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Nervous markets await NvidiaThis summary was created by AI, based on 10 opinions in the last 12 months.
Danaher Corp. (DHR) is undergoing a transformation from an industrial conglomerate to a life sciences and biotech player, focusing on recurring revenues by divesting from legacy assets. While the company has a solid revenue model and has repurchased shares recently, concerns persist about its high valuation at 28x forward PE and low single-digit revenue growth. Experts note that DHR has underperformed recently, despite a strong historical performance and potential for recovery. The aging population and demand in healthcare, particularly in China, offer future growth opportunities, but the current landscape reflects significant industry challenges that have led to mixed sentiment among analysts.
He bought this in early 2022, though it was mired in an inventory glut. He's stuck with it ebcause he expected it to bounce back. It still has a high PE though. Is down 19% from its August high, but is now a good entry point. An analyst just upgraded it. He expects the healthcare sector to come back next year.
In recent years, DHR has been in the process of transforming itself from an industrial conglomerate into a pure life science and biotech player with a high degree of recurring revenues by divesting legacy industry assets. The company now possesses a solid profile of highly recurring revenue and strong margins, basically a “software-like” business model.
However, weak organic growth has caused the company’s shares to trade largely sideways in recent years. DHR also repurchased shares aggressively in the recent quarter, which the company did not implement for a long time, indicating that management believes shares are undervalued. That being said, DHR is trading at 28.4x Forward P/E with low single-digit revenue growth, which is certainly not that attractive. However, this is not the company’s issue but rather an industry-wide challenge, as similar headwinds also exist with other players like TMO.
Consensus estimates expect DHR to grow its topline by 7% on average over the next few years. We think now could be a good time to average into the position, but maybe not be too aggressively. We would be comfortable starting a position but only adding more when revenue returns to a solid growth trajectory.
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DHR is expensive at 28x forward earnings and it has not been able to fully recover to its all-time highs in 2021 when it traded above $330. DHR has been trading quite choppily since. It is flat year-to-date but up 11% over the last year. We do think that DHR could be a good long-term healthcare play and some of the current risks/fears due to the new US administration may be slightly overstated for healthcare stocks.
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When he recommended this last summer, he was expecting the glut in bioprocessing equipment to finally end. They reported good results last October, but lowered guidance. In late October, the entire sector seemed to find its footing when interest rates peaked, but was it out of the woods? Last week, DHR reported healthy revenue and earnings beats, but issued very disappointing guidance with organic revenue to be down YOY. Shares slid 5% in pre-markets. Turns out that management was merely being conservative. During the conference call, DHR said that the world ex-China should return to grow later this year as the inventory gut ends. So, but it now.
Danaher Corp. is a American stock, trading under the symbol DHR-N on the New York Stock Exchange (DHR). It is usually referred to as NYSE:DHR or DHR-N
In the last year, 9 stock analysts published opinions about DHR-N. 7 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Danaher Corp..
Danaher Corp. was recommended as a Top Pick by on . Read the latest stock experts ratings for Danaher Corp..
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
9 stock analysts on Stockchase covered Danaher Corp. In the last year. It is a trending stock that is worth watching.
On 2025-04-24, Danaher Corp. (DHR-N) stock closed at a price of $196.5.
The CEO is not doing an appropriate job. He wishes he didn't own this. Wants to see the board act.