Danaher (DHR) AI Stock Analysis

• Market Cap: $137.45B
• Dividend Yield: 0.59%
• Average Volume (3M): 3.72M
• Price to Earnings (P/E): 37.2
• Beta (1Y): 0.90
• Revenue Growth: -9.19%
• EPS Growth: -12.75%
• Country: US
• Employees: 61,000
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 1.88
• Shares Outstanding: 715,669,600
• 10 Day Avg. Volume: 3,328,480
• 30 Day Avg. Volume: 3,723,015
• PEG Ratio: -13.74
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.70
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 1.69
• Enterprise Value/Gross Profit: 10.56
• Enterprise Value/Ebitda: 5.16
• 1Y Price Target: $241.20
• Price Target Upside: 24.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 72 Outperform
• Price Target: $214.00 ▲(10.83%Upside)

Danaher's strong financial performance and operational efficiency are key strengths, despite challenges in revenue growth and valuation concerns. Technical analysis and earnings reflect a mixed outlook with potential headwinds in key segments and regions.

Positive Factors

Financial Performance

Danaher Corporation's adjusted earnings per share of $1.88 surpassed consensus estimates by 15%.

Market Position

DHR is seen as a leader in the highly attractive market of bioprocess tools and maintains its position as a diversified consolidator in life science tools and diagnostics.

Operational Strategy

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

Negative Factors

Guidance Expectations

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

Market Dynamics

Life sciences instruments guidance has been slightly reduced, influenced by certain market dynamics.

Tariff Costs

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., primarily engaged in the design, manufacture, and marketing of professional, medical, industrial, and commercial products and services. The company operates through three main segments: Life Sciences, Diagnostics, and Environmental & Applied Solutions. Its core products and services include scientific instruments, diagnostic equipment, dental equipment, water treatment solutions, and product identification systems, supporting a wide array of industries including healthcare, environmental, and industrial sectors.

How the Company Makes Money

Danaher Corporation generates revenue through the sale of its diverse range of products and services across its three main operating segments. In the Life Sciences segment, revenue is derived from the sale of advanced scientific instruments and consumables used in research and development. The Diagnostics segment contributes through the provision of diagnostic instruments, reagents, consumables, software, and services for hospitals, physicians' offices, reference laboratories, and other critical care settings. The Environmental & Applied Solutions segment earns revenue from water quality analysis and treatment products, as well as product identification equipment and consumables. Danaher's growth and earnings are also supported by strategic acquisitions and partnerships, allowing for expansion into new markets and the enhancement of its product offerings. The company leverages its Danaher Business System, a set of tools and processes focused on continuous improvement and growth, to drive efficiency and innovation, further enhancing its profitability.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
23.82B	23.88B	23.89B	31.47B	29.45B	22.28B
	Gross Profit
14.23B	14.21B	14.03B	18.95B	17.95B	12.47B
	EBIT
4.83B	4.86B	5.20B	8.69B	7.46B	4.23B
	EBITDA
7.17B	7.28B	7.50B	9.71B	10.01B	6.59B
	Net Income Common Stockholders
3.77B	3.90B	4.76B	7.21B	6.43B	3.65B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.99B	2.08B	5.86B	6.00B	2.59B	6.04B
	Total Assets
79.12B	77.54B	84.49B	84.35B	83.18B	76.16B
	Total Debt
16.48B	16.00B	19.54B	19.68B	22.18B	21.20B
	Net Debt
14.48B	13.93B	13.67B	13.68B	19.59B	15.17B
	Total Liabilities
28.26B	27.99B	31.00B	34.26B	38.01B	36.38B
	Stockholders Equity
50.85B	49.54B	53.49B	50.08B	45.17B	39.77B
Cash Flow		Free Cash Flow
4.90B	5.30B	5.78B	7.37B	7.06B	5.42B
	Operating Cash Flow
6.25B	6.69B	7.16B	8.52B	8.36B	6.21B
	Investing Cash Flow
-1.90B	-1.98B	-7.08B	-2.23B	-12.99B	-21.24B
	Financing Cash Flow
-9.51B	-8.38B	-273.00M	-2.57B	1.29B	1.01B

Danaher Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 193.08
• 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 Positive. The current price of 193.08 is above the 20-day moving average (MA) of 191.79, below the 50-day MA of 193.71, and below the 200-day MA of 228.90, indicating a neutral trend. The MACD of -1.21 indicates Negative momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 63.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DHR.

Danaher Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDXX	82 Outperform	$42.29B	48.50	59.33%	―	5.56%	4.66%
A	79 Outperform	$32.03B	27.81	18.88%	0.86%	0.56%	-4.08%
WAT	77 Outperform	$20.45B	31.68	40.82%	―	2.57%	8.31%
DHR	72 Outperform	$137.45B	37.23	7.22%	0.59%	-9.19%	-12.75%
TMO	69 Neutral	$150.97B	23.47	13.73%	0.40%	0.96%	9.19%
MTD	66 Neutral	$24.24B	29.17	-680.23%	―	1.18%	12.34%
Sector *	53 Neutral	$5.25B	3.24	-45.38%	2.81%	16.79%	-0.06%

Danaher Corporate Events

Danaher Approves Key Proposals at Shareholder Meeting

On May 6, 2025, Danaher Corporation held its annual shareholder meeting where key proposals were voted on, including the election of thirteen directors and the ratification of Ernst & Young LLP as the independent accounting firm for 2025. The meeting also saw the approval of the executive compensation package, reflecting shareholder support for the company’s leadership and strategic direction.