Danaher Corp

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DHR : NYSE : Industrial Goods
$80.53 | %
Today's Range: 80.12 - 80.91
Avg. Daily Volume: 3304300.0
01/20/17 - 4:02 PM ET

Financial Analysis

DANAHER CORP's gross profit margin for the third quarter of its fiscal year 2016 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 0.85 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained unchanged 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 Q3 FY16 Q3 FY15
Net Sales ($mil)4132.13512.2
EBITDA ($mil)956.8777.0
EBIT ($mil)681.1557.0
Net Income ($mil)391.61403.4

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)971.41833.5
Total Assets ($mil)41297.549707.9
Total Debt ($mil)8312.215012.0
Equity ($mil)23191.623112.7

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin62.062.11
EBITDA Margin23.1522.12
Operating Margin16.4815.86
Sales Turnover0.440.31
Return on Assets6.046.7
Return on Equity9.238.11
Debt Q3 FY16 Q3 FY15
Current Ratio1.361.04
Interest Expense43.739.1
Interest Coverage15.5914.25

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)691.6685.2
Div / share0.130.14
Book value / share33.5333.73
Institutional Own % n/a n/a
Avg Daily Volume3351620.02827491.0


BUY. The current P/E ratio indicates a significant discount compared to an average of 69.11 for the Health Care Equipment & Supplies industry and a value on par with the S&P 500 average of 25.49. To use another comparison, its price-to-book ratio of 2.42 indicates a discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 8.30. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DHR 26.48 Peers 69.11   DHR 13.69 Peers 23.72

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
DHR 20.58 Peers 23.81   DHR NM Peers 1.00

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DHR 2.42 Peers 8.30   DHR 16.73 Peers 84.51

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DHR 3.09 Peers 5.77   DHR 18.57 Peers 17.12

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.


Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

DHR is keeping pace with its peers on the basis of sales growth.



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