Danaher Corp

DHR

Industrial Instruments For Measurement, Display, and Control

Mkt Cap

$191.5B

PE

43.50

Debt

$19.91B

Cash

$7.031B

EV

$204.4B

FCF

$5.557B

Market Cap

$191.5B

P/E Ratio

43.50

Debt

$19.91B

Cash

$7.031B

EV

$204.4B

FCF

$5.557B

Charts data: {"Earnings":[{"time":"2014-12-30","value":2598400000},{"time":"2015-12-30","value":3357400000},{"time":"2016-12-30","value":2553700000},{"time":"2017-12-30","value":2492100000},{"time":"2018-12-30","value":2650900000},{"time":"2019-12-30","value":2939800000},{"time":"2020-12-30","value":3510000000},{"time":"2021-12-30","value":6269000000},{"time":"2022-12-30","value":7103000000},{"time":"2023-12-30","value":4743000000}],"Sales":[{"time":"2014-12-30","value":19913800000},{"time":"2015-12-30","value":20563100000},{"time":"2016-12-30","value":16882400000},{"time":"2017-12-30","value":18329700000},{"time":"2018-12-30","value":19893000000},{"time":"2019-12-30","value":17911100000},{"time":"2020-12-30","value":22284000000},{"time":"2021-12-30","value":29453000000},{"time":"2022-12-30","value":31471000000},{"time":"2023-12-30","value":23890000000}],"Net Margins":[{"time":"2014-12-30","value":0.13048237905372154},{"time":"2015-12-30","value":0.1632730473518098},{"time":"2016-12-30","value":0.15126403828839502},{"time":"2017-12-30","value":0.13595967200772516},{"time":"2018-12-30","value":0.13325792992509927},{"time":"2019-12-30","value":0.16413285616182144},{"time":"2020-12-30","value":0.15751211631663975},{"time":"2021-12-30","value":0.21284758768206974},{"time":"2022-12-30","value":0.22569985065615963},{"time":"2023-12-30","value":0.19853495186270406}],"Assets":[{"time":"2014-12-30","value":36991700000},{"time":"2015-12-30","value":48222200000},{"time":"2016-12-30","value":45295300000},{"time":"2017-12-30","value":46648600000},{"time":"2018-12-30","value":47832500000},{"time":"2019-12-30","value":62081600000},{"time":"2020-12-30","value":76161000000},{"time":"2021-12-30","value":83184000000},{"time":"2022-12-30","value":84350000000},{"time":"2023-12-30","value":84488000000}],"Stockholders Equity":[{"time":"2014-12-30","value":23449800000},{"time":"2015-12-30","value":23764000000},{"time":"2016-12-30","value":23076800000},{"time":"2017-12-30","value":26367800000},{"time":"2018-12-30","value":28226700000},{"time":"2019-12-30","value":30281900000},{"time":"2020-12-30","value":39777000000},{"time":"2021-12-30","value":45177000000},{"time":"2022-12-30","value":50090000000},{"time":"2023-12-30","value":53490000000}],"ROE":[{"time":"2014-12-30","value":0.11080691519757098},{"time":"2015-12-30","value":0.141280929136509},{"time":"2016-12-30","value":0.11066092352492547},{"time":"2017-12-30","value":0.09451300449791034},{"time":"2018-12-30","value":0.09391462693123886},{"time":"2019-12-30","value":0.09708109464729756},{"time":"2020-12-30","value":0.08824194886492194},{"time":"2021-12-30","value":0.1387653009274631},{"time":"2022-12-30","value":0.14180475144739468},{"time":"2023-12-30","value":0.08867077958496915}],"ROA":[{"time":"2014-12-30","value":0.09412381696434606},{"time":"2015-12-30","value":0.07193989490317737},{"time":"2016-12-30","value":0.060732570487445715},{"time":"2017-12-30","value":0.06476507333553419},{"time":"2018-12-30","value":0.07116082161710134},{"time":"2019-12-30","value":0.053241218009845104},{"time":"2020-12-30","value":0.05901970824962908},{"time":"2021-12-30","value":0.09133968070782843},{"time":"2022-12-30","value":0.10299940723177238},{"time":"2023-12-30","value":0.06157087397026797}]}

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The Biotechnology segments offers bioprocess technologies, consumables, and services; lab filtration, separation, and purification; lab-scale protein purification and analytical tools; reagents, membranes and services; and healthcare filtration 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 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, municipal, industrial, and natural resource applications. It 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. The company was founded in 1969 and is headquartered in Washington, the District of Columbia.

Sector

10-Q
9/29/23
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10-K
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10-K
12/31/18
10-Q
9/28/18
10-Q
6/29/18
10-Q
3/30/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Danaher Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$5.557B	$6.279B	$7.04B	$7.83B	$8.639B	$9.455B	$10.26B	$11.05B	$11.8B	$12.49B	$13.12B	$131.2B
DCF		$5.46B	$5.323B	$5.148B	$4.939B	$4.701B	$4.437B	$4.154B	$3.857B	$3.552B	$3.243B	$32.43B
Value	$77.24B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 12%

Earnings Stability 60%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	16%	15%	14%	13%	16%	16%	21%	23%	20%	20%
ROA	7.2%	6.1%	6.5%	7.1%	5.3%	5.9%	9.1%	10%	6.2%	5.7%
ROE	14%	11%	9.5%	9.4%	9.7%	8.8%	14%	14%	8.9%	8.2%

What is the average Net Margin?

The average Net Margin over the past 5 years is +18.2%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1.62%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +7.32%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.38%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +10.81%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.45%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	4.29	5.07	3.75	2.91	6.62	3.91	3.14	2.75	3.48	3.58
Debt Equity	0.58	0.64	0.41	0.35	0.72	0.53	0.49	0.40	0.38	0.37
MIN
Graham Stability	-	-	88%	95%	100%	100%	100%	100%	84%	84%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 3.58.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.27.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.84.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	5.1%	3.7%	2.3%	-24%	0.47%
Net Income	9.2%	12%	11%	-33%	0.62%
Stockholders Equity	13%	14%	10%	6.8%	1.4%
FCF	10%	11%	2.1%	-22%	0.97%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +3.73%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.47%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +12.34%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +0.62%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +13.64%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.43%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +11.42%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +0.97%.