THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TMO - US8835561023 - Common Stock
620.72 USD
+9.52 (+1.56%)
624.9 USD
+4.18 (+0.67%)
TMO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 57 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TMO was profitable.
In the past year TMO had a positive cash flow from operations.
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
TMO has a Return On Assets of 6.38%. This is amongst the best in the industry. TMO outperforms 84.21% of its industry peers.
TMO's Return On Equity of 12.88% is amongst the best of the industry. TMO outperforms 85.96% of its industry peers.
TMO has a Return On Invested Capital of 7.21%. This is in the better half of the industry: TMO outperforms 77.19% of its industry peers.
TMO had an Average Return On Invested Capital over the past 3 years of 7.48%. This is significantly below the industry average of 14.00%.
| 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 Profit Margin of 15.02%. This is amongst the best in the industry. TMO outperforms 84.21% of its industry peers.
TMO's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 18.40%, TMO belongs to the top of the industry, outperforming 82.46% of the companies in the same industry.
TMO's Operating Margin has improved in the last couple of years.
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.
Compared to 1 year ago, TMO has less shares outstanding
The number of shares outstanding for TMO has been reduced compared to 5 years ago.
TMO has a better debt/assets ratio than last year.
2.2 Solvency
TMO has a debt to FCF ratio of 5.84. This is a neutral value as TMO would need 5.84 years to pay back of 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.
TMO has a Debt/Equity ratio of 0.62. This is a neutral value indicating TMO is somewhat dependend on debt financing.
The Debt to Equity ratio of TMO (0.62) is worse than 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.68
WACC10.66%
2.3 Liquidity
TMO has a Current Ratio of 1.50. 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 Current ratio of 1.50 is on the low side compared to the rest of the industry. TMO is outperformed by 75.44% of its industry peers.
A Quick Ratio of 1.11 indicates that TMO should not have too much problems paying its short term obligations.
TMO has a worse Quick ratio (1.11) than 71.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
TMO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.53%.
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 3.22%.
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
TMO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.66% yearly.
The Revenue is expected to grow by 4.65% on average over the next years.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TMO is valuated quite expensively with a Price/Earnings ratio of 27.71.
TMO's Price/Earnings ratio is a bit cheaper when compared to the industry. TMO is cheaper than 77.19% 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 27.17, which is the current average of the S&P500 Index.
TMO is valuated rather expensively with a Price/Forward Earnings ratio of 24.96.
Based on the Price/Forward Earnings ratio, TMO is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
TMO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.71 | ||
| Fwd PE | 24.96 |
4.2 Price Multiples
TMO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TMO is cheaper than 68.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TMO is valued a bit cheaper than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.17 | ||
| EV/EBITDA | 24 |
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)5.45
PEG (5Y)2.29
EPS Next 2Y6.65%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
With a yearly dividend of 0.30%, TMO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.09, TMO pays a better dividend. On top of this TMO pays more dividend than 84.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, TMO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.42%
Div Incr Years7
Div Non Decr Years12
5.3 Sustainability
TMO pays out 9.48% of its income as dividend. This is a sustainable payout ratio.
TMO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP9.48%
EPS Next 2Y6.65%
EPS Next 3Y7.9%
620.72
+9.52 (+1.56%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners92.78%
Inst Owner Change-0.04%
Ins Owners0.1%
Ins Owner Change4.79%
Market Cap233.21B
Revenue(TTM)43.74B
Net Income(TTM)6.57B
Analysts81.29
Price Target646.25 (4.11%)
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)14.12%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.71 | ||
| Fwd PE | 24.96 | ||
| P/S | 5.33 | ||
| P/FCF | 38.17 | ||
| P/OCF | 30.49 | ||
| P/B | 4.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24 |
EPS(TTM)22.4
EY3.61%
EPS(NY)24.86
Fwd EY4.01%
FCF(TTM)16.26
FCFY2.62%
OCF(TTM)20.36
OCFY3.28%
SpS116.41
BVpS135.81
TBVpS-38.61
PEG (NY)5.45
PEG (5Y)2.29
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
WACC10.66%
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.