DANAHER CORP (DHR)
US2358511028 - Common Stock
Taking everything into account, DHR scores 6 out of 10 in our fundamental rating. DHR was compared to 58 industry peers in the Life Sciences Tools & Services industry. While DHR has a great profitability rating, there are some minor concerns on its financial health. DHR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
DHR had positive earnings in the past year.
DHR had a positive operating cash flow in the past year.
In the past 5 years DHR has always been profitable.
In the past 5 years DHR always reported a positive cash flow from operatings.
1.2 Ratios
DHR has a Return On Assets of 9.67%. This is amongst the best in the industry. DHR outperforms 87.93% of its industry peers.
The Return On Equity of DHR (15.09%) is better than 89.66% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.79%, DHR belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DHR is below the industry average of 10.75%.
The 3 year average ROIC (7.28%) for DHR is below the current ROIC(10.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.67% | ||
| ROE | 15.09% | ||
| ROIC | 10.79% |
ROA(3y)7.19%
ROA(5y)6.18%
ROE(3y)12.31%
ROE(5y)11.09%
ROIC(3y)7.28%
ROIC(5y)6.41%
1.3 Margins
The Profit Margin of DHR (18.45%) is better than 94.83% of its industry peers.
In the last couple of years the Profit Margin of DHR has grown nicely.
DHR's Operating Margin of 21.67% is amongst the best of the industry. DHR outperforms 89.66% of its industry peers.
In the last couple of years the Operating Margin of DHR has grown nicely.
With a decent Gross Margin value of 58.47%, DHR is doing good in the industry, outperforming 75.86% of the companies in the same industry.
DHR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.67% | ||
| PM (TTM) | 18.45% | ||
| GM | 58.47% |
OM growth 3Y5.19%
OM growth 5Y4.28%
PM growth 3Y8.02%
PM growth 5Y5.01%
GM growth 3Y1.62%
GM growth 5Y1.05%
2. Health
2.1 Basic Checks
DHR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DHR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DHR has more shares outstanding
Compared to 1 year ago, DHR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.64 indicates that DHR is not in any danger for bankruptcy at the moment.
DHR has a Altman-Z score of 5.64. This is in the better half of the industry: DHR outperforms 75.86% of its industry peers.
DHR has a debt to FCF ratio of 3.27. This is a good value and a sign of high solvency as DHR would need 3.27 years to pay back of all of its debts.
DHR's Debt to FCF ratio of 3.27 is amongst the best of the industry. DHR outperforms 82.76% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that DHR is not too dependend on debt financing.
DHR's Debt to Equity ratio of 0.31 is in line compared to the rest of the industry. DHR outperforms 44.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 5.64 |
ROIC/WACC0.92
WACC11.72%
2.3 Liquidity
DHR has a Current Ratio of 1.85. This is a normal value and indicates that DHR is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DHR (1.85) is worse than 68.97% of its industry peers.
DHR has a Quick Ratio of 1.51. This is a normal value and indicates that DHR is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of DHR (1.51) is worse than 68.97% of its industry peers.
DHR does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
DHR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.41%.
DHR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.52% yearly.
The Revenue has grown by 41.25% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 6.98% on average over the past years.
EPS 1Y (TTM)-23.41%
EPS 3Y10.64%
EPS 5Y13.52%
EPS growth Q2Q-18.64%
Revenue 1Y (TTM)41.25%
Revenue growth 3Y2.35%
Revenue growth 5Y6.98%
Revenue growth Q2Q-19.13%
3.2 Future
DHR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.92% yearly.
DHR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.83% yearly.
EPS Next Y-9.72%
EPS Next 2Y1.34%
EPS Next 3Y4.51%
EPS Next 5Y7.92%
Revenue Next Year-10.75%
Revenue Next 2Y-1.64%
Revenue Next 3Y1.52%
Revenue Next 5Y3.83%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 32.90 indicates a quite expensive valuation of DHR.
DHR's Price/Earnings ratio is a bit cheaper when compared to the industry. DHR is cheaper than 77.59% of the companies in the same industry.
DHR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
Based on the Price/Forward Earnings ratio of 30.38, the valuation of DHR can be described as expensive.
74.14% of the companies in the same industry are more expensive than DHR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DHR to the average of the S&P500 Index (20.15), we can say DHR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.9 | ||
| Fwd PE | 30.38 |
4.2 Price Multiples
89.66% of the companies in the same industry are more expensive than DHR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DHR is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.43 | ||
| EV/EBITDA | 17.83 |
4.3 Compensation for Growth
The excellent profitability rating of DHR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.43
EPS Next 2Y1.34%
EPS Next 3Y4.51%
5. Dividend
5.1 Amount
DHR has a yearly dividend return of 0.41%, which is pretty low.
Compared to an average industry Dividend Yield of 0.61, DHR pays a better dividend. On top of this DHR pays more dividend than 94.83% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, DHR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
On average, the dividend of DHR grows each year by 12.55%, which is quite nice.
DHR has paid a dividend for at least 10 years, which is a reliable track record.
DHR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)12.55%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
DHR pays out 9.84% of its income as dividend. This is a sustainable payout ratio.
The dividend of DHR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.84%
EPS Next 2Y1.34%
EPS Next 3Y4.51%
DANAHER CORP
NYSE:DHR (5/17/2024, 7:04:00 PM)
After market: 265.2 -0.6 (-0.23%)265.8
+0.96 (+0.36%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap196.88B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.9 | ||
| Fwd PE | 30.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.67% | ||
| ROE | 15.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.67% | ||
| PM (TTM) | 18.45% | ||
| GM | 58.47% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-23.41%
EPS 3Y10.64%
EPS 5Y
EPS growth Q2Q
EPS Next Y-9.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)41.25%
Revenue growth 3Y2.35%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y