Danaher (DHR) AI Stock Analysis

• Market Cap: $140.35B
• Dividend Yield: 0.59%
• Average Volume (3M): 4.71M
• Price to Earnings (P/E): 37.0
• Beta (1Y): 0.88
• Revenue Growth: -9.19%
• EPS Growth: -12.75%
• Country: US
• Employees: 61,000
• Sector: Healthcare
• Sector Strength: 38
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 1.88
• Shares Outstanding: 715,669,600
• 10 Day Avg. Volume: 4,153,064
• 30 Day Avg. Volume: 4,710,268
• PEG Ratio: -13.74
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.70
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.69
• Enterprise Value/Gross Profit: 10.56
• Enterprise Value/Ebitda: 5.16
• 1Y Price Target: $242.00
• Price Target Upside: 23.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

Danaher's strong financial stability and profitability are key strengths, bolstered by solid cash generation. However, technical indicators suggest bearish momentum, and the high P/E ratio points to overvaluation. Recent earnings call highlights both growth opportunities in bioprocessing and challenges in revenue and geopolitical factors, resulting in a moderate overall score.

Positive Factors

Financial Performance

Danaher Corporation's first-quarter revenue of $5.7 billion exceeded expectations, with all segments surpassing top-line forecasts.

Market Growth

Bioprocessing trends are encouraging, with improving order trends and a solid B2B performance, indicating a positive outlook for market growth.

Operational Strategies

Investor sentiment is likely to be boosted by Danaher Corporation's ability to largely offset tariffs through operational strategies.

Negative Factors

Guidance Revision

2025 guidance for core growth was ~+3%, which was well below expectations (~+5%).

Market Dynamics

Life sciences instruments showed a slight decline in guidance, which is attributed to adverse A&G dynamics.

Tariff Costs

Tariff and trade war concerns raise new questions, with management highlighting $350 million of incremental tariff costs this year.

Danaher Business Overview & Revenue Model

Company Description

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The company operates through three segments: Life Sciences, Diagnostics, and Environmental & Applied Solutions. The Life Sciences segment provides mass spectrometers; flow cytometry, genomics, lab automation, centrifugation, particle counting and characterization; microscopes; genomics consumables; and Gene and Cell Therapy. This segment also offers bioprocess technologies, consumables, and services; and filtration, separation, and purification technologies to the pharmaceutical and biopharmaceutical, food and beverage, medical, and life sciences companies, as well as universities, medical schools and research institutions, and various industrial manufacturers. The Diagnostics segment provides chemistry, immunoassay, microbiology, and automation systems, as well as hematology, molecular, acute care, and pathology diagnostics products. This segment offers clinical instruments, reagents, consumables, software, and services for hospitals, physicians' offices, reference laboratories, and other critical care settings. The Environmental & Applied Solutions segment offers instrumentation, consumables, software, services, and disinfection systems to analyze, treat, and manage ultra-pure, potable, industrial, waste, ground, source, and ocean water in residential, commercial, industrial, and natural resource applications. This segment also provides instruments, software, services, and consumables for various color and appearance management, packaging design and quality management, packaging converting, printing, marking, coding, and traceability applications for consumer, pharmaceutical, and industrial products. The company was formerly known as Diversified Mortgage Investors, Inc. and changed its name to Danaher Corporation in 1984. Danaher Corporation was founded in 1969 and is headquartered in Washington, the District of Columbia.

How the Company Makes Money

Danaher makes money primarily through the sale of its products and services across its three main segments: Life Sciences, Diagnostics, and Environmental & Applied Solutions. In Life Sciences, Danaher generates revenue from laboratory instruments, reagents, consumables, software, and services that support scientific research and clinical diagnostics. The Diagnostics segment focuses on providing medical diagnostic equipment and consumables used in hospitals, laboratories, and other healthcare settings. This includes instruments for clinical analysis and medical imaging. The Environmental & Applied Solutions segment offers products and services that help ensure water quality and improve industrial productivity, including water disinfection systems and quality management solutions. Danaher's revenue model relies on a combination of direct sales, long-term service agreements, and consumable product sales, with a significant emphasis on recurring revenue through consumables and services. The company also engages in strategic acquisitions to expand its product offerings and enter new markets, which further contributes to its revenue growth.

Danaher Financial Statement Overview

Summary

Danaher demonstrates strong profitability and financial stability with healthy margins and a solid balance sheet. Despite the recent decline in revenue and free cash flow growth, the company's operational efficiency and strong cash generation capabilities provide a stable financial outlook.

