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THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis

NYSE:TMO - New York Stock Exchange, Inc. - US8835561023 - Common Stock - Currency: USD

532.55  -5.28 (-0.98%)

After market: 532.55 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to TMO. 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 has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

7

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.
In the past 5 years TMO has always been profitable.
TMO had a positive operating cash flow in each of the past 5 years.
TMO Yearly Net Income VS EBIT VS OCF VS FCFTMO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

1.2 Ratios

Looking at the Return On Assets, with a value of 6.51%, TMO belongs to the top of the industry, outperforming 91.23% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.79%, TMO belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
With an excellent Return On Invested Capital value of 7.26%, TMO belongs to the best of the industry, outperforming 85.96% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TMO is below the industry average of 9.60%.
Industry RankSector Rank
ROA 6.51%
ROE 12.79%
ROIC 7.26%
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.81%
ROE(5y)15.77%
ROIC(3y)7.48%
ROIC(5y)8.55%
TMO Yearly ROA, ROE, ROICTMO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

The Profit Margin of TMO (14.78%) is better than 89.47% of its industry peers.
TMO's Profit Margin has been stable in the last couple of years.
The Operating Margin of TMO (17.99%) is better than 84.21% of its industry peers.
TMO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 41.47%, 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 RankSector Rank
OM 17.99%
PM (TTM) 14.78%
GM 41.47%
OM growth 3Y-12.04%
OM growth 5Y1.61%
PM growth 3Y-9.15%
PM growth 5Y0.42%
GM growth 3Y-5.61%
GM growth 5Y-1.03%
TMO Yearly Profit, Operating, Gross MarginsTMO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TMO is destroying value.
TMO has less shares outstanding than it did 1 year ago.
TMO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TMO has been reduced compared to a year ago.
TMO Yearly Shares OutstandingTMO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
TMO Yearly Total Debt VS Total AssetsTMO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

2.2 Solvency

TMO has a debt to FCF ratio of 4.30. This is a neutral value as TMO would need 4.30 years to pay back of all of its debts.
The Debt to FCF ratio of TMO (4.30) is better than 73.68% of its industry peers.
TMO has a Debt/Equity ratio of 0.59. This is a neutral value indicating TMO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.59, TMO is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.59
Debt/FCF 4.3
Altman-Z N/A
ROIC/WACC0.66
WACC11.05%
TMO Yearly LT Debt VS Equity VS FCFTMO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.3 Liquidity

TMO has a Current Ratio of 1.66. This is a normal value and indicates that TMO is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.66, TMO is not doing good in the industry: 68.42% of the companies in the same industry are doing better.
A Quick Ratio of 1.29 indicates that TMO should not have too much problems paying its short term obligations.
TMO's Quick ratio of 1.29 is on the low side compared to the rest of the industry. TMO is outperformed by 64.91% of its industry peers.
Industry RankSector Rank
Current Ratio 1.66
Quick Ratio 1.29
TMO Yearly Current Assets VS Current LiabilitesTMO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.49% over the past year.
The Earnings Per Share has been growing by 12.12% on average over the past years. This is quite good.
TMO shows a small growth in Revenue. In the last year, the Revenue has grown by 0.05%.
The Revenue has been growing by 10.92% on average over the past years. This is quite good.
EPS 1Y (TTM)1.49%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%7.58%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%4.68%

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 11.71% on average per year.
Based on estimates for the next years, TMO will show a small growth in Revenue. The Revenue will grow by 5.61% on average per year.
EPS Next Y7.66%
EPS Next 2Y9.02%
EPS Next 3Y10.26%
EPS Next 5Y11.71%
Revenue Next Year3.08%
Revenue Next 2Y4.86%
Revenue Next 3Y5.51%
Revenue Next 5Y5.61%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same 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.
TMO Yearly Revenue VS EstimatesTMO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B 50B
TMO Yearly EPS VS EstimatesTMO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10 20 30

5

4. Valuation

4.1 Price/Earnings Ratio

TMO is valuated rather expensively with a Price/Earnings ratio of 24.36.
Based on the Price/Earnings ratio, TMO is valued cheaply inside the industry as 85.96% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TMO to the average of the S&P500 Index (29.63), we can say TMO is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 22.63, the valuation of TMO can be described as rather expensive.
78.95% of the companies in the same industry are more expensive than TMO, based on the Price/Forward Earnings ratio.
TMO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
Industry RankSector Rank
PE 24.36
Fwd PE 22.63
TMO Price Earnings VS Forward Price EarningsTMO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TMO is valued cheaply inside the industry as 82.46% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TMO is valued cheaply inside the industry as 80.70% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 28.03
EV/EBITDA 21.24
TMO Per share dataTMO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100

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.
The decent profitability rating of TMO may justify a higher PE ratio.
PEG (NY)3.18
PEG (5Y)2.01
EPS Next 2Y9.02%
EPS Next 3Y10.26%

