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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Danaher Corporation (XNYS:DHR) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
DHR
Name:
DANAHER CORPORATION (XNYS:DHR)
Sector:
1.72B
Industry:
Diagnostics & Research
CEO:
Mr. Thomas Joyce
Total Employees:
78,000
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -92.91% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF DANAHER CORPORATION(DHR) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND DIAGNOSTICS & RESEARCH INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
269.42
One Month Price Target:
$270.76
Six Month Price Target :
$277.44
Likely Price in One Year's Time:
Ticker:
$285.47
Likely Trading Range Today Under (Normal Volatility)
$268.84
Price Upper limit ($) :
$270.56
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$259.27
This week:
$246.73
This month :
$224.05
Other Primary facts
Market Cap:
198.21B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
727.45M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
9.7%
-9.72%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$316.43
$294.43
$222.41
$244.41
Medium risk (<10%) entry points
Buy Call
Sell Call
$287.27
Buy Put:
Sell Put:
$282.57
$251.51
$256.27
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
DHR
Sharpe Ratio:
5.01%
Comparison:
DHR, is amongst the top 20% stocks with highest risk-adjusted returns
Sharpe ratio is 99.11% higher than the industry
& ratio is 119.97% higher than the market/S&P 500 average
Average Returns/Yield of
DHR
Daily returns:
0.10%
Weekly returns:
0.52%
Monthly returns:
2.07%
Yearly returns:
27.92%
Comparison of returns:
Average annual returns/yield (last 3 years) is -11.19% below industry average
Classification:
DHR, is amongst the top 20% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.12
Statistical test of Returns:
DHR has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
1.88%
Weekly Volatility:
4.21%
Monthly Volatility:
8.43%
Yearly Volatility:
29.19%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.42%
Volatility in last five trading days has been -24.36% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-3.77%
Weekly VaR:
-8.42%
Monthly VaR:
-16.84%
How Much Can the price of
DHR
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-14%
Worst case (decline):
-58.34%
This translates to price declining to:
$232.50
This translates to price declining to:
$112.24
Severe Crash Probability
Risk of crash in next 6/12 months: Very high (>70%)
What is Value at Risk (VaR)?
Risk Fundamentals
DHR is a 18.87% riskier investment compared to the market/S&P 500 & is 1.83% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -51.20% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
DHR
Beta in relation to market/S&P 500--0.89
Expected beta in 1 year's time:
0.811
Expected beta in 3 year's time:
1.147
Unlevered (debt free) Beta:
0.636
Beta in relation to Nasdaq (XNAS):
0.683
Beta in relation to all global stocks::
0.586
Beta Comparison & Analysis
Beta of competitors/peers::
0.549
Beta is 61.42% higher than peers
Average Industry Beta:
1.181
Beta is -24.96% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
14.96%
Sustainable growth rate is -71.67% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.156
Alpha is -6.62% below industry average alpha yield
Alpha is 991% higher than market/& is unsustainably high
Analysis of Cost of Capital of
DHR
Equity cost of capital:
0.092
Equity cost of capital is -17.97% below industry mean WACC
Unlevered (without debt) cost of capital:
6.62%
Before-tax cost of debt:
1.07%
After-tax cost of debt:
0.85%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
0.85%
WACC is -18.81% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$41.63
Revenue growth rate per share of (3Y):
4.23
Annual revenue growth rate is -61.97% below industry average
EPS:
$8.64
Expected Annual growth rate of EPS (3Y):
27.41%
Expected future EPS growth rate is 2.11% higher than the Diagnostics & Research industry
Free cash flow (FCF) per share:
$9.83
Balance sheet equity growth per share: 67.85%
Equity growth rate per share is -3868.57% lower than the industry
Debt per share
$29.92
EBITDA per share
$13.97
Valuation Analysis Today of
DHR
P/E Ratio:
31.71
P/E Ratio of Competitors/Peers:
76.7
P/E ratio is -58.65% lower than main peers & is -14.70% lower than the industry
Stock price/value with industry average P/E ratio: $321.20
DHR is -16.12% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $53.13
Present value of the expected future dividends only: $18.93
P/S (Price to Sales ratio):
6.47
Price to sales ratio is -31.90% below the industry mean
P/B (Price to book value ratio):
4.23
Price to free cash flow: 27.40
