DANAHER CORP (DHR)
US2358511028 - Common Stock
We assign a fundamental rating of 5 out of 10 to DHR. DHR was compared to 55 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year DHR was profitable.
In the past year DHR had a positive cash flow from operations.
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 better Return On Assets (4.83%) than 80.00% of its industry peers.
The Return On Equity of DHR (7.59%) is better than 76.36% of its industry peers.
DHR has a better Return On Invested Capital (5.25%) than 74.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DHR is below the industry average of 10.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 7.59% | ||
| ROIC | 5.25% |
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
DHR has a Profit Margin of 18.32%. This is amongst the best in the industry. DHR outperforms 94.55% of its industry peers.
DHR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.00%, DHR belongs to the top of the industry, outperforming 89.09% of the companies in the same industry.
In the last couple of years the Operating Margin of DHR has grown nicely.
With an excellent Gross Margin value of 59.52%, DHR belongs to the best of the industry, outperforming 83.64% 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% | ||
| PM (TTM) | 18.32% | ||
| GM | 59.52% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DHR is destroying value.
The number of shares outstanding for DHR has been increased compared to 1 year ago.
The number of shares outstanding for DHR has been increased compared to 5 years ago.
Compared to 1 year ago, DHR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.68 indicates that DHR is not in any danger for bankruptcy at the moment.
DHR's Altman-Z score of 4.68 is fine compared to the rest of the industry. DHR outperforms 72.73% of its industry peers.
The Debt to FCF ratio of DHR is 3.50, which is a good value as it means it would take DHR, 3.50 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.50, DHR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
DHR has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
DHR has a Debt to Equity ratio of 0.32. This is comparable to the rest of the industry: DHR outperforms 52.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.5 | ||
| Altman-Z | 4.68 |
ROIC/WACC0.48
WACC10.9%
2.3 Liquidity
A Current Ratio of 1.37 indicates that DHR should not have too much problems paying its short term obligations.
DHR has a Current ratio of 1.37. This is in the lower half of the industry: DHR underperforms 78.18% of its industry peers.
DHR has a Quick Ratio of 1.01. This is a normal value and indicates that DHR is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.01, DHR is not doing good in the industry: 76.36% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
DHR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.00%.
DHR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.52% yearly.
Looking at the last year, DHR shows a decrease in Revenue. The Revenue has decreased by -9.66% in the last year.
Measured over the past years, DHR shows a small growth in Revenue. The Revenue has been growing by 6.98% on average per year.
EPS 1Y (TTM)-20%
EPS 3Y10.64%
EPS 5Y13.52%
EPS Q2Q%-15.35%
Revenue 1Y (TTM)-9.66%
Revenue growth 3Y2.35%
Revenue growth 5Y6.98%
Sales Q2Q%-15.64%
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.
Based on estimates for the next years, DHR will show a small growth in Revenue. The Revenue will grow by 3.83% on average per year.
EPS Next Y-11.06%
EPS Next 2Y-0.34%
EPS Next 3Y3.57%
EPS Next 5Y7.92%
Revenue Next Year-11.91%
Revenue Next 2Y-3.42%
Revenue Next 3Y0.16%
Revenue Next 5Y3.83%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 31.59, the valuation of DHR can be described as expensive.
74.55% of the companies in the same industry are more expensive than DHR, based on the Price/Earnings ratio.
DHR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.96.
With a Price/Forward Earnings ratio of 27.78, DHR can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, DHR is valued a bit cheaper than the industry average as 67.27% of the companies are valued more expensively.
DHR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.59 | ||
| Fwd PE | 27.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DHR indicates a somewhat cheap valuation: DHR is cheaper than 69.09% of the companies listed in the same industry.
DHR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DHR is cheaper than 76.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.89 | ||
| EV/EBITDA | 27.3 |
4.3 Compensation for Growth
The decent profitability rating of DHR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.34
EPS Next 2Y-0.34%
EPS Next 3Y3.57%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, DHR is not a good candidate for dividend investing.
DHR's Dividend Yield is rather good when compared to the industry average which is at 0.69. DHR pays more dividend than 94.55% of the companies in the same industry.
With a Dividend Yield of 0.45, DHR pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
The dividend of DHR is nicely growing with an annual growth rate of 12.53%!
DHR has paid a dividend for at least 10 years, which is a reliable track record.
As DHR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)12.53%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
19.86% of the earnings are spent on dividend by DHR. This is a low number and sustainable payout ratio.
The dividend of DHR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.86%
EPS Next 2Y-0.34%
EPS Next 3Y3.57%
DANAHER CORP
NYSE:DHR (11/21/2024, 7:17:29 PM)
After market: 235.05 0 (0%)235.05
+1.95 (+0.84%)
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 Cap169.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 31.59 | ||
| Fwd PE | 27.78 | ||
| 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)2.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 7.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21% | ||
| PM (TTM) | 18.32% | ||
| GM | 59.52% | ||
| 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 Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.01 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-20%
EPS 3Y10.64%
EPS 5Y
EPS Q2Q%
EPS Next Y-11.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.66%
Revenue growth 3Y2.35%
Revenue growth 5Y
Sales 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