Danaher (DHR) AI Stock Analysis

• Market Cap: $142.52B
• Dividend Yield: 0.59%
• Average Volume (3M): 4.32M
• Price to Earnings (P/E): 42.3
• Beta (1Y): 0.91
• Revenue Growth: -3.24%
• EPS Growth: -16.60%
• Country: US
• Employees: 61,000
• Sector: Healthcare
• Sector Strength: 38
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 1.80
• Shares Outstanding: 716,051,600
• 10 Day Avg. Volume: 5,394,410
• 30 Day Avg. Volume: 4,317,571
• 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: 1.11
• Enterprise Value/Revenue: 6.60
• Enterprise Value/Gross Profit: 10.73
• Enterprise Value/Ebitda: 23.47
• 1Y Price Target: $239.64
• Price Target Upside: 20.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 66 Neutral
• Price Target: $218.00 ▲(9.53% Upside)

Danaher's strong financial performance and positive earnings call guidance are key strengths, supported by robust profitability and strategic innovation. However, high valuation metrics and technical indicators suggest caution. Challenges in revenue growth and market conditions, particularly in China, could impact future performance.

Positive Factors

Earnings

DHR has raised the EPS guide on the back of more favorable FX and benefit from cost actions.

Market Position

Management is comfortable with projected organizational growth and earnings per share targets for the future.

Recurring Revenue

DHR is seen as the leader in the highly attractive, recurring revenue market of bioprocess tools.

Negative Factors

Demand

Weaker demand and uncertain end-market conditions in biotech and academia offset the encouraging strength in bioprocessing.

Market Conditions

There are still headwinds, including weak US markets and a downturn in China.

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 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 exhibits strong profitability with robust margins and a solid capital structure. However, stagnant revenue growth and challenges in sustaining free cash flow levels temper the financial outlook.

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	24.01B	23.88B	23.89B	26.64B	29.45B	22.28B
Gross Profit	14.77B	14.21B	14.03B	16.19B	17.95B	12.47B
EBITDA	6.75B	7.28B	7.50B	9.48B	10.01B	6.54B
Net Income	3.41B	3.90B	4.76B	7.21B	6.43B	3.65B
Balance Sheet
Total Assets	81.62B	77.54B	84.49B	84.35B	83.18B	76.16B
Cash, Cash Equivalents and Short-Term Investments	2.96B	2.08B	5.86B	6.00B	2.59B	6.04B
Total Debt	18.55B	17.15B	19.54B	20.62B	23.27B	22.18B
Total Liabilities	29.28B	27.99B	31.00B	34.26B	38.01B	36.38B
Stockholders Equity	52.33B	49.54B	53.49B	50.08B	45.17B	39.77B
Cash Flow
Free Cash Flow	4.86B	5.30B	5.78B	7.37B	7.06B	5.42B
Operating Cash Flow	6.17B	6.69B	7.16B	8.52B	8.36B	6.21B
Investing Cash Flow	-1.80B	-1.98B	-7.08B	-2.23B	-12.99B	-21.24B
Financing Cash Flow	-4.04B	-8.38B	-273.00M	-2.57B	1.29B	1.01B

Danaher Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 199.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 199.04 is above the 20-day moving average (MA) of 198.44, above the 50-day MA of 197.34, and below the 200-day MA of 213.69, indicating a neutral trend. The MACD of 0.50 indicates Positive momentum. The RSI at 50.57 is Neutral, neither overbought nor oversold. The STOCH value of 43.69 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
A	79 Outperform	$32.64B	28.34	18.88%	0.85%	0.56%	-4.08%
IDXX	77 Outperform	$51.36B	53.43	64.87%	―	5.56%	4.66%
TMO	77 Outperform	$176.13B	27.00	13.44%	0.35%	2.05%	7.03%
WAT	71 Outperform	$16.74B	25.35	37.03%	―	2.57%	8.31%
DHR	66 Neutral	$142.52B	42.28	6.68%	0.59%	-3.24%	-16.60%
MTD	63 Neutral	$25.62B	30.95	-680.23%	―	3.11%	8.50%
Sector *	50 Neutral	AU$2.60B	3.65	-58.14%	2.69%	36.37%	13.78%

Danaher Corporate Events

Danaher Announces General Counsel’s Upcoming Departure

On July 28, 2025, Danaher Corporation announced that Brian W. Ellis, the Senior Vice President and General Counsel, will step down from his role as General Counsel on August 25, 2025. He will remain as Senior Vice President until his retirement on February 28, 2026, marking a significant transition in the company’s executive leadership.

The most recent analyst rating on (DHR) stock is a Buy with a $268.00 price target. To see the full list of analyst forecasts on Danaher stock, see the DHR Stock Forecast page.

Danaher Announces CFO Transition with Gugino Appointment

On July 21, 2025, Danaher Corporation announced that Matthew M. McGrew, the current Chief Financial Officer, will step down from his role on February 28, 2026, and will be succeeded by Matthew E. Gugino. Gugino, who has been with Danaher since 2013, currently serves as Vice President-Corporate FP&A and Group CFO for the Life Sciences Innovations businesses. The transition is part of a strategic move to ensure continuity in leadership as McGrew transitions towards retirement. The announcement also detailed changes in compensation for both executives, with Gugino receiving significant increases in salary and equity awards as he assumes the CFO role. This transition is expected to support Danaher’s continued growth and strengthen its position as a leader in science and technology.

The most recent analyst rating on (DHR) stock is a Buy with a $315.00 price target. To see the full list of analyst forecasts on Danaher stock, see the DHR Stock Forecast page.

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.