Danaher Stock Analysis, Valuation (NYSE:DHR)

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$102.4 $0.71 (0.7%) DHR stock closing price Apr 18, 2018 (Closing)
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Danaher
Updated on : Apr 18, 2018
previous close
DHR 102.4 (0%)
S&P 500 2708.6 (0%)
Closing Price On: Apr 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Diversified Operations
Sector :
Multi-Sector Conglomerates
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
0.1%
Operating Profit
Operating Margin:
16.5%
Sector Average:
12%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
10.52B
Debt/Equity Ratio:
 0.4
Compared to the industry
Cash Flow
Operating cash flow:
$834.7M
Net Income:
$856.6M
Dividend Yield
DHR dividend yield:
0.55%
PROS      CONS
Long Term Growth
Operating Margins
Net Margins
Low Debt Burden
FCF Margin
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
DHR PS :
3.9
Industry PS :
1.6
Sector:   Multi-Sector Conglomerates.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
6.2%
Return on Equity:
10.1%
Free Cash Flow Margin:
13%
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Danaher Stock Analysis

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Investors can watch the Amigobulls Danaher stock analysis video here. Our DHR analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Danaher Corporation Stock Rating 2.9/5

Amigobulls DHR stock analysis relies on business fundamentals such as Danaher revenue growth, profits and return on equity measures from the latest quarter 2017 Q4 earnings. Danaher valuation forms a crucial part of our stock analysis. Our Danaher stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy DHR stock?

  • The company saw a significant growth in revenue with a 5 year CAGR of 0.1%.
  • Danaher's average operating margin of 16.5% was exceptional.
  • Net margins stood at a healthy 13.6% (average) for Danaher in the Trailing Twelve Months.
  • Danaher has a lower debt burden than its peers in the Multi-Sector Conglomerates sector, with a debt/equity ratio of  0.4.
  • The company has a good Free Cash Flow (FCF) margin of 13%.

Should you sell DHR stock?

  • The DHR stock currently trades at a PE of 25.4, which is expensive, compared to the industry average of 21.1.
  • The company is trading at a price to sales multiple of 3.9, which is overvalued in comparison to the Diversified Operations industry average multiple of 1.6.

Comments on this video and Danaher stock

Investors can make use of the Amigobulls Danaher stock analysis to ascertain how DHR stock fares in fundamental analysis investment criteria. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Danaher revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.