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Is NYSE:DHR suited for quality investing?

By Mill Chart

Last update: Aug 9, 2023

In this article we will dive into DANAHER CORP (NYSE:DHR) as a possible candidate for quality investing. Investors should always do their own research, but we noticed DANAHER CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

  • The 5-year revenue growth of DANAHER CORP has been remarkable, with 15.19% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • With a robust ROIC excluding cash and goodwill at 71.12%, DANAHER CORP showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • DANAHER CORP maintains a healthy Debt/Free Cash Flow Ratio of 2.76, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • The Profit Quality (5-year) of DANAHER CORP stands at 122.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • DANAHER CORP has demonstrated consistent growth in EBIT over the past 5 years, with a strong 27.56%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • DANAHER CORP has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

How does the complete fundamental picture look for NYSE:DHR?

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to DHR. DHR was compared to 63 industry peers in the Life Sciences Tools & Services industry. DHR gets an excellent profitability rating and is at the same time showing great financial health properties. DHR has a decent growth rate and is not valued too expensively.

Our latest full fundamental report of DHR contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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