DANAHER CORP (DHR) Stock Fundamental Analysis
NYSE:DHR - New York Stock Exchange, Inc. - US2358511028 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to DHR. DHR was compared to 57 industry peers in the Life Sciences Tools & Services industry. Both the health and profitability get an excellent rating, making DHR a very profitable company, without any liquidiy or solvency issues. DHR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DHR was profitable.
DHR had a positive operating cash flow in the past year.
In the past 5 years DHR has always been profitable.
DHR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.03%, DHR belongs to the top of the industry, outperforming 80.70% of the companies in the same industry.
DHR has a better Return On Equity (7.87%) than 82.46% of its industry peers.
With a decent Return On Invested Capital value of 6.02%, DHR is doing good in the industry, outperforming 78.95% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DHR is below the industry average of 9.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.03% | ||
| ROE | 7.87% | ||
| ROIC | 6.02% |
ROA(3y)6.35%
ROA(5y)6.24%
ROE(3y)10.31%
ROE(5y)10.73%
ROIC(3y)6.63%
ROIC(5y)6.43%
1.3 Margins
With an excellent Profit Margin value of 16.33%, DHR belongs to the best of the industry, outperforming 91.23% of the companies in the same industry.
DHR's Profit Margin has been stable in the last couple of years.
DHR has a Operating Margin of 21.30%. This is amongst the best in the industry. DHR outperforms 91.23% of its industry peers.
DHR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 59.50%, DHR belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
In the last couple of years the Gross Margin of DHR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.3% | ||
| PM (TTM) | 16.33% | ||
| GM | 59.5% |
OM growth 3Y-7.52%
OM growth 5Y2.22%
PM growth 3Y-13.55%
PM growth 5Y-0.1%
GM growth 3Y-1.06%
GM growth 5Y1.31%
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.
The number of shares outstanding for DHR has been reduced compared to 1 year ago.
Compared to 5 years ago, DHR has more shares outstanding
DHR has a better debt/assets ratio than last year.
2.2 Solvency
DHR has an Altman-Z score of 4.57. 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 4.57, DHR is in the better half of the industry, outperforming 75.44% of the companies in the same industry.
The Debt to FCF ratio of DHR is 3.02, which is a good value as it means it would take DHR, 3.02 years of fcf income to pay off all of its debts.
DHR has a Debt to FCF ratio of 3.02. This is amongst the best in the industry. DHR outperforms 80.70% of its industry peers.
DHR has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.31, DHR perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.02 | ||
| Altman-Z | 4.57 |
ROIC/WACC0.54
WACC11.18%
2.3 Liquidity
DHR has a Current Ratio of 1.40. This is a normal value and indicates that DHR is financially healthy and should not expect problems in meeting its short term obligations.
DHR has a worse Current ratio (1.40) than 75.44% of its industry peers.
A Quick Ratio of 1.05 indicates that DHR should not have too much problems paying its short term obligations.
DHR has a worse Quick ratio (1.05) than 75.44% 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 | 1.4 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The earnings per share for DHR have decreased strongly by -12.09% in the last year.
Measured over the past years, DHR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.77% on average per year.
The Revenue has decreased by -0.06% in the past year.
The Revenue has been growing slightly by 5.92% on average over the past years.
EPS 1Y (TTM)-12.09%
EPS 3Y-9.37%
EPS 5Y9.77%
EPS Q2Q%2.39%
Revenue 1Y (TTM)-0.06%
Revenue growth 3Y-1.26%
Revenue growth 5Y5.92%
Sales Q2Q%2.08%
3.2 Future
Based on estimates for the next years, DHR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.24% on average per year.
The Revenue is expected to grow by 5.86% on average over the next years.
EPS Next Y3.18%
EPS Next 2Y7.48%
EPS Next 3Y8.59%
EPS Next 5Y8.24%
Revenue Next Year1.52%
Revenue Next 2Y4.08%
Revenue Next 3Y5.21%
Revenue Next 5Y5.86%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.07, DHR can be considered very expensive at the moment.
DHR's Price/Earnings ratio is a bit cheaper when compared to the industry. DHR is cheaper than 78.95% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, DHR is valued at the same level.
The Price/Forward Earnings ratio is 27.20, which means the current valuation is very expensive for DHR.
75.44% of the companies in the same industry are more expensive than DHR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, DHR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.07 | ||
| Fwd PE | 27.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DHR is valued cheaper than 80.70% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DHR is valued cheaper than 82.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.55 | ||
| EV/EBITDA | 21.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of DHR may justify a higher PE ratio.
PEG (NY)8.84
PEG (5Y)2.87
EPS Next 2Y7.48%
EPS Next 3Y8.59%
5. Dividend
5.1 Amount
DHR has a yearly dividend return of 0.53%, which is pretty low.
DHR's Dividend Yield is rather good when compared to the industry average which is at 0.42. DHR pays more dividend than 98.25% of the companies in the same industry.
With a Dividend Yield of 0.53, DHR pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
On average, the dividend of DHR grows each year by 6.91%, which is quite nice.
