Danaher Corporation
Danaher Corporation Fundamental Analysis
Danaher Corporation (DAP.DE) shows weak financial fundamentals with a PE ratio of 37.63, profit margin of 14.71%, and ROE of 6.99%. The company generates $24.6B in annual revenue with weak year-over-year growth of 2.90%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze DAP.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakDAP.DE struggles to generate sufficient returns from assets.
Valuation Score
WeakDAP.DE trades at a premium to fair value.
Growth Score
WeakDAP.DE faces weak or negative growth trends.
Financial Health Score
ExcellentDAP.DE maintains a strong and stable balance sheet.
Profitability Score
WeakDAP.DE struggles to sustain strong margins.
Key Financial Metrics
Is DAP.DE Expensive or Cheap?
P/E Ratio
DAP.DE trades at 37.63 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DAP.DE's PEG of 8.23 indicates potential overvaluation.
Price to Book
The market values Danaher Corporation at 2.59 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.60 times EBITDA. This signals the market has high growth expectations.
How Well Does DAP.DE Make Money?
Net Profit Margin
For every $100 in sales, Danaher Corporation keeps $14.71 as profit after all expenses.
Operating Margin
Core operations generate 19.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.99 in profit for every $100 of shareholder equity.
ROA
Danaher Corporation generates $4.33 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Danaher Corporation generates strong operating cash flow of $6.41B, reflecting robust business health.
Free Cash Flow
Danaher Corporation generates strong free cash flow of $5.25B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.42 in free cash annually.
FCF Yield
DAP.DE converts 3.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
8.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.59
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How DAP.DE Stacks Against Its Sector Peers
| Metric | DAP.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.63 | 29.17 | Worse (Expensive) |
| ROE | 6.99% | 701.00% | Weak |
| Net Margin | 14.71% | -43676.00% (disorted) | Strong |
| Debt/Equity | 0.35 | 0.34 | Neutral |
| Current Ratio | 1.87 | 4.45 | Neutral |
| ROA | 4.33% | -18965.00% (disorted) | Weak |
DAP.DE outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Danaher Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
10.08%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-1.03%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
3.19%
Industry Style: Defensive, Growth, Innovation
Growing