Danaher Corporation
Danaher Corporation Fundamental Analysis
Danaher Corporation (DHR) shows weak financial fundamentals with a PE ratio of 41.10, 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 -0.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.0/100 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 DHR's fundamental strength across five key dimensions:
Efficiency Score
WeakDHR struggles to generate sufficient returns from assets.
Valuation Score
WeakDHR trades at a premium to fair value.
Growth Score
WeakDHR faces weak or negative growth trends.
Financial Health Score
ExcellentDHR maintains a strong and stable balance sheet.
Profitability Score
WeakDHR struggles to sustain strong margins.
Key Financial Metrics
Is DHR Expensive or Cheap?
P/E Ratio
DHR trades at 41.10 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DHR's PEG of 10.56 indicates potential overvaluation.
Price to Book
The market values Danaher Corporation at 2.83 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 19.39 times EBITDA. This signals the market has high growth expectations.
How Well Does DHR 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 20.91 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 $5.26B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.44 in free cash annually.
FCF Yield
DHR converts 3.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
41.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.04
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
0.07
vs 25 benchmark
How DHR Stacks Against Its Sector Peers
| Metric | DHR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 41.10 | 29.43 | Worse (Expensive) |
| ROE | 6.99% | 800.00% | Weak |
| Net Margin | 14.71% | -20145.00% (disorted) | Strong |
| Debt/Equity | 0.35 | 0.30 | Neutral |
| Current Ratio | 1.87 | 4.64 | Neutral |
| ROA | 4.33% | -17936.00% (disorted) | Weak |
DHR 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
30.38%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
49.13%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
65.54%
Industry Style: Defensive, Growth, Innovation
High Growth