Price to free cash flow ratio is -25.82% lower than the industry
Net income growth rate (3Y):
137.92%
Net income growth rate is -160.34% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 2.96%
Dividend yeild: 0.34%
Previous Dividend: $0.25
Previous adjusted dividend: $0.25
Previous Dividend: $0.92
Expected next dividend best case: $0.27
Expected next dividend worst case: $0.23
Average dividend payment (long-term): $0.20
Average dividend increase/decrease (growth rate) % per period: 4.16%
Expected next dividend payment date: 27/10/2022
Expected next dividend record date: 22/09/2022
-
Previous dividend payment date: 29/07/2022
Previous dividend record date: 24/06/2022
-
Dividend History:
2022-06-23--$0.25
2021-12-29--$0.21
2021-06-24--$0.21
2022-03-24--$0.25
2021-09-29--$0.21
2021-03-25--$0.21
Dividend growth rate is -133.95% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
46.96%
Net debt to equity ratio:
38.96%
Debt to assets ratio:
26.10%
Net debt to assets ratio:
21.66%
Debt-to-asset ratio is -46.28% below industry average
Ability to repay debt:
Interest coverage ratio:
43.44
Interest coverage ratio is -254.87% less than industry average
Looking forward:
Debt growth rate:
0.00%
-
Debt repayment rate in last quarter: 0.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.669
Statistical significance of correlation:
DHR has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.488
Stock price is 37.24% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.488
Correlation of price movement with Nasdaq (^IXIC):
-0.017
Covariance of price movement with the market:
-0.018
Kurtosis
3.619
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.075
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
DHR
Gross Profit Margin Ratio:
243%
Operating Profit Margin Ratio:
25.23%
Operating profit margin is -122.42% lower than the industry
Net Profit Margin Ratio:
243%
Effective Tax Rate:
16.34%
Effective tax rate is -14.86% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
13.93%
Return on equity (ROE) is -33.71% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
7.74%
Return on assets (ROA) is -102.87% lower than the industry
Financial Leverage:
1.4x
Current Ratio:
1.68
Current ratio is -66.22% below industry average
Cash Conversion Cycle (days):
-2.5
Cash conversion cycle is -105.01% below industry average
The remaining useful life of property plant & equipment is: 10.8 years
Stock based compensation to net income ratio:
1.24%
In-depth Efficiency Analysis
Revenue generated per employee:
388.2K
Each employee generates 4% more revenue than industry average revenue per employee
EBITDA generated per employee:
130.3K
Each employee generates 334% more EBITDA than industry average revenue per employee
Profit generated per employee:
82.8K
Each employee generates 417% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
22.0K
Each employee generates -1112% less free cash flow than industry average revenue per employee
Assets/Capital per employee
906.7K
Each employee generates -1112% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 29.23%
Growth rate in R&D investment/expenditure is -1723.42% lower than the industry
Competitors/Peer firms of
DHR
MERCK & CO., INC. (XNYS:MRK)
Novartis Inc. (XNYS:NVS)
Novo Nordisk A/S (XNYS:NVO)
THERMO FISHER SCIENTIFIC INC. (XNYS:TMO)
ABBOTT LABORATORIES (XNYS:ABT)
ASTRAZENECA PLC (XNAS:AZN)
ELI LILLY AND COMPANY (XNYS:LLY)
MEDTRONIC PUBLIC LIMITED COMPANY (XNYS:MDT)
BRISTOL-MYERS SQUIBB COMPANY (XNYS:BMY)
Current Analyst Ratings
Strong buy�29%
Buy�25%
Hold�17%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Strong buy
Income Statement
Period:
TTM
Date:
4/1/22
Revenue:
30.28B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
11.88B
18.40B
921.00M
-
8.41B
-
547.00M
9.88B
8.00M
234.00M
2.23B
10.17B
7.64B
6.46B
7.61B
1.24B
6.46B
Statement of Cash Flow
Date:
Period:
565.00M
Differed Income Tax :
-
Stock Based Compensation :
80.00M
Change in Working Capital :
- 426000.00K
Accounts Receivables:
80.00M
Other Working Capital:
5.12B
Other Non-Cash Items:
24.00M
Net Cash Provided by Operating Activities:
1.97B
Investments in PP&E:
- 250000.00K
Net Acquisitions:
-
Purchases of Investments:
- 274000.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
4/1/22
2022
Q1
3.72B
-
3.72B
4.41B
3.07B
1.47B
12.67B
3.82B
40.66B
22.15B
-
-
4.10B
70.72B
-
83.39B
2.36B
10.00M
-
-
5.18B
7.55B
21.77B
7.72B
29.49B
-
37.04B
9.00M
34.33B
- 1376000.0K
13.39B
April 1, 2022 at 6:00:00 AM
21.76B
46.36B
83.39B
-
21.78B
18.1B
41.00M
- 20000.00K
- 503000.00K
-
- 46000.00K
-
- 191000.00K
- 37000.00K
- 274000.00K
- 60000.00K
1.13B
3.72B
2.59B
1.97B
- 250000.00K
1.72B
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
DHR
2023
2024
2025
2026
2027
$286.90
$505.16
$535.25
$567.14
$600.92