DANAHER CORP (DHR)
US2358511028 - Common Stock
We assign a fundamental rating of 6 out of 10 to DHR. DHR was compared to 56 industry peers in the Life Sciences Tools & Services industry. While DHR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DHR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
DHR had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 4.83%, DHR belongs to the top of the industry, outperforming 80.36% of the companies in the same industry.
DHR has a Return On Equity of 7.59%. This is in the better half of the industry: DHR outperforms 76.79% of its industry peers.
DHR has a Return On Invested Capital of 5.25%. This is in the better half of the industry: DHR outperforms 73.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DHR is below the industry average of 9.98%.
| 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
Looking at the Profit Margin, with a value of 18.32%, DHR belongs to the top of the industry, outperforming 94.64% of the companies in the same industry.
In the last couple of years the Profit Margin of DHR has grown nicely.
DHR's Operating Margin of 21.00% is amongst the best of the industry. DHR outperforms 91.07% of its industry peers.
In the last couple of years the Operating Margin of DHR has grown nicely.
DHR has a Gross Margin of 59.52%. This is amongst the best in the industry. DHR outperforms 83.93% of its industry peers.
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
DHR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DHR has more shares outstanding
DHR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DHR has an improved debt to assets ratio.
2.2 Solvency
DHR has an Altman-Z score of 4.58. This indicates that DHR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.58, DHR is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
DHR has a debt to FCF ratio of 3.50. This is a good value and a sign of high solvency as DHR would need 3.50 years to pay back of all of its debts.
DHR has a better Debt to FCF ratio (3.50) than 80.36% of its industry peers.
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 (0.32) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.5 | ||
| Altman-Z | 4.58 |
ROIC/WACC0.46
WACC11.37%
2.3 Liquidity
DHR has a Current Ratio of 1.37. This is a normal value and indicates that DHR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.37, DHR is doing worse than 80.36% of the companies in the same industry.
A Quick Ratio of 1.01 indicates that DHR should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.01, DHR is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
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 | 1.37 | ||
| 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%.
The Earnings Per Share has been growing by 13.52% on average over the past years. This is quite good.
DHR shows a decrease in Revenue. In the last year, the revenue decreased by -9.66%.
DHR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.98% yearly.
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
Based on estimates for the next years, DHR will show a small growth in Earnings Per Share. The EPS will grow by 7.11% on average per year.
DHR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.69% yearly.
EPS Next Y-11.1%
EPS Next 2Y-0.28%
EPS Next 3Y3.61%
EPS Next 5Y7.11%
Revenue Next Year-11.89%
Revenue Next 2Y-3.38%
Revenue Next 3Y0.16%
Revenue Next 5Y2.69%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.72, the valuation of DHR can be described as expensive.
Based on the Price/Earnings ratio, DHR is valued a bit cheaper than 78.57% of the companies in the same industry.
DHR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 26.97, which means the current valuation is very expensive for DHR.
DHR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DHR is cheaper than 75.00% of the companies in the same industry.
DHR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.72 | ||
| Fwd PE | 26.97 |
4.2 Price Multiples
73.21% of the companies in the same industry are more expensive than DHR, based on the Enterprise Value to EBITDA ratio.
DHR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DHR is cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.95 | ||
| EV/EBITDA | 26.55 |
4.3 Compensation for Growth
DHR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.27
EPS Next 2Y-0.28%
EPS Next 3Y3.61%
5. Dividend
5.1 Amount
DHR has a yearly dividend return of 0.48%, which is pretty low.
DHR's Dividend Yield is rather good when compared to the industry average which is at 0.64. DHR pays more dividend than 94.64% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, DHR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
On average, the dividend of DHR grows each year by 12.53%, 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)12.53%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
DHR pays out 19.86% of its income as dividend. This is a sustainable payout ratio.
