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Donaldson Company Inc T.DCI


Primary Symbol: DCI

Donaldson Company, Inc. specializes in technology-led filtration products and solutions, serving a range of industries and advanced markets. The Company's segments include Mobile Solutions, Industrial Solutions and Life Sciences. Mobile Solutions segment is organized based on a combination of customers and products and consists of the off-road, on-road and aftermarket business units. Its products consist of replacement filters for both air and liquid filtration applications and filtration housings for new equipment production and systems related to exhaust and emissions. Industrial Solutions segment is organized based on product type and consists of industrial air filtration, industrial gasses, industrial hydraulics, power generation and aerospace and defense products. Life Sciences segment is organized by end market and consists of the bioprocessing equipment and consumables, food and beverage, vehicle electrification and medical device, microelectronics and disk drive markets.


NYSE:DCI - Post by User

Post by dsarkon Feb 06, 2016 10:16am
441 Views
Post# 24531603

Financial analysis

Financial analysisWell I spent some time going through their financial statements (Balance Sheet, Income Statement, & Cash Flow Statement).  Here are my findings:

All figures are for 9 months ending September 2015. 

$50M - Cash generated from operations
($11.6M) - Cash spent on investing activities (think maintenance costs)
$39.4M - Adjusted funds from operations

($19M) - Dividends paid to shareholders 

So we have roughly a 50% payout ratio on AFFO, which is good.

($15M) - Interest expense

So while you would never do this calculation, here it is 87% of AFFO goes to pay dividends & interest. I'd include interest because they do have a substantial amount of debt.  However that being said, this is a cash generating behemoth.  They also have $208M in long term debt, of that $208M, $125M is unsecured bearing a rate of 8.125%, which is insanely high.  So I think if they can refinance this in the 5% range when the time comes, that would be great or possibly if the share gets up north of $15, do a share issuance & pay down some debt.  Then use the spare cash the company has to buy back shares.  All things said, this company knows how to generate cash, great buy at $10.50 range IMO.  


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