Danaher (DHR)

Health Care · $166B market cap · SEC CIK 0000313616

Next reports on Jan 26, 2027, after the close, with analysts expecting $2.50 in earnings per share.

52-week range $160.93 to $242.80. 3% below its 52-week high and 47% above its low.

The case for DHR

• Generated $5.3B of free cash flow in FY2025, 21% of revenue.
• Earnings per share up 25.7%.
• Gross margin of 59% absorbs cost shocks.
• Moves less than the market (beta 0.78).
• Within 3% of its 52-week high: the trend is up.

The case against

• Expensive for its growth: 38.2× earnings, where 2% a year of growth would justify about 12×.
• Priced at 6.5× sales with revenue growing only 5.5%.
• Growth is weak (34/100): revenue +5.5%, EPS +25.7%, +2.0% a year over five years.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.

The financials

The financials, five years deep

Pulled from Danaher's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Danaher says it does

Danaher is a global science and technology innovator committed to accelerating the power of science and technology to improve human health. Danaher is comprised of more than 15 operating companies with leadership positions in the biotechnology, life sciences and diagnostics sectors, organized under three segments (Biotechnology, Life Sciences and Diagnostics). United by the DANAHER BUSINESS SYSTEM (“DBS”), our businesses are also typically characterized by a high level of products and services that are sold on a recurring basis, primarily through a direct sales model and to a geographically diverse customer base. Our business’ research and development, manufacturing, sales, distribution, service and administrative facilities are located in approximately 50 countries. Danaher strives to create shareholder value primarily through three strategic priorities: • strengthening our competitive advantage through consistent application of DBS…

Risk factors DHR lists in its 10-K

• Conditions in the global economy, the particular markets we serve and the financial markets can adversely affect our business and financial statements
• We face intense competition and if we are unable to compete effectively, we may experience decreased demand and decreased market share. Even if we compete effectively, we may be required to reduce the prices we charge
• Our growth depends in part on the timely development and commercialization, and customer acceptance, of new and enhanced products and services based on technological innovation
• Non-U.S. economic, political, legal, compliance, social and business factors can negatively affect our business and financial statements
• Our growth can suffer if the markets into which we sell our products and services decline, do not grow as anticipated or experience cyclicality
• Uncertainties with respect to the development, deployment, and use of AI in our business and products may result in harm to our business and reputation
• Global health crises, pandemics, epidemics or other outbreaks can adversely impact certain elements of our business and financial statements
• Failing to consummate acquisitions at our historical rate and at appropriate prices, and to make appropriate investments that support our long-term strategy, can negatively impact our business
• Our acquisition of businesses, investments, joint ventures and other strategic relationships can negatively impact our business and financial statements
• The indemnification provisions of acquisition agreements by which we have acquired companies may not fully protect us and as a result we may face unexpected liabilities
• Divestitures or other dispositions could negatively impact our business, and contingent liabilities from businesses that we or our predecessors have disposed of could adversely affect our business and financial statements
• We could incur significant liability if our dispositions of any of Fortive Corporation, Envista Holdings Corporation or Veralto Corporation is determined to be a taxable transaction
• Significant disruptions in, or breaches in security of, our IT systems or data or violation of data privacy laws can adversely affect our business and financial statements
• Defects and unanticipated use or inadequate disclosure with respect to our products or services, or allegations thereof, can adversely affect our business and financial statements
• If we suffer loss to our facilities, supply chains, distribution systems or IT systems due to catastrophe or other events, our operations could be seriously harmed
• The manufacture of many of our products is a highly exacting and complex process, and if we directly or indirectly encounter problems manufacturing products, our business and financial statements could suffer
• Our financial results are subject to fluctuations in the cost and availability of the supplies that we use in, and the labor we need for, our operations
• Our success depends on our ability to recruit, retain and motivate talented employees
• We may be required to recognize impairment charges for our goodwill and other intangible assets
• Foreign currency exchange rates can adversely affect our financial statements
• Changes in our tax rates or exposure to additional income tax liabilities or assessments can affect our profitability. In addition, audits by tax authorities can result in additional tax payments for prior periods
• Changes in tax law relating to multinational corporations could adversely affect our tax position
• Military conflicts (such as the conflicts between Russia and Ukraine and in the Middle East) can adversely affect our business and financial statements
• Significant developments or changes in national laws or policies to protect or promote domestic interests and/or address foreign competition can have an adverse effect on our business and financial statements
• Our business and financial statements can be impaired by improper conduct by any of our employees, agents or business partners
• Our businesses are subject to extensive regulation; failure to comply with those regulations could adversely affect our business and financial statements
• We are subject to or otherwise responsible for a variety of litigation and other legal and regulatory proceedings in the course of our business that can adversely affect our business and financial statements
• Our products can be subject to human clinical trials, the results of which may be unexpected, or perceived as unfavorable by the market, and could adversely affect our business and financial statements
• Off-label marketing of our products could result in substantial penalties
• Certain modifications to our products may require new 510(k) clearances or other marketing authorizations and may require us to recall or cease marketing our products
• Our operations, products and services expose us to the risk of environmental, health and safety liabilities, costs and violations that could adversely affect our business and financial statements
• Changes in governmental regulations can reduce demand for our products or services or increase our expenses
• Exclusive forum provisions in our By-laws could limit our stockholders’ ability to choose their preferred judicial forum for disputes with us or our directors, officers or employees

Filings

Other Health Care companies