DANAHER CORP (DHR) Fundamental Analysis & Valuation
NYSE:DHR • US2358511028
186.26 USD
-8.8 (-4.51%)
At close: Mar 12, 2026
186.96 USD
+0.7 (+0.38%)
After Hours: 3/12/2026, 8:04:00 PM
This DHR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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 has an excellent profitability rating, but there are some minor concerns on its financial health. DHR has a correct valuation and a medium growth rate.
1. DHR Profitability Analysis
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.
- Each year in the past 5 years DHR had a positive operating cash flow.
1.2 Ratios
- DHR's Return On Assets of 4.33% is fine compared to the rest of the industry. DHR outperforms 75.44% of its industry peers.
- DHR has a better Return On Equity (6.88%) than 75.44% of its industry peers.
- DHR has a Return On Invested Capital of 5.20%. This is in the better half of the industry: DHR outperforms 73.68% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DHR is significantly below the industry average of 11.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.33% | ||
| ROE | 6.88% | ||
| ROIC | 5.2% |
ROA(3y)4.99%
ROA(5y)6.19%
ROE(3y)7.87%
ROE(5y)10.34%
ROIC(3y)6%
ROIC(5y)6.72%
1.3 Margins
- DHR has a better Profit Margin (14.71%) than 80.70% 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's Operating Margin of 19.21% is amongst the best of the industry. DHR outperforms 84.21% of its industry peers.
- In the last couple of years the Operating Margin of DHR has grown nicely.
- DHR's Gross Margin of 59.23% is fine compared to the rest of the industry. DHR outperforms 75.44% of its industry peers.
- DHR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.21% | ||
| PM (TTM) | 14.71% | ||
| GM | 59.23% |
OM growth 3Y-8.17%
OM growth 5Y2.9%
PM growth 3Y-17.98%
PM growth 5Y-1.36%
GM growth 3Y-0.85%
GM growth 5Y1.13%
2. DHR Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DHR is destroying value.
- DHR has less shares outstanding than it did 1 year ago.
- DHR has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, DHR has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.91 indicates that DHR is not in any danger for bankruptcy at the moment.
- DHR has a better Altman-Z score (3.91) than 80.70% of its industry peers.
- DHR has a debt to FCF ratio of 3.50. This is a good value and a sign of high solvency as DHR would need 3.50 years to pay back of all of its debts.
- DHR has a better Debt to FCF ratio (3.50) than 78.95% of its industry peers.
- DHR has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
- DHR has a Debt to Equity ratio (0.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.5 | ||
| Altman-Z | 3.91 |
ROIC/WACC0.49
WACC10.54%
2.3 Liquidity
- DHR has a Current Ratio of 1.87. 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 1.87, DHR is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- A Quick Ratio of 1.51 indicates that DHR should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.51, DHR is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.51 |
3. DHR Growth Analysis
3.1 Past
- DHR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.14%.
- The Earnings Per Share has been growing slightly by 4.40% on average over the past years.
- The Revenue has been growing slightly by 2.90% in the past year.
- Measured over the past years, DHR shows a small growth in Revenue. The Revenue has been growing by 1.97% on average per year.
EPS 1Y (TTM)4.14%
EPS 3Y-10.69%
EPS 5Y4.4%
EPS Q2Q%4.21%
Revenue 1Y (TTM)2.9%
Revenue growth 3Y-2.67%
Revenue growth 5Y1.97%
Sales Q2Q%4.59%
3.2 Future
- DHR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.81% yearly.
- DHR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.43% yearly.
EPS Next Y8.87%
EPS Next 2Y8.68%
EPS Next 3Y9.22%
EPS Next 5Y9.81%
Revenue Next Year4.44%
Revenue Next 2Y5.14%
Revenue Next 3Y5.69%
Revenue Next 5Y5.43%
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 accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. DHR Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 23.88, the valuation of DHR can be described as rather expensive.
- Based on the Price/Earnings ratio, DHR is valued a bit cheaper than the industry average as 75.44% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of DHR to the average of the S&P500 Index (25.71), we can say DHR is valued inline with the index average.
- With a Price/Forward Earnings ratio of 21.93, DHR is valued on the expensive side.
- DHR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DHR is cheaper than 73.68% of the companies in the same industry.
- DHR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.88 | ||
| Fwd PE | 21.93 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DHR is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- DHR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DHR is cheaper than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.04 | ||
| EV/EBITDA | 20.31 |
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 decent profitability rating of DHR may justify a higher PE ratio.
PEG (NY)2.69
PEG (5Y)5.43
EPS Next 2Y8.68%
EPS Next 3Y9.22%
5. DHR Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.79%, 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 0.10. DHR pays more dividend than 98.25% of the companies in the same industry.
- With a Dividend Yield of 0.79, DHR pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
- On average, the dividend of DHR grows each year by 7.08%, 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)7.08%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
- 24.29% of the earnings are spent on dividend by DHR. This is a low number and sustainable payout ratio.
