Danaher (DHR) AI Stock Analysis

• Market Cap: $163.50B
• Dividend Yield: 0.53%
• Average Volume (3M): 3.80M
• Price to Earnings (P/E): 47.6
• Beta (1Y): 0.83
• Revenue Growth: 2.22%
• EPS Growth: -7.60%
• Country: US
• Employees: 61,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 1.89
• Shares Outstanding: 706,349,550
• 10 Day Avg. Volume: 4,172,730
• 30 Day Avg. Volume: 3,799,685
• PEG Ratio: -2.50
• Price to Book (P/B): 3.39
• Price to Sales (P/S): 7.03
• P/FCF Ratio: 31.68
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 6.12
• Enterprise Value/Gross Profit: 9.97
• Enterprise Value/Ebitda: 21.64
• 1Y Price Target: $256.13
• Price Target Upside: 11.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 7.71
• Revenue Forecast (FY): $24.52B

• Rating: 75 Outperform
• Price Target: $251.00 ▲(8.98% Upside)

Danaher's overall stock score reflects its strong financial health and positive earnings outlook, supported by strategic initiatives and robust cash flow generation. However, the high valuation and potential challenges in key markets like China and Life Sciences temper the score. Technical indicators suggest bullish momentum, but caution is advised due to overvaluation concerns.

Positive Factors

Strong Financial Performance

Consistent core revenue growth and increased earnings per share indicate robust financial health and effective business operations, supporting long-term stability.

Bioprocessing Business Momentum

Growth in the bioprocessing segment reflects strong demand and market position, contributing to sustainable revenue streams and competitive advantage.

Successful New Product Launches

Innovative product launches enhance Danaher's competitive edge and market reach, driving future growth and reinforcing its position in the industry.

Negative Factors

China Market Challenges

Declining revenues in China due to policy changes could impact growth prospects in a key market, posing a challenge to future revenue stability.

Life Sciences Revenue Decrease

Decreased revenue in Life Sciences indicates potential market pressures and funding challenges, which may affect long-term growth in this segment.

Equipment Revenue Decline

A decline in equipment revenue suggests reduced capital spending, which could hinder growth and profitability in the bioprocessing segment.

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 generates revenue through a diversified model primarily based on the sale of equipment, consumables, and software solutions. The Life Sciences segment, which includes products used for drug discovery and development, is a significant revenue driver, alongside the Diagnostics segment that offers diagnostic systems and instruments. The company benefits from recurring revenue streams through the sale of consumables and maintenance services associated with its equipment. Key partnerships with healthcare providers, research institutions, and industrial companies enhance Danaher's market reach and innovation capabilities. Additionally, the company's commitment to continuous improvement and investment in research and development leads to the introduction of new products, further contributing to its earnings.

Danaher Financial Statement Overview

Summary

Danaher exhibits strong profitability with a robust capital structure and efficient operational management. However, challenges in revenue growth and sustaining free cash flow levels could impact future financial performance. The balance sheet remains a strength, while cash flow management requires careful attention.

Income Statement

Danaher's income statement shows a consistent revenue base with a slight increase in TTM compared to the previous annual period. The gross profit margin is robust at 59.66%, and the net profit margin stands at 14.21% for the TTM, indicating healthy profitability. However, the revenue growth has been stagnant, with only a minor increase from the previous year. The EBIT and EBITDA margins remain strong at 18.39% and 25.73%, respectively, for the TTM, showcasing operational efficiency.

Balance Sheet

The balance sheet reveals a solid equity base with a debt-to-equity ratio of 0.33, reflecting moderate leverage levels. The equity ratio is healthy at 64.11%, suggesting a strong capital structure. Return on equity for the TTM is commendable at 6.52%, although it has decreased from previous levels, indicating a need for improved net income performance relative to equity growth.

Cash Flow

The cash flow statement shows a slight decrease in free cash flow from the previous year, with a negative growth rate of -8.20%. The operating cash flow to net income ratio is strong at 1.81, indicating efficient cash generation from operations. However, the free cash flow to net income ratio has decreased to 1.42, suggesting reduced cash flow available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.27B	23.88B	23.89B	26.64B	29.45B	22.28B
Gross Profit	14.89B	14.21B	14.03B	16.19B	17.95B	12.47B
EBITDA	6.87B	7.28B	7.50B	9.48B	10.01B	6.54B
Net Income	3.50B	3.90B	4.76B	7.21B	6.43B	3.65B
Balance Sheet
Total Assets	79.90B	77.54B	84.49B	84.35B	83.18B	76.16B
Cash, Cash Equivalents and Short-Term Investments	1.53B	2.08B	5.86B	6.00B	2.59B	6.04B
Total Debt	16.86B	17.15B	19.54B	20.62B	23.27B	22.18B
Total Liabilities	28.83B	27.99B	31.00B	34.26B	38.01B	36.38B
Stockholders Equity	51.07B	49.54B	53.49B	50.08B	45.17B	39.77B
Cash Flow
Free Cash Flow	5.02B	5.30B	5.78B	7.37B	7.06B	5.42B
Operating Cash Flow	6.32B	6.69B	7.16B	8.52B	8.36B	6.21B
Investing Cash Flow	-1.51B	-1.98B	-7.08B	-2.23B	-12.99B	-21.24B
Financing Cash Flow	-5.92B	-8.38B	-273.00M	-2.57B	1.29B	1.01B

Danaher Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 230.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 230.32 is above the 20-day moving average (MA) of 226.80, above the 50-day MA of 221.52, and above the 200-day MA of 203.68, indicating a bullish trend. The MACD of 2.24 indicates Negative momentum. The RSI at 58.54 is Neutral, neither overbought nor oversold. The STOCH value of 81.83 is Negative, 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	78 Outperform	$54.95B	54.58	64.63%	―	8.39%	21.44%
DHR	75 Outperform	$163.50B	47.64	6.84%	0.53%	2.22%	-7.60%
A	73 Outperform	$39.21B	30.25	20.62%	0.72%	6.73%	3.34%
TMO	72 Outperform	$217.58B	33.46	13.14%	0.30%	3.22%	8.26%
WAT	70 Outperform	$22.92B	35.50	32.99%	―	6.90%	3.86%
MTD	64 Neutral	$28.95B	35.42	―	―	4.77%	7.93%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Danaher Corporate Events

Danaher Board Member John T. Schwieters to Retire

On November 6, 2025, John T. Schwieters informed Danaher‘s Board of Directors that he will not seek reelection at the company’s 2026 annual meeting and will retire from the Board at that time. His decision was not due to any disagreements with the company’s operations, policies, or practices. Consequently, the size of the Board will decrease from thirteen to twelve members following his retirement.

Danaher Updates By-laws and Launches Share Buyback

On September 9, 2025, Danaher Corporation’s Board of Directors revised the company’s By-laws to update procedural and disclosure requirements for shareholder proposals and director nominations. Additionally, the Board approved a new share repurchase program authorizing the buyback of up to 35 million shares of common stock, with no expiration date, allowing management to decide on timing and amount based on market conditions.