DANAHER CORP (DHR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DHR - US2358511028 - Common Stock
230.32 USD
-1.15 (-0.5%)
230.32 USD
0 (0%)
DHR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 57 industry peers in the Life Sciences Tools & Services industry. DHR scores excellent on profitability, but there are some minor concerns on its financial health. DHR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DHR was profitable.
In the past year DHR had a positive cash flow from operations.
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
DHR's Return On Assets of 4.38% is fine compared to the rest of the industry. DHR outperforms 77.19% of its industry peers.
With a decent Return On Equity value of 6.86%, DHR is doing good in the industry, outperforming 77.19% of the companies in the same industry.
DHR's Return On Invested Capital of 5.38% is fine compared to the rest of the industry. DHR outperforms 71.93% of its industry peers.
DHR had an Average Return On Invested Capital over the past 3 years of 6.76%. This is significantly below the industry average of 13.99%.
| 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
The Profit Margin of DHR (14.43%) is better than 82.46% of its industry peers.
In the last couple of years the Profit Margin of DHR has remained more or less at the same level.
DHR has a Operating Margin of 19.48%. This is amongst the best in the industry. DHR outperforms 84.21% 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 59.59%, DHR is in the better half of the industry, outperforming 77.19% of the companies in the same industry.
DHR's Gross Margin has been stable in the last couple of years.
| 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
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
An Altman-Z score of 4.74 indicates that DHR is not in any danger for bankruptcy at the moment.
The Altman-Z score of DHR (4.74) is better than 80.70% of its industry peers.
DHR has a debt to FCF ratio of 3.36. This is a good value and a sign of high solvency as DHR would need 3.36 years to pay back of all of its debts.
DHR has a better Debt to FCF ratio (3.36) than 80.70% of its industry peers.
DHR has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
DHR has a Debt to Equity ratio (0.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 4.74 |
ROIC/WACC0.51
WACC10.52%
2.3 Liquidity
DHR has a Current Ratio of 1.52. This is a normal value and indicates that DHR is financially healthy and should not expect problems in meeting its short term obligations.
DHR's Current ratio of 1.52 is on the low side compared to the rest of the industry. DHR is outperformed by 73.68% of its industry peers.
A Quick Ratio of 1.10 indicates that DHR should not have too much problems paying its short term obligations.
DHR has a worse Quick ratio (1.10) than 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
DHR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.63%.
The Earnings Per Share has been growing by 9.77% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.22% in the past year.
Measured over the past years, DHR 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
Based on estimates for the next years, DHR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.73% on average per year.
Based on estimates for the next years, DHR will show a small growth in Revenue. The Revenue will grow by 4.85% on average per year.
EPS Next Y4.04%
EPS Next 2Y6.58%
EPS Next 3Y7.91%
EPS Next 5Y8.73%
Revenue Next Year3.14%
Revenue Next 2Y3.6%
Revenue Next 3Y4.51%
Revenue Next 5Y4.85%
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 stable.
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
With a Price/Earnings ratio of 29.87, DHR can be considered very expensive at the moment.
Based on the Price/Earnings ratio, DHR is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.92. DHR is around the same levels.
DHR is valuated quite expensively with a Price/Forward Earnings ratio of 27.07.
DHR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DHR is cheaper than 71.93% of the companies in the same industry.
DHR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.87 | ||
| Fwd PE | 27.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DHR is valued a bit cheaper than the industry average as 64.91% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DHR indicates a somewhat cheap valuation: DHR is cheaper than 73.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.43 | ||
| EV/EBITDA | 24.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DHR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)7.39
PEG (5Y)3.06
EPS Next 2Y6.58%
EPS Next 3Y7.91%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, DHR is not a good candidate for dividend investing.
DHR's Dividend Yield is rather good when compared to the industry average which is at 0.09. DHR pays more dividend than 96.49% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, DHR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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.
DHR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)6.91%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
24.18% of the earnings are spent on dividend by DHR. This is a low number and sustainable payout ratio.
