DANAHER CORP (DAP.DE) Stock Fundamental Analysis
FRA:DAP - Deutsche Boerse Ag - US2358511028 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to DAP. DAP was compared to 18 industry peers in the Life Sciences Tools & Services industry. While DAP belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, DAP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year DAP was profitable.
DAP had a positive operating cash flow in the past year.
Each year in the past 5 years DAP has been profitable.
In the past 5 years DAP always reported a positive cash flow from operatings.
1.2 Ratios
DAP has a Return On Assets of 4.76%. This is in the better half of the industry: DAP outperforms 77.78% of its industry peers.
Looking at the Return On Equity, with a value of 7.40%, DAP is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.97%, DAP is in line with its industry, outperforming 55.56% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DAP is in line with the industry average of 6.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 7.4% | ||
| ROIC | 5.97% |
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's Profit Margin of 15.81% is amongst the best of the industry. DAP outperforms 100.00% of its industry peers.
DAP's Profit Margin has been stable in the last couple of years.
The Operating Margin of DAP (21.67%) is better than 94.44% of its industry peers.
In the last couple of years the Operating Margin of DAP has grown nicely.
The Gross Margin of DAP (59.80%) is better than 88.89% of its industry peers.
DAP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.67% | ||
| PM (TTM) | 15.81% | ||
| GM | 59.8% |
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.
Compared to 1 year ago, DAP has less shares outstanding
Compared to 5 years ago, DAP has more shares outstanding
Compared to 1 year ago, DAP has an improved debt to assets ratio.
2.2 Solvency
DAP has an Altman-Z score of 4.28. This indicates that DAP is financially healthy and has little risk of bankruptcy at the moment.
DAP has a Altman-Z score of 4.28. This is amongst the best in the industry. DAP outperforms 88.89% of its industry peers.
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 Debt to FCF ratio of 3.36. This is in the better half of the industry: DAP outperforms 77.78% of its industry peers.
DAP has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.31, DAP belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 4.28 |
ROIC/WACC0.59
WACC10.18%
2.3 Liquidity
A Current Ratio of 1.43 indicates that DAP should not have too much problems paying its short term obligations.
The Current ratio of DAP (1.43) is worse than 61.11% of its industry peers.
DAP has a Quick Ratio of 1.05. 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 worse Quick ratio (1.05) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The earnings per share for DAP have decreased by -7.80% in the last year.
DAP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.77% yearly.
The Revenue has been growing slightly by 0.35% in the past year.
The Revenue has been growing slightly by 5.92% on average over the past years.
EPS 1Y (TTM)-7.8%
EPS 3Y-9.37%
EPS 5Y9.77%
EPS Q2Q%-2.08%
Revenue 1Y (TTM)0.35%
Revenue growth 3Y-1.26%
Revenue growth 5Y5.92%
Sales Q2Q%-0.95%
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 9.29% yearly.
Based on estimates for the next years, DAP will show a small growth in Revenue. The Revenue will grow by 5.59% on average per year.
EPS Next Y3.82%
EPS Next 2Y7.48%
EPS Next 3Y8.44%
EPS Next 5Y9.29%
Revenue Next Year3.15%
Revenue Next 2Y4.83%
Revenue Next 3Y5.48%
Revenue Next 5Y5.59%
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
The Price/Earnings ratio is 25.81, which means the current valuation is very expensive for DAP.
Based on the Price/Earnings ratio, DAP is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DAP to the average of the S&P500 Index (26.31), we can say DAP is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 22.22, the valuation of DAP can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DAP is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.06. DAP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.81 | ||
| Fwd PE | 22.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DAP is valued a bit more expensive than the industry average as 61.11% of the companies are valued more cheaply.
DAP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.07 | ||
| EV/EBITDA | 20.26 |
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.
DAP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.77
PEG (5Y)2.64
EPS Next 2Y7.48%
EPS Next 3Y8.44%
5. Dividend
5.1 Amount
DAP has a yearly dividend return of 0.67%, which is pretty low.
Compared to an average industry Dividend Yield of 0.87, DAP pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.67, DAP pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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
20.85% of the earnings are spent on dividend by DAP. This is a low number and sustainable payout ratio.
