DANAHER CORP (NYSE:DHR) can be considered a quality stock. Here's why.

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.

Why NYSE:DHR may be interesting for quality investors.

• DANAHER CORP has demonstrated significant revenue growth over the past 5 years, with a 6.98% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a notable ROIC excluding cash and goodwill at 44.59%, DANAHER CORP demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• With a favorable Debt/Free Cash Flow Ratio of 3.33, DANAHER CORP showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• The Profit Quality (5-year) of DANAHER CORP stands at 121.0%, 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 11.56%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, DANAHER CORP showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Fundamental analysis of NYSE:DHR

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

DHR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 57 industry peers in the Life Sciences Tools & Services industry. DHR scores excellent on profitability, but there are some minor concerns on its financial health. DHR has a valuation in line with the averages, but it does not seem to be growing.

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.