DANAHER CORP (DHR) Stock Fundamental Analysis
NYSE:DHR - New York Stock Exchange, Inc. - US2358511028 - Common Stock - Currency: USD
Overall DHR gets a fundamental rating of 5 out of 10. We evaluated DHR against 55 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
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.
Each year in the past 5 years DHR had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.18%, DHR is doing good in the industry, outperforming 76.36% of the companies in the same industry.
With a decent Return On Equity value of 6.52%, DHR is doing good in the industry, outperforming 76.36% of the companies in the same industry.
The Return On Invested Capital of DHR (5.32%) is better than 69.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DHR is significantly below the industry average of 15.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 6.52% | ||
| ROIC | 5.32% |
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's Profit Margin of 14.21% is amongst the best of the industry. DHR outperforms 89.09% of its industry peers.
In the last couple of years the Profit Margin of DHR has remained more or less at the same level.
With an excellent Operating Margin value of 19.79%, DHR belongs to the best of the industry, outperforming 85.45% of the companies in the same industry.
In the last couple of years the Operating Margin of DHR has grown nicely.
DHR's Gross Margin of 59.72% is fine compared to the rest of the industry. DHR outperforms 80.00% 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 | 19.79% | ||
| PM (TTM) | 14.21% | ||
| GM | 59.72% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DHR is destroying value.
DHR has less 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 4.22. This indicates that DHR is financially healthy and has little risk of bankruptcy at the moment.
DHR has a Altman-Z score of 4.22. This is in the better half of the industry: DHR outperforms 80.00% of its industry peers.
The Debt to FCF ratio of DHR is 3.57, which is a good value as it means it would take DHR, 3.57 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DHR (3.57) is better than 72.73% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that DHR is not too dependend on debt financing.
The Debt to Equity ratio of DHR (0.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 4.22 |
ROIC/WACC0.66
WACC8.1%
2.3 Liquidity
A Current Ratio of 1.62 indicates that DHR should not have too much problems paying its short term obligations.
DHR has a Current ratio of 1.62. This is in the lower half of the industry: DHR underperforms 72.73% of its industry peers.
DHR has a Quick Ratio of 1.22. 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 Quick ratio of 1.22 is on the low side compared to the rest of the industry. DHR is outperformed by 76.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
DHR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.84%.
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 1.89%.
DHR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.92% yearly.
EPS 1Y (TTM)-2.84%
EPS 3Y-9.37%
EPS 5Y9.77%
EPS Q2Q%4.65%
Revenue 1Y (TTM)1.89%
Revenue growth 3Y-1.26%
Revenue growth 5Y5.92%
Sales Q2Q%3.36%
3.2 Future
The Earnings Per Share is expected to grow by 8.96% on average over the next years. This is quite good.
Based on estimates for the next years, DHR will show a small growth in Revenue. The Revenue will grow by 5.96% on average per year.
EPS Next Y3.94%
EPS Next 2Y7.54%
EPS Next 3Y8.61%
EPS Next 5Y8.96%
Revenue Next Year3.87%
Revenue Next 2Y4.97%
Revenue Next 3Y5.64%
Revenue Next 5Y5.96%
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
DHR is valuated quite expensively with a Price/Earnings ratio of 26.17.
Compared to the rest of the industry, the Price/Earnings ratio of DHR indicates a somewhat cheap valuation: DHR is cheaper than 70.91% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.82, DHR is valued at the same level.
DHR is valuated rather expensively with a Price/Forward Earnings ratio of 22.75.
Based on the Price/Forward Earnings ratio, DHR is valued a bit cheaper than the industry average as 74.55% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DHR to the average of the S&P500 Index (36.21), we can say DHR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.17 | ||
| Fwd PE | 22.75 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DHR indicates a somewhat cheap valuation: DHR is cheaper than 65.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.03 | ||
| EV/EBITDA | 21.78 |
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)6.64
PEG (5Y)2.68
EPS Next 2Y7.54%
EPS Next 3Y8.61%
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, DHR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.52, DHR pays a better dividend. On top of this DHR pays more dividend than 96.36% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, DHR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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.
