DANAHER CORP's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. DANAHER CORP has strong liquidity. Currently, the Quick Ratio is 1.68 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 11.43% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||4870.3||4669.1|
|Net Income ($mil)||680.6||597.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||4025.3||1995.6|
|Total Assets ($mil)||35535.9||33721.2|
|Total Debt ($mil)||3036.1||3502.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||57.62||56.76|
|Return on Assets||7.67||7.52|
|Return on Equity||11.48||11.9|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||702.69||697.2|
|Div / share||0.1||0.03|
|Book value / share||33.79||30.56|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3080366.0||2924815.0|
BUY. DANAHER CORP's P/E ratio indicates a premium compared to an average of 20.45 for the Industrial Conglomerates industry and a premium compared to the S&P 500 average of 19.99. To use another comparison, its price-to-book ratio of 2.55 indicates valuation on par with the S&P 500 average of 2.76 and a discount versus the industry average of 3.05. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, DANAHER CORP seems to be trading at a premium to investment alternatives within the industry.
|DHR 22.51||Peers 20.45||DHR 16.78||Peers 12.52|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
DHR is trading at a premium to its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
DHR is trading at a significant premium to its peers.
|DHR 21.23||Peers 23.04||DHR NM||Peers 1.52|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
DHR is trading at a valuation on par with its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
DHR's negative PEG ratio makes this valuation measure meaningless.
|DHR 2.55||Peers 3.05||DHR 6.70||Peers 12.16|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
DHR is trading at a discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, DHR is expected to significantly trail its peers on the basis of its earnings growth rate.
|DHR 3.06||Peers 2.28||DHR 4.97||Peers 2.60|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
DHR is trading at a significant premium to its industry.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
DHR has a sales growth rate that significantly exceeds its peers.
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