Danaher Stock: Monopoly Margins, Discounted Price
DanaherDanaher(US:DHR) Forbes·2025-10-15 14:25

Core Insights - Danaher (NYSE:DHR) stock is highlighted for its monopoly-like high margins available at a discounted price [1] Company Overview - Danaher provides a range of professional, medical, industrial, and commercial products across Life Sciences, Diagnostics, and Environmental solutions, including lab automation, diagnostic systems, genomics, and microscopy technologies [4] Financial Performance - Revenue growth for Danaher was 1.9% over the last twelve months (LTM) and -2.6% over the last three-year average, with expectations for growth driven by innovation in life sciences and diagnostics, as well as expansion in high-growth healthcare and biotechnology segments [6] - Recent profitability metrics include an operating cash flow margin of 25.7% and an operating margin of 18.4% LTM [6] - Long-term profitability metrics show approximately 29.9% operating cash flow margin and 21.6% operating margin over the last three-year average [6] - The stock is currently available at a price-to-sales (P/S) multiple of 6.2, representing a 29% discount compared to one year ago [6] Market Position - The market typically values companies with strong pricing power and high margins, which fosters consistent and predictable profits and cash flows, thereby reducing risk and allowing for capital reinvestment [3]