Danaher Corp

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DHR : NYSE : Health Care
$83.96 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 2662500.0
05/24/17 - 4:02 PM ET

Financial Analysis


DANAHER CORP's gross profit margin for the first 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 0.64 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 2.93% 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 FY17 Q1 FY16
Net Sales ($mil)4205.73924.1
EBITDA ($mil)927.8879.3
EBIT ($mil)623.9613.1
Net Income ($mil)506.1758.4


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)803.9664.3
Total Assets ($mil)45245.148385.6
Total Debt ($mil)11950.312391.7
Equity ($mil)23785.824504.7


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin62.7362.01
EBITDA Margin22.0622.4
Operating Margin14.8315.62
Sales Turnover0.380.28
Return on Assets5.087.32
Return on Equity8.627.24
Debt Q1 FY17 Q1 FY16
Current Ratio1.051.46
Debt/Capital0.330.34
Interest Expense40.352.9
Interest Coverage15.4811.59


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)694.1688.6
Div / share0.140.16
EPS0.690.84
Book value / share34.2735.59
Institutional Own % n/a n/a
Avg Daily Volume2594573.02863436.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 41.69 for the Health Care Equipment & Supplies industry and a premium compared to the S&P 500 average of 25.02. To use another comparison, its price-to-book ratio of 2.39 indicates a discount versus the S&P 500 average of 3.00 and a significant discount versus the industry average of 4.72. 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 27.91 Peers 41.69   DHR 17.14 Peers 23.09

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 19.04 Peers 23.68   DHR 1.02 Peers 0.90

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 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DHR 2.39 Peers 4.72   DHR 15.81 Peers 126.02

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 3.31 Peers 4.96   DHR 25.62 Peers 14.58

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.

 

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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