Danaher Corp

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DHR : NYSE : Health Care
$86.04 up 0.03 | 0.03%
Today's Range: 85.4 - 86.235
Avg. Daily Volume: 2306500.0
03/27/17 - 4:03 PM ET

Financial Analysis


DANAHER CORP's gross profit margin for the fourth quarter of its fiscal year 2016 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 weak liquidity. Currently, the Quick Ratio is 0.60 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.90% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)4584.34323.0
EBITDA ($mil)1275.61100.2
EBIT ($mil)965.0823.1
Net Income ($mil)747.0688.6


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)963.7790.8
Total Assets ($mil)45295.348222.2
Total Debt ($mil)12269.012870.4
Equity ($mil)23002.823690.3


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin62.6360.75
EBITDA Margin27.8225.44
Operating Margin21.0519.04
Sales Turnover0.370.3
Return on Assets5.636.96
Return on Equity9.367.37
Debt Q4 FY16 Q4 FY15
Current Ratio0.971.27
Debt/Capital0.350.35
Interest Expense32.350.7
Interest Coverage29.8816.23


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)692.2686.8
Div / share0.130.14
EPS1.070.75
Book value / share33.2334.49
Institutional Own % n/a n/a
Avg Daily Volume2268149.03392473.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 52.18 for the Health Care Equipment & Supplies industry and a value on par with the S&P 500 average of 26.33. To use another comparison, its price-to-book ratio of 2.60 indicates a discount versus the S&P 500 average of 2.93 and a significant discount versus the industry average of 4.63. 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 28.02 Peers 52.18   DHR 16.96 Peers 25.34

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 20.16 Peers 30.86   DHR 1.02 Peers 1.14

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.

 

Discount. 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DHR 2.60 Peers 4.63   DHR 24.69 Peers 97.37

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 3.54 Peers 4.66   DHR 16.96 Peers 14.44

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 discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

DHR has a sales growth rate that exceeds its peers.

 

 

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