Danaher (DHR) AI Stock Analysis

• Market Cap: $130.05B
• Dividend Yield: 0.62%
• Average Volume (3M): 4.16M
• Price to Earnings (P/E): 34.4
• Beta (1Y): 0.88
• Revenue Growth: -13.50%
• EPS Growth: -17.25%
• Country: US
• Employees: 61,000
• Sector: Healthcare
• Sector Strength: 77
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 5.29
• Shares Outstanding: 715,450,260
• 10 Day Avg. Volume: 3,707,643
• 30 Day Avg. Volume: 4,164,300
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.33
• Price to Cash Flow (P/CF): 18.70
• P/FCF Ratio: 18.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $262.71
• Price Target Upside: 44.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

Danaher's overall score reflects its strong operational efficiency and robust cash flow, tempered by declining revenue growth and valuation concerns. Technical indicators suggest a potential near-term reversal from oversold conditions, while strategic investments in innovation provide a positive outlook amidst market challenges.

Positive Factors

Cost Management

Initial cost savings announced in their recent 10-K are seen as providing the self-help needed to protect and potentially expand margins in the ‘25/’26 period.

Financial Performance

The '25 EV/EBITDA multiple has de-rated 3 turns from peak levels offering a more attractive entry point into a stock seen as a long-term compounder undergoing short-term/cyclical issues.

Market Position

Market recovery supported by mAb pipeline strength and commercial demand.

Negative Factors

Growth Estimates

Consensus organic growth estimates for the Biotech segment came down -42%, which was the largest concern for the name as expectations were misaligned with the pace of recovery modeled in that segment.

Guidance

The '25 guide was underwhelming.

Market Performance

DHR has underperformed the S&P 500 and the XLV by -21% and -13%, respectively.

Danaher Business Overview & Revenue Model

Company Description

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The company operates through three segments: Life Sciences, Diagnostics, and Environmental & Applied Solutions. The Life Sciences segment provides mass spectrometers; flow cytometry, genomics, lab automation, centrifugation, particle counting and characterization; microscopes; genomics consumables; and Gene and Cell Therapy. This segment also offers bioprocess technologies, consumables, and services; and filtration, separation, and purification technologies to the pharmaceutical and biopharmaceutical, food and beverage, medical, and life sciences companies, as well as universities, medical schools and research institutions, and various industrial manufacturers. The Diagnostics segment provides chemistry, immunoassay, microbiology, and automation systems, as well as hematology, molecular, acute care, and pathology diagnostics products. This segment offers clinical instruments, reagents, consumables, software, and services for hospitals, physicians' offices, reference laboratories, and other critical care settings. The Environmental & Applied Solutions segment offers instrumentation, consumables, software, services, and disinfection systems to analyze, treat, and manage ultra-pure, potable, industrial, waste, ground, source, and ocean water in residential, commercial, industrial, and natural resource applications. This segment also provides instruments, software, services, and consumables for various color and appearance management, packaging design and quality management, packaging converting, printing, marking, coding, and traceability applications 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.

How the Company Makes Money

Danaher makes money primarily through the sale of its products and services across its three main segments: Life Sciences, Diagnostics, and Environmental & Applied Solutions. In Life Sciences, Danaher generates revenue from laboratory instruments, reagents, consumables, software, and services that support scientific research and clinical diagnostics. The Diagnostics segment focuses on providing medical diagnostic equipment and consumables used in hospitals, laboratories, and other healthcare settings. This includes instruments for clinical analysis and medical imaging. The Environmental & Applied Solutions segment offers products and services that help ensure water quality and improve industrial productivity, including water disinfection systems and quality management solutions. Danaher's revenue model relies on a combination of direct sales, long-term service agreements, and consumable product sales, with a significant emphasis on recurring revenue through consumables and services. The company also engages in strategic acquisitions to expand its product offerings and enter new markets, which further contributes to its revenue growth.