- DHR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP24.29%
EPS Next 2Y8.68%
EPS Next 3Y9.22%
DHR Fundamentals: All Metrics, Ratios and Statistics
186.26
-8.8 (-4.51%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)01-28 2026-01-28/bmo
Earnings (Next)04-20 2026-04-20/bmo
Inst Owners84.19%
Inst Owner Change3.11%
Ins Owners10.81%
Ins Owner Change-17.72%
Market Cap131.71B
Revenue(TTM)24.57B
Net Income(TTM)3.61B
Analysts84.67
Price Target268.58 (44.2%)
Short Float %1.12%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend1.23
Dividend Growth(5Y)7.08%
DP24.29%
Div Incr Years8
Div Non Decr Years8
Ex-Date03-27 2026-03-27 (0.4)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.65%
Min EPS beat(2)2.56%
Max EPS beat(2)8.74%
EPS beat(4)4
Avg EPS beat(4)8.26%
Min EPS beat(4)2.56%
Max EPS beat(4)13.3%
EPS beat(8)7
Avg EPS beat(8)7.31%
EPS beat(12)11
Avg EPS beat(12)6.6%
EPS beat(16)15
Avg EPS beat(16)7.62%
Revenue beat(2)0
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)-0.23%
Revenue beat(4)2
Avg Revenue beat(4)0.41%
Min Revenue beat(4)-0.52%
Max Revenue beat(4)1.7%
Revenue beat(8)6
Avg Revenue beat(8)1.11%
Revenue beat(12)8
Avg Revenue beat(12)-0.11%
Revenue beat(16)11
Avg Revenue beat(16)-2.81%
PT rev (1m)-0.09%
PT rev (3m)2.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.18%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.88 | ||
| Fwd PE | 21.93 | ||
| P/S | 5.36 | ||
| P/FCF | 25.04 | ||
| P/OCF | 20.53 | ||
| P/B | 2.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.31 |
EPS(TTM)7.8
EY4.19%
EPS(NY)8.49
Fwd EY4.56%
FCF(TTM)7.44
FCFY3.99%
OCF(TTM)9.07
OCFY4.87%
SpS34.74
BVpS74.29
TBVpS-11.93
PEG (NY)2.69
PEG (5Y)5.43
Graham Number114.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.33% | ||
| ROE | 6.88% | ||
| ROCE | 6.16% | ||
| ROIC | 5.2% | ||
| ROICexc | 5.53% | ||
| ROICexgc | 36% | ||
| OM | 19.21% | ||
| PM (TTM) | 14.71% | ||
| GM | 59.23% | ||
| FCFM | 21.41% |
ROA(3y)4.99%
ROA(5y)6.19%
ROE(3y)7.87%
ROE(5y)10.34%
ROIC(3y)6%
ROIC(5y)6.72%
ROICexc(3y)6.35%
ROICexc(5y)7.12%
ROICexgc(3y)47.56%
ROICexgc(5y)54.18%
ROCE(3y)7.1%
ROCE(5y)7.95%
ROICexgc growth 3Y-13.85%
ROICexgc growth 5Y-7.11%
ROICexc growth 3Y-11.48%
ROICexc growth 5Y2.06%
OM growth 3Y-8.17%
OM growth 5Y2.9%
PM growth 3Y-17.98%
PM growth 5Y-1.36%
GM growth 3Y-0.85%
GM growth 5Y1.13%
F-Score5
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.5 | ||
| Debt/EBITDA | 2.57 | ||
| Cap/Depr | 47.24% | ||
| Cap/Sales | 4.71% | ||
| Interest Coverage | 14.26 | ||
| Cash Conversion | 89.53% | ||
| Profit Quality | 145.54% | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 3.91 |
F-Score5
WACC10.54%
ROIC/WACC0.49
Cap/Depr(3y)56.76%
Cap/Depr(5y)56.36%
Cap/Sales(3y)5.44%
Cap/Sales(5y)5.17%
Profit Quality(3y)134.42%
Profit Quality(5y)123.93%
High Growth Momentum
Growth
EPS 1Y (TTM)4.14%
EPS 3Y-10.69%
EPS 5Y4.4%
EPS Q2Q%4.21%
EPS Next Y8.87%
EPS Next 2Y8.68%
EPS Next 3Y9.22%
EPS Next 5Y9.81%
Revenue 1Y (TTM)2.9%
Revenue growth 3Y-2.67%
Revenue growth 5Y1.97%
Sales Q2Q%4.59%
Revenue Next Year4.44%
Revenue Next 2Y5.14%
Revenue Next 3Y5.69%
Revenue Next 5Y5.43%
EBIT growth 1Y-9.41%
EBIT growth 3Y-10.61%
EBIT growth 5Y4.93%
EBIT Next Year18.91%
EBIT Next 3Y11.44%
EBIT Next 5Y10.78%
FCF growth 1Y-0.68%
FCF growth 3Y-10.62%
FCF growth 5Y-0.59%
OCF growth 1Y-4.07%
OCF growth 3Y-9.02%
OCF growth 5Y0.66%
DANAHER CORP / DHR FAQ
What is the fundamental rating for DHR stock?
ChartMill assigns a fundamental rating of 6 / 10 to DHR.
What is the valuation status for DHR stock?
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.
What is the expected EPS growth for DANAHER CORP (DHR) stock?
The Earnings per Share (EPS) of DANAHER CORP (DHR) is expected to grow by 8.87% in the next year.
Is the dividend of DANAHER CORP sustainable?
The dividend rating of DANAHER CORP (DHR) is 6 / 10 and the dividend payout ratio is 24.29%.