Danaher Corporation (DHR)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business with products that customers rely on in regulated workflows, and Danaher's biotechnology, life sciences, and diagnostics segments fit that profile: instruments, consumables, and services tied into drug development and labs. That can create switching costs, but the financial record is mixed. In fiscal 2025, revenue was $24.6B, net income $3.6B, and diluted EPS $5.05; in fiscal 2023, net income was $4.8B and EPS $6.38, so earnings have not compounded. The computed Lynch category is a slow grower—shrinking, with profit -0.2% a year over five years and revenue 2.0%. Recent momentum is better: in fiscal Q3 2026, the quarter ended 2026-09-25, revenue was $6.6B, net income $1.2B, and diluted EPS $1.75, compared with $6.1B, $908.0M, and $1.27 in fiscal Q3 2025. Free cash flow is $5.7B, a 3.5% FCF yield, and debt/equity is 0.53 with an Altman Z-score of 3.37. Returns are modest—ROE 7.61% and ROCE 3.95%. At the 2026-10-26 close of $232.97, FairStock figures show P/E 41.53, P/B 3.11, EV/EBITDA 24.12, and a Graham Number of $98.13, a -134.89% margin of safety. PEG of 0.72 is the one valuation signal that is not demanding, but Graham's test leaves no margin for error.

In plain English: Danaher makes medical, research, and lab products used in biotechnology and diagnostics. The business looks financially solid, with strong cash flow and recent profit improvement, but longer-term growth has been slow and returns are modest. At $232.97 on October 26, 2026, the price looks expensive compared with its profits, cash flow, and a conservative asset-based value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-09-25) · fiscal Q2 2026 10-Q (period ended 2026-06-26) · fiscal Q1 2026 10-Q (period ended 2026-03-27) · fiscal Q3 2025 10-Q (period ended 2025-09-26) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer