📊 DHR Key Takeaways
Is Danaher Corp. /DE/ (DHR) a Good Investment?
Danaher demonstrates exceptional financial health with superior profitability metrics (59.1% gross margin, 19.1% operating margin, 14.7% net margin) and robust cash generation (5.3B free cash flow, 21.4% FCF margin). Strong balance sheet fundamentals with conservative leverage (0.35x debt/equity), exceptional interest coverage (72.2x), and solid liquidity (1.87x current ratio) provide significant financial flexibility for growth investments and shareholder returns.
Danaher shows high-quality fundamentals with strong gross margins, solid operating profitability, and excellent free cash flow generation. The balance sheet remains healthy with good liquidity, modest leverage, and very strong interest coverage, which supports resilience and capital flexibility. The main limitation is that revenue growth has not translated into stronger net income or EPS, so the story is financially strong but not currently high-growth.
Why Buy Danaher Corp. /DE/ Stock? DHR Key Strengths
- Exceptional profitability across all margins with gross margin of 59.1% indicating strong pricing power
- Outstanding free cash flow generation of 5.3B representing 21.4% of revenue demonstrates high-quality earnings
- Fortress balance sheet with debt-to-equity of 0.35x and interest coverage of 72.2x providing financial stability and capital allocation flexibility
- Strong liquidity position with current ratio of 1.87x and 4.6B cash enabling strategic investments
- Steady revenue growth of 2.9% YoY with consistent cash conversion
- High-margin business model with 59.1% gross margin and 21.4% free cash flow margin
- Strong financial health with 1.87x current ratio, 0.35x debt-to-equity, and 72.2x interest coverage
- Robust cash generation with $6.42B operating cash flow and $5.26B free cash flow
DHR Stock Risks: Danaher Corp. /DE/ Investment Risks
- Declining diluted EPS (-4.5% YoY) despite flat net income growth suggests share dilution or margin compression pressures
- Modest ROE of 6.9% and ROA of 4.3% indicate capital efficiency challenges relative to asset base of 83.5B
- Revenue growth deceleration at 2.9% YoY reflects potential maturity in end markets or competitive pressures
- High insider trading activity (47 Form 4 filings in 90 days) warrants monitoring for potential confidence signals
- Net income was flat year over year and diluted EPS declined 4.5%, indicating limited earnings leverage
- ROE of 6.9% and ROA of 4.3% are relatively modest for a high-quality industrial and life sciences platform
- Top-line growth of 2.9% is positive but not strong enough yet to clearly reaccelerate profitability
Key Metrics to Watch
- Operating margin trend - monitor for sustainability of 19.1% or compression from competitive/cost pressures
- Free cash flow conversion and capital allocation decisions given strong cash generation capability
- Organic revenue growth trajectory and end-market demand dynamics underlying the 2.9% YoY growth rate
- Return on equity improvement as management deploys substantial equity base more efficiently
- Debt reduction pace and leverage optimization given conservative debt-to-equity position
- Operating margin and EPS growth
- Free cash flow conversion relative to revenue growth
Danaher Corp. /DE/ (DHR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 21.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
DHR Profit Margin, ROE & Profitability Analysis
DHR vs Industrial Sector: How Danaher Corp. /DE/ Compares
How Danaher Corp. /DE/ compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Danaher Corp. /DE/ Stock Overvalued? DHR Valuation Analysis 2026
Based on fundamental analysis, Danaher Corp. /DE/ has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Danaher Corp. /DE/ Balance Sheet: DHR Debt, Cash & Liquidity
DHR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Danaher Corp. /DE/'s revenue has declined by 17% over the 5-year period, indicating business contraction. The most recent EPS of $6.38 reflects profitable operations.
DHR Revenue Growth, EPS Growth & YoY Performance
DHR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $5.8B | $818.0M | $1.12 |
| Q2 2025 | $5.7B | $555.0M | $0.77 |
| Q1 2025 | $5.7B | $954.0M | $1.32 |
| Q3 2024 | $5.6B | $818.0M | $1.12 |
| Q2 2024 | $5.7B | $907.0M | $1.22 |
| Q1 2024 | $5.8B | $1.1B | $1.45 |
| Q3 2023 | $6.9B | $1.1B | $1.51 |
| Q2 2023 | $7.2B | $1.1B | $1.49 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Danaher Corp. /DE/ Dividends, Buybacks & Capital Allocation
DHR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Danaher Corp. /DE/ (CIK: 0000313616)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DHR
What is the AI rating for DHR?
Danaher Corp. /DE/ (DHR) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DHR's key strengths?
Claude: Exceptional profitability across all margins with gross margin of 59.1% indicating strong pricing power. Outstanding free cash flow generation of 5.3B representing 21.4% of revenue demonstrates high-quality earnings. ChatGPT: High-margin business model with 59.1% gross margin and 21.4% free cash flow margin. Strong financial health with 1.87x current ratio, 0.35x debt-to-equity, and 72.2x interest coverage.
What are the risks of investing in DHR?
Claude: Declining diluted EPS (-4.5% YoY) despite flat net income growth suggests share dilution or margin compression pressures. Modest ROE of 6.9% and ROA of 4.3% indicate capital efficiency challenges relative to asset base of 83.5B. ChatGPT: Net income was flat year over year and diluted EPS declined 4.5%, indicating limited earnings leverage. ROE of 6.9% and ROA of 4.3% are relatively modest for a high-quality industrial and life sciences platform.
What is DHR's revenue and growth?
Danaher Corp. /DE/ reported revenue of $24.6B.
Does DHR pay dividends?
Danaher Corp. /DE/ pays dividends, with $878.0M distributed to shareholders in the trailing twelve months.
Where can I find DHR SEC filings?
Official SEC filings for Danaher Corp. /DE/ (CIK: 0000313616) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DHR's EPS?
Danaher Corp. /DE/ has a diluted EPS of $5.05.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DHR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Danaher Corp. /DE/ has a BUY rating with 82% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is DHR stock overvalued or undervalued?
Valuation metrics for DHR: ROE of 6.9% (sector avg: 15%), net margin of 14.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy DHR stock in 2026?
Our dual AI analysis gives Danaher Corp. /DE/ a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is DHR's free cash flow?
Danaher Corp. /DE/'s operating cash flow is $6.4B, with capital expenditures of $1.2B. FCF margin is 21.4%.
How does DHR compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 14.7% (avg: 10%), ROE 6.9% (avg: 15%), current ratio 1.87 (avg: 1.8).