DANAHER CORP (DHR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DHR - US2358511028 - Common Stock
229.22 USD
+0.3 (+0.13%)
We assign a fundamental rating of 6 out of 10 to DHR. DHR was compared to 57 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DHR was profitable.
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
With a decent Return On Assets value of 4.38%, DHR is doing good in the industry, outperforming 77.19% of the companies in the same industry.
With a decent Return On Equity value of 6.86%, DHR is doing good in the industry, outperforming 77.19% of the companies in the same industry.
DHR has a Return On Invested Capital of 5.38%. This is in the better half of the industry: DHR outperforms 71.93% 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 13.99%.
| 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's Profit Margin of 14.43% is amongst the best of the industry. DHR outperforms 82.46% of its industry peers.
In the last couple of years the Profit Margin of DHR has remained more or less at the same level.
Looking at the Operating Margin, with a value of 19.48%, DHR belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
DHR's Operating Margin has improved in the last couple of years.
DHR has a better Gross Margin (59.59%) than 77.19% 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
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.
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 4.72. This indicates that DHR is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.72, DHR belongs to the best of the industry, outperforming 80.70% of the companies in the same industry.
DHR has a debt to FCF ratio of 3.36. This is a good value and a sign of high solvency as DHR would need 3.36 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.36, DHR belongs to the top of the industry, outperforming 80.70% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that DHR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.33, DHR is in line with its industry, outperforming 47.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 4.72 |
ROIC/WACC0.51
WACC10.51%
2.3 Liquidity
A Current Ratio of 1.52 indicates that DHR should not have too much problems paying its short term obligations.
DHR has a worse Current ratio (1.52) than 73.68% of its industry peers.
A Quick Ratio of 1.10 indicates that DHR should not have too much problems paying its short term obligations.
DHR has a Quick ratio of 1.10. This is in the lower half of the industry: DHR underperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
DHR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.63%.
The Earnings Per Share has been growing by 9.77% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.22% in the past 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.
Based on estimates for the next years, DHR will show a small growth in Revenue. The Revenue will grow by 4.85% on average per year.
EPS Next Y4.04%
EPS Next 2Y6.58%
EPS Next 3Y7.91%
EPS Next 5Y8.73%
Revenue Next Year3.14%
Revenue Next 2Y3.6%
Revenue Next 3Y4.51%
Revenue Next 5Y4.85%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.73, which means the current valuation is very expensive for DHR.
Based on the Price/Earnings ratio, DHR is valued a bit cheaper than 73.68% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, DHR is valued at the same level.
A Price/Forward Earnings ratio of 26.94 indicates a quite expensive valuation of DHR.
DHR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DHR is cheaper than 70.18% 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 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.73 | ||
| Fwd PE | 26.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DHR is valued a bit cheaper than 63.16% of the companies 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 71.93% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.27 | ||
| EV/EBITDA | 24.77 |
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)7.36
PEG (5Y)3.04
EPS Next 2Y6.58%
EPS Next 3Y7.91%
5. Dividend
5.1 Amount
DHR has a yearly dividend return of 0.55%, which is pretty low.
Compared to an average industry Dividend Yield of 0.09, DHR pays a better dividend. On top of this DHR pays more dividend than 96.49% of the companies listed in the same industry.
With a Dividend Yield of 0.55, DHR pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
On average, the dividend of DHR grows each year by 6.91%, which is quite nice.
DHR has paid a dividend for at least 10 years, which is a reliable track record.
As DHR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)6.91%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
DHR pays out 24.18% of its income as dividend. This is a sustainable payout ratio.
The dividend of DHR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP24.18%
EPS Next 2Y6.58%
EPS Next 3Y7.91%
NYSE:DHR (1/2/2026, 1:50:55 PM)
229.22
+0.3 (+0.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners83.03%
Inst Owner Change0.91%
Ins Owners10.82%
Ins Owner Change-17.42%
Market Cap161.91B
Revenue(TTM)24.27B
Net Income(TTM)3.50B
Analysts85.52
Price Target263.26 (14.85%)
Short Float %1.38%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend1.05
Dividend Growth(5Y)6.91%
DP24.18%
Div Incr Years8
Div Non Decr Years8
Ex-DateN/A
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)1.53%
PT rev (3m)6.38%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)-9.96%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.78%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)-3.27%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.73 | ||
| Fwd PE | 26.94 | ||
| P/S | 6.67 | ||
| P/FCF | 32.27 | ||
| P/OCF | 25.63 | ||
| P/B | 3.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.77 |
EPS(TTM)7.71
EY3.36%
EPS(NY)8.51
Fwd EY3.71%
FCF(TTM)7.1
FCFY3.1%
OCF(TTM)8.94
OCFY3.9%
SpS34.36
BVpS72.3
TBVpS-14.12
PEG (NY)7.36
PEG (5Y)3.04
Graham Number111.99
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 | 4.72 |
F-Score7
WACC10.51%
ROIC/WACC0.51
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 Y4.04%
EPS Next 2Y6.58%
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 Year3.14%
Revenue Next 2Y3.6%
Revenue Next 3Y4.51%
Revenue Next 5Y4.85%
EBIT growth 1Y-6.45%
EBIT growth 3Y-6.57%
EBIT growth 5Y9.77%
EBIT Next Year10.96%
EBIT Next 3Y8.58%
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.
What is the valuation status for DHR stock?
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.
What is the expected EPS growth for DANAHER CORP (DHR) stock?
The Earnings per Share (EPS) of DANAHER CORP (DHR) is expected to grow by 4.04% in the next year.
Is the dividend of DANAHER CORP sustainable?
The dividend rating of DANAHER CORP (DHR) is 6 / 10 and the dividend payout ratio is 24.18%.