DHR
Danaher Corporation
Industrial/Transportation, Healthcare
03/12/2014
Presented
| Date | 03/10/2014 |
| Price | $76.43 |
| Market Cap | $53.40B |
| Ent Value | $53.83B |
| P/E Ratio | 23.7x |
| Book Value | $33.19 |
| Div Yield | 0.6% |
| Shares O/S | 698.48M |
| Ave Daily Vol | 2,710,000 |
| Short Int | 0.91% |
Current
| Price | $272.68 |
| Market Cap | $196.93B |
| Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The company’s Test & Measurement segment provides test, measurement, and monitoring products that are used in electronic design, manufacturing, and technology development; network monitoring, management, and optimization tools; and security solutions for communications and enterprise networks. Its Environmental segment offers instrumentation and disinfection systems to analyze and manage the quality of water; and solutions and services focused on fuel dispensing, remote fuel management, point-of-sale systems, payment systems, environmental compliance, vehicle tracking, and fleet management. The company’s Life Sciences & Diagnostics segment provides various research and clinical tools for scientists to study cells and its components; and a range of analytical instruments, reagents, consumables, software, and services for hospitals, physician’s offices, reference laboratories, and various critical care settings. Its Dental segment provides dental consumables, equipment, and services for the diagnosis, treatment, and prevention of disease and ailments of the teeth, gums, and supporting bone. Danaher Corporation’s Industrial Technologies segment offers equipment, consumables, and software for consumer and industrial products; and electromechanical motion control solutions for the industrial automation and packaging markets. This segment also provides sensors and controls products instruments to manufacturing markets and electric utility industry; energetic material systems to systems integrators and prime contractors; and supplemental braking systems for commercial vehicles. The company was formerly known as Diversified Mortgage Investors, Inc. and changed its name to Danaher Corporation in 1984. Danaher Corporation was founded in 1969 and is headquartered in Washington, District of Columbia. |
Highlights
While it may seem like a “boring” investment, the presenter is long shares of Danaher (DHR) and thinks the risk/ reward profile is excellent for shareholders at this time. In the general theme of owning acquirers, DHR is at the top of the list. The management team has a 20 year track record of buying business, cutting costs and consistently growing EBITDA. DHR’s balance sheet is now under-levered, which is inefficient in the presenter’s opinion. Management has suggested they have $8 billion of dry powder for deals, but the presenter’s estimate is closer to $12-15 billion over the next year and a half. DHR could be in a net cash position within a couple of quarters, he added.
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