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Danaher Corp DHR

Morningstar Rating
$254.86 +3.21 (1.28%)
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Company Report

Danaher Earnings: Reset and China Challenges May Remain High in 2024

As previewed at a recent investor conference, narrow-moat Danaher turned in strong fourth-quarter 2023 results on the strength of its Cepheid diagnostic operations. However, its forecast for 2024 looks weaker than we anticipated with continued softness expected especially in early 2024 when comparable periods look tough. While disappointing, we are not changing our long-term expectations or $243 fair value estimate materially for Danaher.

Price vs Fair Value

DHR is trading at a 5% premium.
Price
$254.86
Fair Value
$127.00
Uncertainty
Medium
1-Star Price
$969.32
5-Star Price
$715.50
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The Danaher Business System focuses on continuous improvement, including the acceleration of core growth and margin expansion through marketing initiatives and innovation, which appears positive for Danaher's long-term prospects.

Bears

Danaher continues to hunt for acquisitions in the life sciences and diagnostics markets, which could constrain ROICs including goodwill if it makes acquisitions at unattractive prices and is not able to integrate them as successfully as in the past.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
$251.65
Day Range
$251.37255.59
52-Week Range
$182.09255.59
Bid/Ask
$254.00 / $256.10
Market Cap
$188.52 Bil
Volume/Avg
174 / 2.6 Mil

Key Statistics

Price/Earnings (Normalized)
29.91
Price/Sales
7.93
Dividend Yield (Trailing)
0.41%
Dividend Yield (Forward)
0.42%
Total Yield
0.41%

Company Profile

In 1984, Danaher’s founders transformed a real estate organization into an industrial-focused manufacturing company. Through a series of mergers, acquisitions, and divestitures, Danaher now focuses primarily on manufacturing scientific instruments and consumables in two segments--life sciences and diagnostics--after the late 2023 divesititure of its environmental and applied solutions group, Veralto.
Sector
Healthcare
Industry
Diagnostics & Research
Stock Style Box
Large Core
Total Number of Employees
63,000

Competitors

Valuation

Metric
DHR
RHHBY
MRK
Price/Earnings (Normalized)
29.9112.1318.42
Price/Book Value
3.526.042.43
Price/Sales
7.933.163.20
Price/Cash Flow
27.5211.6214.61
Price/Earnings
DHR
RHHBY
MRK

Financial Strength

Metric
DHR
RHHBY
MRK
Quick Ratio
1.180.990.86
Current Ratio
1.681.351.56
Interest Coverage
17.5814.9312.89
Quick Ratio
DHR
RHHBY
MRK

Profitability

Metric
DHR
RHHBY
MRK
Return on Assets (Normalized)
5.68%17.03%6.04%
Return on Equity (Normalized)
9.47%53.42%11.03%
Return on Invested Capital (Normalized)
6.69%26.30%8.21%
Return on Assets
DHR
RHHBY
MRK
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IQV
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A
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MTD
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ILMN
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WAT
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LH
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