Danaher: Not Attractive Now, Experiencing Headwinds

Summary:

  • Danaher has demonstrated very steady growth in financial metrics over the decade with very solid free cash flows.
  • The company is experiencing headwinds to continue growth given the harsh macro environment.
  • Also, my valuation analysis shows the company is fairly valued with little upside potential.

China Development Forum (CDF) 2023 - Economic Summit

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Investment thesis

Danaher Corporation (NYSE:DHR) was one of the most successful healthcare stocks during the COVID-19 market rebound. The stock is now trading close to 52-week lows and much lower than all-time highs. It is fair

DHR segments

Author’s calculations based on the latest 10-K

DHR financials

Author’s calculations

DHR dividend summary

Seeking Alpha

Danaher Corporation latest earnings summary

Seeking Alpha

DHR dividend growth metrics

Seeking Alpha

DHR DDM calculations

Author’s calculations

DHR DCF analysis

Author’s calculations


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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