Why is Danaher Corp. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 25.63
2
Flat results in Jun 25
- OPERATING CASH FLOW(Y) Lowest at USD 6,169 MM
- ROCE(HY) Lowest at 6.68%
- CASH AND EQV(HY) Lowest at USD 4,950 MM
3
With ROCE of 7.77%, it has a expensive valuation with a 2.76 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -1.29%, its profits have fallen by -10.8%
4
Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -1.29% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to Danaher Corp. should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Danaher Corp. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Danaher Corp.
-8.85%
-0.37
32.89%
S&P 500
22.24%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
1.97%
EBIT Growth (5y)
4.31%
EBIT to Interest (avg)
25.63
Debt to EBITDA (avg)
1.70
Net Debt to Equity (avg)
0.31
Sales to Capital Employed (avg)
0.36
Tax Ratio
16.41%
Dividend Payout Ratio
25.36%
Pledged Shares
0
Institutional Holding
86.25%
ROCE (avg)
10.41%
ROE (avg)
11.52%
Valuation Key Factors 
Factor
Value
P/E Ratio
39
Industry P/E
Price to Book Value
3.07
EV to EBIT
33.33
EV to EBITDA
22.73
EV to Capital Employed
2.63
EV to Sales
7.12
PEG Ratio
NA
Dividend Yield
0.75%
ROCE (Latest)
7.89%
ROE (Latest)
7.93%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
6What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 27.65%
RAW MATERIAL COST(Y)
Fallen by 1.79% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 3.75 times
DIVIDEND PER SHARE(HY)
Highest at USD 5.46
OPERATING PROFIT MARGIN(Q)
Highest at 33.41 %
-3What is not working for the Company
INTEREST(Q)
At USD 63 MM has Grown at 14.55%
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.46 times
Here's what is working for Danaher Corp.
Dividend Payout Ratio
Highest at 27.65% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Operating Profit Margin
Highest at 33.41 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Inventory Turnover Ratio
Highest at 3.75 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend per share
Highest at USD 5.46
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Raw Material Cost
Fallen by 1.79% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 627 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Danaher Corp.
Interest
At USD 63 MM has Grown at 14.55%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debtors Turnover Ratio
Lowest at 5.46 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






