THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
NYSE:TMO - New York Stock Exchange, Inc. - US8835561023 - Common Stock
We assign a fundamental rating of 5 out of 10 to TMO. TMO was compared to 56 industry peers in the Life Sciences Tools & Services industry. TMO scores excellent on profitability, 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.
In the past year TMO had a positive cash flow from operations.
In the past 5 years TMO has always been profitable.
TMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 6.11%, TMO belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
The Return On Equity of TMO (12.52%) is better than 87.50% of its industry peers.
TMO has a better Return On Invested Capital (6.82%) than 80.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TMO is in line with the industry average of 9.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 12.52% | ||
| 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
The Profit Margin of TMO (14.48%) is better than 89.29% of its industry peers.
In the last couple of years the Profit Margin of TMO has grown nicely.
TMO has a Operating Margin of 17.48%. This is amongst the best in the industry. TMO outperforms 83.93% of its industry peers.
TMO's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 40.77%, TMO is in line with its industry, outperforming 44.64% of the companies in the same 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 | 40.77% |
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
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.
TMO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TMO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.05 indicates that TMO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.05, TMO is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
The Debt to FCF ratio of TMO is 4.54, which is a neutral value as it means it would take TMO, 4.54 years of fcf income to pay off all of its debts.
TMO has a Debt to FCF ratio of 4.54. This is in the better half of the industry: TMO outperforms 71.43% of its industry peers.
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 worse Debt to Equity ratio (0.64) than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 4.54 | ||
| Altman-Z | 4.05 |
ROIC/WACC0.66
WACC10.26%
2.3 Liquidity
TMO has a Current Ratio of 1.63. This is a normal value and indicates that TMO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TMO (1.63) is worse than 71.43% of its industry peers.
A Quick Ratio of 1.26 indicates that TMO should not have too much problems paying its short term obligations.
TMO has a Quick ratio of 1.26. This is in the lower half of the industry: TMO underperforms 66.07% 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.
The Earnings Per Share has been growing by 14.14% on average over the past years. This is quite good.
The Revenue has decreased by -2.42% in the past year.
Measured over the past years, TMO shows a quite strong growth in Revenue. The Revenue has been growing by 11.96% on average per year.
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
TMO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.76% yearly.
Based on estimates for the next years, TMO will show a small growth in Revenue. The Revenue will grow by 4.70% on average per year.
EPS Next Y1.76%
EPS Next 2Y4.8%
EPS Next 3Y6.96%
EPS Next 5Y9.76%
Revenue Next Year0.06%
Revenue Next 2Y2.42%
Revenue Next 3Y3.93%
Revenue Next 5Y4.7%
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.
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
TMO is valuated quite expensively with a Price/Earnings ratio of 26.74.
Based on the Price/Earnings ratio, TMO is valued cheaply inside the industry as 83.93% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TMO to the average of the S&P500 Index (28.29), we can say TMO is valued inline with the index average.
With a Price/Forward Earnings ratio of 24.22, TMO is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TMO indicates a rather cheap valuation: TMO is cheaper than 80.36% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. TMO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.74 | ||
| Fwd PE | 24.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TMO indicates a rather cheap valuation: TMO is cheaper than 85.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TMO is valued cheaply inside the industry as 83.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.19 | ||
| EV/EBITDA | 23.17 |
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)15.2
PEG (5Y)1.89
EPS Next 2Y4.8%
EPS Next 3Y6.96%
5. Dividend
5.1 Amount
TMO has a yearly dividend return of 0.28%, which is pretty low.
TMO's Dividend Yield is rather good when compared to the industry average which is at 0.62. TMO pays more dividend than 89.29% of the companies in the same industry.