The dividend of DAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP20.85%
EPS Next 2Y7.48%
EPS Next 3Y8.44%
FRA:DAP (6/6/2025, 10:30:31 AM)
168.31
-0.33 (-0.2%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.31%
Inst Owner ChangeN/A
Ins Owners10.97%
Ins Owner ChangeN/A
Market Cap120.45B
Analysts85
Price Target221.39 (31.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend0.93
Dividend Growth(5Y)6.91%
DP20.85%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.69%
Min EPS beat(2)-1.93%
Max EPS beat(2)13.3%
EPS beat(4)3
Avg EPS beat(4)6.89%
Min EPS beat(4)-1.93%
Max EPS beat(4)13.3%
EPS beat(8)7
Avg EPS beat(8)6.95%
EPS beat(12)11
Avg EPS beat(12)8.3%
EPS beat(16)15
Avg EPS beat(16)8.48%
Revenue beat(2)2
Avg Revenue beat(2)1.18%
Min Revenue beat(2)0.66%
Max Revenue beat(2)1.7%
Revenue beat(4)4
Avg Revenue beat(4)1.72%
Min Revenue beat(4)0.66%
Max Revenue beat(4)2.75%
Revenue beat(8)7
Avg Revenue beat(8)1.86%
Revenue beat(12)9
Avg Revenue beat(12)-3.82%
Revenue beat(16)12
Avg Revenue beat(16)-5.8%
PT rev (1m)-0.48%
PT rev (3m)-18.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.92%
EPS NY rev (1m)0.29%
EPS NY rev (3m)0.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.81 | ||
| Fwd PE | 22.22 | ||
| P/S | 5.78 | ||
| P/FCF | 28.07 | ||
| P/OCF | 22.02 | ||
| P/B | 2.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.26 |
EPS(TTM)6.52
EY3.87%
EPS(NY)7.58
Fwd EY4.5%
FCF(TTM)6
FCFY3.56%
OCF(TTM)7.64
OCFY4.54%
SpS29.14
BVpS62.2
TBVpS-11.86
PEG (NY)6.77
PEG (5Y)2.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 7.4% | ||
| ROCE | 7.12% | ||
| ROIC | 5.97% | ||
| ROICexc | 6.14% | ||
| ROICexgc | 43.53% | ||
| OM | 21.67% | ||
| PM (TTM) | 15.81% | ||
| GM | 59.8% | ||
| FCFM | 20.58% |
ROA(3y)6.35%
ROA(5y)6.24%
ROE(3y)10.31%
ROE(5y)10.73%
ROIC(3y)6.76%
ROIC(5y)6.52%
ROICexc(3y)7.22%
ROICexc(5y)6.94%
ROICexgc(3y)54.83%
ROICexgc(5y)57.37%
ROCE(3y)8.07%
ROCE(5y)7.78%
ROICexcg growth 3Y-10.53%
ROICexcg growth 5Y-4.54%
ROICexc growth 3Y-4.88%
ROICexc growth 5Y-2.88%
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%
F-Score6
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.36 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 57.11% | ||
| Cap/Sales | 5.65% | ||
| Interest Coverage | 13.2 | ||
| Cash Conversion | 83.11% | ||
| Profit Quality | 130.2% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 4.28 |
F-Score6
WACC10.18%
ROIC/WACC0.59
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)-7.8%
EPS 3Y-9.37%
EPS 5Y9.77%
EPS Q2Q%-2.08%
EPS Next Y3.82%
EPS Next 2Y7.48%
EPS Next 3Y8.44%
EPS Next 5Y9.29%
Revenue 1Y (TTM)0.35%
Revenue growth 3Y-1.26%
Revenue growth 5Y5.92%
Sales Q2Q%-0.95%
Revenue Next Year3.15%
Revenue Next 2Y4.83%
Revenue Next 3Y5.48%
Revenue Next 5Y5.59%
EBIT growth 1Y3.28%
EBIT growth 3Y-6.57%
EBIT growth 5Y9.77%
EBIT Next Year11.73%
EBIT Next 3Y9.92%
EBIT Next 5Y9.84%
FCF growth 1Y-33.04%
FCF growth 3Y-9.16%
FCF growth 5Y9.82%
OCF growth 1Y-26.48%
OCF growth 3Y-7.16%
OCF growth 5Y11.1%