THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TMO - US8835561023 - Common Stock
579.45 USD
-4 (-0.69%)
582.9 USD
+3.45 (+0.6%)
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. While TMO has a great profitability rating, 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.
In the past year TMO had a positive cash flow from operations.
TMO had positive earnings in each of the past 5 years.
In the past 5 years TMO always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.38%, TMO belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
With an excellent Return On Equity value of 12.88%, TMO belongs to the best of the industry, outperforming 85.96% of the companies in the same industry.
The Return On Invested Capital of TMO (7.21%) is better than 77.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TMO is significantly below the industry average of 13.99%.
| 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
TMO has a better Profit Margin (15.02%) than 84.21% of its industry peers.
TMO's Profit Margin has been stable in the last couple of years.
The Operating Margin of TMO (18.40%) is better than 82.46% of its industry peers.
In the last couple of years the Operating Margin of TMO has grown nicely.
The Gross Margin of TMO (41.43%) is comparable to the rest of the industry.
TMO's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for TMO has been reduced compared to 1 year ago.
TMO has less shares outstanding than it did 5 years ago.
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.
Looking at the Debt to FCF ratio, with a value of 5.84, TMO is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that TMO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.62, TMO is doing worse than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.68
WACC10.6%
2.3 Liquidity
A Current Ratio of 1.50 indicates that TMO should not have too much problems paying its short term obligations.
TMO has a worse Current ratio (1.50) than 75.44% of its industry peers.
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 71.93% 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.
The Earnings Per Share has been growing by 12.12% on average over the past years. This is quite good.
Looking at the last year, TMO shows a small growth in Revenue. The Revenue has grown by 3.22% in the last year.
The Revenue has been growing by 10.92% on average over the past years. This is quite good.
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
Based on estimates for the next years, TMO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.66% on average per year.
Based on estimates for the next years, TMO will show a small growth in Revenue. The Revenue will grow by 4.65% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.87 indicates a quite expensive valuation of TMO.
78.95% of the companies in the same industry are more expensive than TMO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.51, TMO is valued at the same level.
TMO is valuated rather expensively with a Price/Forward Earnings ratio of 23.30.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TMO indicates a somewhat cheap valuation: TMO is cheaper than 78.95% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. TMO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.87 | ||
| Fwd PE | 23.3 |
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 70.18% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TMO indicates a somewhat cheap valuation: TMO is cheaper than 68.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.63 | ||
| EV/EBITDA | 22.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TMO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.09
PEG (5Y)2.14
EPS Next 2Y6.65%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
TMO has a yearly dividend return of 0.30%, 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.
Compared to an average S&P500 Dividend Yield of 2.00, TMO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)15.42%
Div Incr Years7
Div Non Decr Years12
5.3 Sustainability
9.48% of the earnings are spent on dividend by TMO. This is a low number and 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%
579.45
-4 (-0.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners92.88%
Inst Owner Change-0.3%
Ins Owners0.09%
Ins Owner Change4.79%
Market Cap217.71B
Revenue(TTM)43.74B
Net Income(TTM)6.57B
Analysts81.29
Price Target646.25 (11.53%)
Short Float %1.36%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
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)3.35%
PT rev (3m)13.99%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-0.83%
EPS NY rev (1m)0.06%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.87 | ||
| Fwd PE | 23.3 | ||
| P/S | 4.98 | ||
| P/FCF | 35.63 | ||
| P/OCF | 28.46 | ||
| P/B | 4.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.9 |
EPS(TTM)22.4
EY3.87%
EPS(NY)24.86
Fwd EY4.29%
FCF(TTM)16.26
FCFY2.81%
OCF(TTM)20.36
OCFY3.51%
SpS116.41
BVpS135.81
TBVpS-38.61
PEG (NY)5.09
PEG (5Y)2.14
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
WACC10.6%
ROIC/WACC0.68
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.