Danaher Stock

Interested in investing in Danaher, one of the largest American companies? Read our comprehensive article for important information about the company.

Still relatively unknown to European investors, Danaher is an industrial group and Fortune 500 company with big potential. Read on for more information about Danaher's stock profile. 

History of Danaher 

Danaher started out as a Massachusetts-based real estate investment company called Diversified Mortgage Inc. The Danaher name was adopted in 1984 when the company moved to Delaware. 

Danaher has grown from a real estate company to a leading equipment manufacturer through continuous acquisition of industrial businesses. Just two years after changing its name to Danaher, it acquired 12 manufacturing companies as part of a strategy to conquer the industrial sector. In total, Danaher has made more than 400 acquisitions over the past 30 years. 

Danaher has become a conglomerate, i.e a group of companies with activities in different sectors.  

Danaher business lines

Danaher Corporation is a leading manufacturer and marketer of analytical instruments, medical devices and medical identification products. It operates in several business segments : 

  • Environment and applied solutions, with 7 companies including Hach, which includes 12 other companies. 
  • Test and measurement instruments and products with 6 companies, including Fluke, which has 10 other brands. 
  • Industrial Technologies with 6 companies, including Danaher Motion, which includes 7 other brands. 
  • Life Sciences with 8 companies
  • Diagnosis with 4 companies 
  • Dental with 10 companies, including Nobel Biocare. 
  • Other ventures. Danaher’s 26 companies include Venture Measurement and West Control Solutions, which each own 4 companies. 

The Danaher business model 

Danaher’s expansion is based upon the acquisition of companies around the world, with operations in 60 countries. The firm applies its business and operating model to its subsidiaries in order to transform them into revolutionary, innovation-driven businesses. 

Danaher is skilled at finding companies in growth markets. It avoids well-known brands and startups, preferring to invest in companies with no major competitors. 

Danaher stock data 

  • Isin code : US2358511028. 
  • Share price as of May 3, 2021: $253.70.  
  • Revenue for the year 2020 : 19.89 billion euros, i.e. 20.7% growth compared to 2019. 

Factors in favour of Danaher Group's share prices   

One of Danaher's strengths is that it operates in a key sector, namely human health. Its products and services are critical to enhancing diagnostic reliability and advancing medical research. In this field, it includes leading companies such as Beckman Coulters and Leica Biosystem. The Group's healthcare segment generates 60% of its revenue. 

The American Danaher Group is also active in global water supply and water quality. It should be noted that water-related services represent a market of 600 billion dollars with a growth rate of 4 to 6% per year. 

Another advantage of the group is the diversification of its activities and the large number of companies within its conglomerate. It can also leverage its global presence. This business model allows it to pool risks. 

Factors that could adversely affect Danaher share prices

Danaher faces fierce competition from groups specializing in each of its business sectors. Among its competitors are Fresenius (medical devices) and Veolia Environnement (water and environment).