NYSE:DHR

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet and slightly overvalued.


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


Market Performance


7 Day Return

-0.4%

DHR

-1.6%

US Medical Equipment

0.07%

US Market


1 Year Return

40.7%

DHR

13.8%

US Medical Equipment

8.9%

US Market

Return vs Industry: DHR exceeded the US Medical Equipment industry which returned 13.8% over the past year.

Return vs Market: DHR exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

DHRIndustryMarket
7 Day-0.4%-1.6%0.07%
30 Day-6.4%-4.3%-0.3%
90 Day-3.9%-4.3%-1.6%
1 Year41.5%40.7%14.7%13.8%11.3%8.9%
3 Year77.2%74.0%70.7%65.6%46.3%36.8%
5 Year133.6%71.9%117.3%93.5%62.1%44.3%

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?

39.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DHR ($137.08) is trading above our estimate of fair value ($114.97)

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


Price To Earnings Ratio

PE vs Industry: DHR is good value based on its PE Ratio (39.6x) compared to the Medical Equipment industry average (41.8x).

PE vs Market: DHR is poor value based on its PE Ratio (39.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: DHR is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: DHR is good value based on its PB Ratio (3.2x) compared to the US Medical Equipment industry average (3.7x).


Next Steps

Future Growth

How is Danaher forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DHR's forecast earnings growth (16.5% per year) is above the savings rate (2.7%).

Earnings vs Market: DHR's earnings (16.5% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: DHR's revenue (7.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: DHR's revenue (7.2% 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 (13.1%).


Next Steps

Past Performance

How has Danaher performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DHR's earnings have grown by 4% 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 (-8.3%) over the past year, making it difficult to compare to the Medical Equipment industry average (28.2%).


Return on Equity

High ROE: DHR's Return on Equity (7.7%) is considered low.


Return on Assets

ROA vs Industry: DHR's Return on Assets is below or equal to the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: DHR has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Danaher's financial position?


Financial Position Analysis

Short Term Liabilities: DHR's short term assets ($11.6B) exceeds its short term liabilities ($5.0B)

Long Term Liabilities: DHR's short term assets (11.6B) do not cover its long term liabilities (16.1B)


Debt to Equity History and Analysis

Debt Level: DHR's debt to equity ratio (32%) is considered satisfactory

Reducing Debt: DHR's debt to equity ratio has increased from 12.9% to 32% over the past 5 years.

Debt Coverage: DHR's debt is well covered by operating cash flow (39.1%).

Interest Coverage: DHR's interest payments on its debt are well covered by EBIT (49.3x coverage).


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 1.125800x debt).


Next Steps

Dividend

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

0.50%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DHR's dividend (0.5%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: DHR's dividend (0.5%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

What is the CEO of Danaher's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Tom Joyce (58yo)

5.1yrs

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 served as Executive Vice President of Danaher Corporation ...


CEO Compensation Analysis

Compensation vs. Market: Tom's total compensation ($USD15.36M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

2.8yrs

Average Tenure

55yo

Average Age

Experienced Management: DHR's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

16.3yrs

Average Tenure

68yo

Average Age

Experienced Board: DHR's board of directors are seasoned and experienced ( 16.3 years average tenure).


