DANAHER CORP (DHR) Stock Fundamental Analysis
USA - NYSE:DHR - US2358511028 - Common Stock
221.29 USD
+1.89 (+0.86%)
DHR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 58 industry peers in the Life Sciences Tools & Services industry. While DHR has a great profitability rating, 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
DHR had positive earnings in the past year.
In the past year DHR had a positive cash flow from operations.
In the past 5 years DHR has always been profitable.
In the past 5 years DHR always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.38%, DHR is doing good in the industry, outperforming 77.59% of the companies in the same industry.
DHR has a Return On Equity of 6.86%. This is in the better half of the industry: DHR outperforms 77.59% of its industry peers.
DHR has a Return On Invested Capital of 5.38%. This is in the better half of the industry: DHR outperforms 72.41% 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 13.50%.
| 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
DHR has a Profit Margin of 14.43%. This is amongst the best in the industry. DHR outperforms 82.76% 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 84.48% of its industry peers.
DHR's Operating Margin has improved in the last couple of years.
DHR's Gross Margin of 59.59% is fine compared to the rest of the industry. DHR outperforms 77.59% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DHR is destroying value.
DHR has less shares outstanding than it did 1 year ago.
DHR has more shares outstanding than it did 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 4.62. This indicates that DHR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DHR (4.62) is better than 81.03% of its industry peers.
The Debt to FCF ratio of DHR is 3.36, which is a good value as it means it would take DHR, 3.36 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.36, DHR belongs to the best of the industry, outperforming 81.03% of the companies in the same industry.
DHR has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
DHR's Debt to Equity ratio of 0.33 is in line compared to the rest of the industry. DHR outperforms 48.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 4.62 |
ROIC/WACC0.54
WACC9.97%
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.
Looking at the Current ratio, with a value of 1.52, DHR is doing worse than 72.41% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that DHR should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.10, DHR is not doing good in the industry: 72.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.63% over the past year.
DHR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.77% yearly.
Looking at the last year, DHR shows a small growth in Revenue. The Revenue has grown by 2.22% in the last 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
The Earnings Per Share is expected to grow by 8.73% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.85% on average over the next years.
EPS Next Y4.06%
EPS Next 2Y6.52%
EPS Next 3Y7.91%
EPS Next 5Y8.73%
Revenue Next Year3.11%
Revenue Next 2Y3.55%
Revenue Next 3Y4.48%
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
A Price/Earnings ratio of 28.70 indicates a quite expensive valuation of DHR.
Based on the Price/Earnings ratio, DHR is valued a bit cheaper than 74.14% of the companies in the same industry.
DHR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.34.
Based on the Price/Forward Earnings ratio of 26.04, 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 77.59% of the companies are valued more expensively.
DHR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.7 | ||
| Fwd PE | 26.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DHR is valued a bit cheaper than 74.14% of the companies in the same industry.
DHR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DHR is cheaper than 74.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.58 | ||
| EV/EBITDA | 24.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DHR does not grow enough to justify the current Price/Earnings ratio.
DHR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)7.07
PEG (5Y)2.94
EPS Next 2Y6.52%
EPS Next 3Y7.91%
5. Dividend
5.1 Amount
With a yearly dividend of 0.61%, DHR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.48, DHR pays a better dividend. On top of this DHR pays more dividend than 96.55% of the companies listed in the same industry.
With a Dividend Yield of 0.61, DHR pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
The dividend of DHR is nicely growing with an annual growth rate of 6.91%!
DHR has paid a dividend for at least 10 years, which is 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 2Y6.52%
EPS Next 3Y7.91%
NYSE:DHR (11/13/2025, 3:48:09 PM)
221.29
+1.89 (+0.86%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners82.47%
Inst Owner Change1.37%
Ins Owners10.82%
Ins Owner Change-29.58%
Market Cap158.45B
Revenue(TTM)24.27B
Net Income(TTM)3.50B
Analysts85.52
Price Target259.3 (17.18%)
Short Float %1.25%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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)5.17%
PT rev (3m)4.11%
EPS NQ rev (1m)-10.34%
EPS NQ rev (3m)-11.6%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)-3.48%
Revenue NQ rev (3m)-3.57%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.7 | ||
| Fwd PE | 26.04 | ||
| P/S | 6.53 | ||
| P/FCF | 31.58 | ||
| P/OCF | 25.08 | ||
| P/B | 3.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.13 |
EPS(TTM)7.71
EY3.48%
EPS(NY)8.5
Fwd EY3.84%
FCF(TTM)7.01
FCFY3.17%
OCF(TTM)8.82
OCFY3.99%
SpS33.89
BVpS71.32
TBVpS-13.93
PEG (NY)7.07
PEG (5Y)2.94
Graham Number111.23
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 | 4.62 |
F-Score7
WACC9.97%
ROIC/WACC0.54
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 Y4.06%
EPS Next 2Y6.52%
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 Year3.11%
Revenue Next 2Y3.55%
Revenue Next 3Y4.48%
Revenue Next 5Y4.85%
EBIT growth 1Y-6.45%
EBIT growth 3Y-6.57%
EBIT growth 5Y9.77%
EBIT Next Year11.5%
EBIT Next 3Y9.71%
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%.