Is DHR a high-quality business?

AlphaMadera's AlphaQuality grade scores Danaher Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how DHR compares to a Buffett-style quality bar.

What is Danaher Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to DHR based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes DHR a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

DHR - Danaher Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $242.30 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C 56.7 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

D- 32.6

5yr Avg ROIC 7.2% 46/100
Operating Margin Trend -1.94 pp/yr 1/100

Capital Efficiency

Weight: 15%

B- 66.0

5yr Avg ROE 9.9% 59/100
5yr Share-Count CAGR -0.9% 78/100

Growth Quality

Weight: 15%

F 13.0

5yr Revenue CAGR -4.4% 11/100
5yr EPS CAGR -12.5% 0/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 15%

A+ 94.9

5yr FCF Margin 23.9% 94/100
5yr FCF/NI Conversion 1.23x 96/100

Balance Sheet

Weight: 20%

A- 83.1

Net Debt / EBITDA 1.99x 70/100
Interest Coverage (EBIT/Int) 16.97x 95/100
Altman Z-Score 3.78 92/100

Stability

Weight: 15%

C- 50.2

EPS Volatility (σ/μ) 0.39 45/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 3/5 40/100

5 of 7 gurus held; 1 added; 4 trimmed; 3 full exits.

Holders: 5 -2
Avg Δ position: +0.3%
New buys: 0
Full exits: 3

Halvorsen sold -100%
Akre sold -100%
Laffont sold -100%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.