A manufacturing conglomerate out of our nation’s capital run by two brilliant managers and investors: Mitchell and Steven Rales. These guys have been the best of the best over the last 2 decades. Danaher, the symbol is DHR on the NYSE. They have grown their mundane manufacturing business in spectacular fashion.
An initial investment of $100,000 has risen to over $7 Million, a 23.67% annualized rate. Compare that to Coca-Cola (13%/year) and Berkshire Hathaway (14%/year). Each of these companies has produced stellar track records, but Danaher with "The Rales Brothers" have done one hell of good job with their assets.
Using their own business system, Danaher has bought a plethora of businesses to add to their own line and let's look at the company from a numbers standpoint.
Company DHR
4.02.2007 $71.47
Market Value (mil) $22,090.00
Debt (mil.) $2,430.00
Total Capitalization (mil.) $24,200.00
Book Value $21.56
Sales (mil.) $9,600.00
Net Income (mil.) $1,100.00
Earned Per Share
Current EPS $3.47
2007 Estimate $3.76
2002 EPS $1.39
1997 EPS $0.66
Current Dividend $0.08
Ratios
P/E 19.01
Price/Book 331.49%
Dividend/EPS 2.13%
Net Profit Margin 11.46%
EPS/Book 16.09%
Growth in EPS
5 Year Growth 149.64%
10 Year Growth 425.76%
ROTC 4.55%
These are great returns and as you can see have correlated to great market returns as well. Earnings increases usually do!
Are you late to the party? Maybe... but maybe not! Right now, the company is trading with a "below average" price to earnings multiple - 19. Their historical P/E is over 23. The two brothers are great businessmen and obviously have an amazing process to make this thing go!
My publishing firm, PigsGetRich, does not own and has not recommended this stock to our clients. However, if they earn the $3.72 projected and the P/E continues to get back to normal historic levels, the price could be $85 - $90 in a year... “20% ain't too bad!”
An initial investment of $100,000 has risen to over $7 Million, a 23.67% annualized rate. Compare that to Coca-Cola (13%/year) and Berkshire Hathaway (14%/year). Each of these companies has produced stellar track records, but Danaher with "The Rales Brothers" have done one hell of good job with their assets.
Using their own business system, Danaher has bought a plethora of businesses to add to their own line and let's look at the company from a numbers standpoint.
Company DHR
4.02.2007 $71.47
Market Value (mil) $22,090.00
Debt (mil.) $2,430.00
Total Capitalization (mil.) $24,200.00
Book Value $21.56
Sales (mil.) $9,600.00
Net Income (mil.) $1,100.00
Earned Per Share
Current EPS $3.47
2007 Estimate $3.76
2002 EPS $1.39
1997 EPS $0.66
Current Dividend $0.08
Ratios
P/E 19.01
Price/Book 331.49%
Dividend/EPS 2.13%
Net Profit Margin 11.46%
EPS/Book 16.09%
Growth in EPS
5 Year Growth 149.64%
10 Year Growth 425.76%
ROTC 4.55%
These are great returns and as you can see have correlated to great market returns as well. Earnings increases usually do!
Are you late to the party? Maybe... but maybe not! Right now, the company is trading with a "below average" price to earnings multiple - 19. Their historical P/E is over 23. The two brothers are great businessmen and obviously have an amazing process to make this thing go!
My publishing firm, PigsGetRich, does not own and has not recommended this stock to our clients. However, if they earn the $3.72 projected and the P/E continues to get back to normal historic levels, the price could be $85 - $90 in a year... “20% ain't too bad!”
