Danaher Corp

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DHR : NYSE : Health Care
$86.9 -1.2 | -1.4%
Today's Range: 86.81 - 88.62
Avg. Daily Volume: 2896000.0
09/19/17 - 3:59 PM ET

Financial Analysis


DANAHER CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. DANAHER CORP has weak liquidity. Currently, the Quick Ratio is 0.94 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.81% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)4510.14241.9
EBITDA ($mil)1061.2985.7
EBIT ($mil)759.7710.1
Net Income ($mil)557.3656.7


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)726.44097.6
Total Assets ($mil)45646.851503.7
Total Debt ($mil)11592.014652.2
Equity ($mil)24590.025045.1


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin62.1862.63
EBITDA Margin23.5223.23
Operating Margin16.8416.74
Sales Turnover0.380.31
Return on Assets4.826.8
Return on Equity8.97.6
Debt Q2 FY17 Q2 FY16
Current Ratio1.491.4
Debt/Capital0.320.37
Interest Expense40.755.5
Interest Coverage18.6712.79


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)694.7690.5
Div / share0.140.16
EPS0.790.6
Book value / share35.436.27
Institutional Own % n/a n/a
Avg Daily Volume2913772.02799741.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 48.70 for the Health Care Equipment & Supplies industry and a premium compared to the S&P 500 average of 24.88. To use another comparison, its price-to-book ratio of 2.50 indicates a discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 4.90. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, DANAHER CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DHR 28.35 Peers 48.70   DHR 20.23 Peers 37.09

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

DHR is trading at a significant discount to its peers.

 

Discount. 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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DHR 20.62 Peers 33.41   DHR 1.00 Peers 1.03

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

DHR is trading at a significant discount to its peers.

 

Average. 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 trades at a valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DHR 2.50 Peers 4.90   DHR 14.28 Peers 47.56

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 significant 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DHR 3.52 Peers 5.32   DHR 8.94 Peers 15.38

Discount. 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 discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

DHR significantly trails its peers on the basis of sales growth

 

 

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