DANAHER CORP (DAP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DAP - US2358511028 - Common Stock
193.32 EUR
-3.94 (-2%)
Overall DAP gets a fundamental rating of 5 out of 10. We evaluated DAP against 22 industry peers in the Life Sciences Tools & Services industry. DAP has an excellent financial health rating, but there are some minor concerns on its profitability. DAP is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- DAP had positive earnings in the past year.
- DAP had a positive operating cash flow in the past year.
- Each year in the past 5 years DAP has been profitable.
- Each year in the past 5 years DAP had a positive operating cash flow.
1.2 Ratios
- DAP's Return On Assets of 4.38% is in line compared to the rest of the industry. DAP outperforms 59.09% of its industry peers.
- DAP has a Return On Equity of 6.86%. This is comparable to the rest of the industry: DAP outperforms 50.00% of its industry peers.
- DAP has a Return On Invested Capital of 5.38%. This is in the lower half of the industry: DAP underperforms 63.64% of its industry peers.
- DAP had an Average Return On Invested Capital over the past 3 years of 6.76%. This is below the industry average of 9.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 6.86% | ||
| ROIC | 5.38% |
ROA(3y)6.35%
ROA(5y)6.24%
ROE(3y)10.31%
ROE(5y)10.73%
ROIC(3y)6.76%
ROIC(5y)6.52%
1.3 Margins
- DAP has a Profit Margin of 14.43%. This is in the better half of the industry: DAP outperforms 68.18% of its industry peers.
- In the last couple of years the Profit Margin of DAP has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 19.48%, DAP belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
- In the last couple of years the Operating Margin of DAP has grown nicely.
- Looking at the Gross Margin, with a value of 59.59%, DAP is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
- In the last couple of years the Gross Margin of DAP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.48% | ||
| PM (TTM) | 14.43% | ||
| GM | 59.59% |
OM growth 3Y-5.38%
OM growth 5Y3.63%
PM growth 3Y-13.55%
PM growth 5Y-0.1%
GM growth 3Y-1.01%
GM growth 5Y1.35%
2. Health
2.1 Basic Checks
- DAP 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 DAP has been reduced compared to 1 year ago.
- DAP has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for DAP has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.81 indicates that DAP is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.81, DAP belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
- The Debt to FCF ratio of DAP is 3.36, which is a good value as it means it would take DAP, 3.36 years of fcf income to pay off all of its debts.
- DAP has a better Debt to FCF ratio (3.36) than 77.27% of its industry peers.
- A Debt/Equity ratio of 0.33 indicates that DAP is not too dependend on debt financing.
- DAP has a Debt to Equity ratio of 0.33. This is amongst the best in the industry. DAP outperforms 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 4.81 |
ROIC/WACC0.5
WACC10.68%
2.3 Liquidity
- A Current Ratio of 1.52 indicates that DAP should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.52, DAP is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
- DAP has a Quick Ratio of 1.10. This is a normal value and indicates that DAP is financially healthy and should not expect problems in meeting its short term obligations.
- DAP has a Quick ratio (1.10) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- DAP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.63%.
- DAP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.77% yearly.
- DAP shows a small growth in Revenue. In the last year, the Revenue has grown by 2.22%.
- Measured over the past years, DAP shows a small growth in Revenue. The Revenue has been growing by 5.92% on average per year.
EPS 1Y (TTM)3.63%
EPS 3Y-9.37%
EPS 5Y9.77%
EPS Q2Q%10.53%
Revenue 1Y (TTM)2.22%
Revenue growth 3Y-1.26%
Revenue growth 5Y5.92%
Sales Q2Q%4.4%
3.2 Future
- DAP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.92% yearly.
- DAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.87% yearly.
EPS Next Y4.05%
EPS Next 2Y6.54%
EPS Next 3Y7.88%
EPS Next 5Y8.92%
Revenue Next Year3.16%
Revenue Next 2Y3.61%
Revenue Next 3Y4.52%
Revenue Next 5Y4.87%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 29.93, which means the current valuation is very expensive for DAP.
- The rest of the industry has a similar Price/Earnings ratio as DAP.
- DAP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.82.
- Based on the Price/Forward Earnings ratio of 27.13, the valuation of DAP can be described as expensive.
- DAP's Price/Forward Earnings is on the same level as the industry average.
- DAP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.93 | ||
| Fwd PE | 27.13 |
4.2 Price Multiples
- DAP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. DAP is more expensive than 68.18% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, DAP is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.47 | ||
| EV/EBITDA | 25.4 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DAP does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of DAP may justify a higher PE ratio.
PEG (NY)7.4
PEG (5Y)3.06
EPS Next 2Y6.54%
EPS Next 3Y7.88%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.53%, DAP is not a good candidate for dividend investing.
- DAP's Dividend Yield is a higher than the industry average which is at 0.48.
- Compared to an average S&P500 Dividend Yield of 1.82, DAP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
- The dividend of DAP is nicely growing with an annual growth rate of 6.91%!
Dividend Growth(5Y)6.91%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- 24.18% of the earnings are spent on dividend by DAP. This is a low number and sustainable payout ratio.
- DAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP24.18%
EPS Next 2Y6.54%
EPS Next 3Y7.88%
DANAHER CORP / DAP.DE FAQ
Can you provide the ChartMill fundamental rating for DANAHER CORP?
ChartMill assigns a fundamental rating of 5 / 10 to DAP.DE.
What is the valuation status of DANAHER CORP (DAP.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to DANAHER CORP (DAP.DE). This can be considered as Overvalued.
Can you provide the profitability details for DANAHER CORP?
DANAHER CORP (DAP.DE) has a profitability rating of 6 / 10.
What are the PE and PB ratios of DANAHER CORP (DAP.DE) stock?
The Price/Earnings (PE) ratio for DANAHER CORP (DAP.DE) is 29.93 and the Price/Book (PB) ratio is 3.19.
Can you provide the expected EPS growth for DAP stock?
The Earnings per Share (EPS) of DANAHER CORP (DAP.DE) is expected to grow by 4.05% in the next year.