Danaher Corporation (DHR) | Investment Case

1. Company Snapshot

1.a. Company Description

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide.The company operates through three segments: Life Sciences, Diagnostics, and Environmental & Applied 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.

This segment also offers bioprocess technologies, consumables, and services; and filtration, separation, and purification technologies 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, industrial, and natural resource applications.This segment 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.Danaher Corporation was founded in 1969 and is headquartered in Washington, the District of Columbia.

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1.b. Last Insights on DHR

Danaher Corporation's recent performance was driven by strong Q3 results, with revenues rising 4.5% to $6.1 billion and non-GAAP adjusted EPS of $1.89, surpassing Wall Street's consensus. The company's robust free cash flow of $1.37 billion underscores its operational strength. A positive 2026 guidance and robust performance in its Biotechnology segment also contributed to the momentum. Furthermore, Danaher’s management opted to reinvest Q3 outperformance and accelerate share buybacks, signaling confidence in future earnings expansion.

1.c. Company Highlights

Last Price	219.75
Change Percentage	1.43%
Open	217.35
Previous Close	216.66
Market Cap ( Millions)	155341
Volume	4407376
Year High	242.8
Year Low	171
M A 50	229.12
M A 200	208.93

FCF Yield	3.39%
Dividend Yield	0.58%
ROE	6.99%
Debt / Equity	35.06%
Net Debt / EBIDTA	198.75%
Price To Book	2.96
Price Earnings Ratio	43.01
Price To FCF	29.53
Price To sales	6.32
EV / EBITDA	24.35

2. Strong Q4 Performance with Bioprocessing and Diagnostics Shining

The company reported a robust fourth quarter with sales reaching $6.8 billion, driven by 2.5% core revenue growth. For the full year, sales were $24.6 billion, with core revenue increasing 2%. The adjusted operating profit margin was 28.2%, and adjusted diluted net earnings per common share of $7.80 were up 4.5%. The actual EPS for the quarter came in at $2.23, beating estimates of $2.16. The company's free cash flow generation was also impressive, with $1.8 billion in the quarter and $5.3 billion for the full year, resulting in a free cash flow to net income conversion ratio of approximately 145%.

Publication Date: Feb -02

                                    📋 Highlights
                                    Full-Year Financial Performance::
                                                Sales reached $24.6B with 2% core revenue growth, adjusted operating margin at 28.2%, and adjusted EPS of $7.80 (+4.5% YoY), generating $5.3B free cash flow (145% conversion ratio).
Bioprocessing Growth::
                                                25% YoY new product revenue driven by Cytiva’s 20+ launches and SCIEX’s Xenotop 8600 (30x increased sensitivity), supporting high single-digit 2026 growth guidance for the segment.
Diagnostics Momentum::
                                                Mid-single-digit global growth led by immunoassay (high single-digit), with Cepheid’s FDA-cleared GI panel detecting 11 pathogens from a single sample.
Q4 Regional Performance::
                                                Developed markets saw low single-digit core growth (Western Europe up mid-single digits), while high-growth markets grew mid-single digits despite a low single-digit China decline.
2026 Guidance::
                                                Core revenue growth of 3-6%, adjusted EPS of $8.35-$8.50, and bioprocessing consumables expected to grow high single digits, supported by $1.8B Q4 free cash flow and improving M&A valuations.

                                

Segment Performance

The bioprocessing business showed continued strength with the launch of more than 20 new products, driving higher yields and reducing the time and cost of biologic drug manufacturing for customers. In life sciences, SCIEX introduced the Xenotop 8,600, delivering up to 30 times increased sensitivity. Diagnostics also delivered a strong quarter with mid-single-digit growth globally, led by high single-digit growth in immunoassay. As Rainer Blair noted, "Our team's disciplined execution enabled us to exceed our fourth-quarter margin, earnings, and cash flow expectations."

Outlook and Guidance

Looking ahead, the company expects high single-digit core revenue growth in bioprocessing for the full year 2026, led by consumables. In life sciences, the company expects a modest improvement in end markets, but growth will remain below historical levels. For the full year 2026, the company anticipates core revenue growth in the 3% to 6% range, with adjusted diluted EPS guidance in the range of $8.35 to $8.50. Analysts estimate next year's revenue growth at 5.5%, which is within the company's guidance range.

Valuation and Metrics

With a P/E Ratio of 42.84 and an EV/EBITDA of 24.01, the company's valuation appears to be pricing in a certain level of growth. The ROE of 6.99% and ROIC of 5.72% indicate a reasonable return on equity and invested capital. The Net Debt / EBITDA ratio of 1.97 suggests a manageable debt burden. The company's ability to generate strong free cash flow, with a Free Cash Flow Yield of 3.4%, is a positive aspect. Overall, the company's financial performance, guidance, and valuation metrics suggest a stable outlook with potential for growth.

3. NewsRoom

BLCO or DHR: Which Is the Better Value Stock Right Now?