DHR has been paying a dividend for at least 10 years, so it has 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)6.91%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
DHR pays out 19.70% of its income as dividend. This is a sustainable payout ratio.
The dividend of DHR is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP19.7%
EPS Next 2Y7.48%
EPS Next 3Y8.59%
210.23
+2.28 (+1.1%)
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 Change0.49%
Ins Owners10.93%
Ins Owner Change-0.45%
Market Cap151.18B
Analysts83.03
Price Target286.79 (36.42%)
Short Float %0.84%
Short Ratio1.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Yearly Dividend1.05
Dividend Growth(5Y)6.91%
DP19.7%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.01%
Min EPS beat(2)-1.93%
Max EPS beat(2)7.94%
EPS beat(4)3
Avg EPS beat(4)6.35%
Min EPS beat(4)-1.93%
Max EPS beat(4)11.18%
EPS beat(8)7
Avg EPS beat(8)5.77%
EPS beat(12)11
Avg EPS beat(12)7.41%
EPS beat(16)15
Avg EPS beat(16)10.33%
Revenue beat(2)2
Avg Revenue beat(2)1.7%
Min Revenue beat(2)0.66%
Max Revenue beat(2)2.75%
Revenue beat(4)4
Avg Revenue beat(4)1.81%
Min Revenue beat(4)0.66%
Max Revenue beat(4)2.75%
Revenue beat(8)6
Avg Revenue beat(8)-0.37%
Revenue beat(12)9
Avg Revenue beat(12)-3.88%
Revenue beat(16)12
Avg Revenue beat(16)-5.37%
PT rev (1m)-1.9%
PT rev (3m)-3.02%
EPS NQ rev (1m)-19.56%
EPS NQ rev (3m)-23.66%
EPS NY rev (1m)-8.49%
EPS NY rev (3m)-8.67%
Revenue NQ rev (1m)-7.96%
Revenue NQ rev (3m)-10.88%
Revenue NY rev (1m)-3.46%
Revenue NY rev (3m)-3.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.07 | ||
| Fwd PE | 27.2 | ||
| P/S | 6.33 | ||
| P/FCF | 28.55 | ||
| P/OCF | 22.6 | ||
| P/B | 3.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.98 |
EPS(TTM)7.49
EY3.56%
EPS(NY)7.73
Fwd EY3.68%
FCF(TTM)7.36
FCFY3.5%
OCF(TTM)9.3
OCFY4.42%
SpS33.2
BVpS68.9
TBVpS-13.24
PEG (NY)8.84
PEG (5Y)2.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.03% | ||
| ROE | 7.87% | ||
| ROCE | 7.19% | ||
| ROIC | 6.02% | ||
| ROICexc | 6.21% | ||
| ROICexgc | 44.38% | ||
| OM | 21.3% | ||
| PM (TTM) | 16.33% | ||
| GM | 59.5% | ||
| FCFM | 22.18% |
ROA(3y)6.35%
ROA(5y)6.24%
ROE(3y)10.31%
ROE(5y)10.73%
ROIC(3y)6.63%
ROIC(5y)6.43%
ROICexc(3y)7.08%
ROICexc(5y)6.86%
ROICexgc(3y)53.83%
ROICexgc(5y)56.77%
ROCE(3y)7.91%
ROCE(5y)7.68%
ROICexcg growth 3Y-12.56%
ROICexcg growth 5Y-5.85%
ROICexc growth 3Y-7.04%
ROICexc growth 5Y-4.2%
OM growth 3Y-7.52%
OM growth 5Y2.22%
PM growth 3Y-13.55%
PM growth 5Y-0.1%
GM growth 3Y-1.06%
GM growth 5Y1.31%
F-Score6
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.02 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 59.18% | ||
| Cap/Sales | 5.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.93% | ||
| Profit Quality | 135.83% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 4.57 |
F-Score6
WACC11.18%
ROIC/WACC0.54
Cap/Depr(3y)58.29%
Cap/Depr(5y)55.83%
Cap/Sales(3y)5.31%
Cap/Sales(5y)4.94%
Profit Quality(3y)120.48%
Profit Quality(5y)125.69%
High Growth Momentum
Growth
EPS 1Y (TTM)-12.09%
EPS 3Y-9.37%
EPS 5Y9.77%
EPS Q2Q%2.39%
EPS Next Y3.18%
EPS Next 2Y7.48%
EPS Next 3Y8.59%
EPS Next 5Y8.24%
Revenue 1Y (TTM)-0.06%
Revenue growth 3Y-1.26%
Revenue growth 5Y5.92%
Sales Q2Q%2.08%
Revenue Next Year1.52%
Revenue Next 2Y4.08%
Revenue Next 3Y5.21%
Revenue Next 5Y5.86%
EBIT growth 1Y-2.25%
EBIT growth 3Y-8.69%
EBIT growth 5Y8.27%
EBIT Next Year10.75%
EBIT Next 3Y10.46%
EBIT Next 5Y9.86%
FCF growth 1Y-8.39%
FCF growth 3Y-9.16%
FCF growth 5Y9.82%
OCF growth 1Y-6.64%
OCF growth 3Y-7.16%
OCF growth 5Y11.1%