Danaher Corp

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DHR : NYSE : Industrial Goods
$81.24 | %
Today's Range: 80.66 - 81.46
Avg. Daily Volume: 3,739,300
07/22/16 - 4:00 PM ET

Financial Analysis


DANAHER CORP's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. 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 decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 5.07% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)5387.24694.7
EBITDA ($mil)1201.21010.6
EBIT ($mil)891.1775.1
Net Income ($mil)758.4569.8


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)664.32511.0
Total Assets ($mil)48385.636072.3
Total Debt ($mil)12391.73177.5
Equity ($mil)24504.723321.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin58.8958.02
EBITDA Margin22.2921.52
Operating Margin16.5416.51
Sales Turnover0.440.53
Return on Assets7.327.17
Return on Equity11.4210.81
Debt Q1 FY16 Q1 FY15
Current Ratio1.461.77
Debt/Capital0.340.12
Interest Expense61.729.3
Interest Coverage14.4426.45


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)688.6707.53
Div / share0.160.14
EPS1.090.78
Book value / share35.5932.96
Institutional Own % n/a n/a
Avg Daily Volume3072988.02827128.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 62.82 for the Health Care Equipment & Supplies industry and a discount compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 2.28 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 4.84. 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 20.37 Peers 62.82   DHR 13.74 Peers 33.31

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 20.84 Peers 29.14   DHR 1.41 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.

 

Premium. 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 significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DHR 2.28 Peers 4.84   DHR 13.03 Peers 159.18

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 2.63 Peers 4.71   DHR 10.78 Peers 20.16

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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