DANAHER CORP (DHR) Stock Fundamental Analysis
NYSE:DHR - US2358511028 - Common Stock
205.29 USD
+0.29 (+0.14%)
205 USD
-0.29 (-0.14%)
Overall DHR gets a fundamental rating of 5 out of 10. We evaluated DHR against 54 industry peers in the Life Sciences Tools & Services industry. DHR scores excellent on profitability, but 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
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.
In the past 5 years DHR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.18%, DHR is in the better half of the industry, outperforming 70.37% 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 72.22% of the companies in the same industry.
DHR has a Return On Invested Capital of 5.32%. This is in the better half of the industry: DHR outperforms 70.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DHR is significantly below the industry average of 16.00%.
| 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 81.48% of its industry peers.
DHR's Profit Margin has been stable in the last couple of years.
DHR has a better Operating Margin (19.79%) than 85.19% of its industry peers.
In the last couple of years the Operating Margin of DHR has grown nicely.
DHR has a better Gross Margin (59.72%) than 77.78% 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
DHR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DHR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DHR has more shares outstanding
The debt/assets ratio for DHR has been reduced compared to a year ago.
2.2 Solvency
DHR has an Altman-Z score of 4.33. This indicates that DHR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DHR (4.33) is better than 81.48% of its industry peers.
DHR has a debt to FCF ratio of 3.57. This is a good value and a sign of high solvency as DHR would need 3.57 years to pay back of all of its debts.
DHR has a Debt to FCF ratio of 3.57. This is in the better half of the industry: DHR outperforms 72.22% of its industry peers.
DHR has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
DHR has a Debt to Equity ratio (0.32) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 4.33 |
ROIC/WACC0.52
WACC10.16%
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 worse Current ratio (1.62) than 66.67% 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 has a Quick ratio of 1.22. This is in the lower half of the industry: DHR underperforms 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The earnings per share for DHR have decreased by -2.84% in the last year.
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 1.89% in the past year.
The Revenue has been growing slightly by 5.92% on average over the past years.
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
DHR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.73% yearly.
DHR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.96% yearly.
EPS Next Y4.87%
EPS Next 2Y7.6%
EPS Next 3Y8.46%
EPS Next 5Y9.73%
Revenue Next Year3.86%
Revenue Next 2Y4.97%
Revenue Next 3Y5.6%
Revenue Next 5Y5.96%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.26, DHR can be considered very expensive at the moment.
70.37% of the companies in the same industry are more expensive than DHR, based on the Price/Earnings ratio.
DHR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 23.68, which indicates a rather expensive current valuation of DHR.
Based on the Price/Forward Earnings ratio, DHR is valued a bit cheaper than the industry average as 74.07% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.78. DHR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.26 | ||
| Fwd PE | 23.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DHR is valued a bit cheaper than 68.52% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DHR is valued a bit cheaper than 70.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.23 | ||
| EV/EBITDA | 22.57 |
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)5.6
PEG (5Y)2.79
EPS Next 2Y7.6%
EPS Next 3Y8.46%
5. Dividend
5.1 Amount
With a yearly dividend of 0.63%, DHR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.54, DHR pays a better dividend. On top of this DHR pays more dividend than 96.30% of the companies listed in the same industry.
With a Dividend Yield of 0.63, DHR pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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
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 2Y7.6%
EPS Next 3Y8.46%
205.29
+0.29 (+0.14%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners82%
Inst Owner Change-3.14%
Ins Owners10.82%
Ins Owner Change-18.04%
Market Cap147.00B
Analysts85.81
Price Target247.47 (20.55%)
Short Float %1.32%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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)-0.8%
PT rev (3m)-0.33%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)-7.54%
EPS NY rev (1m)0.89%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0.82%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.26 | ||
| Fwd PE | 23.68 | ||
| P/S | 6.12 | ||
| P/FCF | 30.23 | ||
| P/OCF | 23.83 | ||
| P/B | 2.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.57 |
EPS(TTM)7.53
EY3.67%
EPS(NY)8.67
Fwd EY4.22%
FCF(TTM)6.79
FCFY3.31%
OCF(TTM)8.62
OCFY4.2%
SpS33.54
BVpS73.09
TBVpS-12.97
PEG (NY)5.6
PEG (5Y)2.79
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 | 4.33 |
F-Score7
WACC10.16%
ROIC/WACC0.52
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 Y4.87%
EPS Next 2Y7.6%
EPS Next 3Y8.46%
EPS Next 5Y9.73%
Revenue 1Y (TTM)1.89%
Revenue growth 3Y-1.26%
Revenue growth 5Y5.92%
Sales Q2Q%3.36%
Revenue Next Year3.86%
Revenue Next 2Y4.97%
Revenue Next 3Y5.6%
Revenue Next 5Y5.96%
EBIT growth 1Y-6.03%
EBIT growth 3Y-6.57%
EBIT growth 5Y9.77%
EBIT Next Year10.7%
EBIT Next 3Y9.79%
EBIT Next 5Y10.1%
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%