THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
USA - NYSE:TMO - US8835561023 - Common Stock
565 USD
+6.69 (+1.2%)
Taking everything into account, TMO scores 5 out of 10 in our fundamental rating. TMO was compared to 58 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 has a decent growth rate and is not valued too expensively.
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.
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 82.76% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.88%, TMO belongs to the top of the industry, outperforming 84.48% 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 77.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TMO is significantly below the industry average of 13.49%.
| 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
Looking at the Profit Margin, with a value of 15.02%, TMO belongs to the top of the industry, outperforming 84.48% of the companies in the same industry.
TMO's Profit Margin has been stable in the last couple of years.
The Operating Margin of TMO (18.40%) is better than 82.76% 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.
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 65.52% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that TMO is somewhat dependend on debt financing.
TMO has a Debt to Equity ratio of 0.62. This is in the lower half of the industry: TMO underperforms 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.7
WACC10.24%
2.3 Liquidity
A Current Ratio of 1.50 indicates that TMO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.50, TMO is doing worse than 74.14% of the companies in the same industry.
A Quick Ratio of 1.11 indicates that TMO should not have too much problems paying its short term obligations.
The Quick ratio of TMO (1.11) is worse than 72.41% 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.
TMO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.12% yearly.
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
The Earnings Per Share is expected to grow by 9.78% on average over the next years. This is quite good.
TMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.62% yearly.
EPS Next Y3.97%
EPS Next 2Y6.16%
EPS Next 3Y7.56%
EPS Next 5Y9.78%
Revenue Next Year2.82%
Revenue Next 2Y3.82%
Revenue Next 3Y4.52%
Revenue Next 5Y4.62%
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.
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
With a Price/Earnings ratio of 25.22, TMO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TMO is valued a bit cheaper than the industry average as 77.59% of the companies are valued more expensively.
TMO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.76.
The Price/Forward Earnings ratio is 22.93, which indicates a rather expensive current valuation of TMO.
81.03% 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 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.22 | ||
| Fwd PE | 22.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TMO is valued a bit cheaper than the industry average as 77.59% of the companies are valued more expensively.
TMO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TMO is cheaper than 67.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.92 | ||
| EV/EBITDA | 22.26 |
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)6.35
PEG (5Y)2.08
EPS Next 2Y6.16%
EPS Next 3Y7.56%
5. Dividend
5.1 Amount
With a yearly dividend of 0.31%, TMO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.47, TMO pays a better dividend. On top of this TMO pays more dividend than 86.21% of the companies listed in the same industry.
With a Dividend Yield of 0.31, TMO pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
5.2 History
On average, the dividend of TMO grows each year by 15.42%, which is quite nice.
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 2Y6.16%
EPS Next 3Y7.56%
NYSE:TMO (10/30/2025, 12:06:03 PM)
565
+6.69 (+1.2%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.65%
Inst Owner Change0.29%
Ins Owners0.09%
Ins Owner Change0.53%
Market Cap213.35B
Revenue(TTM)43.74B
Net Income(TTM)6.57B
Analysts81.76
Price Target624.54 (10.54%)
Short Float %1.04%
Short Ratio1.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
Yearly Dividend1.52
Dividend Growth(5Y)15.42%
DP9.48%
Div Incr Years7
Div Non Decr Years12
Ex-Date
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)-0.12%
PT rev (3m)1.52%
EPS NQ rev (1m)0.34%
EPS NQ rev (3m)1.86%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.22 | ||
| Fwd PE | 22.93 | ||
| P/S | 4.88 | ||
| P/FCF | 34.92 | ||
| P/OCF | 27.89 | ||
| P/B | 4.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.26 |
EPS(TTM)22.4
EY3.96%
EPS(NY)24.63
Fwd EY4.36%
FCF(TTM)16.18
FCFY2.86%
OCF(TTM)20.26
OCFY3.59%
SpS115.82
BVpS135.12
TBVpS-38.41
PEG (NY)6.35
PEG (5Y)2.08
Graham Number260.96
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
WACC10.24%
ROIC/WACC0.7
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 Y3.97%
EPS Next 2Y6.16%
EPS Next 3Y7.56%
EPS Next 5Y9.78%
Revenue 1Y (TTM)3.22%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%4.94%
Revenue Next Year2.82%
Revenue Next 2Y3.82%
Revenue Next 3Y4.52%
Revenue Next 5Y4.62%
EBIT growth 1Y8.68%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year13.53%
EBIT Next 3Y9.14%
EBIT Next 5Y8.68%
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.
Can you provide the valuation status for THERMO FISHER SCIENTIFIC INC?
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 valuation of THERMO FISHER SCIENTIFIC INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for THERMO FISHER SCIENTIFIC INC (TMO) is 25.22 and the Price/Book (PB) ratio is 4.18.
Can you provide the expected EPS growth for TMO stock?
The Earnings per Share (EPS) of THERMO FISHER SCIENTIFIC INC (TMO) is expected to grow by 3.97% in the next year.