DANAHER CORP (DHR)
US2358511028 - Common Stock
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 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.
Each year in the past 5 years DHR has been profitable.
Each year in the past 5 years DHR had a positive operating cash flow.
1.2 Ratios
DHR has a better Return On Assets (9.95%) than 88.14% of its industry peers.
Looking at the Return On Equity, with a value of 15.72%, DHR belongs to the top of the industry, outperforming 89.83% of the companies in the same industry.
DHR's Return On Invested Capital of 11.25% is amongst the best of the industry. DHR outperforms 89.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DHR is below the industry average of 9.62%.
The 3 year average ROIC (7.28%) for DHR is below the current ROIC(11.25%), indicating increased profibility in the last year.
| Industry Rank | Sector 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
DHR has a Profit Margin of 18.65%. This is amongst the best in the industry. DHR outperforms 91.53% of its industry peers.
DHR's Profit Margin has improved in the last couple of years.
DHR's Operating Margin of 22.08% is amongst the best of the industry. DHR outperforms 89.83% 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 58.65%, DHR is in the better half of the industry, outperforming 76.27% of the companies in the same industry.
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 | 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DHR is destroying value.
DHR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DHR has been increased compared to 5 years ago.
DHR has a better debt/assets ratio than last year.
2.2 Solvency
DHR has an Altman-Z score of 5.21. This indicates that DHR is financially healthy and has little risk of bankruptcy at the moment.
DHR has a Altman-Z score of 5.21. This is in the better half of the industry: DHR outperforms 76.27% of its industry peers.
The Debt to FCF ratio of DHR is 3.18, which is a good value as it means it would take DHR, 3.18 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DHR (3.18) is better than 84.75% of its industry peers.
DHR has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
DHR's Debt to Equity ratio of 0.31 is in line compared to the rest of the industry. DHR outperforms 40.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.18 | ||
| Altman-Z | 5.21 |
ROIC/WACC0.95
WACC11.85%
2.3 Liquidity
A Current Ratio of 1.68 indicates that DHR should not have too much problems paying its short term obligations.
The Current ratio of DHR (1.68) is worse than 74.58% of its industry peers.
DHR has a Quick Ratio of 1.37. This is a normal value and indicates that DHR is financially healthy and should not expect problems in meeting 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.37 |
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.
Looking at the last year, DHR shows a very strong growth in Revenue. 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
DHR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.76% yearly.
DHR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.53% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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. Valuation
4.1 Price/Earnings Ratio
DHR is valuated quite expensively with a Price/Earnings ratio of 28.94.
Based on the Price/Earnings ratio, DHR is valued a bit cheaper than the industry average as 77.97% of the companies are valued more expensively.
DHR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 32.06, DHR can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, DHR is valued a bit cheaper than the industry average as 71.19% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.49. DHR is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.94 | ||
| Fwd PE | 32.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DHR is valued cheaply inside the industry as 93.22% 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 79.66% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.59 | ||
| EV/EBITDA | 16.05 |
4.3 Compensation for Growth
DHR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.14
EPS Next 2Y1.34%
EPS Next 3Y4.51%
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 0.68. DHR pays more dividend than 93.22% of the companies in the same industry.
With a Dividend Yield of 0.43, DHR pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
The dividend of DHR is nicely growing with an annual growth rate of 12.55%!
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)12.55%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
DHR pays out 9.77% of its income as dividend. This is a sustainable payout ratio.
DHR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP9.77%
EPS Next 2Y1.34%
EPS Next 3Y4.51%
DANAHER CORP
NYSE:DHR (4/26/2024, 5:30:00 PM)
After market: 246.58 0 (0%)246.58
+0.78 (+0.32%)
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 Cap182.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.94 | ||
| Fwd PE | 32.06 | ||
| 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)2.14
Profitability
| Industry Rank | Sector 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 Rank | Sector 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