THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TMO - US8835561023 - Common Stock
624.65 USD
+2.82 (+0.45%)
624.67 USD
0.02 (0%)
Overall TMO gets a fundamental rating of 5 out of 10. We evaluated TMO against 57 industry peers in the Life Sciences Tools & Services industry. While TMO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TMO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- TMO had positive earnings in the past year.
- TMO had a positive operating cash flow in the past year.
- Each year in the past 5 years TMO has been profitable.
- In the past 5 years TMO always reported a positive cash flow from operatings.
1.2 Ratios
- TMO has a better Return On Assets (6.38%) than 84.21% of its industry peers.
- TMO has a Return On Equity of 12.88%. This is amongst the best in the industry. TMO outperforms 85.96% of its industry peers.
- TMO has a better Return On Invested Capital (7.21%) than 77.19% of its industry peers.
- TMO had an Average Return On Invested Capital over the past 3 years of 7.48%. This is significantly below the industry average of 13.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 12.88% | ||
| ROIC | 7.21% |
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.8%
ROE(5y)15.76%
ROIC(3y)7.48%
ROIC(5y)8.55%
1.3 Margins
- The Profit Margin of TMO (15.02%) is better than 84.21% of its industry peers.
- TMO's Profit Margin has been stable in the last couple of years.
- With an excellent Operating Margin value of 18.40%, TMO belongs to the best of the industry, outperforming 82.46% of the companies in the same industry.
- TMO's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 41.43%, TMO is in line with its industry, outperforming 42.11% of the companies in the same industry.
- In the last couple of years the Gross Margin of TMO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.4% | ||
| PM (TTM) | 15.02% | ||
| GM | 41.43% |
OM growth 3Y-12.04%
OM growth 5Y1.61%
PM growth 3Y-9.15%
PM growth 5Y0.42%
GM growth 3Y-6.24%
GM growth 5Y-1.42%
2. Health
2.1 Basic Checks
- TMO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- TMO has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, TMO has less shares outstanding
- Compared to 1 year ago, TMO has an improved debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of TMO is 5.84, which is a neutral value as it means it would take TMO, 5.84 years of fcf income to pay off all of its debts.
- TMO has a Debt to FCF ratio of 5.84. This is in the better half of the industry: TMO outperforms 66.67% of its industry peers.
- TMO has a Debt/Equity ratio of 0.62. This is a neutral value indicating TMO is somewhat dependend on debt financing.
- The Debt to Equity ratio of TMO (0.62) is worse than 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.67
WACC10.71%
2.3 Liquidity
- TMO has a Current Ratio of 1.50. This is a normal value and indicates that TMO is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.50, TMO is doing worse than 73.68% of the companies in the same industry.
- TMO has a Quick Ratio of 1.11. This is a normal value and indicates that TMO is financially healthy and should not expect problems in meeting its short term obligations.
- TMO's Quick ratio of 1.11 is on the low side compared to the rest of the industry. TMO is outperformed by 70.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.53% over the past year.
- Measured over the past years, TMO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.12% on average per year.
- Looking at the last year, TMO shows a small growth in Revenue. The Revenue has grown by 3.22% in the last year.
- Measured over the past years, TMO shows a quite strong growth in Revenue. The Revenue has been growing by 10.92% on average per year.
EPS 1Y (TTM)4.53%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%9.66%
Revenue 1Y (TTM)3.22%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%4.94%
3.2 Future
- TMO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.66% yearly.
- The Revenue is expected to grow by 4.65% on average over the next years.
EPS Next Y5.08%
EPS Next 2Y6.65%
EPS Next 3Y7.9%
EPS Next 5Y9.66%
Revenue Next Year3.54%
Revenue Next 2Y4.26%
Revenue Next 3Y4.7%
Revenue Next 5Y4.65%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 27.89 indicates a quite expensive valuation of TMO.
- TMO's Price/Earnings ratio is a bit cheaper when compared to the industry. TMO is cheaper than 77.19% of the companies in the same industry.
- TMO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 25.12, which means the current valuation is very expensive for TMO.
- Based on the Price/Forward Earnings ratio, TMO is valued a bit cheaper than 78.95% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. TMO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.89 | ||
| Fwd PE | 25.12 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TMO indicates a somewhat cheap valuation: TMO is cheaper than 68.42% of the companies listed in the same industry.
- 70.18% of the companies in the same industry are more expensive than TMO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.41 | ||
| EV/EBITDA | 24.46 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TMO does not grow enough to justify the current Price/Earnings ratio.
- TMO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.48
PEG (5Y)2.3
EPS Next 2Y6.65%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
- TMO has a yearly dividend return of 0.28%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.09, TMO pays a better dividend. On top of this TMO pays more dividend than 85.96% of the companies listed in the same industry.
- With a Dividend Yield of 0.28, TMO pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
5.2 History
- The dividend of TMO is nicely growing with an annual growth rate of 15.42%!
- TMO has paid a dividend for at least 10 years, which is a reliable track record.
- TMO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.42%
Div Incr Years7
Div Non Decr Years12
5.3 Sustainability
- TMO pays out 9.48% of its income as dividend. This is a sustainable payout ratio.
