Donaldson CoDCI +0.64%94 Return-on-Tangible-Equity is 45.43% as of Apr. 2026, which is 1% above its 10-year median of 44.76. GuruFocus rates DCI with a GF Score™ of 94/100 and a GF Value™ of $81.21 (Fairly Valued). The stock has 1 warning sign investors should review. Among 2,971 Industrial Products companies, Donaldson Co ranks better than 94.68% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Donaldson Co's annualized net income for the quarter that ended in Apr. 2026 was $472 Mil. Donaldson Co's average shareholder tangible equity for the quarter that ended in Apr. 2026 was $1,040 Mil. Therefore, Donaldson Co's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 45.43%.
The historical rank and industry rank for Donaldson Co's Return-on-Tangible-Equity or its related term are showing as below:
DCI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 31.35 Med: 44.76 Max: 55.56
Current: 46.28
During the past 13 years, Donaldson Co's highest Return-on-Tangible-Equity was 55.56%. The lowest was 31.35%. And the median was 44.76%.
DCI's Return-on-Tangible-Equity is ranked better than 94.68% of 2971
companies
in the Industrial Products industry
Industry Median: 6.72
vs DCI: 46.28
Donaldson Co (NYSE:DCI) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Donaldson Co Return-on-Tangible-Equity Related Terms
Donaldson Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Donaldson Co's Return-on-Tangible-Equity 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.
DCI vs GTLS, FLS, WTS: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Donaldson Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Donaldson Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Donaldson Co's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 45.43% mean?
Donaldson Co (DCI) has a Return-on-Tangible-Equity of 45.43% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Donaldson Co and its competitors. This is near median its historical median of 44.76. Over the past decade, Donaldson Co's Return-on-Tangible-Equity has ranged from 31.35 to 55.56. According to the industry distribution chart, Donaldson Co ranks #158 out of 2971 companies in the Industrial Products industry, placing it in the top 5.3%.
Is Donaldson Co's Return-on-Tangible-Equity too high?
Donaldson Co's current Return-on-Tangible-Equity of 45.43% is near median its 10-year median of 44.76. Over the past 10 years, this metric has ranged from a low of 31.35 to a high of 55.56. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Donaldson Co's value of 45.43% is 576% above this industry median. Based on the distribution chart, Donaldson Co ranks #158 out of 2971 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. 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 Return-on-Tangible-Equity compare to GTLS and FLS?
According to the Industrial Products industry distribution chart, Donaldson Co ranks #158 out of 2971 companies for Return-on-Tangible-Equity. This places Donaldson Co in the top 5% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.72. Donaldson Co's value of 45.43% is 576% above this benchmark. Historically, Donaldson Co's own Return-on-Tangible-Equity has ranged from 31.35 to 55.56 over the past decade. While the company's 10-year median is 44.76 vs. the industry median of 6.72, 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 Return-on-Tangible-Equity for an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,971 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Donaldson Co's current Return-on-Tangible-Equity of 45.43% is 576% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Donaldson Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Donaldson Co's current Return-on-Tangible-Equity is 45.43%, which is near median its own 10-year median of 44.76. 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 $81.21, compared to a current price of $89.09 — trading 9.7% above its estimated fair value. The current Return-on-Tangible-Equity is 45.43%, which is near median its 10-year median of 44.76 and 576% above the Industrial Products industry median of 6.72. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Donaldson Co (DCI), the current Return-on-Tangible-Equity is 45.43% 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 $89.09 is trading 9.7% above its estimated GF Value™ of $81.21.
GuruFocus considers Donaldson Co to be Fairly Valued.
Key valuation signals for DCI:
Return-on-Tangible-Equity: 45.43% (near median its 10-year median of 44.76)
GF Value™: $81.21 vs. price of $89.09 (9.7% above fair value)
Industry Position: 576% above the Industrial Products median (#158 of 2971)
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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