Danaher Corp. (DHR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

DexCom, Inc.

Abbott Laboratories

Intuitive Surgical, Inc.

Medtronic Plc

Edwards Lifesciences Corp.

Agilent Technologies, Inc.

Thermo Fisher Scientific, Inc.

Stryker Corp.

IDEXX Laboratories, Inc.

Danaher Corp.

Becton, Dickinson & Co.

Why is Danaher Corp. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 25.63

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

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 -3.86%, its profits have fallen by -10.8%

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.86% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

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.

-3.86%

-0.43

32.82%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.20%

EBIT Growth (5y)

9.15%

EBIT to Interest (avg)

25.63

Debt to EBITDA (avg)

1.70

Net Debt to Equity (avg)

0.31

Sales to Capital Employed (avg)

0.37

Tax Ratio

16.41%

Dividend Payout Ratio

20.42%

Pledged Shares

Institutional Holding

83.39%

ROCE (avg)

10.41%

ROE (avg)

11.52%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.30

EV to EBIT

35.55

EV to EBITDA

24.40

EV to Capital Employed

2.76

EV to Sales

7.70

PEG Ratio

Dividend Yield

0.49%

ROCE (Latest)

7.77%

ROE (Latest)

8.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 41.46%

RAW MATERIAL COST(Y)

Fallen by -11.82% (YoY

DIVIDEND PER SHARE(HY)

Highest at USD 6.15

-8What is not working for the Company

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

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.45 times

EPS(Q)

Lowest at USD 0.77

Here's what is working for Danaher Corp.

Dividend Payout Ratio

Highest at 41.46% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Dividend per share

Highest at USD 6.15

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -11.82% (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 611 MM

in the last five periods

MOJO 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.

Operating Cash Flow

Lowest at USD 6,169 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

EPS

Lowest at USD 0.77

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 4,950 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 3.45 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio