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DHR Danaher Corporation - Fundamental Analysis

NEUTRAL
DHR Stock | Fundamental Analysis & Investment Insights
NYSE Healthcare Diagnostics & Research
Current Price
$221.21
Analyst Target
$254.2
+14.9% Upside
52W High
$258.23
52W Low
$171.0

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Nov 15, 2025
Market cap
$156.25B
P/E
45.42
ROE
6.8%
Profit margin
14.4%
Debt/Equity
0.36
Dividend yield
0.58%

AI Analysis

Powered by advanced machine learning algorithms

Confidence Score
65%
Analysis Accuracy
Danaher Corporation trades at a significant premium to both the healthcare sector and its closest peers, with a P/E of 45.42 versus a sector average of 26.61 and peer TMO at 33.45, raising valuation concerns despite solid underlying profitability and a conservative capital structure. The company exhibits strong gross margins (59.59%) and operating leverage (20.75% operating margin), but recent insider selling—over $235M in the last six months—signals caution at current levels. While earnings growth (13.4% YoY) and recent price momentum (6M +13.2%, 1M +7.3%) are positive, the lack of earnings surprise visibility and weak long-term price performance (1Y -7.0%, 3Y -6.3%) constrain near-term upside. Analysts project a 15% upside to $254.20, but with no clear consensus recommendation and missing ROIC/cash flow data, confidence in the fair value is tempered.

Key Strengths

Exceptional gross margin of 59.59%, reflecting pricing power and operational efficiency in Diagnostics & Research
Operating margin of 20.75% well above sector average of ~15%, indicating strong cost discipline
Low debt/equity ratio of 0.36, providing significant financial flexibility relative to peers like AMGN (5.67)
Forward P/E of 26.40 suggests de-rating potential if growth materializes, closer to TMO's 33.45
Recent positive price momentum: +13.2% over 6M and +7.3% over 1M, signaling technical strength

Key Risks

Current P/E of 45.42 is 70% above sector average (26.61), creating vulnerability to multiple contraction
Insider selling of $235.12M in 6 months, including large blocks by officers and directors, implies lack of confidence at current valuation
Missing quarterly earnings data prevents assessment of earnings quality and consistency over 25 quarters
ROE of 6.84% is weak versus sector average of 25.21% and peer AMGN at 81.71%, suggesting poor capital allocation efficiency
Revenue growth of 4.4% lags sector average of 10.85%, limiting top-line expansion narrative
AI Fair Value Estimate
Based on comprehensive analysis
$254.2
+14.9% above current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
61
Strong
Value
48
Future
66
Past
54
Health
78
Dividend
60
AI Verdict
Danaher’s premium valuation is not fully justified by its growth or ROE profile relative to peers like TMO and AMGN, though its margin strength and financial health provide downside support; recent price recovery from $171 to $221.21 aligns with sector momentum but lacks fundamental acceleration to sustain further multiple expansion.
Key drivers: Premium valuation relative to growth and ROE, Strong gross and operating margins, Recent insider selling pressure
Confidence
65%
Value
48/100

Danaher trades at a steep valuation premium despite subpar ROE and revenue growth, especially when compared to higher-growth, higher-ROE peers like AMGN and BNTX.

Positives
  • Forward P/E of 26.40 is more reasonable and in line with TMO (33.45) and below historical P/E
  • Price/Sales of 6.44 reflects premium for recurring-revenue diagnostics model
Watchpoints
  • Current P/E of 45.42 is extremely high versus sector average of 26.61 and forward growth trajectory
  • Price/Book of 3.06 lacks support from ROE of only 6.84% (sector avg: 25.21%)
Future
66/100

While earnings momentum is positive and recent price action (6M +13.2%) reflects improving sentiment, the modest revenue trajectory and lack of earnings surprise history constrain forward multiple expansion.

Positives
  • Earnings growth of 13.4% YoY outpaces revenue growth, suggesting margin expansion
  • Q/Q earnings growth of 11.0% indicates sustained profitability momentum
Watchpoints
  • Revenue growth of 4.4% is below sector average of 10.85%, limiting scalability narrative
  • No visibility into innovation pipeline or TAM expansion in Diagnostics & Research
Past
54/100

Historical share price performance has been weak over 1Y and 3Y horizons despite stable margins, and the absence of earnings track record data undermines confidence in past execution quality.

Positives
  • Consistent profitability with stable gross and operating margins over time
  • Long-term shareholder base evidenced by low volatility in share count
Watchpoints
  • No quarterly earnings data available to assess beat/miss trend or consistency
  • 1Y return of -7.0%, 3Y return of -6.3%, underperforming sector and peers like TMO (+8.9% 1Y)
Health
78/100

Danaher’s conservative leverage profile provides resilience relative to highly leveraged peers like AMGN, though the weak quick ratio and missing cash flow data introduce uncertainty in stress scenarios.

Positives
  • Low debt/equity ratio of 0.36, well below sector average of 1.62 and AMGN's 5.67
  • Current ratio of 1.52 indicates adequate short-term liquidity
Watchpoints
  • Quick ratio of 0.83 suggests potential near-term liquidity pressure if receivables slow
  • Missing total cash, debt, and cash flow data limits full solvency assessment
Dividend
60/100

The dividend policy is conservative and sustainable, but the minimal yield and lack of growth history make it a secondary consideration for investors.