- The dividend of TMO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.48%
EPS Next 2Y6.65%
EPS Next 3Y7.9%
624.65
+2.82 (+0.45%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)10-22 2025-10-22/bmo
Earnings (Next)01-29 2026-01-29/amc
Inst Owners92.78%
Inst Owner Change-0.14%
Ins Owners0.1%
Ins Owner Change4.79%
Market Cap234.69B
Revenue(TTM)43.74B
Net Income(TTM)6.57B
Analysts83.13
Price Target646.25 (3.46%)
Short Float %1.36%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
Yearly Dividend1.52
Dividend Growth(5Y)15.42%
DP9.48%
Div Incr Years7
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.99%
Min EPS beat(2)1.61%
Max EPS beat(2)4.37%
EPS beat(4)3
Avg EPS beat(4)1.9%
Min EPS beat(4)-0.07%
Max EPS beat(4)4.37%
EPS beat(8)5
Avg EPS beat(8)2.24%
EPS beat(12)7
Avg EPS beat(12)1.19%
EPS beat(16)11
Avg EPS beat(16)4.2%
Revenue beat(2)2
Avg Revenue beat(2)0.79%
Min Revenue beat(2)0.62%
Max Revenue beat(2)0.95%
Revenue beat(4)4
Avg Revenue beat(4)0.47%
Min Revenue beat(4)0.04%
Max Revenue beat(4)0.95%
Revenue beat(8)6
Avg Revenue beat(8)0.12%
Revenue beat(12)7
Avg Revenue beat(12)0.36%
Revenue beat(16)11
Avg Revenue beat(16)2.75%
PT rev (1m)2.37%
PT rev (3m)14.12%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.89 | ||
| Fwd PE | 25.12 | ||
| P/S | 5.37 | ||
| P/FCF | 38.41 | ||
| P/OCF | 30.68 | ||
| P/B | 4.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.46 |
EPS(TTM)22.4
EY3.59%
EPS(NY)24.86
Fwd EY3.98%
FCF(TTM)16.26
FCFY2.6%
OCF(TTM)20.36
OCFY3.26%
SpS116.41
BVpS135.81
TBVpS-38.61
PEG (NY)5.48
PEG (5Y)2.3
Graham Number261.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 12.88% | ||
| ROCE | 9.13% | ||
| ROIC | 7.21% | ||
| ROICexc | 7.52% | ||
| ROICexgc | 33.37% | ||
| OM | 18.4% | ||
| PM (TTM) | 15.02% | ||
| GM | 41.43% | ||
| FCFM | 13.97% |
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.8%
ROE(5y)15.76%
ROIC(3y)7.48%
ROIC(5y)8.55%
ROICexc(3y)8.22%
ROICexc(5y)9.55%
ROICexgc(3y)40.87%
ROICexgc(5y)46.64%
ROCE(3y)9.48%
ROCE(5y)10.9%
ROICexgc growth 3Y-8.22%
ROICexgc growth 5Y1.35%
ROICexc growth 3Y-8.88%
ROICexc growth 5Y2.89%
OM growth 3Y-12.04%
OM growth 5Y1.61%
PM growth 3Y-9.15%
PM growth 5Y0.42%
GM growth 3Y-6.24%
GM growth 5Y-1.42%
F-Score8
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.84 | ||
| Debt/EBITDA | 2.94 | ||
| Cap/Depr | 55.1% | ||
| Cap/Sales | 3.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.55% | ||
| Profit Quality | 93% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | N/A |
F-Score8
WACC10.71%
ROIC/WACC0.67
Cap/Depr(3y)51.6%
Cap/Depr(5y)63.11%
Cap/Sales(3y)3.9%
Cap/Sales(5y)4.54%
Profit Quality(3y)109.9%
Profit Quality(5y)104.9%
High Growth Momentum
Growth
EPS 1Y (TTM)4.53%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%9.66%
EPS Next Y5.08%
EPS Next 2Y6.65%
EPS Next 3Y7.9%
EPS Next 5Y9.66%
Revenue 1Y (TTM)3.22%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%4.94%
Revenue Next Year3.54%
Revenue Next 2Y4.26%
Revenue Next 3Y4.7%
Revenue Next 5Y4.65%
EBIT growth 1Y8.68%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year15.31%
EBIT Next 3Y9.32%
EBIT Next 5Y9.16%
FCF growth 1Y-6.66%
FCF growth 3Y2.29%
FCF growth 5Y12.42%
OCF growth 1Y-6.36%
OCF growth 3Y-2.36%
OCF growth 5Y11.75%
THERMO FISHER SCIENTIFIC INC / TMO FAQ
What is the ChartMill fundamental rating of THERMO FISHER SCIENTIFIC INC (TMO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TMO.
What is the valuation status of THERMO FISHER SCIENTIFIC INC (TMO) stock?
ChartMill assigns a valuation rating of 4 / 10 to THERMO FISHER SCIENTIFIC INC (TMO). This can be considered as Fairly Valued.
What is the profitability of TMO stock?
THERMO FISHER SCIENTIFIC INC (TMO) has a profitability rating of 7 / 10.
What is the financial health of THERMO FISHER SCIENTIFIC INC (TMO) stock?
The financial health rating of THERMO FISHER SCIENTIFIC INC (TMO) is 4 / 10.
What is the expected EPS growth for THERMO FISHER SCIENTIFIC INC (TMO) stock?
The Earnings per Share (EPS) of THERMO FISHER SCIENTIFIC INC (TMO) is expected to grow by 5.08% in the next year.