Insider Trading

Insider Buying: DHR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$348,80026 Aug 19
Mitchell Rales
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Director
Shares2,500
Max PriceUS$139.52
SellUS$145,48029 Jul 19
Brian Ellis
EntityIndividual
Shares1,010
Max PriceUS$144.04
SellUS$94,07329 Jul 19
Robert Lutz
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer & Senior VP
Shares657
Max PriceUS$143.19
SellUS$1,084,79930 May 19
William King
EntityIndividual
Shares8,350
Max PriceUS$129.92
SellUS$989,01822 May 19
William Daniel
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares7,534
Max PriceUS$131.27
SellUS$408,72320 May 19
Angela Lalor
EntityIndividual
Shares3,091
Max PriceUS$132.23
SellUS$1,919,28920 May 19
Thomas Joyce
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares14,454
Max PriceUS$132.79
SellUS$1,022,97620 May 19
Daniel Comas
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares7,726
Max PriceUS$132.41
BuyUS$248,48514 May 19
Mitchell Rales
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Director
Shares1,900
Max PriceUS$130.78
SellUS$1,422,38901 May 19
William Daniel
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares10,772
Max PriceUS$132.05
SellUS$657,70030 Apr 19
Matthew McGrew
EntityIndividual
Role
Chief Financial Officer
CFO & Executive VP
Shares5,020
Max PriceUS$131.02
SellUS$1,287,76328 Feb 19
Daniel Raskas
EntityIndividual
Shares10,209
Max PriceUS$126.14
SellUS$358,42828 Feb 19
Robert Lutz
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer & Senior VP
Shares2,822
Max PriceUS$127.01
SellUS$576,94728 Feb 19
Angela Lalor
EntityIndividual
Shares4,534
Max PriceUS$127.25
SellUS$198,97728 Feb 19
Brian Ellis
EntityIndividual
Shares1,564
Max PriceUS$127.22
SellUS$1,522,01728 Feb 19
Daniel Comas
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares11,971
Max PriceUS$127.14
SellUS$2,173,71728 Feb 19
Rainer Blair
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares17,060
Max PriceUS$127.42
SellUS$1,124,29909 Nov 18
Daniel Comas
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares11,000
Max PriceUS$102.21
SellUS$541,46409 Nov 18
Thomas Joyce
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares5,212
Max PriceUS$103.89
SellUS$2,919,89926 Oct 18
William Daniel
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares29,784
Max PriceUS$98.15

Ownership Breakdown


Management Team

  • Steven Rales (68yo)

    Co-Founder & Chairman

    • Tenure: 35.8yrs
  • Dan Comas (55yo)

    Executive Vice President

    • Tenure: 0.8yrs
    • Compensation: US$6.85m
  • Dan Daniel (54yo)

    Executive Vice President

    • Tenure: 11.3yrs
    • Compensation: US$6.17m
  • Mitchell Rales (62yo)

    Co-Founder & Director

    • Tenure: 36.8yrs
  • Bob Lutz (61yo)

    Chief Accounting Officer & Senior VP

    • Tenure: 9.7yrs
  • Tom Joyce (58yo)

    CEO, President & Director

    • Tenure: 5.1yrs
    • Compensation: US$15.36m
  • Joakim Weidemanis (49yo)

    Executive Vice President

    • Tenure: 1.9yrs
    • Compensation: US$4.44m
  • Matt Gugino

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Rainer Blair (55yo)

    Executive Vice President

    • Tenure: 2.8yrs
    • Compensation: US$5.09m
  • Matt McGrew (47yo)

    CFO & Executive VP

    • Tenure: 0.8yrs

Board Members

  • Alan Spoon (68yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$279.82k
  • Steven Rales (68yo)

    Co-Founder & Chairman

    • Tenure: 35.8yrs
  • Donald Ehrlich (81yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$329.82k
  • Walter Lohr (75yo)

    Independent Director

    • Tenure: 36.8yrs
    • Compensation: US$279.82k
  • Mitchell Rales (62yo)

    Co-Founder & Director

    • Tenure: 36.8yrs
  • John Schwieters (79yo)

    Independent Director

    • Tenure: 16.3yrs
    • Compensation: US$304.82k
  • Elias Zerhouni (68yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$279.82k
  • Linda Filler (59yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$294.82k
  • Tom Joyce (58yo)

    CEO, President & Director

    • Tenure: 5.1yrs
    • Compensation: US$15.36m
  • Teri List-Stoll (56yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$279.82k

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$98.337b
  • Shares outstanding: 717.37m
  • 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
DHR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 1969
DHRSWX (SIX Swiss Exchange)YesCommon StockCHCHFNov 1969
0R2BLSE (London Stock Exchange)YesCommon StockGBUSDNov 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; ce ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:34
End of Day Share Price2019/10/22 00:00
Earnings2019/06/28
Annual Earnings2018/12/31


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.