Positives
  • Low payout ratio of 25.31% ensures high dividend sustainability
  • Dividend yield of 0.58% reflects reinvestment focus over income orientation
Watchpoints
  • Yield is below sector average and peer group (e.g., AMGN yields ~3%)
  • No 5-year yield history or growth trend available, limiting income appeal

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$221.21
Analyst Target
$254.2
Upside/Downside
+14.9%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for DHR and closest competitors.

Updated 2025-11-14
Company 5Y 3Y 1Y 6M 1M 1W
DHR
Danaher Corporation
Primary
+11.0% -6.3% -7.0% +13.2% +7.3% +5.4%
BSX
Boston Scientific Corporation
Peer
+170.0% +142.1% +17.2% -3.2% +5.1% +2.7%
PFE
Pfizer Inc.
Peer
-9.7% -38.6% +3.3% +13.6% +4.6% +2.6%
SYK
Stryker Corporation
Peer
+61.8% +68.1% -4.6% -7.7% -2.0% +1.7%
AMGN
Amgen Inc.
Peer
+65.4% +30.6% +17.6% +24.6% +13.3% +5.2%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
45.42
Forward P/E
26.4
PEG Ratio
N/A
P/B Ratio
3.06
P/S Ratio
6.44
EV/Revenue
7.12
EV/EBITDA
22.66
Market Cap
$156.25B

Profitability

Profit margins and return metrics

Profit Margin 14.44%
Operating Margin 20.75%
Gross Margin 59.59%
ROE 6.84%
ROA 4.06%

Growth

Revenue and earnings growth rates

Revenue Growth +4.4%
Earnings Growth +13.4%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth +11.0%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.36
Low debt
Current Ratio
1.52
Good
Quick Ratio
0.83
Poor
Cash/Share
$2.16

Quarterly Earnings History

EPS performance vs analyst estimates

2026-01-28
$N/A
2025-10-21
$1.89
+9.8% surprise
2025-07-22
$1.8
+9.5% surprise
2025-04-22
$1.88
+14.4% surprise

Healthcare Sector Comparison

Comparing DHR against 23 companies in the Healthcare sector (10 bullish, 13 neutral, 0 bearish)
P/E Ratio
45.42
This Stock
vs
37.07
Sector Avg
+22.5% (Expensive)
Return on Equity (ROE)
6.84%
This Stock
vs
37.85%
Sector Avg
-81.9% (Below Avg)
Profit Margin
14.44%
This Stock
vs
13.56%
Sector Avg
+6.4% (Better)
Debt to Equity
0.36
This Stock
vs
1.21
Sector Avg
-70.5% (Less Debt)
Revenue Growth
4.4%
This Stock
vs
11.02%
Sector Avg
-60.1% (Slower)
Current Ratio
1.52
This Stock
vs
1.95
Sector Avg
-22.0% (Weaker)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
DHR
Danaher Corporation
NEUTRAL $156.25B 45.42 6.8% 14.4% $221.21
BSX
Boston Scientific Corporation
BULLISH $155.63B 54.91 12.5% 14.4% $102.69
PFE
Pfizer Inc.
NEUTRAL $146.63B 14.57 10.6% 15.7% $25.06
SYK
Stryker Corporation
NEUTRAL $142.8B 47.6 14.0% 12.1% $362.22
AMGN
Amgen Inc.
NEUTRAL $181.33B 26.02 81.7% 19.5% $336.74

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2025-11-12 ELLIS BRIAN W General Counsel Sale 21,776 $4,773,863
2025-11-12 RALES MITCHELL P Officer and Director Sale 437,000 $95,566,167
2025-11-12 ELLIS BRIAN W General Counsel Option Exercise 21,776 $1,275,856
2025-11-11 MCGREW MATTHEW Chief Financial Officer Sale 16,172 $3,470,831
2025-11-11 MCGREW MATTHEW Chief Financial Officer Option Exercise 16,172 $1,016,410
2025-11-10 COUCHARA GEORGEANN F. Officer Sale 5,174 $1,088,704
2025-11-10 COUCHARA GEORGEANN F. Officer Option Exercise 4,176 $368,490
2025-10-31 RALES MITCHELL P Officer and Director Sale 600,000 $129,636,027
2025-08-22 LIST-STOLL TERI L. Director Sale 2,778 $586,319
2025-07-15 ZERHOUNI ELIAS A Director Option Exercise 3,928 $233,088
2025-07-15 SCHWIETERS JOHN T Director Option Exercise 3,928 $233,088
2025-07-02 LIST-STOLL TERI L Director Option Exercise 3,928 $233,088
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
NONE
20 analysts
Wells Fargo
2025-10-23
main
Equal-Weight Equal-Weight
TD Cowen
2025-10-22
main
Buy Buy
Barclays
2025-10-22
main
Overweight Overweight
Rothschild & Co
2025-10-08
down
Buy Neutral
Evercore ISI Group
2025-10-07
main
Outperform Outperform
B of A Securities
2025-09-22
main
Buy Buy
UBS
2025-07-23
main
Buy Buy
Wells Fargo
2025-07-23
main
Equal-Weight Equal-Weight
Guggenheim
2025-07-23
reit
Buy Buy
Baird
2025-07-23
main
Outperform Outperform