DANAHER

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DANAHER

• Shane Oakes

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Company Overview

• H. Lawrence Culp, Jr.
• President and CEO (May 2001)
• Been with the company since 1990. Started out as
  a Group Executive, who was solely responsible for
  Danahers Environmental and Electronic Test and
  Measurement Platforms.

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Company Overview

• Danaher is a diversified technology leader who
  designs, manufactures, and markets innovative
  products and services with strong brand names
  and significant market positions.
• The Danaher Business segments includeProfession
  al InstrumentationIndustrial Technologies Tools
  Components

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Professional Instrumentation

• The Professional Instrumentation segment consists
  of three strategic platforms Electronic Test,
  Environmental, and Medical Technologies.
• Electronic Test Instruments used by -
  Electricians - Engineers - Calibration labs -
  Computer networks

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Professional Instrumentation CONT

• Environmental Instruments
• - Water quality analysis and treatment -
  Disinfection systems - Ultraviolet treatment
  systems - Underground tank monitoring
• Provide these services in more than 35
  countries

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Professional Instrumentation CONT

• Medical Technologies
• Dental Instruments
• - Digital panoramic imaging systems -
  Breakthrough devices that replace traditional
  drill and fill approaches with painless
  solutions.
• - Blood gas analyzers (used in hospitals)

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Industrial Technologies

• The Industrial Technologies segment consists of
  two strategic platforms Motion, and three niche
  businesses Aerospace and Defense, Power Quality,
  and Sensors and Controls.
• Motion Technology - Electromagnetic
  tools - Mechanical instruments
  - Control technologies
• 2nd Segment Only mentioned that Danaher has
  had breakthrough innovations that are based on
  application experience around the globe and
  across various industries.

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Tools Components

• The Tools Components segment encompasses one
  strategic platform, Mechanics Hand Tools.
• Used by professional automotive technicians
  across the world. - Integrated electronic
  displays combine convenience with measurable
  benefits in speed and safety.
• Key Brands
• - Gear Wrench
• - Matco
• - Spline Gauges
• - KD Tools

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Key Ratios

• Net Profit Margin12.50 Ind. Avg. 9.14
• ROA 9.37 Ind. Avg. 7.04
• ROE 18.84 Ind. Avg. 15.24
• Asset Turnover .87 Ind. Avg. .82
• Quick Ratio .93 Ind. Avg. 1.66
• Current Ratio 1.37 Ind. Avg. 2.44
• Equity Multiplier 1.80 Ind. Avg. -

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Value Criteria

• Beta .97 Ind. Avg. .99
• P/E 21.77 Ind. Avg. 29.30
• PEG 1.45 Ind. Avg. -
• Dividend Yield .10 Ind. Avg. .60
• Positive Earnings 4/5 past years
• CA lt 2X CL
• Danaher ONLY meets 2/5 Value Criteria

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Intrinsic Value

• Current trading at 72.59
• SP
• 12 Month Price 83.42 (15.2)
• Yahoo
• 12 Month Price 83.20 (14.9)

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Recommendation

• Hold / Possible Buy
• Strong company, only factor is that they dont
  meet all of our Value criterias.