DANAHER CORP (DHR) Stock Fundamental Analysis
NYSE:DHR - New York Stock Exchange, Inc. - 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 has a great profitability rating, 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
DHR had positive earnings in the past year.
DHR had a positive operating cash flow in the past year.
DHR had positive earnings in each of the past 5 years.
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.
With a decent Return On Equity value of 7.59%, DHR is doing good in the industry, outperforming 78.57% of the companies in the same industry.
The Return On Invested Capital of DHR (5.25%) is better than 73.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DHR is below the industry average of 9.93%.
| 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 better Profit Margin (18.32%) than 94.64% 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 91.07% of the companies in the same industry.
DHR's Operating Margin has improved in the last couple of years.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DHR is destroying value.
Compared to 1 year ago, DHR has more shares outstanding
The number of shares outstanding for DHR has been increased compared to 5 years ago.
DHR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.76 indicates that DHR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.76, DHR is in the better half of the industry, outperforming 73.21% of the companies in the same industry.
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.
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.
With a Debt to Equity ratio value of 0.32, DHR perfoms like the industry average, outperforming 53.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.5 | ||
| Altman-Z | 4.76 |
ROIC/WACC0.51
WACC10.27%
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.
With a Current ratio value of 1.37, DHR is not doing good in the industry: 80.36% of the companies in the same industry are doing better.
A Quick Ratio of 1.01 indicates that DHR should not have too much problems paying its short term obligations.
DHR has a Quick ratio of 1.01. This is in the lower half of the industry: DHR underperforms 78.57% 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 | 1.37 | ||
| 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%.
Measured over the past years, DHR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.52% on average per year.
The Revenue has decreased by -9.66% in the past year.
The Revenue has been growing slightly by 6.98% on average over the past years.
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 6.61% on average per year.
Based on estimates for the next years, DHR will show a small growth in Revenue. The Revenue will grow by 2.47% on average per year.
EPS Next Y-11.12%
EPS Next 2Y-0.44%
EPS Next 3Y3.6%
EPS Next 5Y6.61%
Revenue Next Year-11.92%
Revenue Next 2Y-3.68%
Revenue Next 3Y-0.03%
Revenue Next 5Y2.47%
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
A Price/Earnings ratio of 32.81 indicates a quite expensive valuation of DHR.
Compared to the rest of the industry, the Price/Earnings ratio of DHR indicates a somewhat cheap valuation: DHR is cheaper than 78.57% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DHR to the average of the S&P500 Index (28.29), we can say DHR is valued inline with the index average.
DHR is valuated quite expensively with a Price/Forward Earnings ratio of 28.91.
75.00% of the companies in the same industry are more expensive than DHR, based on the Price/Forward Earnings ratio.
DHR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.81 | ||
| Fwd PE | 28.91 |
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 | 35.19 | ||
| EV/EBITDA | 27.87 |
4.3 Compensation for Growth
DHR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.43
EPS Next 2Y-0.44%
EPS Next 3Y3.6%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, DHR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.62, DHR pays a better dividend. On top of this DHR pays more dividend than 94.64% of the companies listed in the same industry.
With a Dividend Yield of 0.45, DHR pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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.
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-0.44%
EPS Next 3Y3.6%
DANAHER CORP
NYSE:DHR (1/21/2025, 8:04:00 PM)
After market: 244.11 0 (0%)244.11
+5.75 (+2.41%)
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 Change0%
Ins Owners10.93%
Ins Owner Change-0.74%
Market Cap176.32B
Analysts81.18
Price Target292.34 (19.76%)
Short Float %0.87%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend1.12
Dividend Growth(5Y)12.53%
DP19.86%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
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)-0.6%
PT rev (3m)-0.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.49%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.81 | ||
| Fwd PE | 28.91 | ||
| P/S | 8.3 | ||
| P/FCF | 35.19 | ||
| P/OCF | 28.04 | ||
| P/B | 3.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.87 |
EPS(TTM)7.44
EY3.05%
EPS(NY)8.44
Fwd EY3.46%
FCF(TTM)6.94
FCFY2.84%
OCF(TTM)8.71
OCFY3.57%
SpS29.42
BVpS71.02
TBVpS-14.85
PEG (NY)N/A
PEG (5Y)2.43
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 | 4.76 |
F-Score6
WACC10.27%
ROIC/WACC0.51
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-11.12%
EPS Next 2Y-0.44%
EPS Next 3Y3.6%
EPS Next 5Y6.61%
Revenue 1Y (TTM)-9.66%
Revenue growth 3Y2.35%
Revenue growth 5Y6.98%
Sales Q2Q%-15.64%
Revenue Next Year-11.92%
Revenue Next 2Y-3.68%
Revenue Next 3Y-0.03%
Revenue Next 5Y2.47%
EBIT growth 1Y-19.48%
EBIT growth 3Y7.66%
EBIT growth 5Y11.56%
EBIT Next Year8.2%
EBIT Next 3Y8.6%
EBIT Next 5Y10.04%
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%