DANAHER CORP (DHR)
US2358511028 - Common Stock
Overall DHR gets a fundamental rating of 5 out of 10. We evaluated DHR against 58 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year DHR was profitable.
DHR had a positive operating cash flow in the past year.
DHR had positive earnings in each of the past 5 years.
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 5.35%, DHR is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
DHR has a Return On Equity of 8.42%. This is in the better half of the industry: DHR outperforms 78.95% of its industry peers.
The Return On Invested Capital of DHR (5.67%) is better than 75.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DHR is below the industry average of 10.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.35% | ||
| ROE | 8.42% | ||
| ROIC | 5.67% |
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
With an excellent Profit Margin value of 18.83%, DHR belongs to the best of the industry, outperforming 92.98% of the companies in the same industry.
In the last couple of years the Profit Margin of DHR has grown nicely.
Looking at the Operating Margin, with a value of 21.18%, DHR belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
In the last couple of years the Operating Margin of DHR has grown nicely.
DHR has a better Gross Margin (59.34%) than 82.46% of its industry peers.
DHR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.18% | ||
| PM (TTM) | 18.83% | ||
| GM | 59.34% |
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.
The number of shares outstanding for DHR has been increased compared to 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
An Altman-Z score of 5.48 indicates that DHR is not in any danger for bankruptcy at the moment.
The Altman-Z score of DHR (5.48) is better than 78.95% of its industry peers.
DHR has a debt to FCF ratio of 3.33. This is a good value and a sign of high solvency as DHR would need 3.33 years to pay back of all of its debts.
DHR's Debt to FCF ratio of 3.33 is amongst the best of the industry. DHR outperforms 82.46% of its industry peers.
DHR has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
DHR's Debt to Equity ratio of 0.33 is in line compared to the rest of the industry. DHR outperforms 45.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.33 | ||
| Altman-Z | 5.48 |
ROIC/WACC0.47
WACC12%
2.3 Liquidity
DHR has a Current Ratio of 1.43. 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 worse Current ratio (1.43) than 87.72% of its industry peers.
A Quick Ratio of 1.04 indicates that DHR should not have too much problems paying its short term obligations.
DHR's Quick ratio of 1.04 is on the low side compared to the rest of the industry. DHR is outperformed by 85.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The earnings per share for DHR have decreased strongly by -21.24% 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.
The Revenue has decreased by -8.17% in the past year.
The Revenue has been growing slightly by 6.98% on average over the past years.
EPS 1Y (TTM)-21.24%
EPS 3Y10.64%
EPS 5Y13.52%
EPS Q2Q%-16.1%
Revenue 1Y (TTM)-8.17%
Revenue growth 3Y2.35%
Revenue growth 5Y6.98%
Sales Q2Q%-19.76%
3.2 Future
The Earnings Per Share is expected to grow by 7.92% on average over the next years.
DHR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.83% yearly.
EPS Next Y-9.81%
EPS Next 2Y1.42%
EPS Next 3Y4.64%
EPS Next 5Y7.92%
Revenue Next Year-11.42%
Revenue Next 2Y-2.02%
Revenue Next 3Y1.16%
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.
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
Based on the Price/Earnings ratio of 35.34, the valuation of DHR can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of DHR indicates a somewhat cheap valuation: DHR is cheaper than 71.93% of the companies listed in the same industry.
DHR is valuated rather expensively when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
DHR is valuated quite expensively with a Price/Forward Earnings ratio of 31.26.
Based on the Price/Forward Earnings ratio, DHR is valued a bit cheaper than 68.42% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.59. DHR is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.34 | ||
| Fwd PE | 31.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DHR is valued a bit cheaper than 70.18% of the companies in the same industry.
75.44% of the companies in the same industry are more expensive than DHR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.77 | ||
| EV/EBITDA | 30.94 |
4.3 Compensation for Growth
The decent profitability rating of DHR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.61
EPS Next 2Y1.42%
EPS Next 3Y4.64%
5. Dividend
5.1 Amount
With a yearly dividend of 0.41%, DHR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.67, DHR pays a better dividend. On top of this DHR pays more dividend than 92.98% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, DHR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
The dividend of DHR is nicely growing with an annual growth rate of 12.53%!
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)12.53%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
DHR pays out 18.46% 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.
DP18.46%
EPS Next 2Y1.42%
EPS Next 3Y4.64%
DANAHER CORP
NYSE:DHR (7/26/2024, 7:25:06 PM)
After market: 273.91 0 (0%)273.91
+3.82 (+1.41%)
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 Cap202.88B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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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 | 35.34 | ||
| Fwd PE | 31.26 | ||
| 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)2.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.35% | ||
| ROE | 8.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.18% | ||
| PM (TTM) | 18.83% | ||
| GM | 59.34% | ||
| 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 Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.04 | ||
| 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)-21.24%
EPS 3Y10.64%
EPS 5Y
EPS Q2Q%
EPS Next Y-9.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.17%
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