The dividend of DHR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP24.18%
EPS Next 2Y6.58%
EPS Next 3Y7.91%
230.32
-1.15 (-0.5%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners83.03%
Inst Owner Change0.91%
Ins Owners10.82%
Ins Owner Change-17.42%
Market Cap162.69B
Revenue(TTM)24.27B
Net Income(TTM)3.50B
Analysts85.52
Price Target263.26 (14.3%)
Short Float %1.3%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend1.05
Dividend Growth(5Y)6.91%
DP24.18%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.58%
Min EPS beat(2)8.42%
Max EPS beat(2)8.74%
EPS beat(4)3
Avg EPS beat(4)7.13%
Min EPS beat(4)-1.93%
Max EPS beat(4)13.3%
EPS beat(8)7
Avg EPS beat(8)8.05%
EPS beat(12)11
Avg EPS beat(12)7.36%
EPS beat(16)15
Avg EPS beat(16)7.76%
Revenue beat(2)1
Avg Revenue beat(2)0.22%
Min Revenue beat(2)-0.23%
Max Revenue beat(2)0.68%
Revenue beat(4)3
Avg Revenue beat(4)0.7%
Min Revenue beat(4)-0.23%
Max Revenue beat(4)1.7%
Revenue beat(8)7
Avg Revenue beat(8)1.63%
Revenue beat(12)8
Avg Revenue beat(12)-4.71%
Revenue beat(16)11
Avg Revenue beat(16)-6.3%
PT rev (1m)1.53%
PT rev (3m)6.38%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)-9.96%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.78%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)-3.27%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.87 | ||
| Fwd PE | 27.07 | ||
| P/S | 6.7 | ||
| P/FCF | 32.43 | ||
| P/OCF | 25.75 | ||
| P/B | 3.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.91 |
EPS(TTM)7.71
EY3.35%
EPS(NY)8.51
Fwd EY3.69%
FCF(TTM)7.1
FCFY3.08%
OCF(TTM)8.94
OCFY3.88%
SpS34.36
BVpS72.3
TBVpS-14.12
PEG (NY)7.39
PEG (5Y)3.06
Graham Number111.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 6.86% | ||
| ROCE | 6.42% | ||
| ROIC | 5.38% | ||
| ROICexc | 5.5% | ||
| ROICexgc | 36.01% | ||
| OM | 19.48% | ||
| PM (TTM) | 14.43% | ||
| GM | 59.59% | ||
| FCFM | 20.67% |
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%
ROICexgc growth 3Y-10.53%
ROICexgc 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-Score7
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.36 | ||
| Debt/EBITDA | 2.36 | ||
| Cap/Depr | 53.78% | ||
| Cap/Sales | 5.36% | ||
| Interest Coverage | 14.73 | ||
| Cash Conversion | 88.41% | ||
| Profit Quality | 143.22% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 4.74 |
F-Score7
WACC10.52%
ROIC/WACC0.51
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)3.63%
EPS 3Y-9.37%
EPS 5Y9.77%
EPS Q2Q%10.53%
EPS Next Y4.04%
EPS Next 2Y6.58%
EPS Next 3Y7.91%
EPS Next 5Y8.73%
Revenue 1Y (TTM)2.22%
Revenue growth 3Y-1.26%
Revenue growth 5Y5.92%
Sales Q2Q%4.4%
Revenue Next Year3.14%
Revenue Next 2Y3.6%
Revenue Next 3Y4.51%
Revenue Next 5Y4.85%
EBIT growth 1Y-6.45%
EBIT growth 3Y-6.57%
EBIT growth 5Y9.77%
EBIT Next Year10.96%
EBIT Next 3Y8.58%
EBIT Next 5Y9.15%
FCF growth 1Y-25.96%
FCF growth 3Y-9.16%
FCF growth 5Y9.82%
OCF growth 1Y-21.86%
OCF growth 3Y-7.16%
OCF growth 5Y11.1%
DANAHER CORP / DHR FAQ
What is the fundamental rating for DHR stock?
ChartMill assigns a fundamental rating of 6 / 10 to DHR.
Can you provide the valuation status for DANAHER CORP?
ChartMill assigns a valuation rating of 4 / 10 to DANAHER CORP (DHR). This can be considered as Fairly Valued.
What is the profitability of DHR stock?
DANAHER CORP (DHR) has a profitability rating of 7 / 10.
Can you provide the financial health for DHR stock?
The financial health rating of DANAHER CORP (DHR) is 6 / 10.
Can you provide the dividend sustainability for DHR stock?
The dividend rating of DANAHER CORP (DHR) is 6 / 10 and the dividend payout ratio is 24.18%.