Danaher (DHR) AI Stock Analysis

• Market Cap: $143.85B
• Dividend Yield: 0.64%
• Average Volume (3M): 3.60M
• Price to Earnings (P/E): 38.3
• Beta (1Y): 0.90
• Revenue Growth: -9.19%
• EPS Growth: -12.75%
• Country: US
• Employees: 61,000
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 1.88
• Shares Outstanding: 715,669,600
• 10 Day Avg. Volume: 3,879,250
• 30 Day Avg. Volume: 3,595,869
• PEG Ratio: -14.22
• Price to Book (P/B): 2.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.67
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 10.89
• Enterprise Value/Ebitda: 5.32
• 1Y Price Target: $241.87
• Price Target Upside: 20.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 72 Outperform
• Price Target: $219.00 ▲(8.71%Upside)

Danaher's overall stock score reflects a solid financial foundation with strong profitability and operational efficiency. However, valuation concerns, technical indicators showing mixed signals, and challenges in core revenue and specific segments temper the outlook. The earnings call highlights both achievements and potential risks, notably in geopolitical areas.

Positive Factors

Bioprocessing Trends

Bioprocessing trends are encouraging, with improving order trends and a solid B2B performance, indicating a positive outlook for market growth.

Merger and Acquisition Opportunities

Analyst sentiment suggests that shares can increase in value, driven by merger and acquisition opportunities.

Revenue Performance

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

Negative Factors

China VBP Headwinds

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

Guidance Reduction

Life sciences instruments showed a slight decline in guidance, which is attributed to adverse A&G 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 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 demonstrates strong profitability with healthy margins and a solid balance sheet. The stable financial outlook is supported by operational efficiency and strong cash generation capabilities, despite a recent decline in revenue and free cash flow growth.

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
EBITDA	7.17B	7.28B	7.50B	9.71B	10.01B	6.59B
Net Income	3.77B	3.90B	4.76B	7.21B	6.43B	3.65B
Balance Sheet
Total Assets	79.12B	77.54B	84.49B	84.35B	83.18B	76.16B
Cash, Cash Equivalents and Short-Term Investments	1.99B	2.08B	5.86B	6.00B	2.59B	6.04B
Total Debt	16.48B	16.00B	19.54B	19.68B	22.18B	21.20B
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: 201.46
• 50DMA: Positive
• 100DMA: Positive
• 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 201.46 is above the 20-day moving average (MA) of 196.96, above the 50-day MA of 194.64, and below the 200-day MA of 223.80, indicating a neutral trend. The MACD of 1.50 indicates Negative momentum. The RSI at 57.58 is Neutral, neither overbought nor oversold. The STOCH value of 54.30 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	$42.66B	49.01	59.33%	―	5.56%	4.66%
A	79 Outperform	$33.70B	29.26	18.88%	0.84%	0.56%	-4.08%
WAT	73 Outperform	$21.12B	32.18	40.82%	―	2.57%	8.31%
DHR	72 Outperform	$143.85B	38.28	7.22%	0.64%	-9.19%	-12.75%
TMO	72 Outperform	$155.02B	23.73	13.73%	0.42%	0.96%	9.19%
Sector *	65 Neutral	€7.29B	20.70	0.61%	1.92%	1.18%	-29.88%
MTD	64 Neutral	$24.79B	29.76	-680.23%	―	1.18%	12.34%

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.