DANAHER CORP (DHR)

US2358511028 - Common Stock

250.41  -2.7 (-1.07%)

After market: 251.75 +1.34 (+0.54%)

Fundamental Rating

6

Taking everything into account, DHR scores 6 out of 10 in our fundamental rating. DHR was compared to 59 industry peers in the Life Sciences Tools & Services industry. While DHR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DHR is not valued too expensively and it also shows a decent growth rate.



8

1. Profitability

1.1 Basic Checks

DHR had positive earnings in the past year.
In the past year DHR had a positive cash flow from operations.
Each year in the past 5 years DHR has been profitable.
DHR had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

DHR has a Return On Assets of 9.95%. This is amongst the best in the industry. DHR outperforms 88.14% of its industry peers.
DHR has a Return On Equity of 15.72%. This is amongst the best in the industry. DHR outperforms 89.83% of its industry peers.
With an excellent Return On Invested Capital value of 11.25%, DHR belongs to the best of the industry, outperforming 89.83% of the companies in the same industry.
DHR had an Average Return On Invested Capital over the past 3 years of 7.28%. This is below the industry average of 9.75%.
The last Return On Invested Capital (11.25%) for DHR is above the 3 year average (7.28%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 9.95%
ROE 15.72%
ROIC 11.25%
ROA(3y)7.19%
ROA(5y)6.18%
ROE(3y)12.31%
ROE(5y)11.09%
ROIC(3y)7.28%
ROIC(5y)6.41%

1.3 Margins

The Profit Margin of DHR (18.65%) is better than 91.53% of its industry peers.
In the last couple of years the Profit Margin of DHR has grown nicely.
DHR has a better Operating Margin (22.08%) than 89.83% of its industry peers.
In the last couple of years the Operating Margin of DHR has grown nicely.
DHR's Gross Margin of 58.65% is fine compared to the rest of the industry. DHR outperforms 76.27% 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 RankSector Rank
OM 22.08%
PM (TTM) 18.65%
GM 58.65%
OM growth 3Y5.19%
OM growth 5Y4.28%
PM growth 3Y8.02%
PM growth 5Y5.01%
GM growth 3Y1.62%
GM growth 5Y1.05%

6

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.
Compared to 1 year ago, DHR has more 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

An Altman-Z score of 5.27 indicates that DHR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.27, DHR is in the better half of the industry, outperforming 74.58% of the companies in the same industry.
DHR has a debt to FCF ratio of 3.18. This is a good value and a sign of high solvency as DHR would need 3.18 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.18, DHR belongs to the best of the industry, outperforming 84.75% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that DHR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.31, DHR perfoms like the industry average, outperforming 40.68% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.31
Debt/FCF 3.18
Altman-Z 5.27
ROIC/WACC0.95
WACC11.79%

2.3 Liquidity

DHR has a Current Ratio of 1.68. 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 1.68 is on the low side compared to the rest of the industry. DHR is outperformed by 74.58% of its industry peers.
A Quick Ratio of 1.37 indicates that DHR should not have too much problems paying its short term obligations.
The Quick ratio of DHR (1.37) is worse than 74.58% of its industry peers.
The current and quick ratio evaluation for DHR is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.68
Quick Ratio 1.37

4

3. Growth

3.1 Past

DHR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.19%.
Measured over the past years, DHR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.52% on average per year.
DHR shows a strong growth in Revenue. In the last year, the Revenue has grown by 43.27%.
Measured over the past years, DHR shows a small growth in Revenue. The Revenue has been growing by 6.98% on average per year.
EPS 1Y (TTM)-22.19%
EPS 3Y10.64%
EPS 5Y13.52%
EPS growth Q2Q-27.18%
Revenue 1Y (TTM)43.27%
Revenue growth 3Y2.35%
Revenue growth 5Y6.98%
Revenue growth Q2Q185.46%

3.2 Future

The Earnings Per Share is expected to grow by 7.76% on average over the next years.
Based on estimates for the next years, DHR will show a small growth in Revenue. The Revenue will grow by 4.53% on average per year.
EPS Next Y-9.72%
EPS Next 2Y1.34%
EPS Next 3Y4.51%
EPS Next 5Y7.76%
Revenue Next Year-10.75%
Revenue Next 2Y-1.64%
Revenue Next 3Y1.52%
Revenue Next 5Y4.53%

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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 29.39 indicates a quite expensive valuation of DHR.
77.97% of the companies in the same industry are more expensive than DHR, based on the Price/Earnings ratio.
DHR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 32.55, the valuation of DHR can be described as expensive.
Based on the Price/Forward Earnings ratio, DHR is valued a bit cheaper than the industry average as 72.88% of the companies are valued more expensively.
DHR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.67.
Industry RankSector Rank
PE 29.39
Fwd PE 32.55

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, DHR is valued cheaper than 93.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DHR is valued a bit cheaper than the industry average as 77.97% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 32.08
EV/EBITDA 16.33

4.3 Compensation for Growth

The excellent profitability rating of DHR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.17
EPS Next 2Y1.34%
EPS Next 3Y4.51%

5

5. Dividend

5.1 Amount

DHR has a yearly dividend return of 0.43%, which is pretty low.
DHR's Dividend Yield is rather good when compared to the industry average which is at 0.69. DHR pays more dividend than 93.22% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, DHR's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.43%

5.2 History

On average, the dividend of DHR grows each year by 12.55%, 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)12.55%
Div Incr Years6
Div Non Decr Years6

5.3 Sustainability

9.77% 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 the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.77%
EPS Next 2Y1.34%
EPS Next 3Y4.51%

DANAHER CORP

NYSE:DHR (4/24/2024, 7:04:00 PM)

After market: 251.75 +1.34 (+0.54%)

250.41

-2.7 (-1.07%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap185.44B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.43%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 29.39
Fwd PE 32.55
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.17
Profitability
Industry RankSector Rank
ROA 9.95%
ROE 15.72%
ROCE
ROIC
ROICexc
ROICexgc
OM 22.08%
PM (TTM) 18.65%
GM 58.65%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
Industry RankSector Rank
Debt/Equity 0.31
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.68
Quick Ratio 1.37
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-22.19%
EPS 3Y10.64%
EPS 5Y
EPS growth Q2Q
EPS Next Y-9.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)43.27%
Revenue growth 3Y2.35%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y