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
23.85% 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.
DP23.85%
EPS Next 2Y7.54%
EPS Next 3Y8.61%
197.09
-0.07 (-0.04%)
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 Change-0.54%
Ins Owners10.83%
Ins Owner Change-18.02%
Market Cap141.13B
Analysts85.16
Price Target249.47 (26.58%)
Short Float %1.23%
Short Ratio1.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend1.05
Dividend Growth(5Y)6.91%
DP23.85%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.86%
Min EPS beat(2)8.42%
Max EPS beat(2)13.3%
EPS beat(4)3
Avg EPS beat(4)6.93%
Min EPS beat(4)-1.93%
Max EPS beat(4)13.3%
EPS beat(8)7
Avg EPS beat(8)7.86%
EPS beat(12)11
Avg EPS beat(12)7.64%
EPS beat(16)15
Avg EPS beat(16)7.84%
Revenue beat(2)2
Avg Revenue beat(2)1.19%
Min Revenue beat(2)0.68%
Max Revenue beat(2)1.7%
Revenue beat(4)4
Avg Revenue beat(4)1.45%
Min Revenue beat(4)0.66%
Max Revenue beat(4)2.75%
Revenue beat(8)8
Avg Revenue beat(8)1.98%
Revenue beat(12)9
Avg Revenue beat(12)-4.19%
Revenue beat(16)12
Avg Revenue beat(16)-6.15%
PT rev (1m)0.51%
PT rev (3m)-0.09%
EPS NQ rev (1m)-3.96%
EPS NQ rev (3m)-7.59%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0.89%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.17 | ||
| Fwd PE | 22.75 | ||
| P/S | 5.88 | ||
| P/FCF | 29.03 | ||
| P/OCF | 22.88 | ||
| P/B | 2.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.78 |
EPS(TTM)7.53
EY3.82%
EPS(NY)8.66
Fwd EY4.4%
FCF(TTM)6.79
FCFY3.45%
OCF(TTM)8.62
OCFY4.37%
SpS33.54
BVpS73.09
TBVpS-12.97
PEG (NY)6.64
PEG (5Y)2.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 6.52% | ||
| ROCE | 6.35% | ||
| ROIC | 5.32% | ||
| ROICexc | 5.54% | ||
| ROICexgc | 38.86% | ||
| OM | 19.79% | ||
| PM (TTM) | 14.21% | ||
| GM | 59.72% | ||
| FCFM | 20.25% |
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-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.57 | ||
| Debt/EBITDA | 2.36 | ||
| Cap/Depr | 54.73% | ||
| Cap/Sales | 5.44% | ||
| Interest Coverage | 13.86 | ||
| Cash Conversion | 86.39% | ||
| Profit Quality | 142.46% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 4.22 |
F-Score7
WACC8.1%
ROIC/WACC0.66
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)-2.84%
EPS 3Y-9.37%
EPS 5Y9.77%
EPS Q2Q%4.65%
EPS Next Y3.94%
EPS Next 2Y7.54%
EPS Next 3Y8.61%
EPS Next 5Y8.96%
Revenue 1Y (TTM)1.89%
Revenue growth 3Y-1.26%
Revenue growth 5Y5.92%
Sales Q2Q%3.36%
Revenue Next Year3.87%
Revenue Next 2Y4.97%
Revenue Next 3Y5.64%
Revenue Next 5Y5.96%
EBIT growth 1Y-6.03%
EBIT growth 3Y-6.57%
EBIT growth 5Y9.77%
EBIT Next Year11.73%
EBIT Next 3Y9.92%
EBIT Next 5Y10.23%
FCF growth 1Y-32.49%
FCF growth 3Y-9.16%
FCF growth 5Y9.82%
OCF growth 1Y-26.77%
OCF growth 3Y-7.16%
OCF growth 5Y11.1%