THERMO FISHER SCIENTIFIC INC (TMO)
US8835561023 - Common Stock
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.
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.
In the past 5 years TMO has always been profitable.
TMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.11%, TMO belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
TMO has a better Return On Equity (12.52%) than 85.71% of its industry peers.
The Return On Invested Capital of TMO (6.82%) is better than 80.36% of its industry peers.
TMO had an Average Return On Invested Capital over the past 3 years of 8.30%. This is in line with the industry average of 9.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 12.52% | ||
| ROIC | 6.82% |
ROA(3y)7.12%
ROA(5y)7.38%
ROE(3y)15.86%
ROE(5y)15.7%
ROIC(3y)8.3%
ROIC(5y)8.38%
1.3 Margins
TMO's Profit Margin of 14.48% is amongst the best of the industry. TMO outperforms 89.29% of its industry peers.
In the last couple of years the Profit Margin of TMO has grown nicely.
TMO's Operating Margin of 17.48% is amongst the best of the industry. TMO outperforms 83.93% of its industry peers.
In the last couple of years the Operating Margin of TMO has remained more or less at the same level.
TMO's Gross Margin of 40.77% is in line compared to the rest of the industry. TMO outperforms 44.64% of its industry peers.
In the last couple of years the Gross Margin of TMO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.48% | ||
| PM (TTM) | 14.48% | ||
| GM | 40.77% |
OM growth 3Y-11.24%
OM growth 5Y1.48%
PM growth 3Y-10.92%
PM growth 5Y3.01%
GM growth 3Y-7.01%
GM growth 5Y-2.19%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TMO is destroying value.
TMO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TMO has been reduced compared to 5 years ago.
The debt/assets ratio for TMO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.83 indicates that TMO is not in any danger for bankruptcy at the moment.
TMO has a better Altman-Z score (3.83) than 67.86% of its industry peers.
The Debt to FCF ratio of TMO is 4.54, which is a neutral value as it means it would take TMO, 4.54 years of fcf income to pay off all of its debts.
TMO's Debt to FCF ratio of 4.54 is fine compared to the rest of the industry. TMO outperforms 71.43% of its industry peers.
TMO has a Debt/Equity ratio of 0.64. This is a neutral value indicating TMO is somewhat dependend on debt financing.
TMO has a Debt to Equity ratio of 0.64. This is in the lower half of the industry: TMO underperforms 69.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 4.54 | ||
| Altman-Z | 3.83 |
ROIC/WACC0.63
WACC10.86%
2.3 Liquidity
TMO has a Current Ratio of 1.63. This is a normal value and indicates that TMO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TMO (1.63) is worse than 71.43% of its industry peers.
TMO has a Quick Ratio of 1.26. 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 1.26 is on the low side compared to the rest of the industry. TMO is outperformed by 66.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
TMO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.75%.
Measured over the past years, TMO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.14% on average per year.
The Revenue has decreased by -2.42% in the past year.
The Revenue has been growing by 11.96% on average over the past years. This is quite good.
EPS 1Y (TTM)0.75%
EPS 3Y3.28%
EPS 5Y14.14%
EPS Q2Q%-7.21%
Revenue 1Y (TTM)-2.42%
Revenue growth 3Y9.98%
Revenue growth 5Y11.96%
Sales Q2Q%0.23%
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 9.76% on average per year.
TMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.70% yearly.
EPS Next Y1.76%
EPS Next 2Y4.8%
EPS Next 3Y6.96%
EPS Next 5Y9.76%
Revenue Next Year0.06%
Revenue Next 2Y2.57%
Revenue Next 3Y4.1%
Revenue Next 5Y4.7%
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 24.45 indicates a rather expensive valuation of TMO.
Based on the Price/Earnings ratio, TMO is valued cheaper than 83.93% 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 27.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.15 indicates a rather expensive valuation of TMO.
Based on the Price/Forward Earnings ratio, TMO is valued cheaply inside the industry as 80.36% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.73. TMO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.45 | ||
| Fwd PE | 22.15 |
4.2 Price Multiples
TMO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TMO is cheaper than 83.93% of the companies in the same industry.
83.93% 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 | 25.78 | ||
| EV/EBITDA | 21.4 |
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)13.9
PEG (5Y)1.73
EPS Next 2Y4.8%
EPS Next 3Y6.96%
5. Dividend
5.1 Amount
With a yearly dividend of 0.30%, 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 0.66. TMO pays more dividend than 89.29% of the companies in the same industry.
With a Dividend Yield of 0.30, TMO pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
5.2 History
On average, the dividend of TMO grows each year by 15.23%, which is quite nice.
TMO has been paying a dividend for at least 10 years, so it has a reliable track record.
TMO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.23%
Div Incr Years7
Div Non Decr Years12
5.3 Sustainability
9.29% 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.
