THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TMO - US8835561023 - Common Stock
618.86 USD
+12.36 (+2.04%)
618.86 USD
0 (0%)
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
TMO had positive earnings in the past year.
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
The Return On Assets of TMO (6.38%) is better than 84.21% of its industry peers.
With an excellent Return On Equity value of 12.88%, TMO belongs to the best of the industry, outperforming 85.96% of the companies in the same industry.
TMO has a better Return On Invested Capital (7.21%) than 77.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TMO is significantly below the industry average of 13.75%.
| 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 better Profit Margin (15.02%) than 84.21% of its industry peers.
In the last couple of years the Profit Margin of TMO has remained more or less at the same level.
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.
In the last couple of years the Operating Margin of TMO has grown nicely.
TMO has a Gross Margin (41.43%) which is in line with its industry peers.
In the last couple of years the Gross Margin of TMO has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TMO 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.
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.
With a decent Debt to FCF ratio value of 5.84, TMO is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that TMO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.62, TMO is doing worse than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.67
WACC10.7%
2.3 Liquidity
A Current Ratio of 1.50 indicates that TMO should not have too much problems paying its short term obligations.
TMO has a Current ratio of 1.50. This is in the lower half of the industry: TMO underperforms 73.68% of its industry peers.
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 70.18% 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.
Measured over the past years, TMO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.12% on average per year.
TMO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.22%.
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
Based on estimates for the next years, TMO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.66% on average per year.
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
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
The Price/Earnings ratio is 27.63, which means the current valuation is very expensive for TMO.
77.19% of the companies in the same industry are more expensive than TMO, based on the Price/Earnings ratio.
TMO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.89, TMO is valued on the expensive side.
TMO's Price/Forward Earnings ratio is rather cheap when compared to the industry. TMO is cheaper than 80.70% of the companies in the same industry.
TMO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.63 | ||
| Fwd PE | 24.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TMO is valued a bit cheaper than 70.18% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TMO indicates a somewhat cheap valuation: TMO is cheaper than 70.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.05 | ||
| EV/EBITDA | 24.26 |
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)5.43
PEG (5Y)2.28
EPS Next 2Y6.65%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
With a yearly dividend of 0.28%, 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 85.96% of the companies listed in the same industry.
With a Dividend Yield of 0.28, TMO pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
5.2 History
On average, the dividend of TMO grows each year by 15.42%, 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 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
TMO pays out 9.48% 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.
DP9.48%
EPS Next 2Y6.65%
EPS Next 3Y7.9%
618.86
+12.36 (+2.04%)
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 Cap232.51B
Revenue(TTM)43.74B
Net Income(TTM)6.57B
Analysts83.13
Price Target646.25 (4.43%)
Short Float %1.36%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
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)2.37%
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 | 27.63 | ||
| Fwd PE | 24.89 | ||
| P/S | 5.32 | ||
| P/FCF | 38.05 | ||
| P/OCF | 30.39 | ||
| P/B | 4.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.26 |
EPS(TTM)22.4
EY3.62%
EPS(NY)24.86
Fwd EY4.02%
FCF(TTM)16.26
FCFY2.63%
OCF(TTM)20.36
OCFY3.29%
SpS116.41
BVpS135.81
TBVpS-38.61
PEG (NY)5.43
PEG (5Y)2.28
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
WACC10.7%
ROIC/WACC0.67
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.