Danaher Financial Statement Overview

Summary

Danaher shows robust operational efficiency with strong EBIT and EBITDA margins. However, declining revenue growth and cash flow generation highlight challenges. The balance sheet remains strong with a moderate debt-to-equity ratio, but profitability needs improvement.

Income Statement

The TTM data shows a stable gross profit margin of 59.5%, reflecting strong cost management. However, the net profit margin has decreased to 16.3% from 19.9% in the previous year. Revenue shows a decline of 24.1% compared to 2022, indicating potential challenges in sales growth. EBIT and EBITDA margins are robust at 20.4% and 28.3% respectively, showcasing operational efficiency.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 63.9%. The debt-to-equity ratio is moderate at 0.32, indicating a balanced leverage approach. Return on equity is solid at 7.9%, though it has decreased from 8.9% in the prior year, suggesting a need to improve profitability.

Cash Flow

Operating cash flow remains strong, with a slight decrease from the previous year, resulting in an operating cash flow to net income ratio of 1.71. Free cash flow decreased, impacting the free cash flow to net income ratio of 1.36. The free cash flow growth rate shows a decline of 8.4%, highlighting challenges in cash generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
23.88B	23.89B	31.47B	29.45B	22.28B
	Gross Profit
14.21B	14.03B	18.95B	17.95B	12.47B
	EBIT
4.86B	5.20B	8.69B	7.46B	4.23B
	EBITDA
4.86B	7.50B	9.71B	10.01B	6.59B
	Net Income Common Stockholders
3.90B	4.76B	7.21B	6.43B	3.65B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.08B	5.86B	6.00B	2.59B	6.04B
	Total Assets
77.54B	84.49B	84.35B	83.18B	76.16B
	Total Debt
16.00B	19.54B	19.68B	22.18B	21.20B
	Net Debt
13.93B	13.67B	13.68B	19.59B	15.17B
	Total Liabilities
27.99B	31.00B	34.26B	38.01B	36.38B
	Stockholders Equity
49.54B	53.49B	50.08B	45.17B	39.77B
Cash Flow		Free Cash Flow
5.30B	5.78B	7.37B	7.06B	5.42B
	Operating Cash Flow
6.69B	7.16B	8.52B	8.36B	6.21B
	Investing Cash Flow
-1.98B	-7.08B	-2.23B	-12.99B	-21.24B
	Financing Cash Flow
-8.38B	-273.00M	-2.57B	1.29B	1.01B

Danaher Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 181.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHR, the sentiment is Negative. The current price of 181.77 is below the 20-day moving average (MA) of 206.26, below the 50-day MA of 210.52, and below the 200-day MA of 242.23, indicating a bearish trend. The MACD of -1.77 indicates Positive momentum. The RSI at 33.82 is Neutral, neither overbought nor oversold. The STOCH value of 16.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DHR.

Danaher Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMD	78 Outperform	$30.13B	24.24	25.65%	1.01%	9.38%	40.38%
BDX	76 Outperform	$59.53B	34.44	6.92%	1.92%	5.89%	42.05%
GE	70 Outperform	$179.04B	27.92	27.62%	0.89%	-32.60%	-28.55%
TMO	70 Outperform	$165.21B	26.48	13.15%	0.36%	0.05%	6.87%
DHR	65 Neutral	$130.05B	34.37	7.57%	0.62%	-13.50%	-17.25%
MMM	64 Neutral	$68.44B	16.80	97.86%	2.23%	-18.72%	―
Sector *	48 Neutral	$6.36B	1.14	-49.00%	2.63%	17.14%	1.39%

Danaher Corporate Events

Danaher Appoints Charles W. Lamanna to Board

On February 20, 2025, Danaher Corporation appointed Charles W. Lamanna to its Board of Directors, with his term set to expire at the 2025 annual meeting of shareholders. Mr. Lamanna was also named to the Science & Technology Committee and deemed independent by the Board. Additionally, Danaher amended its 2007 Omnibus Incentive Plan to fully vest stock options and units upon a participant’s death or disability termination, providing clarity and security for stakeholders involved.