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Donaldson Company (DNZ) Risk Analysis

Public companies are required to disclose risks that can affect the business and impact the stock. These disclosures are known as “Risk Factors”. Companies disclose these risks in their yearly (Form 10-K), quarterly earnings (Form 10-Q), or “foreign private issuer” reports (Form 20-F). Risk factors show the challenges a company faces. Investors can consider the worst-case scenarios before making an investment. TipRanks’ Risk Analysis categorizes risks based on proprietary classification algorithms and machine learning. Donaldson Company disclosed 19 risk factors in its most recent earnings report. Donaldson Company reported the most risks in the “Macro & Political” category.

Risk Overview Q1, 2026

Source: the company's latest filing for the period ended Apr 30, 2026, filed Jun 02, 2026

Risk Distribution
19Risks
Sector Avg.Finance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Risk Change Over Time

Donaldson Company disclosed risks per quarterNo. of Risks1617181920Q3Q4Q12023Q2Q3Q4Q12024Q2Q3Q4Q12025Q2Q3Q4Q12026Showing: Q1, 2026
Risks removedRisks addedRisks changedDonaldson Company Risk Factors
  • Corporate Activity and Growth - Risk 1
    Facet Filtration Acquisition - we could be subject to new risks, known and unknown, relating to the Facet acquisition.

    We may experience risks, losses and damages associated with the Facet acquisition. The risks we could face include the following: - The Facet acquisition integration activities may involve complex operational, financial, and cultural alignment efforts. If management is unable to effectively balance integration activities with ongoing business needs, we may experience increased operating costs, reduced financial performance, or disruptions to our day-to-day operations. Any of these outcomes could materially and adversely affect our business, financial condition, or results of operations. - The Facet acquisition involves the inherent risk of liabilities, and these liabilities may prove more costly or produce more adverse effects than we anticipate, such as actual or potential litigation and regulatory matters. In addition, in the course of the due diligence review of Facet, we may not have discovered, or may have been unable to quantify, undisclosed liabilities of Facet, and we may not be indemnified or have insurance for any of these liabilities. Any such liabilities could have an adverse effect on our business, results of operations, financial condition and cash flows following the completion of the Facet acquisition.

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Risk Highlights Q1, 2026

Main Risk Category
Macro & Political
With 5 Risks
Number of Disclosed Risks
19
No changes from last report
S&P 500 Average: 32
Recent Changes
1Risks added
0Risks removed
0Risks changed
Since Apr 2026
Number of Risk Changed
0
No changes from last report
S&P 500 Average: 1

Risk Word Cloud

operations - complexity of manufacturing could cause inability to meet demand and result in the loss of customers.loss of customerstariffs - costs associated with complying with potential new or incremental tariffs could negatively affect our business and results of operations.negatively affect our businessoperations - complexity of manufacturing could cause inability to meet demand and result in the loss of customers.inability to meet demandsustainability - achieving commitments could result in additional costs and our inability to achieve them could have an adverse impact on our reputation and performance.our inability to achievecurrency - an unfavorable fluctuation in foreign currency exchange rates could impact our results of operations.impact our results of operationsproducts - maintaining a competitive advantage requires consistent investment with uncertain returns.competitive advantage requires consistent investmecustomer concentration and retention - a number of our customers operate in similar cyclical industries. changes in economic conditions in these industries could impact our sales.number of our customers operatecurrency - an unfavorable fluctuation in foreign currency exchange rates could impact our results of operations.foreign currency exchange ratesproductivity improvements - if we do not successfully manage productivity improvements, we may not realize the expected benefits.successfully manage productivity improvementsacquisitions, divestitures and other strategic transactions - the execution of our acquisitions, divestitures and other strategic transactions may not provide the desired return on investment.execution of our acquisitions

Risk Factors Full Breakdown - Total Risks 19

International Operations1 | 5.3%
  • International Operations - Risk 1
    Global Operations - we have a broad footprint and global operations may present challenges.

    We have operations throughout the world. Our stability, growth and profitability are subject to a number of risks of doing business globally including the following: - political and military events, including the rise of nationalism and support for protectionist policies;- tariffs, trade barriers and other trade restrictions;- legal and regulatory requirements, including import, export, defense regulations, anti-corruption laws and foreign exchange controls;- potential difficulties in staffing and managing local operations;- credit risk of local customers and distributors;- deterioration in economic conditions, including the effect of inflation on our customers and suppliers;- difficulties in protecting our intellectual property; and - local economic, political and social conditions. Due to the global reach of our operations, our business is subject to a complex system of commercial and trade laws, regulations and policies, including those related to data privacy, trade compliance, anti-corruption and anti-bribery. We experience exposure to and costs of complying with, these laws and regulations. Our global subsidiaries, joint venture partners and affiliates are governed by laws, rules and business practices that differ from those of the U.S. Our compliance programs may not adequately prevent or deter our employees, agents, distributors, suppliers and other third parties with whom we do business from violating laws, regulations or standards. We may incur defense costs, fines, penalties, damage to our reputation and business disruptions, which could result in an adverse effect on our results of operations, financial condition and cash flows.

