundamental factors you should further research:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Donaldson Company worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Donaldson Company is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Donaldson Company? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
