Donaldson CoDCI +2.37%94 Gross Margin % is 33.50% as of Apr. 2026, which is 2% below its 10-year median of 34.03. GuruFocus rates DCI with a GF Score™ of 94/100 and a GF Value™ of $81.11 (Fairly Valued). The stock has 1 warning sign investors should review. Among 3,003 Industrial Products companies, Donaldson Co ranks better than 67.93% on this metric.
The historical rank and industry rank for Donaldson Co's Gross Margin % or its related term are showing as below:
DCI'
s Gross Margin % Range Over the Past 10 Years
Min: 32.28 Med: 34.03 Max: 35.54
Current: 34.16
During the past 13 years, the highestGross Margin % of Donaldson Co was 35.54%. The lowest was 32.28%. And the median was 34.03%.
DCI's Gross Margin % is ranked better than 67.93% of 3003
companies
in the Industrial Products industry
Industry Median: 26.79
vs DCI: 34.16
Donaldson Co had a gross margin of 33.50% for the quarter that ended in Apr. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Donaldson Co was 1.00% per year.
Donaldson Co (NYSE:DCI) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Donaldson Co had a gross margin of 33.50% for the quarter that ended in Apr. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Donaldson Co Gross Margin % Related Terms
Donaldson Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Donaldson Co's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Industrial Machinery subindustry, Donaldson Co's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Donaldson Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Donaldson Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Donaldson Co (DCI) has a Gross Margin % of 33.50% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Donaldson Co and its competitors. This is near median its historical median of 34.03. Over the past decade, Donaldson Co's Gross Margin % has ranged from 32.28 to 35.54. According to the industry distribution chart, Donaldson Co ranks #963 out of 3003 companies in the Industrial Products industry, placing it in the top 32.1%.
Is Donaldson Co's Gross Margin % too high?
Donaldson Co's current Gross Margin % of 33.50% is near median its 10-year median of 34.03. Over the past 10 years, this metric has ranged from a low of 32.28 to a high of 35.54. The Industrial Products industry median Gross Margin % is 26.79. Donaldson Co's value of 33.50% is 25% above this industry median. Based on the distribution chart, Donaldson Co ranks #963 out of 3003 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Donaldson Co has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Donaldson Co's Gross Margin % compare to FLS and GTLS?
According to the Industrial Products industry distribution chart, Donaldson Co ranks #963 out of 3003 companies for Gross Margin %. This puts Donaldson Co in the upper half of its industry. The industry median Gross Margin % is 26.79. Donaldson Co's value of 33.50% is 25% above this benchmark. Historically, Donaldson Co's own Gross Margin % has ranged from 32.28 to 35.54 over the past decade. While the company's 10-year median is 34.03 vs. the industry median of 26.79, Donaldson Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.79, based on 3,003 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Donaldson Co's current Gross Margin % of 33.50% is 25% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Donaldson Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Donaldson Co's current Gross Margin % is 33.50%, which is near median its own 10-year median of 34.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Donaldson Co stock overvalued right now?
Based on GuruFocus' analysis, Donaldson Co (DCI) is currently considered Fairly Valued. The stock's GF Value™ is $81.11, compared to a current price of $88.11 — trading 8.6% above its estimated fair value. The current Gross Margin % is 33.50%, which is near median its 10-year median of 34.03 and 25% above the Industrial Products industry median of 26.79. Donaldson Co's overall GF Score™ is 94/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Donaldson Co (DCI), the current Gross Margin % is 33.50% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Donaldson Co (DCI) Overvalued in 2026?
Based on GuruFocus' analysis, Donaldson Co stock appears to be overvalued.
The current stock price of $88.11 is trading 8.6% above its estimated GF Value™ of $81.11.
GuruFocus considers Donaldson Co to be Fairly Valued.
Key valuation signals for DCI:
Gross Margin %: 33.50% (near median its 10-year median of 34.03)
GF Value™: $81.11 vs. price of $88.11 (8.6% above fair value)
Industry Position: 25% above the Industrial Products median (#963 of 3003)
No single metric tells the full story. See the DCI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 $3.7 billion in revenue in its fiscal 2025.
94GF Score
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