DHR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.86%
EPS Next 2Y-0.28%
EPS Next 3Y3.61%
DANAHER CORP
NYSE:DHR (12/20/2024, 8:05:22 PM)
After market: 228.55 0 (0%)228.55
+2.39 (+1.06%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners82.77%
Inst Owner Change-1.54%
Ins Owners10.93%
Ins Owner Change-0.68%
Market Cap165.08B
Analysts80
Price Target294.1 (28.68%)
Short Float %0.84%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Dividend Growth(5Y)12.53%
DP19.86%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.08%
Min EPS beat(2)7.94%
Max EPS beat(2)8.22%
EPS beat(4)4
Avg EPS beat(4)8.97%
Min EPS beat(4)7.94%
Max EPS beat(4)11.18%
EPS beat(8)8
Avg EPS beat(8)7.47%
EPS beat(12)12
Avg EPS beat(12)7.97%
EPS beat(16)16
Avg EPS beat(16)11.08%
Revenue beat(2)2
Avg Revenue beat(2)2.27%
Min Revenue beat(2)1.79%
Max Revenue beat(2)2.75%
Revenue beat(4)4
Avg Revenue beat(4)2.56%
Min Revenue beat(4)1.79%
Max Revenue beat(4)3.62%
Revenue beat(8)5
Avg Revenue beat(8)-7.41%
Revenue beat(12)8
Avg Revenue beat(12)-8.63%
Revenue beat(16)12
Avg Revenue beat(16)-5.27%
PT rev (1m)-0.54%
PT rev (3m)1.22%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-10.46%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-1.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.49%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.72 | ||
| Fwd PE | 26.97 | ||
| P/S | 7.77 | ||
| P/FCF | 32.95 | ||
| P/OCF | 26.25 | ||
| P/B | 3.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.55 |
EPS(TTM)7.44
EY3.26%
EPS(NY)8.47
Fwd EY3.71%
FCF(TTM)6.94
FCFY3.03%
OCF(TTM)8.71
OCFY3.81%
SpS29.42
BVpS71.02
TBVpS-14.85
PEG (NY)N/A
PEG (5Y)2.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 7.59% | ||
| ROCE | 6.09% | ||
| ROIC | 5.25% | ||
| ROICexc | 5.44% | ||
| ROICexgc | 44.58% | ||
| OM | 21% | ||
| PM (TTM) | 18.32% | ||
| GM | 59.52% | ||
| FCFM | 23.58% |
ROA(3y)7.19%
ROA(5y)6.18%
ROE(3y)12.31%
ROE(5y)11.09%
ROIC(3y)7.28%
ROIC(5y)6.41%
ROICexc(3y)7.78%
ROICexc(5y)7.34%
ROICexgc(3y)62.52%
ROICexgc(5y)61.4%
ROCE(3y)8.45%
ROCE(5y)7.45%
ROICexcg growth 3Y-2.05%
ROICexcg growth 5Y-0.01%
ROICexc growth 3Y3.62%
ROICexc growth 5Y0.72%
OM growth 3Y5.19%
OM growth 5Y4.28%
PM growth 3Y8.02%
PM growth 5Y5.01%
GM growth 3Y1.62%
GM growth 5Y1.05%
F-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.5 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 56.8% | ||
| Cap/Sales | 6.01% | ||
| Interest Coverage | 11.65 | ||
| Cash Conversion | 93.67% | ||
| Profit Quality | 128.73% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 4.58 |
F-Score6
WACC11.37%
ROIC/WACC0.46
Cap/Depr(3y)58.46%
Cap/Depr(5y)54.67%
Cap/Sales(3y)5.11%
Cap/Sales(5y)4.49%
Profit Quality(3y)112.76%
Profit Quality(5y)121.08%
High Growth Momentum
Growth
EPS 1Y (TTM)-20%
EPS 3Y10.64%
EPS 5Y13.52%
EPS Q2Q%-15.35%
EPS Next Y-11.1%
EPS Next 2Y-0.28%
EPS Next 3Y3.61%
EPS Next 5Y7.11%
Revenue 1Y (TTM)-9.66%
Revenue growth 3Y2.35%
Revenue growth 5Y6.98%
Sales Q2Q%-15.64%
Revenue Next Year-11.89%
Revenue Next 2Y-3.38%
Revenue Next 3Y0.16%
Revenue Next 5Y2.69%
EBIT growth 1Y-19.48%
EBIT growth 3Y7.66%
EBIT growth 5Y11.56%
EBIT Next Year8%
EBIT Next 3Y9.01%
EBIT Next 5Y10.63%
FCF growth 1Y-29.12%
FCF growth 3Y2.19%
FCF growth 5Y11.42%
OCF growth 1Y-24.34%
OCF growth 3Y4.89%
OCF growth 5Y12.24%