Is NYSE:TMO suited for quality investing?

In this article we will dive into THERMO FISHER SCIENTIFIC INC (NYSE:TMO) as a possible candidate for quality investing. Investors should always do their own research, but we noticed THERMO FISHER SCIENTIFIC INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NYSE:TMO may be interesting for quality investors.

• THERMO FISHER SCIENTIFIC INC has shown strong performance in revenue growth over the past 5 years, with a 11.96% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a robust ROIC excluding cash and goodwill at 37.98%, THERMO FISHER SCIENTIFIC INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• The Debt/Free Cash Flow Ratio of THERMO FISHER SCIENTIFIC INC stands at 4.45, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• With a favorable Profit Quality (5-year) ratio of 104.0%, THERMO FISHER SCIENTIFIC INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• THERMO FISHER SCIENTIFIC INC has consistently achieved strong EBIT growth over the past 5 years, with a 13.62% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• THERMO FISHER SCIENTIFIC INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What else is there to say on the fundamentals of NYSE:TMO?

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Taking everything into account, TMO scores 5 out of 10 in our fundamental rating. TMO was compared to 57 industry peers in the Life Sciences Tools & Services industry. TMO scores excellent on profitability, but there are some minor concerns on its financial health. TMO is not valued too expensively and it also shows a decent growth rate.

Check the latest full fundamental report of TMO for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.