DANAHER CORP /DE/ (DHR) Stock Analysis

Analysis from 10-Q filed 2025-10-21. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 5.6%. FCF margin 21.4%. D/E 0.3x. Source: 10-Q filed 2025-10-21.

Metric	Value	Context
ROIC	5.6%	Below expectations
FCF Margin	21.4%	Strong cash generation
Debt/Equity	0.3x	Conservative leverage

ROIC 5.6% — Top 50% of sector peers. FCF margin 21.4% — Top 5%.

Explore DANAHER CORP /DE/: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for DHR: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: DANAHER CORP /DE/ earns 5.6% ROIC, Top 50% in Other

ROIC TTM 5.6%, sector median 3.8%, Top 50%. DuPont: NOPAT margin 16.3% × asset turnover 0.3x. Gross margin 58.9%. Operating margin 19.2%. Source: 10-Q filed 2025-10-21.

Metric	DHR	Rating	Context
Return on Invested Capital (ROIC)	5.6%	Warning	Above sector median of 3.8%
Return on Equity (ROE)	7.1%	Warning	Moderate equity returns
Gross Margin	58.9%	Excellent	Strong pricing power
Operating Margin	19.2%	Good	Efficient operations

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Cash Flow: DANAHER CORP /DE/ generates $5.3B FCF at 21.4% margin, positive NaN/8 quarters

FCF TTM $5.3B. FCF margin 21.4%, Top 5%. OCF/Net income 1.7x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-21.

Metric	DHR	Rating	Context
Free Cash Flow Margin	21.4%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$5.3B	Good	Positive cash generation
OCF/Net Income	1.7x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: DANAHER CORP /DE/ at 0.3x leverage

Debt/Equity 0.3x. Total debt $18.5B, cash & investments $5.7B. Source: 10-Q filed 2025-10-21.

Metric	DHR	Rating	Context
Debt to Equity	0.3x	Good	Conservative capital structure
Net Cash Position	$-12.8B	Warning	Net debt position

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Valuation: DANAHER CORP /DE/ trades at 35.0x earnings

P/E 35.0x. EV/Sales 5.8x. FCF yield 4.1%. Dividend yield 0.7%. Source: 10-Q filed 2025-10-21.

Metric	DHR	Rating	Context
P/E Ratio	35.0x	Adequate	Premium valuation
EV/Sales	5.8x	Adequate	Growth premium priced in
FCF Yield	4.1%	Good	Lower cash yield
Dividend Yield	0.7%	Adequate	Growth focus over income

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Capital Allocation: DANAHER CORP /DE/ returns 2.3% shareholder yield

Total shareholder yield 2.3% (div 0.7% + buyback 1.6%). Capital returned $2.9B TTM. Source: 10-Q filed 2025-10-21.

Metric	DHR	Rating	Context
Total Shareholder Yield	2.3%	Adequate	Dividend + buyback yield combined
Buyback Yield	1.6%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$2.9B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	5.6%	Top 50%	1.5x above
Free Cash Flow Margin	21.4%	Top 5%	-
Gross Margin	58.9%	Top 25%	1.9x above
Operating Margin	19.2%	Top 25%	3.6x above
Return on Equity (ROE)	7.1%	Top 50%	1.1x above
P/E Ratio	35.0x	N/A	-

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Financial Scorecard

Metric	DHR	Rating	Sector Context
Return on Invested Capital (ROIC)	5.6%	Warning	Top 50% of sector (median: 3.8%)
Free Cash Flow Margin	21.4%	Excellent	Top 5% of sector (median: 0.0%)
Gross Margin	58.9%	Excellent	Top 25% of sector (median: 31.2%)
Debt to Equity Ratio	34.9%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	35.0x	Adequate	Growth premium
Free Cash Flow Yield	4.1%	Adequate	Moderate yield

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Frequently Asked Questions

Q: What is DANAHER CORP /DE/'s Return on Invested Capital (ROIC)?

DANAHER CORP /DE/ (DHR) has a trailing twelve-month Return on Invested Capital (ROIC) of 5.6%. Sector median 3.8%. Source: 10-Q filed 2025-10-21.

Q: What is DANAHER CORP /DE/'s Free Cash Flow Margin?

DANAHER CORP /DE/ (DHR) has a free cash flow margin of 21.4%, generating $5.3 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-21.

Q: What is DANAHER CORP /DE/'s P/E ratio and how does it compare to peers?

DANAHER CORP /DE/ (DHR) trades at a P/E ratio of 35.0x, which is above the sector median of N/A. EV/Sales 5.8x. FCF yield 4.1%. Source: 10-Q filed 2025-10-21.

Q: Does DANAHER CORP /DE/ pay a dividend?

DANAHER CORP /DE/ (DHR) currently pays a dividend yield of 0.7%. Total shareholder yield (dividend + buybacks) 2.3%. Source: 10-Q filed 2025-10-21.

Q: What is DANAHER CORP /DE/'s revenue and earnings growth?

DANAHER CORP /DE/ (DHR) grew revenue by 4.0% year-over-year. EPS +0.3% YoY. Source: 10-Q filed 2025-10-21.

Q: Is DANAHER CORP /DE/ buying back stock?

DANAHER CORP /DE/ (DHR) repurchased $2.0 billion of stock over the trailing twelve months. This represents a buyback yield of 1.6%. Source: 10-Q filed 2025-10-21.

Q: How does DANAHER CORP /DE/ compare to competitors in Other?

Compared to other companies in Other, DANAHER CORP /DE/ (DHR) shows: ROIC 5.6%, sector median 3.8% (Top 50%). FCF margin 21.4%, sector median 0.0% (Top 5%). Gross margin 58.9%, 27.8pp above sector median. These rankings are based on MetricDuck's analysis of all Other companies with available SEC filings.

Q: What warning signs should I watch for with DANAHER CORP /DE/?

No quantitative warning flags fired for DANAHER CORP /DE/ (DHR) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-21.

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Data Source: Data sourced from 10-Q filed 2025-10-21. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.