THERMO FISHER SCIENTIFIC INC (TMO)
US8835561023 - Common Stock
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.
In the past year TMO had a positive cash flow from operations.
In the past 5 years TMO has always been profitable.
In the past 5 years TMO always reported a positive cash flow from operatings.
1.2 Ratios
TMO's Return On Assets of 6.11% is amongst the best of the industry. TMO outperforms 89.09% of its industry peers.
TMO has a better Return On Equity (12.53%) than 85.45% of its industry peers.
TMO's Return On Invested Capital of 6.82% is fine compared to the rest of the industry. TMO outperforms 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TMO is below the industry average of 10.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 12.53% | ||
| 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
Looking at the Profit Margin, with a value of 14.48%, TMO belongs to the top of the industry, outperforming 87.27% of the companies in the same industry.
In the last couple of years the Profit Margin of TMO has grown nicely.
With an excellent Operating Margin value of 17.48%, TMO belongs to the best of the industry, outperforming 83.64% of the companies in the same industry.
TMO's Operating Margin has been stable in the last couple of years.
The Gross Margin of TMO (40.98%) is comparable to the rest of the industry.
TMO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.48% | ||
| PM (TTM) | 14.48% | ||
| GM | 40.98% |
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.
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.
The debt/assets ratio for TMO has been reduced compared to a year ago.
2.2 Solvency
TMO has a debt to FCF ratio of 4.54. This is a neutral value as TMO would need 4.54 years to pay back of all of its debts.
TMO's Debt to FCF ratio of 4.54 is fine compared to the rest of the industry. TMO outperforms 74.55% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that TMO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, TMO is not doing good in the industry: 69.09% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 4.54 | ||
| Altman-Z | N/A |
ROIC/WACC0.63
WACC10.86%
2.3 Liquidity
A Current Ratio of 1.63 indicates that TMO should not have too much problems paying its short term obligations.
TMO's Current ratio of 1.63 is on the low side compared to the rest of the industry. TMO is outperformed by 72.73% 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.
The Quick ratio of TMO (1.26) is worse than 65.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.75% over the past year.
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.
TMO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.96% yearly.
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
The Earnings Per Share is expected to grow by 10.42% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.05% on average over the next years.
EPS Next Y1.71%
EPS Next 2Y4.94%
EPS Next 3Y7.01%
EPS Next 5Y10.42%
Revenue Next Year0.04%
Revenue Next 2Y2.68%
Revenue Next 3Y4.14%
Revenue Next 5Y5.05%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
Based on the Price/Earnings ratio of 24.08, the valuation of TMO can be described as rather expensive.
83.64% of the companies in the same industry are more expensive than TMO, based on the Price/Earnings ratio.
TMO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.96.
Based on the Price/Forward Earnings ratio of 21.76, the valuation of TMO can be described as rather expensive.
80.00% of the companies in the same industry are more expensive than TMO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TMO to the average of the S&P500 Index (23.82), we can say TMO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.08 | ||
| Fwd PE | 21.76 |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than TMO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TMO is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.39 | ||
| EV/EBITDA | 21.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TMO may justify a higher PE ratio.
PEG (NY)14.04
PEG (5Y)1.7
EPS Next 2Y4.94%
EPS Next 3Y7.01%
5. Dividend
5.1 Amount
With a yearly dividend of 0.29%, 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 0.69. TMO pays more dividend than 89.09% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, TMO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
5.2 History
The dividend of TMO is nicely growing with an annual growth rate of 15.23%!
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)15.23%
Div Incr Years6
Div Non Decr Years11
5.3 Sustainability
TMO pays out 9.29% 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.
DP9.29%
EPS Next 2Y4.94%
EPS Next 3Y7.01%
THERMO FISHER SCIENTIFIC INC
NYSE:TMO (11/21/2024, 8:04:00 PM)
After market: 516.1 0 (0%)516.1
+3.26 (+0.64%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap197.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.08 | ||
| Fwd PE | 21.76 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)14.04
PEG (5Y)1.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 12.53% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.48% | ||
| PM (TTM) | 14.48% | ||
| GM | 40.98% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)0.75%
EPS 3Y3.28%
EPS 5Y
EPS Q2Q%
EPS Next Y1.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.42%
Revenue growth 3Y9.98%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y