Danaher (DHR)
Health Care · $156B market cap · SEC CIK 0000313616
fundamentals score out of 100
Next reports on Oct 19, 2026, before the open, with analysts expecting $1.93 in earnings per share.
The case for DHR
- Generated $5.3B of free cash flow in FY2025, 21% of revenue.
- Gross margin of 59% absorbs cost shocks.
- Moves less than the market (beta 0.79).
The case against
- Pricey at 38.9× earnings, against a long-run market average nearer 20×.
- Priced at 6.2× sales with revenue growing only 4.6%.
- Return on equity of only 8%.
- Growth is weak (36/100): revenue +4.6%, EPS +19.7%, +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. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 41 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 36 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 60 |
| Momentumhow the price has behaved lately | 74 |
| Stabilityhow violently it moves, what it owes and what it pays you | 58 |
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
Key numbers
| Price / earnings | 38.9× |
|---|---|
| Price / book | 2.64× |
| Price / sales | 6.2× |
| Revenue growth (YoY) | +4.6% |
| EPS growth (YoY) | +19.7% |
| Gross margin | 59% |
| Operating margin | 20% |
| Net margin | 16% |
| Return on equity | 8% |
| Debt / equity | 0.51× |
| Current ratio | 1.65 |
| Dividend yield | 0.49% |
| Beta | 0.79 |
| 52-week range | $160.93 – $242.80 |
| Position in that range | 73% of the way up |
| 3-month return | +21.8% |
| 1-year return | +11.7% |
Five years of financials, as filed
Pulled from Danaher's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $24.6B | $23.9B | $23.9B | $26.6B | $24.8B |
| Gross profit | $14.5B | $14.2B | $14.0B | $16.2B | $15.2B |
| Operating income | $4.7B | $4.9B | $5.2B | $7.5B | $6.4B |
| Net income | $3.6B | $3.9B | $4.8B | $7.2B | $6.4B |
| Operating cash flow | $6.4B | $6.7B | $7.2B | $8.5B | $8.4B |
| Capital expenditure | $1.2B | $1.4B | $1.4B | $1.1B | $1.2B |
| Total assets | $83.5B | $77.5B | $84.5B | $84.3B | $83.2B |
| Shareholder equity | $52.5B | $49.5B | $53.5B | $50.1B | — |
| Cash | $4.6B | $2.1B | $5.9B | $6.0B | $2.6B |
| Long-term debt | $18.4B | $15.5B | $16.7B | $19.1B | — |
| Free cash flow | $5.3B | $5.3B | $5.8B | $7.4B | $7.1B |
| Gross margin | 59.1% | 59.5% | 58.7% | 60.8% | 61.4% |
| Operating margin | 19.1% | 20.4% | 21.8% | 28.3% | 25.7% |
| Net margin | 14.7% | 16.3% | 19.9% | 27.1% | 25.9% |
| Diluted shares | 716M | 737M | 743M | 737M | 737M |
Share count is essentially flat over 4 years.
What Danaher says it does
—Competition" for additional details. In order to compete effectively, we must retain longstanding relationships with major customers and continue to grow our business by establishing relationships with new customers, continually developing new products and services to maintain and expand our brand recognition and leadership position in various product and service categories and penetrating new markets, including high-growth markets. Our ability to compete can also be impacted by changing customer preferences and requirements (for example increased demand for products incorporating digital capabilities or more environmentally-friendly products and supplier practices) as well as changes in the way healthcare services are delivered (including the movement of some care from acute to non-acute settings and increased focus on chronic disease management). Cost containment efforts by governments and the private sector, particularly in the…
Risk factors DHR lists in its 10-K
- Overview of Cash Flows and Liquidity
- Acquisitions, Divestitures and Investment Activity
- Report of Management on Danaher Corporation’s Internal Control Over Financial Reporting
- Report of Independent Registered Public Accounting Firm
- Opinion on Internal Control Over Financial Reporting
- Definition and Limitations of Internal Control Over Financial Reporting
- Opinion on the Financial Statements
- How We Addressed the Matter in Our Audit
- ($ in millions, except per share amount)
- ($ and shares in millions, except per share amounts)
- Revenue from Contracts with Customers
- Accounting for Government Grants and Disclosure of Government Assistance
- Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement
- Improvements to Reportable Segment Disclosures