DHRDanaher Corporation
Is the business good?
The checks split: earnings fully cash-backed (1.5×), but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 7% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is DHR?
Danaher Corporation earns 5.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 3.5 points below what the capital costs: growth destroys value
- Operating margin
- 20%
Operating margin · Diagnostics & Research median 3.6% · 12 months to Q3 2026
- Cash conversion
- 1.48×
Cash conversion · 1.63× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.97%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 19% |
| FY2021 | 26% |
| FY2022 | 28% |
| FY2023 | 22% |
| FY2024 | 20% |
| FY2025 | 19% |
Details›
- Gross margin12 months to Q3 2026
- 59%
- Operating margin12 months to Q3 2026
- 20%
- Net margin12 months to Q3 2026
- 17%
- Free cash flow margin
- 22%
- R&D as % of revenue
- 6.5%
- Revenue, trailing twelve months
- $25.6B
- Free cash flow, trailing twelve months
- $5.73B
- Net income, trailing twelve months
- $4.33B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Diagnostics & Research
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