Danaher Revenue vs. Operating Margin

DHR Stock  USD 235.84  0.79  0.34%   
Considering Danaher's profitability and operating efficiency indicators, Danaher's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Danaher's ability to earn profits and add value for shareholders.
 
Total Revenue  
First Reported
1985-09-30
Previous Quarter
5.7 B
Current Value
5.8 B
Quarterly Volatility
2.4 B
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Danaher's Price To Sales Ratio is relatively stable compared to the past year. As of 11/22/2024, EV To Sales is likely to grow to 8.09, while Days Sales Outstanding is likely to drop 46.44. At this time, Danaher's Operating Income is relatively stable compared to the past year. As of 11/22/2024, Income Before Tax is likely to grow to about 5.3 B, though Total Other Income Expense Net is likely to grow to (150.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.340.5874
Way Down
Slightly volatile
Net Profit Margin0.210.1994
Notably Up
Slightly volatile
Operating Profit Margin0.120.2177
Way Down
Slightly volatile
Pretax Profit Margin0.110.2111
Way Down
Slightly volatile
Return On Assets0.05240.0564
Significantly Down
Very volatile
Return On Equity0.150.0891
Way Up
Very volatile
For Danaher profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Danaher to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Danaher utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Danaher's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Danaher over time as well as its relative position and ranking within its peers.
  

Danaher's Revenue Breakdown by Earning Segment

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Is Health Care Equipment & Supplies space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Danaher. If investors know Danaher will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Danaher listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.26)
Dividend Share
1.05
Earnings Share
5.29
Revenue Per Share
32.289
Quarterly Revenue Growth
0.031
The market value of Danaher is measured differently than its book value, which is the value of Danaher that is recorded on the company's balance sheet. Investors also form their own opinion of Danaher's value that differs from its market value or its book value, called intrinsic value, which is Danaher's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Danaher's market value can be influenced by many factors that don't directly affect Danaher's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Danaher's value and its price as these two are different measures arrived at by different means. Investors typically determine if Danaher is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Danaher's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Danaher Operating Margin vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Danaher's current stock value. Our valuation model uses many indicators to compare Danaher value to that of its competitors to determine the firm's financial worth.
Danaher is rated # 2 in revenue category among its peers. It is rated below average in operating margin category among its peers . The ratio of Revenue to Operating Margin for Danaher is about  117,453,294,002 . At this time, Danaher's Total Revenue is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Danaher by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Danaher Revenue vs. Competition

Danaher is rated # 2 in revenue category among its peers. Market size based on revenue of Health Care industry is currently estimated at about 95.93 Billion. Danaher totals roughly 23.89 Billion in revenue claiming about 25% of equities under Health Care industry.

Danaher Operating Margin vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Danaher

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
23.89 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Danaher

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.20 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Danaher Operating Margin Comparison

Danaher is currently under evaluation in operating margin category among its peers.

Danaher Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Danaher, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Danaher will eventually generate negative long term returns. The profitability progress is the general direction of Danaher's change in net profit over the period of time. It can combine multiple indicators of Danaher, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-1.7 B-1.7 B
Operating Income5.2 B5.5 B
Income Before TaxB5.3 B
Total Other Income Expense Net-158 M-150.1 M
Net Income4.2 B4.4 B
Income Tax Expense301 M393.1 M
Net Income Applicable To Common Shares8.2 B8.6 B
Net Income From Continuing Ops5.9 B3.8 B
Non Operating Income Net Other-212.8 M-202.1 M
Interest Income215 M133.8 M
Net Interest Income-57 M-59.9 M
Change To Netincome-200.7 M-190.7 M
Net Income Per Share 6.47  6.79 
Income Quality 1.70  1.80 
Net Income Per E B T 0.94  0.56 

Danaher Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Danaher. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Danaher position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Danaher's important profitability drivers and their relationship over time.

Use Danaher in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Danaher position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Danaher will appreciate offsetting losses from the drop in the long position's value.

Danaher Pair Trading

Danaher Pair Trading Analysis

The ability to find closely correlated positions to Danaher could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Danaher when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Danaher - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Danaher to buy it.
The correlation of Danaher is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Danaher moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Danaher moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Danaher can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Danaher position

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Additional Tools for Danaher Stock Analysis

When running Danaher's price analysis, check to measure Danaher's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Danaher is operating at the current time. Most of Danaher's value examination focuses on studying past and present price action to predict the probability of Danaher's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Danaher's price. Additionally, you may evaluate how the addition of Danaher to your portfolios can decrease your overall portfolio volatility.