DANAHER CORP (DHR) Stock Fundamental Analysis
NYSE:DHR - New York Stock Exchange, Inc. - US2358511028 - Common Stock - Currency: USD
Taking everything into account, DHR scores 5 out of 10 in our fundamental rating. DHR was compared to 56 industry peers in the Life Sciences Tools & Services industry. While DHR has a great profitability rating, 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
DHR had positive earnings in the past year.
In the past year DHR had a positive cash flow from operations.
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 has a Return On Assets of 4.76%. This is in the better half of the industry: DHR outperforms 78.57% of its industry peers.
DHR has a better Return On Equity (7.40%) than 78.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.97%, DHR is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DHR is significantly below the industry average of 12.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 7.4% | ||
| ROIC | 5.97% |
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 has a better Profit Margin (15.81%) than 91.07% of its industry peers.
In the last couple of years the Profit Margin of DHR has remained more or less at the same level.
DHR's Operating Margin of 21.67% is amongst the best of the industry. DHR outperforms 91.07% of its industry peers.
DHR's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 59.80%, DHR belongs to the best of the industry, outperforming 80.36% 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 | 21.67% | ||
| PM (TTM) | 15.81% | ||
| GM | 59.8% |
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
DHR has a better debt/assets ratio than last year.
2.2 Solvency
DHR has an Altman-Z score of 4.36. This indicates that DHR is financially healthy and has little risk of bankruptcy at the moment.
DHR's Altman-Z score of 4.36 is amongst the best of the industry. DHR outperforms 80.36% of its industry peers.
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.
With a decent Debt to FCF ratio value of 3.36, DHR is doing good in the industry, outperforming 76.79% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that DHR is not too dependend on debt financing.
DHR has a Debt to Equity ratio of 0.31. This is comparable to the rest of the industry: DHR outperforms 51.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 4.36 |
ROIC/WACC0.59
WACC10.13%
2.3 Liquidity
A Current Ratio of 1.43 indicates that DHR should not have too much problems paying its short term obligations.
DHR's Current ratio of 1.43 is on the low side compared to the rest of the industry. DHR is outperformed by 75.00% of its industry peers.
DHR has a Quick Ratio of 1.05. This is a normal value and indicates that DHR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.05, DHR is doing worse than 76.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
DHR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.80%.
DHR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.77% yearly.
The Revenue has been growing slightly by 0.35% 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)-7.8%
EPS 3Y-9.37%
EPS 5Y9.77%
EPS Q2Q%-2.08%
Revenue 1Y (TTM)0.35%
Revenue growth 3Y-1.26%
Revenue growth 5Y5.92%
Sales Q2Q%-0.95%
3.2 Future
Based on estimates for the next years, DHR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.29% on average per year.
Based on estimates for the next years, DHR will show a small growth in Revenue. The Revenue will grow by 5.59% on average per year.
EPS Next Y3.82%
EPS Next 2Y7.48%
EPS Next 3Y8.44%
EPS Next 5Y9.29%
Revenue Next Year3.15%
Revenue Next 2Y4.83%
Revenue Next 3Y5.48%
Revenue Next 5Y5.59%
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
The Price/Earnings ratio is 26.55, which means the current valuation is very expensive for DHR.
Based on the Price/Earnings ratio, DHR is valued a bit cheaper than 66.07% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, DHR is valued at the same level.
DHR is valuated rather expensively with a Price/Forward Earnings ratio of 22.86.
DHR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DHR is cheaper than 75.00% of the companies in the same industry.
DHR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.55 | ||
| Fwd PE | 22.86 |
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 73.21% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DHR is valued a bit cheaper than 69.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.87 | ||
| EV/EBITDA | 20.75 |
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)6.96
PEG (5Y)2.72
EPS Next 2Y7.48%
EPS Next 3Y8.44%
5. Dividend
5.1 Amount
DHR has a yearly dividend return of 0.67%, which is pretty low.
DHR's Dividend Yield is rather good when compared to the industry average which is at 0.53. DHR pays more dividend than 98.21% of the companies in the same industry.
