NYSE:DHR

Stock Analysis Report

Executive Summary

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide.


Snowflake Analysis

Moderate growth potential with questionable track record.


Similar Companies

Share Price & News

How has Danaher's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DHR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

DHR

-1.3%

US Medical Equipment

-1.1%

US Market


1 Year Return

42.7%

DHR

19.6%

US Medical Equipment

17.9%

US Market

Return vs Industry: DHR exceeded the US Medical Equipment industry which returned 19.6% over the past year.

Return vs Market: DHR exceeded the US Market which returned 17.9% over the past year.


Shareholder returns

DHRIndustryMarket
7 Day-2.5%-1.3%-1.1%
30 Day-0.2%-0.03%1.4%
90 Day11.7%5.8%6.9%
1 Year43.3%42.7%20.6%19.6%20.3%17.9%
3 Year91.4%88.1%79.2%74.2%47.8%38.3%
5 Year152.0%85.5%115.2%92.6%71.9%53.0%

Price Volatility Vs. Market

How volatile is Danaher's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Danaher undervalued compared to its fair value and its price relative to the market?

48.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DHR ($161.88) is trading above our estimate of fair value ($134.31)

Significantly Below Fair Value: DHR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DHR is poor value based on its PE Ratio (49x) compared to the Medical Equipment industry average (46.6x).

PE vs Market: DHR is poor value based on its PE Ratio (49x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: DHR is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: DHR is good value based on its PB Ratio (3.9x) compared to the US Medical Equipment industry average (4.1x).


Next Steps

Future Growth

How is Danaher forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DHR's forecast earnings growth (15.6% per year) is above the savings rate (1.7%).

Earnings vs Market: DHR's earnings (15.6% per year) are forecast to grow faster than the US market (14.1% per year).

High Growth Earnings: DHR's earnings are forecast to grow, but not significantly.

Revenue vs Market: DHR's revenue (8.7% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: DHR's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DHR's Return on Equity is forecast to be low in 3 years time (15.4%).


Next Steps

Past Performance

How has Danaher performed over the past 5 years?

6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DHR has high quality earnings.

Growing Profit Margin: DHR's current net profit margins (13.2%) are lower than last year (13.3%).


Past Earnings Growth Analysis

Earnings Trend: DHR's earnings have grown by 6.6% per year over the past 5 years.

Accelerating Growth: DHR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DHR had negative earnings growth (-10.8%) over the past year, making it difficult to compare to the Medical Equipment industry average (1.7%).


Return on Equity

High ROE: DHR's Return on Equity (8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Danaher's financial position?


Financial Position Analysis

Short Term Liabilities: DHR's short term assets ($25.6B) exceed its short term liabilities ($4.9B).

Long Term Liabilities: DHR's short term assets ($25.6B) do not cover its long term liabilities ($26.9B).


Debt to Equity History and Analysis

Debt Level: DHR's debt to equity ratio (68.5%) is considered high.

Reducing Debt: DHR's debt to equity ratio has increased from 14.8% to 68.5% over the past 5 years.

Debt Coverage: DHR's debt is not well covered by operating cash flow (19.1%).

Interest Coverage: DHR earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: DHR has a low level of unsold assets or inventory.

Debt Coverage by Assets: DHR's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is Danaher's current dividend yield, its reliability and sustainability?

0.44%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0.4%

Current dividend yield vs market & industry

Notable Dividend: DHR's dividend (0.44%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: DHR's dividend (0.44%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: DHR is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: DHR is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: DHR is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DHR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Tom Joyce (58yo)

5.4yrs

Tenure

US$15,361,041

Compensation

Mr. Thomas P. Joyce, Jr., also known as Tom, has been the Chief Executive Officer and President of Danaher Corp. since September 9, 2014. Mr. Joyce serves as a Director of MedStar Health, Inc. Mr. Joyce se ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD15.36M) is above average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Joyce
CEO, President & Director5.4yrsUS$15.36m0.023% $26.3m
Daniel Comas
Executive Vice President1.1yrsUS$6.85m0.022% $25.2m
William Daniel
Executive Vice President11.6yrsUS$6.17m0.013% $14.4m
Rainer Blair
Executive Vice President3.1yrsUS$5.09m0.0039% $4.4m
Joakim Weidemanis
Executive Vice President2.3yrsUS$4.44m0.0094% $10.6m
Steven Rales
Co-Founder & Chairman36.1yrsno data6.19% $7.0b
Mitchell Rales
Co-Founder & Director37.1yrsno data5.08% $5.7b
Matthew McGrew
CFO & Executive VP1.1yrsno data0.0043% $4.9m
Robert Lutz
Chief Accounting Officer & Senior VP10yrsno data0.0028% $3.2m
Matthew Gugino
Vice President of Investor Relations0yrsno datano data