6

5. Dividend

5.1 Amount

With a yearly dividend of 0.32%, TMO is not a good candidate for dividend investing.
TMO's Dividend Yield is rather good when compared to the industry average which is at 0.42. TMO pays more dividend than 87.72% of the companies in the same industry.
With a Dividend Yield of 0.32, TMO pays less dividend than the S&P500 average, which is at 2.29.
Industry RankSector Rank
Dividend Yield 0.32%

5.2 History

The dividend of TMO is nicely growing with an annual growth rate of 15.37%!
TMO has been paying a dividend for at least 10 years, so it has 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)15.37%
Div Incr Years7
Div Non Decr Years12
TMO Yearly Dividends per shareTMO Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

TMO pays out 9.20% 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.
DP9.2%
EPS Next 2Y9.02%
EPS Next 3Y10.26%
TMO Yearly Income VS Free CF VS DividendTMO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B
TMO Dividend Payout.TMO Dividend Payout, showing the Payout Ratio.TMO Dividend Payout.PayoutRetained Earnings

THERMO FISHER SCIENTIFIC INC

NYSE:TMO (2/21/2025, 8:04:00 PM)

After market: 532.55 0 (0%)

532.55

-5.28 (-0.98%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)01-30 2025-01-30/bmo
Earnings (Next)07-22 2025-07-22/bmo
Inst Owners91.19%
Inst Owner Change-0.47%
Ins Owners0.1%
Ins Owner Change-3.32%
Market Cap203.70B
Analysts81.62
Price Target678.98 (27.5%)
Short Float %1.03%
Short Ratio1.98
Dividend
Industry RankSector Rank
Dividend Yield 0.32%
Yearly Dividend1.52
Dividend Growth(5Y)15.37%
DP9.2%
Div Incr Years7
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.67%
Min EPS beat(2)-0.34%
Max EPS beat(2)1.69%
EPS beat(4)3
Avg EPS beat(4)3.13%
Min EPS beat(4)-0.34%
Max EPS beat(4)7.43%
EPS beat(8)4
Avg EPS beat(8)0.69%
EPS beat(12)8
Avg EPS beat(12)3.2%
EPS beat(16)12
Avg EPS beat(16)5.79%
Revenue beat(2)1
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-1.36%
Max Revenue beat(2)0.04%
Revenue beat(4)2
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-1.36%
Max Revenue beat(4)0.71%
Revenue beat(8)3
Avg Revenue beat(8)-0.79%
Revenue beat(12)7
Avg Revenue beat(12)2.34%
Revenue beat(16)11
Avg Revenue beat(16)3.66%
PT rev (1m)-1.05%
PT rev (3m)-3.1%
EPS NQ rev (1m)-5.93%
EPS NQ rev (3m)-10.02%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-0.79%
Revenue NQ rev (1m)-5.24%
Revenue NQ rev (3m)-8%
Revenue NY rev (1m)-1.71%
Revenue NY rev (3m)-2.2%
Valuation
Industry RankSector Rank
PE 24.36
Fwd PE 22.63
P/S 4.75
P/FCF 28.03
P/OCF 23.5
P/B 4.11
P/tB N/A
EV/EBITDA 21.24
EPS(TTM)21.86
EY4.1%
EPS(NY)23.53
Fwd EY4.42%
FCF(TTM)19
FCFY3.57%
OCF(TTM)22.66
OCFY4.25%
SpS112.1
BVpS129.55
TBVpS-30.94
PEG (NY)3.18
PEG (5Y)2.01
Profitability
Industry RankSector Rank
ROA 6.51%
ROE 12.79%
ROCE 9.19%
ROIC 7.26%
ROICexc 7.77%
ROICexgc 35.79%
OM 17.99%
PM (TTM) 14.78%
GM 41.47%
FCFM 16.95%
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.81%
ROE(5y)15.77%
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%
ROICexcg growth 3Y-8.22%
ROICexcg 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-5.61%
GM growth 5Y-1.03%
F-Score8
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 0.59
Debt/FCF 4.3
Debt/EBITDA 2.68
Cap/Depr 45.05%
Cap/Sales 3.27%
Interest Coverage 250
Cash Conversion 80.07%
Profit Quality 114.69%
Current Ratio 1.66
Quick Ratio 1.29
Altman-Z N/A
F-Score8
WACC11.05%
ROIC/WACC0.66
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)1.49%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%7.58%
EPS Next Y7.66%
EPS Next 2Y9.02%
EPS Next 3Y10.26%
EPS Next 5Y11.71%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%4.68%
Revenue Next Year3.08%
Revenue Next 2Y4.86%
Revenue Next 3Y5.51%
Revenue Next 5Y5.61%
EBIT growth 1Y5.44%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year18.02%
EBIT Next 3Y12.05%
EBIT Next 5Y10.41%
FCF growth 1Y4.91%
FCF growth 3Y2.29%
FCF growth 5Y12.42%
OCF growth 1Y3.1%
OCF growth 3Y-2.36%
OCF growth 5Y11.75%