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DCI vs FLS

DCI
Donaldson Company, Inc.
BEARISH
Price
$88.96
Market Cap
$10.3B
Sector
Industrials
AI Confidence
85%
FLS
Flowserve Corporation
NEUTRAL
Price
$83.22
Market Cap
$10.64B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
DCI
27.8
FLS
31.52
Forward P/E
DCI
20.35
FLS
17.88
P/B Ratio
DCI
6.54
FLS
4.82
P/S Ratio
DCI
2.75
FLS
2.25
EV/EBITDA
DCI
16.19
FLS
15.93

Profitability

Gross Margin
DCI
34.6%
FLS
34.59%
Operating Margin
DCI
13.57%
FLS
14.35%
Profit Margin
DCI
10.09%
FLS
7.32%
ROE
DCI
24.27%
FLS
17.18%
ROA
DCI
11.8%
FLS
7.09%

Growth

Revenue Growth
DCI
3.0%
FLS
3.5%
Earnings Growth
DCI
-1.3%
FLS
--

Financial Health

Debt/Equity
DCI
0.43
FLS
0.78
Current Ratio
DCI
2.29
FLS
2.03
Quick Ratio
DCI
1.31
FLS
1.41

Dividends

Dividend Yield
DCI
1.35%
FLS
1.06%
Payout Ratio
DCI
36.56%
FLS
31.82%

AI Verdict

DCI BEARISH

DCI presents a stable financial health profile with a Piotroski F-Score of 4/9 and low leverage, but it is severely overvalued. The current price of $88.96 trades at a massive premium to its Graham Number ($31.29) and Intrinsic Value ($22.40). With stagnant revenue growth (3%) and negative earnings growth (-1.3%), the current P/E of 27.80 is fundamentally unsupported. Bearish insider selling and a 0/100 technical trend further suggest a lack of immediate catalyst for growth.

Strengths
Strong Return on Equity (ROE) of 24.27%
Low Debt/Equity ratio of 0.43 indicating conservative leverage
High liquidity with a Current Ratio of 2.29
Risks
Extreme valuation gap between market price and intrinsic/Graham value
Negative earnings growth (-1.30% YoY and -3.50% Q/Q)
Bearish insider activity with $3.57M in sales and zero buys
FLS NEUTRAL

FLS exhibits stable financial health with a Piotroski F-Score of 6/9 and strong liquidity ratios, but it is currently trading at a severe valuation premium. The current price of $83.22 significantly exceeds both the Graham Number ($32.01) and the growth-based Intrinsic Value ($18.48). While explosive YoY EPS growth (+88.1%) and consistent earnings beats support a bullish analyst consensus, this is countered by bearish insider selling and a very weak technical trend (10/100). The stock appears to be priced for perfection, leaving little margin for error despite strong operational performance.

Strengths
Explosive Year-over-Year EPS growth of 88.1%
Strong earnings track record with 3 of the last 4 quarters beating estimates
Healthy liquidity position with a Current Ratio of 2.03
Risks
Extreme valuation gap between current price and deterministic fair value (Graham/Intrinsic)
Bearish insider sentiment with net selling and zero buy transactions
Very weak technical trend score (10/100) suggesting bearish momentum

Compare Another Pair

DCI vs FLS: Head-to-Head Comparison

This page compares Donaldson Company, Inc. (DCI) and Flowserve Corporation (FLS) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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