DP9.29%
EPS Next 2Y4.8%
EPS Next 3Y6.96%
THERMO FISHER SCIENTIFIC INC
NYSE:TMO (12/20/2024, 8:04:00 PM)
After market: 524.05 0 (0%)524.05
+7.36 (+1.42%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.95%
Inst Owner Change0.62%
Ins Owners0.1%
Ins Owner Change-3.77%
Market Cap200.45B
Analysts81.11
Price Target667.17 (27.31%)
Short Float %0.93%
Short Ratio1.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
Dividend Growth(5Y)15.23%
DP9.29%
Div Incr Years7
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.7%
Min EPS beat(2)-0.34%
Max EPS beat(2)3.75%
EPS beat(4)2
Avg EPS beat(4)2.58%
Min EPS beat(4)-0.54%
Max EPS beat(4)7.43%
EPS beat(8)4
Avg EPS beat(8)0.84%
EPS beat(12)8
Avg EPS beat(12)4.96%
EPS beat(16)12
Avg EPS beat(16)6.12%
Revenue beat(2)0
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-1.36%
Max Revenue beat(2)-0.71%
Revenue beat(4)2
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-1.36%
Max Revenue beat(4)0.71%
Revenue beat(8)3
Avg Revenue beat(8)0.3%
Revenue beat(12)7
Avg Revenue beat(12)3.51%
Revenue beat(16)11
Avg Revenue beat(16)4.23%
PT rev (1m)-1.78%
PT rev (3m)3.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.26%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.45 | ||
| Fwd PE | 22.15 | ||
| P/S | 4.73 | ||
| P/FCF | 25.78 | ||
| P/OCF | 22.02 | ||
| P/B | 4.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.4 |
EPS(TTM)21.43
EY4.09%
EPS(NY)23.66
Fwd EY4.51%
FCF(TTM)20.33
FCFY3.88%
OCF(TTM)23.79
OCFY4.54%
SpS110.77
BVpS128.08
TBVpS-36.59
PEG (NY)13.9
PEG (5Y)1.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 12.52% | ||
| ROCE | 8.64% | ||
| ROIC | 6.82% | ||
| ROICexc | 7.39% | ||
| ROICexgc | 36.27% | ||
| OM | 17.48% | ||
| PM (TTM) | 14.48% | ||
| GM | 40.77% | ||
| FCFM | 18.35% |
ROA(3y)7.12%
ROA(5y)7.38%
ROE(3y)15.86%
ROE(5y)15.7%
ROIC(3y)8.3%
ROIC(5y)8.38%
ROICexc(3y)9.05%
ROICexc(5y)9.35%
ROICexgc(3y)44.37%
ROICexgc(5y)46.17%
ROCE(3y)10.65%
ROCE(5y)10.69%
ROICexcg growth 3Y-17.37%
ROICexcg growth 5Y-1.96%
ROICexc growth 3Y-16.25%
ROICexc growth 5Y3.45%
OM growth 3Y-11.24%
OM growth 5Y1.48%
PM growth 3Y-10.92%
PM growth 5Y3.01%
GM growth 3Y-7.01%
GM growth 5Y-2.19%
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 4.54 | ||
| Debt/EBITDA | 2.94 | ||
| Cap/Depr | 41.34% | ||
| Cap/Sales | 3.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.77% | ||
| Profit Quality | 126.73% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 3.83 |
F-Score6
WACC10.86%
ROIC/WACC0.63
Cap/Depr(3y)69.03%
Cap/Depr(5y)62.23%
Cap/Sales(3y)4.96%
Cap/Sales(5y)4.62%
Profit Quality(3y)100.96%
Profit Quality(5y)103.85%
High Growth Momentum
Growth
EPS 1Y (TTM)0.75%
EPS 3Y3.28%
EPS 5Y14.14%
EPS Q2Q%-7.21%
EPS Next Y1.76%
EPS Next 2Y4.8%
EPS Next 3Y6.96%
EPS Next 5Y9.76%
Revenue 1Y (TTM)-2.42%
Revenue growth 3Y9.98%
Revenue growth 5Y11.96%
Sales Q2Q%0.23%
Revenue Next Year0.06%
Revenue Next 2Y2.57%
Revenue Next 3Y4.1%
Revenue Next 5Y4.7%
EBIT growth 1Y1.45%
EBIT growth 3Y-2.38%
EBIT growth 5Y13.62%
EBIT Next Year11.6%
EBIT Next 3Y9.4%
EBIT Next 5Y8.61%
FCF growth 1Y38.86%
FCF growth 3Y0.54%
FCF growth 5Y12.85%
OCF growth 1Y12.03%
OCF growth 3Y0.47%
OCF growth 5Y13.1%