NYSE:DHR

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Solid track record with adequate balance sheet.


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

3.9%

DHR

0.2%

US Medical Equipment

0.4%

US Market


1 Year Return

70.8%

DHR

24.8%

US Medical Equipment

17.8%

US Market

Return vs Industry: DHR exceeded the US Medical Equipment industry which returned 24.8% over the past year.

Return vs Market: DHR exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

DHRIndustryMarket
7 Day3.9%0.2%0.4%
30 Day12.3%7.4%6.1%
90 Day16.9%7.6%8.9%
1 Year71.6%70.8%25.9%24.8%20.5%17.8%
3 Year157.5%153.4%75.8%71.2%42.3%32.9%
5 Year230.4%143.5%143.9%124.8%84.2%63.4%

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?

53.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DHR ($232.66) is trading above our estimate of fair value ($218.21)

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


Price To Earnings Ratio

PE vs Industry: DHR's PE Ratio (53.4x) is in line with the US Medical Equipment industry average.

PE vs Market: DHR is poor value based on its PE Ratio (53.4x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: DHR is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: DHR is overvalued based on its PB Ratio (4.8x) 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?

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DHR's forecast earnings growth (16.4% per year) is above the savings rate (2.2%).

Earnings vs Market: DHR's earnings (16.4% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: DHR's revenue (8.3% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: DHR's revenue (8.3% 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 (10.1%).


Next Steps

Past Performance

How has Danaher performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DHR has high quality earnings.

Growing Profit Margin: DHR's current net profit margins (15.1%) are higher than last year (13.4%).


Past Earnings Growth Analysis

Earnings Trend: DHR's earnings have grown by 8.1% per year over the past 5 years.

Accelerating Growth: DHR's earnings growth over the past year (46.2%) exceeds its 5-year average (8.1% per year).

Earnings vs Industry: DHR earnings growth over the past year (46.2%) exceeded the Medical Equipment industry 1.9%.


Return on Equity

High ROE: DHR's Return on Equity (8.4%) is considered low.


Next Steps

Financial Health

How is Danaher's financial position?


Financial Position Analysis

Short Term Liabilities: DHR's short term assets ($12.5B) exceed its short term liabilities ($6.0B).

Long Term Liabilities: DHR's short term assets ($12.5B) do not cover its long term liabilities ($28.9B).


Debt to Equity History and Analysis

Debt Level: DHR's debt to equity ratio (57.1%) is considered high.

Reducing Debt: DHR's debt to equity ratio has reduced from 64.5% to 57.1% over the past 5 years.

Debt Coverage: DHR's debt is well covered by operating cash flow (23.5%).

Interest Coverage: DHR's interest payments on its debt are well covered by EBIT (36x coverage).


Balance Sheet


Next Steps

Dividend

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

0.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DHR's dividend (0.31%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: DHR's dividend (0.31%) is low compared to the top 25% of dividend payers in the US market (4.56%).


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?

2.8yrs

Average management tenure


CEO

Rainer Blair (56 yo)

0.083

Tenure

US$7,178,649

Compensation

Mr. Rainer M. Blair serves as President, Chief Executive Officer and Director at Danaher Corporation since September 1, 2020. Mr. Blair served as an Executive Vice President of Danaher Corporation since Ja ...


CEO Compensation Analysis

Compensation vs Market: Rainer's total compensation ($USD7.18M) is below average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: Rainer's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Steven Rales
Co-Founder & Chairman36.75yrsno data6.07%
$ 10.0b
Rainer Blair
President0.083yrUS$7.18m0.0051%
$ 8.4m
Mitchell Rales
Co-Founder & Director37.75yrsno data4.99%
$ 8.3b
Matthew McGrew
CFO & Executive VP1.75yrsUS$4.59m0.0030%
$ 4.9m
Thomas Joyce
Senior Advisor0.083yrUS$18.19m0.029%
$ 48.5m
Joakim Weidemanis
Executive Vice President2.83yrsUS$6.36m0.013%
$ 21.6m
Robert Lutz
Chief Accounting Officer & Senior VP10.67yrsno data0.0027%
$ 4.4m
Matthew Gugino
Vice President of Investor Relationsno datano datano data
Brian Ellis
Senior VP4.75yrsUS$3.71m0.0035%
$ 5.8m
Daniel Raskas
Senior Vice President of Corporate Development10.67yrsno data0.0028%
$ 4.6m
Angela Lalor
Senior Vice President of Human Resources8.5yrsUS$3.90m0.0051%
$ 8.4m
Daniel Comas
Executive Vice President1.75yrsUS$6.85m0.019%
$ 31.4m

2.8yrs

Average Tenure

56yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Steven Rales
Co-Founder & Chairman36.75yrsno data6.07%
$ 10.0b
Rainer Blair
President0.083yrUS$7.18m0.0051%
$ 8.4m
Mitchell Rales
Co-Founder & Director37.75yrsno data4.99%
$ 8.3b
Alan Spoon
Independent Director21.75yrsUS$299.08k0.011%
$ 17.8m
Walter Lohr
Independent Director37.75yrsUS$317.08k0.060%
$ 99.5m
John Schwieters
Independent Director17.25yrsUS$344.08k0.0034%
$ 5.6m
Elias Zerhouni
Independent Director11.75yrsUS$335.08k0.0024%
$ 3.9m
Raymond Stevens
Independent Director3.67yrsUS$299.08k0%
$ 0
Linda Filler
Lead Independent Director0.42yrUS$335.08k0.0054%
$ 8.9m
Teri List-Stoll
Independent Director9.08yrsUS$299.08k0%
$ 0
Jessica Mega
Independent Director0.92yrUS$105.01k0%
$ 0
Pardis Sabeti
Independent Director0.92yrUS$105.01k0%
$ 0

10.4yrs

Average Tenure

61.5yo

Average Age

Experienced Board: DHR's board of directors are seasoned and experienced ( 10.4 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 not been meaningfully diluted in the past year.


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$165.276b
  • Shares outstanding: 710.38m
  • Website: https://www.danaher.com

Number of Employees


Location

  • Danaher Corporation
  • 2200 Pennsylvania Avenue NW
  • Suite 800W
  • Washington
  • District Of Columbia
  • 20037-1701
  • 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 EACH 4 REPR 1 COM SHS USD0.01BRBRLJul 2015
DHR.PRANYSE (New York Stock Exchange)4.75 MND CV PFDUSUSDFeb 2019
DHR.PRBNYSE (New York Stock Exchange)5% CONV PFD BUSUSDMay 2020

Biography

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The company operates through three segments; Life Sciences, Diagnos ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 05:15
End of Day Share Price2020/10/23 00:00
Earnings2020/10/02
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.