Feb -09

Source: zacks.com

Smartleaf Asset Management LLC Buys 2,397 Shares of Danaher Corporation $DHR

Feb -09

Source: defenseworld.net

Danaher Corporation $DHR Shares Sold by Candriam S.C.A.

Feb -09

Source: defenseworld.net

Oppenheimer Asset Management Inc. Has $32.34 Million Holdings in Danaher Corporation $DHR

Feb -09

Source: defenseworld.net

Envestnet Asset Management Inc. Buys 23,690 Shares of Danaher Corporation $DHR

Feb -06

Source: defenseworld.net

Market Today: Amazon capex, AI selloff, Disney CEO shift

Feb -05

Source: gurufocus.com

Border to Coast Pensions Partnership Ltd Raises Holdings in Danaher Corporation $DHR

Feb -05

Source: defenseworld.net

Atlantic Union Bankshares Corp Purchases 2,291 Shares of Danaher Corporation $DHR

Feb -02

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.40%)

6. Segments

Diagnostics

Expected Growth: 7.0%

The diagnostics segment is expected to grow slightly above the global average due to the increasing demand for healthcare services, technological advancements in diagnostic equipment, and the rising prevalence of diseases. This makes it a relatively stable and growing segment.

Life Sciences Excl. Biotechnology

Expected Growth: 6.0%

Life Sciences Excl. Biotechnology is expected to grow at a rate slightly below the global average. This is due to its dependence on research funding and the cyclic nature of research investments. However, the long-term trend towards more research and development in life sciences supports a relatively stable growth.

Biotechnology

Expected Growth: 8.0%

The biotechnology segment is expected to grow significantly above the global average. This is driven by the rapid advancements in biotechnology, increasing investment in biotech research, and the potential for breakthroughs in therapeutic and diagnostic areas.

7. Detailed Products

Life Sciences

Provides bioprocessing, discovery, and analytical solutions to help develop and manufacture biologics, vaccines, and medicines.

Diagnostics

Offers diagnostic instruments, reagents, and software to help diagnose and monitor diseases, including COVID-19.

Dental

Provides dental consumables, equipment, and digital dentistry solutions to help dental professionals improve patient care.

Environmental & Applied Solutions

Offers instruments, software, and services to help monitor and improve environmental quality, as well as provide solutions for industrial and applied markets.

8. Danaher Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Danaher Corporation operates in a industry with moderate threat of substitutes. The company's products and services are differentiated, but customers have some alternatives.

Bargaining Power Of Customers

Danaher Corporation's customers have low bargaining power due to the company's diversified product portfolio and strong brand recognition.

Bargaining Power Of Suppliers

Danaher Corporation's suppliers have moderate bargaining power due to the company's dependence on a few key suppliers for certain components.

Threat Of New Entrants

The threat of new entrants is low for Danaher Corporation due to the high barriers to entry in the industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high in Danaher Corporation's industry, with several established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	26.75%
Debt Cost	3.95%
Equity Weight	73.25%
Equity Cost	8.22%
WACC	7.08%
Leverage	36.53%

11. Quality Control: Danaher Corporation passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Agilent Technologies

A-Score: 5.2/10

Value: 2.0

Growth: 6.1

Quality: 7.8

Yield: 1.0

Momentum: 7.0

Volatility: 7.3

1-Year Total Return ->

Mettler-Toledo

A-Score: 5.2/10

Value: 3.0

Growth: 6.3

Quality: 7.1

Yield: 0.0

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

IDEXX Laboratories

A-Score: 5.1/10

Value: 0.0

Growth: 7.2

Quality: 8.6

Yield: 0.0

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

IQVIA

A-Score: 4.8/10

Value: 3.5

Growth: 6.9

Quality: 5.5

Yield: 0.0

Momentum: 7.0

Volatility: 6.0

1-Year Total Return ->

Thermo Fisher

A-Score: 4.8/10

Value: 1.7

Growth: 6.1

Quality: 6.2

Yield: 0.0

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

Danaher

A-Score: 4.3/10

Value: 1.7

Growth: 3.9

Quality: 6.8

Yield: 1.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

7.39%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.08%

Danaher Corporation - US2358511028

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on DHR

1.c. Company Highlights

Less Volatile

Expensive

Better Quality

Earnings Beats

Revenues Beats

Revenues Miss

Higher Growth

2. Strong Q4 Performance with Bioprocessing and Diagnostics Shining

Segment Performance

Outlook and Guidance

Valuation and Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.40%)

6. Segments

Diagnostics

Expected Growth: 7.0%

Life Sciences Excl. Biotechnology

Expected Growth: 6.0%

Biotechnology

Expected Growth: 8.0%

7. Detailed Products

Life Sciences

Diagnostics

Dental

Environmental & Applied Solutions

8. Danaher Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Danaher Corporation passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

219.75$

Current Price

219.75$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA