Donaldson CoDCI -2.00%94 3-Year ROIIC % is 22.85 as of Jul. 2025, which is 16% above its 10-year median of 19.78. GuruFocus rates DCI with a GF Score™ of 94/100 and a GF Value™ of $81.27 (Fairly Valued). The stock has 1 warning sign investors should review. Among 2,936 Industrial Products companies, Donaldson Co ranks better than 76.19% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Donaldson Co's 3-Year ROIIC % for the quarter that ended in Jul. 2025 was 22.85%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Donaldson Co's 3-Year ROIIC % or its related term are showing as below:
DCI's 3-Year ROIIC % is ranked better than 76.19% of 2936
companies
in the Industrial Products industry
Industry Median: 3.395
vs DCI: 22.85
Donaldson Co (NYSE:DCI) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Donaldson Co 3-Year ROIIC % Related Terms
Donaldson Co 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Donaldson Co's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Donaldson Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Donaldson Co's 3-Year ROIIC % falls into.
Donaldson Co's 3-Year ROIIC % for the quarter that ended in Jul. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 415.59744 (Jul. 2025) - 336.66085 (Jul. 2022) )
/
( 2240 (Jul. 2025) - 1894.6 (Jul. 2022) )
=
78.93659
/
345.4
=
22.85%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Donaldson Co (DCI) has a 3-Year ROIIC % of 22.85 as of Jul. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Donaldson Co and its competitors. This is 16% above median its historical median of 19.78. According to the industry distribution chart, Donaldson Co ranks #699 out of 2936 companies in the Industrial Products industry, placing it in the top 23.8%.
Is Donaldson Co's 3-Year ROIIC % too high?
Donaldson Co's current 3-Year ROIIC % of 22.85 is 16% above median its 10-year median of 19.78. The Industrial Products industry median 3-Year ROIIC % is 3.40. Donaldson Co's value of 22.85 is 573% above this industry median. Based on the distribution chart, Donaldson Co ranks #699 out of 2936 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 3-Year ROIIC % compare to GTLS and FLS?
According to the Industrial Products industry distribution chart, Donaldson Co ranks #699 out of 2936 companies for 3-Year ROIIC %. This places Donaldson Co in the top 24% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 3.40. Donaldson Co's value of 22.85 is 573% above this benchmark. While the company's 10-year median is 19.78 vs. the industry median of 3.40, 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 3-Year ROIIC % for an Industrial Products company?
The median 3-Year ROIIC % among Industrial Products companies is 3.40, based on 2,936 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Donaldson Co's current 3-Year ROIIC % of 22.85 is 573% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Donaldson Co and its competitors. For the Industrial Products industry, the median 3-Year ROIIC % is 3.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Donaldson Co's current 3-Year ROIIC % is 22.85, which is 16% above median its own 10-year median of 19.78. 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 $81.27, compared to a current price of $89.54 — trading 10.2% above its estimated fair value. The current 3-Year ROIIC % is 22.85, which is 16% above median its 10-year median of 19.78 and 573% above the Industrial Products industry median of 3.40. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Donaldson Co (DCI), the current 3-Year ROIIC % is 22.85 as of Jul. 2025. 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 $89.54 is trading 10.2% above its estimated GF Value™ of $81.27.
GuruFocus considers Donaldson Co to be Fairly Valued.
Key valuation signals for DCI:
3-Year ROIIC %: 22.85 (16% above median its 10-year median of 19.78)
GF Value™: $81.27 vs. price of $89.54 (10.2% above fair value)
Industry Position: 573% above the Industrial Products median (#699 of 2936)
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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