DANAHER CORP (DHR)
US2358511028 - Common Stock
DHR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 56 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 valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year DHR was profitable.
DHR had a positive operating cash flow in the past year.
In the past 5 years DHR has always been profitable.
DHR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DHR's Return On Assets of 4.83% is amongst the best of the industry. DHR outperforms 80.36% of its industry peers.
With a decent Return On Equity value of 7.59%, DHR is doing good in the industry, outperforming 76.79% of the companies in the same industry.
DHR has a better Return On Invested Capital (5.25%) than 73.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DHR is below the industry average of 9.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 7.59% | ||
| ROIC | 5.25% |
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
Looking at the Profit Margin, with a value of 18.32%, DHR belongs to the top of the industry, outperforming 94.64% of the companies in the same industry.
DHR's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 21.00%, DHR belongs to the best of the industry, outperforming 91.07% of the companies in the same industry.
In the last couple of years the Operating Margin of DHR has grown nicely.
Looking at the Gross Margin, with a value of 59.52%, DHR belongs to the top of the industry, outperforming 83.93% 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 | 21% | ||
| PM (TTM) | 18.32% | ||
| GM | 59.52% |
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.
Compared to 1 year ago, DHR has more shares outstanding
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
An Altman-Z score of 4.61 indicates that DHR is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.61, DHR is doing good in the industry, outperforming 73.21% of the companies in the same industry.
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 Debt to FCF ratio of 3.50. This is amongst the best in the industry. DHR outperforms 80.36% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that DHR is not too dependend on debt financing.
DHR has a Debt to Equity ratio (0.32) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.5 | ||
| Altman-Z | 4.61 |
ROIC/WACC0.46
WACC11.28%
2.3 Liquidity
A Current Ratio of 1.37 indicates that DHR should not have too much problems paying its short term obligations.
DHR's Current ratio of 1.37 is on the low side compared to the rest of the industry. DHR is outperformed by 80.36% of its industry peers.
A Quick Ratio of 1.01 indicates that DHR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.01, DHR is doing worse than 76.79% of the companies in the same industry.
DHR does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.37 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The earnings per share for DHR have decreased strongly by -20.00% in the last year.
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 decrease in Revenue. In the last year, the revenue decreased by -9.66%.
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)-20%
EPS 3Y10.64%
EPS 5Y13.52%
EPS Q2Q%-15.35%
Revenue 1Y (TTM)-9.66%
Revenue growth 3Y2.35%
Revenue growth 5Y6.98%
Sales Q2Q%-15.64%
3.2 Future
The Earnings Per Share is expected to grow by 7.92% on average over the next years.
The Revenue is expected to grow by 3.83% on average over the next years.
EPS Next Y-11.1%
EPS Next 2Y-0.28%
EPS Next 3Y3.61%
EPS Next 5Y7.92%
Revenue Next Year-11.89%
Revenue Next 2Y-3.38%
Revenue Next 3Y0.16%
Revenue Next 5Y3.83%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.86, the valuation of DHR can be described as expensive.
Based on the Price/Earnings ratio, DHR is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
DHR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.42.
DHR is valuated quite expensively with a Price/Forward Earnings ratio of 27.10.
DHR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DHR is cheaper than 73.21% of the companies in the same industry.
DHR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.93, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.86 | ||
| Fwd PE | 27.1 |
4.2 Price Multiples
71.43% of the companies in the same industry are more expensive than DHR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DHR is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.1 | ||
| EV/EBITDA | 26.74 |
4.3 Compensation for Growth
The excellent profitability rating of DHR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.28
EPS Next 2Y-0.28%
EPS Next 3Y3.61%
5. Dividend
5.1 Amount
DHR has a yearly dividend return of 0.45%, which is pretty low.
DHR's Dividend Yield is rather good when compared to the industry average which is at 0.66. DHR pays more dividend than 94.64% of the companies in the same industry.
With a Dividend Yield of 0.45, DHR pays less dividend than the S&P500 average, which is at 2.16.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
On average, the dividend of DHR grows each year by 12.53%, 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)12.53%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
DHR pays out 19.86% 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.
DP19.86%
EPS Next 2Y-0.28%
EPS Next 3Y3.61%
DANAHER CORP
NYSE:DHR (12/6/2024, 2:32:07 PM)
229.585
+1.72 (+0.75%)
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 Cap165.82B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 30.86 | ||
| Fwd PE | 27.1 | ||
| 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)2.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 7.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21% | ||
| PM (TTM) | 18.32% | ||
| GM | 59.52% | ||
| 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 Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.01 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-20%
EPS 3Y10.64%
EPS 5Y
EPS Q2Q%
EPS Next Y-11.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.66%
Revenue growth 3Y2.35%
Revenue growth 5Y
Sales 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