Danaher (DHR) AI Stock Analysis

• Market Cap: $141.09B
• Dividend Yield: 0.57%
• Average Volume (3M): 4.45M
• Price to Earnings (P/E): 38.2
• Beta (1Y): 0.88
• Revenue Growth: -9.19%
• EPS Growth: -12.75%
• Country: US
• Employees: 61,000
• Sector: Healthcare
• Sector Strength: 69
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 5.16
• Shares Outstanding: 715,669,600
• 10 Day Avg. Volume: 4,469,801
• 30 Day Avg. Volume: 4,450,399
• 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: 1.16
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 11.54
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $241.20
• Price Target Upside: 22.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

Danaher's financial stability and solid profitability are key strengths, but the stock faces challenges in technical performance and valuation. The recent earnings call highlights growth in bioprocessing but also notes flat revenue and geopolitical challenges, contributing to a moderate overall score.

Positive Factors

Bioprocessing Recovery

Bioprocessing recovery continues, with biotech up 7% and bioprocessing up high single digits, marking the seventh consecutive quarter of sequential order growth.

Financial Performance

Danaher Corporation's first-quarter revenue of $5.7 billion exceeded expectations, with all segments surpassing top-line forecasts.

Operational Strategy

Investor sentiment is likely to be boosted by Danaher Corporation's ability to largely offset tariffs through operational strategies.

Negative Factors

China Market Headwinds

China VBP headwinds have seemingly accelerated, with DHR now calling for a $150M headwind in '25.

Guidance and Expectations

2025 guidance for core growth was ~+3%, which was well below expectations (~+5%).

Tariff and Trade Concerns

Tariff and trade war concerns raise new questions, with management highlighting $350 million of incremental tariff costs this year.

Danaher Business Overview & Revenue Model

Company Description

Danaher Corporation is a global conglomerate headquartered in Washington, D.C., operating in diverse sectors, including life sciences, diagnostics, and environmental and applied solutions. The company is known for its innovative products and services that enhance quality of life and environmental sustainability. Danaher's portfolio includes advanced scientific research tools, diagnostic equipment, and industrial technologies, serving a wide range of industries.

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 demonstrates strong profitability and financial stability with healthy margins and a solid balance sheet. Despite the recent decline in revenue and free cash flow growth, the company's operational efficiency and strong cash generation capabilities provide a stable financial outlook.

Income Statement

Danaher's revenue growth has been stable but shows a decline in the recent TTM period. The gross profit margin for TTM is approximately 59.7%, and the net profit margin is around 15.8%, both indicating strong profitability. However, the revenue has slightly decreased compared to previous periods, affecting the overall growth outlook. EBIT and EBITDA margins remain healthy, reflecting operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of approximately 0.32, suggesting moderate leverage. The return on equity (ROE) for TTM is about 7.4%, indicating efficient use of equity. The equity ratio is robust at approximately 64.3%, signifying a strong equity base relative to its assets, which enhances financial stability.

Cash Flow

Free cash flow has shown a decline in the TTM period, impacting the growth rate. However, the operating cash flow to net income ratio is 1.66, indicating strong cash conversion. The free cash flow to net income ratio is 1.30, reflecting solid cash generation relative to profits despite a decreasing trend in free cash flow.

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: Neutral
• Last Price: 197.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHR, the sentiment is Neutral. The current price of 197.14 is above the 20-day moving average (MA) of 192.00, below the 50-day MA of 201.90, and below the 200-day MA of 238.16, indicating a neutral trend. The MACD of -2.93 indicates Negative momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 67.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DHR.

Danaher Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMD	85 Outperform	$34.59B	26.51	25.81%	0.88%	9.54%	37.23%
GE	71 Outperform	$211.60B	30.78	28.09%	0.74%	-42.92%	109.75%
BDX	70 Outperform	$58.89B	34.07	6.92%	1.94%	5.89%	42.05%
TMO	69 Neutral	$169.62B	27.17	13.75%	0.38%	0.96%	9.19%
DHR	67 Neutral	$141.09B	38.22	7.22%	0.57%	-9.19%	-12.75%
MMM	61 Neutral	$73.90B	17.35	94.75%	2.06%	-24.93%	―
Sector *	51 Neutral	$5.31B	3.39	-40.42%	2.90%	18.11%	2.25%

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.