THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
NYSE:TMO - New York Stock Exchange, Inc. - US8835561023 - Common Stock - Currency: USD
TMO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 55 industry peers in the Life Sciences Tools & Services industry. TMO has an excellent profitability rating, but 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
In the past year TMO was profitable.
TMO had a positive operating cash flow in the past year.
Each year in the past 5 years TMO has been profitable.
TMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TMO's Return On Assets of 6.58% is amongst the best of the industry. TMO outperforms 87.27% of its industry peers.
With an excellent Return On Equity value of 13.19%, TMO belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
TMO's Return On Invested Capital of 7.21% is fine compared to the rest of the industry. TMO outperforms 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TMO is significantly below the industry average of 13.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 13.19% | ||
| ROIC | 7.21% |
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.81%
ROE(5y)15.77%
ROIC(3y)7.48%
ROIC(5y)8.55%
1.3 Margins
The Profit Margin of TMO (15.19%) is better than 89.09% of its industry peers.
TMO's Profit Margin has been stable in the last couple of years.
The Operating Margin of TMO (18.27%) is better than 83.64% of its industry peers.
TMO's Operating Margin has improved in the last couple of years.
The Gross Margin of TMO (41.34%) 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 | 18.27% | ||
| PM (TTM) | 15.19% | ||
| GM | 41.34% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TMO 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.
TMO has a better debt/assets ratio than last year.
2.2 Solvency
TMO has an Altman-Z score of 3.45. This indicates that TMO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.45, TMO is in the better half of the industry, outperforming 70.91% of the companies in the same industry.
TMO has a debt to FCF ratio of 5.08. This is a neutral value as TMO would need 5.08 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.08, TMO is in the better half of the industry, outperforming 65.45% of the companies in the same industry.
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 69.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 3.45 |
ROIC/WACC0.73
WACC9.83%
2.3 Liquidity
TMO has a Current Ratio of 1.77. This is a normal value and indicates that TMO is financially healthy and should not expect problems in meeting its short term obligations.
TMO has a worse Current ratio (1.77) than 65.45% of its industry peers.
A Quick Ratio of 1.38 indicates that TMO should not have too much problems paying its short term obligations.
TMO has a worse Quick ratio (1.38) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.30% 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 0.96% 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)1.3%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%0.78%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%0.18%
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 8.79% on average per year.
TMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.89% yearly.
EPS Next Y3.15%
EPS Next 2Y6.79%
EPS Next 3Y8.38%
EPS Next 5Y8.79%
Revenue Next Year2.15%
Revenue Next 2Y4.1%
Revenue Next 3Y5.02%
Revenue Next 5Y4.89%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 18.51, the valuation of TMO can be described as rather expensive.
Based on the Price/Earnings ratio, TMO is valued cheaper than 83.64% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.15. TMO is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.26, the valuation of TMO can be described as correct.
Based on the Price/Forward Earnings ratio, TMO is valued cheaply inside the industry as 85.45% of the companies are valued more expensively.
TMO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 16.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TMO is valued cheaper than 81.82% of the companies in the same industry.
TMO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TMO is cheaper than 78.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.76 | ||
| EV/EBITDA | 16.69 |
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)5.88
PEG (5Y)1.53
EPS Next 2Y6.79%
EPS Next 3Y8.38%
5. Dividend
5.1 Amount
TMO has a yearly dividend return of 0.42%, which is pretty low.
TMO's Dividend Yield is rather good when compared to the industry average which is at 0.51. TMO pays more dividend than 89.09% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, TMO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
5.2 History
The dividend of TMO is nicely growing with an annual growth rate of 15.37%!
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)15.37%
Div Incr Years7
Div Non Decr Years12
5.3 Sustainability
TMO pays out 9.16% 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.
DP9.16%
EPS Next 2Y6.79%
EPS Next 3Y8.38%
405.46
-2.82 (-0.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners92.22%
Inst Owner Change0.08%
Ins Owners0.1%
Ins Owner Change4.43%
Market Cap153.06B
Analysts81.11
Price Target567.31 (39.92%)
Short Float %1.26%
Short Ratio1.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Yearly Dividend1.52
Dividend Growth(5Y)15.37%
DP9.16%
Div Incr Years7
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.81%
Min EPS beat(2)-0.07%
Max EPS beat(2)1.69%
EPS beat(4)2
Avg EPS beat(4)1.26%
Min EPS beat(4)-0.34%
Max EPS beat(4)3.75%
EPS beat(8)4
Avg EPS beat(8)0.79%
EPS beat(12)7
Avg EPS beat(12)1.85%
EPS beat(16)11
Avg EPS beat(16)5.33%
Revenue beat(2)2
Avg Revenue beat(2)0.16%
Min Revenue beat(2)0.04%
Max Revenue beat(2)0.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-1.36%
Max Revenue beat(4)0.28%
Revenue beat(8)4
Avg Revenue beat(8)-0.68%
Revenue beat(12)7
Avg Revenue beat(12)1.53%
Revenue beat(16)11
Avg Revenue beat(16)3.62%
PT rev (1m)-1.97%
PT rev (3m)-15.77%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-6.53%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-4.33%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 16.26 | ||
| P/S | 3.57 | ||
| P/FCF | 22.76 | ||
| P/OCF | 18.8 | ||
| P/B | 3.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.69 |
EPS(TTM)21.9
EY5.4%
EPS(NY)24.93
Fwd EY6.15%
FCF(TTM)17.82
FCFY4.39%
OCF(TTM)21.56
OCFY5.32%
SpS113.64
BVpS130.84
TBVpS-32.92
PEG (NY)5.88
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 13.19% | ||
| ROCE | 9.13% | ||
| ROIC | 7.21% | ||
| ROICexc | 7.75% | ||
| ROICexgc | 34.2% | ||
| OM | 18.27% | ||
| PM (TTM) | 15.19% | ||
| GM | 41.34% | ||
| FCFM | 15.68% |
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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.08 | ||
| Debt/EBITDA | 2.9 | ||
| Cap/Depr | 47.53% | ||
| Cap/Sales | 3.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.27% | ||
| Profit Quality | 103.22% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 3.45 |
F-Score8
WACC9.83%
ROIC/WACC0.73
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)1.3%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%0.78%
EPS Next Y3.15%
EPS Next 2Y6.79%
EPS Next 3Y8.38%
EPS Next 5Y8.79%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%0.18%
Revenue Next Year2.15%
Revenue Next 2Y4.1%
Revenue Next 3Y5.02%
Revenue Next 5Y4.89%
EBIT growth 1Y6.86%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year12.01%
EBIT Next 3Y9.78%
EBIT Next 5Y8.38%
FCF growth 1Y19.66%
FCF growth 3Y2.29%
FCF growth 5Y12.42%
OCF growth 1Y5.98%
OCF growth 3Y-2.36%
OCF growth 5Y11.75%