DANAHER CORP (DHR) Stock Fundamental Analysis
NYSE:DHR - New York Stock Exchange, Inc. - US2358511028 - Common Stock - Currency: USD
DHR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 55 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 has a correct valuation and a medium 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.
DHR had positive earnings in each of the past 5 years.
Each year in the past 5 years DHR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DHR (4.76%) is better than 78.18% of its industry peers.
With a decent Return On Equity value of 7.40%, DHR is doing good in the industry, outperforming 78.18% of the companies in the same industry.
DHR has a better Return On Invested Capital (5.97%) than 70.91% 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 13.60%.
| 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
Looking at the Profit Margin, with a value of 15.81%, DHR belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
DHR's Profit Margin has been stable in the last couple of years.
DHR's Operating Margin of 21.67% is amongst the best of the industry. DHR outperforms 90.91% of its industry peers.
In the last couple of years the Operating Margin of DHR has grown nicely.
DHR has a Gross Margin of 59.80%. This is in the better half of the industry: DHR outperforms 78.18% of its industry peers.
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 | 21.67% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DHR is destroying value.
Compared to 1 year ago, DHR has less shares outstanding
The number of shares outstanding for DHR has been increased compared to 5 years ago.
The debt/assets ratio for DHR has been reduced compared to a year ago.
2.2 Solvency
DHR has an Altman-Z score of 4.43. This indicates that DHR is financially healthy and has little risk of bankruptcy at the moment.
DHR's Altman-Z score of 4.43 is fine compared to the rest of the industry. DHR outperforms 78.18% 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.
The Debt to FCF ratio of DHR (3.36) is better than 74.55% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that DHR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.31, DHR is in line with its industry, outperforming 52.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 4.43 |
ROIC/WACC0.61
WACC9.74%
2.3 Liquidity
DHR has a Current Ratio of 1.43. 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 Current ratio of 1.43. This is in the lower half of the industry: DHR underperforms 74.55% of its industry peers.
DHR has a Quick Ratio of 1.05. This is a normal value and indicates that DHR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.05, DHR is doing worse than 78.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
DHR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.80%.
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.
DHR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.35%.
DHR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.92% yearly.
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
Based on estimates for the next years, DHR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.96% on average per year.
The Revenue is expected to grow by 5.96% on average over the next years.
EPS Next Y3.84%
EPS Next 2Y7.45%
EPS Next 3Y8.44%
EPS Next 5Y8.96%
Revenue Next Year2.95%
Revenue Next 2Y4.68%
Revenue Next 3Y5.52%
Revenue Next 5Y5.96%
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
DHR is valuated quite expensively with a Price/Earnings ratio of 27.28.
Compared to the rest of the industry, the Price/Earnings ratio of DHR indicates a somewhat cheap valuation: DHR is cheaper than 72.73% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.28, DHR is valued at the same level.
With a Price/Forward Earnings ratio of 23.50, DHR is valued on the expensive side.
Based on the Price/Forward Earnings ratio, DHR is valued a bit cheaper than 76.36% 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 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.28 | ||
| Fwd PE | 23.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DHR indicates a somewhat cheap valuation: DHR is cheaper than 72.73% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DHR is valued a bit cheaper than the industry average as 70.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.67 | ||
| EV/EBITDA | 21.2 |
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)7.11
PEG (5Y)2.79
EPS Next 2Y7.45%
EPS Next 3Y8.44%
5. Dividend
5.1 Amount
DHR has a yearly dividend return of 0.64%, which is pretty low.
Compared to an average industry Dividend Yield of 0.51, DHR pays a better dividend. On top of this DHR pays more dividend than 96.36% of the companies listed in the same industry.
With a Dividend Yield of 0.64, DHR pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
The dividend of DHR is nicely growing with an annual growth rate of 6.91%!
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 Years8
Div Non Decr Years8
5.3 Sustainability
20.85% 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.
DP20.85%
EPS Next 2Y7.45%
EPS Next 3Y8.44%
203.2
+0.7 (+0.35%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners82.15%
Inst Owner Change0.54%
Ins Owners10.83%
Ins Owner Change-18.79%
Market Cap145.42B
Analysts85
Price Target248.21 (22.15%)
Short Float %1.21%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend1.05
Dividend Growth(5Y)6.91%
DP20.85%
Div Incr Years8
Div Non Decr Years8
Ex-Date
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)-0.03%
PT rev (3m)-8.29%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-6.48%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.28 | ||
| Fwd PE | 23.5 | ||
| P/S | 6.11 | ||
| P/FCF | 29.67 | ||
| P/OCF | 23.28 | ||
| P/B | 2.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.2 |
EPS(TTM)7.45
EY3.67%
EPS(NY)8.65
Fwd EY4.26%
FCF(TTM)6.85
FCFY3.37%
OCF(TTM)8.73
OCFY4.3%
SpS33.28
BVpS71.05
TBVpS-13.54
PEG (NY)7.11
PEG (5Y)2.79
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 | 4.43 |
F-Score6
WACC9.74%
ROIC/WACC0.61
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 Y3.84%
EPS Next 2Y7.45%
EPS Next 3Y8.44%
EPS Next 5Y8.96%
Revenue 1Y (TTM)0.35%
Revenue growth 3Y-1.26%
Revenue growth 5Y5.92%
Sales Q2Q%-0.95%
Revenue Next Year2.95%
Revenue Next 2Y4.68%
Revenue Next 3Y5.52%
Revenue Next 5Y5.96%
EBIT growth 1Y3.28%
EBIT growth 3Y-6.57%
EBIT growth 5Y9.77%
EBIT Next Year11.73%
EBIT Next 3Y9.92%
EBIT Next 5Y10.23%
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%