With a Dividend Yield of 0.28, TMO pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
5.2 History
On average, the dividend of TMO grows each year by 15.23%, 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)15.23%
Div Incr Years7
Div Non Decr Years12
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 2Y4.8%
EPS Next 3Y6.96%
THERMO FISHER SCIENTIFIC INC
NYSE:TMO (1/21/2025, 8:04:00 PM)
After market: 573.06 0 (0%)573.06
+13.41 (+2.4%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.95%
Inst Owner Change-0.54%
Ins Owners0.1%
Ins Owner Change-3.77%
Market Cap219.20B
Analysts80.54
Price Target665.2 (16.08%)
Short Float %0.92%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
Yearly Dividend1.35
Dividend Growth(5Y)15.23%
DP9.29%
Div Incr Years7
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.7%
Min EPS beat(2)-0.34%
Max EPS beat(2)3.75%
EPS beat(4)2
Avg EPS beat(4)2.58%
Min EPS beat(4)-0.54%
Max EPS beat(4)7.43%
EPS beat(8)4
Avg EPS beat(8)0.84%
EPS beat(12)8
Avg EPS beat(12)4.96%
EPS beat(16)12
Avg EPS beat(16)6.12%
Revenue beat(2)0
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-1.36%
Max Revenue beat(2)-0.71%
Revenue beat(4)2
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-1.36%
Max Revenue beat(4)0.71%
Revenue beat(8)3
Avg Revenue beat(8)0.3%
Revenue beat(12)7
Avg Revenue beat(12)3.51%
Revenue beat(16)11
Avg Revenue beat(16)4.23%
PT rev (1m)-0.29%
PT rev (3m)0.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.74 | ||
| Fwd PE | 24.22 | ||
| P/S | 5.17 | ||
| P/FCF | 28.19 | ||
| P/OCF | 24.08 | ||
| P/B | 4.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.17 |
EPS(TTM)21.43
EY3.74%
EPS(NY)23.66
Fwd EY4.13%
FCF(TTM)20.33
FCFY3.55%
OCF(TTM)23.79
OCFY4.15%
SpS110.77
BVpS128.08
TBVpS-36.59
PEG (NY)15.2
PEG (5Y)1.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 12.52% | ||
| ROCE | 8.64% | ||
| ROIC | 6.82% | ||
| ROICexc | 7.39% | ||
| ROICexgc | 36.27% | ||
| OM | 17.48% | ||
| PM (TTM) | 14.48% | ||
| GM | 40.77% | ||
| FCFM | 18.35% |
ROA(3y)7.12%
ROA(5y)7.38%
ROE(3y)15.86%
ROE(5y)15.7%
ROIC(3y)8.3%
ROIC(5y)8.38%
ROICexc(3y)9.05%
ROICexc(5y)9.35%
ROICexgc(3y)44.37%
ROICexgc(5y)46.17%
ROCE(3y)10.65%
ROCE(5y)10.69%
ROICexcg growth 3Y-17.37%
ROICexcg growth 5Y-1.96%
ROICexc growth 3Y-16.25%
ROICexc growth 5Y3.45%
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%
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 4.54 | ||
| Debt/EBITDA | 2.94 | ||
| Cap/Depr | 41.34% | ||
| Cap/Sales | 3.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.77% | ||
| Profit Quality | 126.73% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 4.05 |
F-Score6
WACC10.26%
ROIC/WACC0.66
Cap/Depr(3y)69.03%
Cap/Depr(5y)62.23%
Cap/Sales(3y)4.96%
Cap/Sales(5y)4.62%
Profit Quality(3y)100.96%
Profit Quality(5y)103.85%
High Growth Momentum
Growth
EPS 1Y (TTM)0.75%
EPS 3Y3.28%
EPS 5Y14.14%
EPS Q2Q%-7.21%
EPS Next Y1.76%
EPS Next 2Y4.8%
EPS Next 3Y6.96%
EPS Next 5Y9.76%
Revenue 1Y (TTM)-2.42%
Revenue growth 3Y9.98%
Revenue growth 5Y11.96%
Sales Q2Q%0.23%
Revenue Next Year0.06%
Revenue Next 2Y2.42%
Revenue Next 3Y3.93%
Revenue Next 5Y4.7%
EBIT growth 1Y1.45%
EBIT growth 3Y-2.38%
EBIT growth 5Y13.62%
EBIT Next Year11.51%
EBIT Next 3Y8.94%
EBIT Next 5Y8.61%
FCF growth 1Y38.86%
FCF growth 3Y0.54%
FCF growth 5Y12.85%
OCF growth 1Y12.03%
OCF growth 3Y0.47%
OCF growth 5Y13.1%