3.1yrs

Average Tenure

55yo

Average Age

Experienced Management: DHR's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Joyce
CEO, President & Director5.4yrsUS$15.36m0.023% $26.3m
Steven Rales
Co-Founder & Chairman36.1yrsno data6.19% $7.0b
Mitchell Rales
Co-Founder & Director37.1yrsno data5.08% $5.7b
Alan Spoon
Independent Director21.1yrsUS$279.82k0.0088% $9.9m
Donald Ehrlich
Lead Independent Director0yrsUS$329.82k0.023% $25.6m
Walter Lohr
Independent Director37.1yrsUS$279.82k0.070% $78.6m
John Schwieters
Independent Director16.6yrsUS$304.82k0.0027% $3.1m
Elias Zerhouni
Independent Director11.1yrsUS$279.82k0.0011% $1.2m
Linda Filler
Independent Director14.2yrsUS$294.82k0.0030% $3.4m
Teri List-Stoll
Independent Director8.4yrsUS$279.82kno data

16.6yrs

Average Tenure

68yo

Average Age

Experienced Board: DHR's board of directors are seasoned and experienced ( 16.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DHR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

Danaher Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Danaher Corporation
  • Ticker: DHR
  • Exchange: NYSE
  • Founded: 1969
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$112.707b
  • Shares outstanding: 696.24m
  • Website: https://www.danaher.com

Number of Employees


Location

  • Danaher Corporation
  • 2200 Pennsylvania Avenue NW
  • Suite 800W
  • Washington
  • District Of Columbia
  • 20037
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DHRNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1969
DAPDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1969
DAPXTRA (XETRA Trading Platform)YesCommon StockDEEURNov 1969
DHR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 1969
DHRSWX (SIX Swiss Exchange)YesCommon StockCHCHFNov 1969
0R2BLSE (London Stock Exchange)YesCommon StockGBUSDNov 1969
DAPETLX (Eurotlx)YesCommon StockITEURNov 1969
DHRCWBAG (Wiener Boerse AG)YesCommon StockATEURNov 1969
DHER34BOVESPA (Bolsa de Valores de Sao Paulo)BDR REPR 1/4 COM SHS USD0.01BRBRLJul 2015
DHR.PRANYSE (New York Stock Exchange)4.75 MND CV PFDUSUSDFeb 2019

Biography

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The company’s Life Sciences segment provides mass spectrometers; cellular analysis, lab automation, and centrifugation instruments; microscopes; and genomics consumables. This segment also offers filtration, separation, and purification technologies to the biopharmaceutical, food and beverage, medical, aerospace, microelectronics, and general industrial sectors. Its Diagnostics segment provides chemistry, immunoassay, microbiology, and automation systems, as well as hematology and molecular diagnostics products. This segment offers analytical instruments, reagents, consumables, software, and services for hospitals, physicians’ offices, reference laboratories, and other critical care settings. The company’s Dental segment provides consumables, equipment, and services to diagnose, treat, and prevent disease and ailments of the teeth, gums, and supporting bone. This segment offers implant systems, dental prosthetics, and associated treatment planning software; orthodontic bracket systems and lab products; endodontic systems and related consumables; restorative materials and instruments; infection prevention products; digital imaging systems and software; air and electric powered handpieces, and consumables; and treatment units. Its Environmental & Applied Solutions segment offers instrumentation, services, and disinfection systems to analyze, treat, and manage water in residential, commercial, industrial, and natural resource applications. This segment also provides analytical instruments, software, services, and consumables for consumer, pharmaceutical, and industrial products. The company was formerly known as Diversified Mortgage Investors, Inc. and changed its name to Danaher Corporation in 1984. Danaher Corporation was founded in 1969 and is headquartered in Washington, the District of Columbia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:13
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.