Natural and Human Disruptions1 | 5.3%
Capital Markets3 | 15.8%

See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.

FAQ

What are “Risk Factors”?
Risk factors are any situations or occurrences that could make investing in a company risky. The Securities and Exchange Commission (SEC) requires that publicly traded companies disclose their most significant risk factors. This is so that potential investors can consider any risks before they make an investment. They also offer companies protection, as a company can use risk factors as liability protection. This could happen if a company underperforms and investors take legal action as a result. It is worth noting that smaller companies, that is those with a public float of under $75 million on the last business day, do not have to include risk factors in their 10-K and 10-Q forms, although some may choose to do so.
How do companies disclose their risk factors?
Publicly traded companies initially disclose their risk factors to the SEC through their S-1 filings as part of the IPO process. Additionally, companies must provide a complete list of risk factors in their Annual Reports (Form 10-K) or (Form 20-F) for “foreign private issuers”. Quarterly Reports also include a section on risk factors (Form 10-Q) where companies are only required to update any changes since the previous report. According to the SEC, risk factors should be reported concisely, logically and in “plain English” so investors can understand them.
How can I use TipRanks risk factors in my stock research?
Use the Risk Factors tab to get data about the risk factors of any company in which you are considering investing. You can easily see the most significant risks a company is facing. Additionally, you can find out which risk factors a company has added, removed or adjusted since its previous disclosure. You can also see how a company’s risk factors compare to others in its sector. Without reading company reports or participating in conference calls, you would most likely not have access to this sort of information, which is usually not included in press releases or other public announcements. A simplified analysis of risk factors is unique to TipRanks.
What are all the risk factor categories?
TipRanks has identified 6 major categories of risk factors and a number of subcategories for each. You can see how these categories are broken down in the list below. 1. Financial & Corporate Accounting & Financial Operations - risks related to accounting loss, value of intangible assets, financial statements, value of intangible assets, financial reporting, estimates, guidance, company profitability, dividends, fluctuating results. Share Price & Shareholder Rights – risks related to things that impact share prices and the rights of shareholders, including analyst ratings, major shareholder activity, trade volatility, liquidity of shares, anti-takeover provisions, international listing, dual listing. Debt & Financing – risks related to debt, funding, financing and interest rates, financial investments. Corporate Activity and Growth – risks related to restructuring, M&As, joint ventures, execution of corporate strategy, strategic alliances. 2. Legal & Regulatory Litigation and Legal Liabilities – risks related to litigation/ lawsuits against the company. Regulation – risks related to compliance, GDPR, and new legislation. Environmental / Social – risks related to environmental regulation and to data privacy. Taxation & Government Incentives – risks related to taxation and changes in government incentives. 3. Production Costs – risks related to costs of production including commodity prices, future contracts, inventory. Supply Chain – risks related to the company’s suppliers. Manufacturing – risks related to the company’s manufacturing process including product quality and product recalls. Human Capital – risks related to recruitment, training and retention of key employees, employee relationships & unions labor disputes, pension, and post retirement benefits, medical, health and welfare benefits, employee misconduct, employee litigation. 4. Technology & Innovation Innovation / R&D – risks related to innovation and new product development. Technology – risks related to the company’s reliance on technology. Cyber Security – risks related to securing the company’s digital assets and from cyber attacks. Trade Secrets & Patents – risks related to the company’s ability to protect its intellectual property and to infringement claims against the company as well as piracy and unlicensed copying. 5. Ability to Sell Demand – risks related to the demand of the company’s goods and services including seasonality, reliance on key customers. Competition – risks related to the company’s competition including substitutes. Sales & Marketing – risks related to sales, marketing, and distribution channels, pricing, and market penetration. Brand & Reputation – risks related to the company’s brand and reputation. 6. Macro & Political Economy & Political Environment – risks related to changes in economic and political conditions. Natural and Human Disruptions – risks related to catastrophes, floods, storms, terror, earthquakes, coronavirus pandemic/COVID-19. International Operations – risks related to the global nature of the company. Capital Markets – risks related to exchange rates and trade, cryptocurrency.