With a Dividend Yield of 0.67, DHR pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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 Years7
Div Non Decr Years7
5.3 Sustainability
20.85% 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.
DP20.85%
EPS Next 2Y7.48%
EPS Next 3Y8.44%
197.77
+1.36 (+0.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners81.31%
Inst Owner Change0.6%
Ins Owners10.97%
Ins Owner Change-18.97%
Market Cap141.54B
Analysts85
Price Target248.28 (25.54%)
Short Float %1.23%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend1.05
Dividend Growth(5Y)6.91%
DP20.85%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.69%
Min EPS beat(2)-1.93%
Max EPS beat(2)13.3%
EPS beat(4)3
Avg EPS beat(4)6.89%
Min EPS beat(4)-1.93%
Max EPS beat(4)13.3%
EPS beat(8)7
Avg EPS beat(8)6.95%
EPS beat(12)11
Avg EPS beat(12)8.3%
EPS beat(16)15
Avg EPS beat(16)8.48%
Revenue beat(2)2
Avg Revenue beat(2)1.18%
Min Revenue beat(2)0.66%
Max Revenue beat(2)1.7%
Revenue beat(4)4
Avg Revenue beat(4)1.72%
Min Revenue beat(4)0.66%
Max Revenue beat(4)2.75%
Revenue beat(8)7
Avg Revenue beat(8)1.86%
Revenue beat(12)9
Avg Revenue beat(12)-3.82%
Revenue beat(16)12
Avg Revenue beat(16)-5.8%
PT rev (1m)-7.63%
PT rev (3m)-13.43%
EPS NQ rev (1m)-5.99%
EPS NQ rev (3m)-5.94%
EPS NY rev (1m)0.29%
EPS NY rev (3m)0.62%
Revenue NQ rev (1m)0.73%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)1.55%
Revenue NY rev (3m)1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.55 | ||
| Fwd PE | 22.86 | ||
| P/S | 5.94 | ||
| P/FCF | 28.87 | ||
| P/OCF | 22.65 | ||
| P/B | 2.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.75 |
EPS(TTM)7.45
EY3.77%
EPS(NY)8.65
Fwd EY4.38%
FCF(TTM)6.85
FCFY3.46%
OCF(TTM)8.73
OCFY4.41%
SpS33.28
BVpS71.05
TBVpS-13.54
PEG (NY)6.96
PEG (5Y)2.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 7.4% | ||
| ROCE | 7.12% | ||
| ROIC | 5.97% | ||
| ROICexc | 6.14% | ||
| ROICexgc | 43.53% | ||
| OM | 21.67% | ||
| PM (TTM) | 15.81% | ||
| GM | 59.8% | ||
| FCFM | 20.58% |
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-Score6
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.36 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 57.11% | ||
| Cap/Sales | 5.65% | ||
| Interest Coverage | 13.2 | ||
| Cash Conversion | 83.11% | ||
| Profit Quality | 130.2% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 4.36 |
F-Score6
WACC10.13%
ROIC/WACC0.59
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)-7.8%
EPS 3Y-9.37%
EPS 5Y9.77%
EPS Q2Q%-2.08%
EPS Next Y3.82%
EPS Next 2Y7.48%
EPS Next 3Y8.44%
EPS Next 5Y9.29%
Revenue 1Y (TTM)0.35%
Revenue growth 3Y-1.26%
Revenue growth 5Y5.92%
Sales Q2Q%-0.95%
Revenue Next Year3.15%
Revenue Next 2Y4.83%
Revenue Next 3Y5.48%
Revenue Next 5Y5.59%
EBIT growth 1Y3.28%
EBIT growth 3Y-6.57%
EBIT growth 5Y9.77%
EBIT Next Year11.01%
EBIT Next 3Y10.58%
EBIT Next 5Y9.84%
FCF growth 1Y-33.04%
FCF growth 3Y-9.16%
FCF growth 5Y9.82%
OCF growth 1Y-26.48%
OCF growth 3Y-7.16%
OCF growth 5Y11.1%