Income Statement

Danaher's revenue growth has been stable but shows a decline in the recent TTM period. The gross profit margin for TTM is approximately 59.7%, and the net profit margin is around 15.8%, both indicating strong profitability. However, the revenue has slightly decreased compared to previous periods, affecting the overall growth outlook. EBIT and EBITDA margins remain healthy, reflecting operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of approximately 0.32, suggesting moderate leverage. The return on equity (ROE) for TTM is about 7.4%, indicating efficient use of equity. The equity ratio is robust at approximately 64.3%, signifying a strong equity base relative to its assets, which enhances financial stability.

Cash Flow

Free cash flow has shown a decline in the TTM period, impacting the growth rate. However, the operating cash flow to net income ratio is 1.66, indicating strong cash conversion. The free cash flow to net income ratio is 1.30, reflecting solid cash generation relative to profits despite a decreasing trend in free cash flow.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
23.82B	23.88B	23.89B	31.47B	29.45B	22.28B
	Gross Profit
14.23B	14.21B	14.03B	18.95B	17.95B	12.47B
	EBIT
4.83B	4.86B	5.20B	8.69B	7.46B	4.23B
	EBITDA
7.17B	7.28B	7.50B	9.71B	10.01B	6.59B
	Net Income Common Stockholders
3.77B	3.90B	4.76B	7.21B	6.43B	3.65B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.99B	2.08B	5.86B	6.00B	2.59B	6.04B
	Total Assets
79.12B	77.54B	84.49B	84.35B	83.18B	76.16B
	Total Debt
16.48B	16.00B	19.54B	19.68B	22.18B	21.20B
	Net Debt
14.48B	13.93B	13.67B	13.68B	19.59B	15.17B
	Total Liabilities
28.26B	27.99B	31.00B	34.26B	38.01B	36.38B
	Stockholders Equity
50.85B	49.54B	53.49B	50.08B	45.17B	39.77B
Cash Flow		Free Cash Flow
4.90B	5.30B	5.78B	7.37B	7.06B	5.42B
	Operating Cash Flow
6.25B	6.69B	7.16B	8.52B	8.36B	6.21B
	Investing Cash Flow
-1.90B	-1.98B	-7.08B	-2.23B	-12.99B	-21.24B
	Financing Cash Flow
-9.51B	-8.38B	-273.00M	-2.57B	1.29B	1.01B

Danaher Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 196.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHR, the sentiment is Neutral. The current price of 196.11 is above the 20-day moving average (MA) of 194.72, below the 50-day MA of 198.17, and below the 200-day MA of 233.65, indicating a neutral trend. The MACD of -0.93 indicates Negative momentum. The RSI at 50.90 is Neutral, neither overbought nor oversold. The STOCH value of 42.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DHR.

Danaher Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
A	79 Outperform	$31.79B	25.63	20.61%	0.86%	-3.00%	3.67%
WAT	74 Outperform	$21.39B	32.60	40.82%	―	2.57%	8.31%
IDXX	74 Outperform	$41.67B	47.87	59.33%	―	5.56%	4.66%
TMO	69 Neutral	$153.28B	23.83	13.73%	0.40%	0.96%	9.19%
DHR	64 Neutral	$140.35B	37.02	7.22%	0.59%	-9.19%	-12.75%
MTD	64 Neutral	$24.05B	28.87	-680.23%	―	1.18%	12.34%
Sector *	52 Neutral	$5.15B	3.05	-44.13%	2.84%	16.42%	-0.48%

Danaher Corporate Events

Danaher Approves Key Proposals at Shareholder Meeting

On May 6, 2025, Danaher Corporation held its annual shareholder meeting where key proposals were voted on, including the election of thirteen directors and the ratification of Ernst & Young LLP as the independent accounting firm for 2025. The meeting also saw the approval of the executive compensation package, reflecting shareholder support for the company’s leadership and strategic direction.

Spark’s Take on DHR Stock

According to Spark, TipRanks’ AI Analyst, DHR is a Neutral.

Danaher’s financial stability and solid profitability are key strengths, but the stock faces challenges in technical performance and valuation. The recent earnings call highlights growth in bioprocessing but also notes flat revenue and geopolitical challenges, contributing to a moderate overall score.

To see Spark’s full report on DHR stock, click here.

Danaher Appoints Charles W. Lamanna to Board

On February 20, 2025, Danaher Corporation appointed Charles W. Lamanna to its Board of Directors, with his term set to expire at the 2025 annual meeting of shareholders. Mr. Lamanna was also named to the Science & Technology Committee and deemed independent by the Board. Additionally, Danaher amended its 2007 Omnibus Incentive Plan to fully vest stock options and units upon a participant’s death or disability termination, providing clarity and security for stakeholders involved.