THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TMO - US8835561023 - Common Stock
590.83 USD
-2.42 (-0.41%)
590.83 USD
0 (0%)
Overall TMO gets a fundamental rating of 5 out of 10. We evaluated TMO against 58 industry peers in the Life Sciences Tools & Services industry. While TMO has a great profitability rating, 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.
TMO had positive earnings in each of the past 5 years.
Each year in the past 5 years TMO had a positive operating cash flow.
1.2 Ratios
TMO has a better Return On Assets (6.38%) than 84.48% of its industry peers.
TMO has a Return On Equity of 12.88%. This is amongst the best in the industry. TMO outperforms 86.21% of its industry peers.
With a decent Return On Invested Capital value of 7.21%, TMO is doing good in the industry, outperforming 77.59% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TMO is significantly below the industry average of 13.53%.
| 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
The Profit Margin of TMO (15.02%) is better than 84.48% 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 82.76% of the companies in the same industry.
TMO's Operating Margin has improved in the last couple of years.
TMO has a Gross Margin of 41.43%. This is comparable to the rest of the industry: TMO outperforms 43.10% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TMO is destroying value.
TMO has less shares outstanding than it did 1 year ago.
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
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 65.52% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that TMO is somewhat dependend on debt financing.
TMO's Debt to Equity ratio of 0.62 is on the low side compared to the rest of the industry. TMO is outperformed by 67.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.73
WACC9.88%
2.3 Liquidity
A Current Ratio of 1.50 indicates that TMO should not have too much problems paying its short term obligations.
With a Current ratio value of 1.50, TMO is not doing good in the industry: 74.14% of the companies in the same industry are doing better.
A Quick Ratio of 1.11 indicates that TMO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.11, TMO is doing worse than 72.41% of the companies in the same industry.
| 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.
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
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.
Based on estimates for the next years, TMO will show a small growth in Revenue. The Revenue will grow by 4.65% on average per year.
EPS Next Y5.02%
EPS Next 2Y6.77%
EPS Next 3Y7.78%
EPS Next 5Y9.66%
Revenue Next Year3.49%
Revenue Next 2Y4.24%
Revenue Next 3Y4.65%
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.
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 26.38, the valuation of TMO can be described as expensive.
Based on the Price/Earnings ratio, TMO is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.31, TMO is valued at the same level.
TMO is valuated rather expensively with a Price/Forward Earnings ratio of 23.71.
Based on the Price/Forward Earnings ratio, TMO is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
TMO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.38 | ||
| Fwd PE | 23.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TMO is valued a bit cheaper than 77.59% 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 68.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.51 | ||
| EV/EBITDA | 23.48 |
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)5.25
PEG (5Y)2.18
EPS Next 2Y6.77%
EPS Next 3Y7.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.29%, TMO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.48, 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 0.29, TMO pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
5.2 History
The dividend of TMO is nicely growing with an annual growth rate of 15.42%!
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 2Y6.77%
EPS Next 3Y7.78%
590.83
-2.42 (-0.41%)
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 Change-0.39%
Ins Owners0.09%
Ins Owner Change-0.46%
Market Cap221.98B
Revenue(TTM)43.74B
Net Income(TTM)6.57B
Analysts80.63
Price Target625.32 (5.84%)
Short Float %1.17%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
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)10.43%
PT rev (3m)11.4%
EPS NQ rev (1m)-1.18%
EPS NQ rev (3m)-1.16%
EPS NY rev (1m)1.01%
EPS NY rev (3m)1%
Revenue NQ rev (1m)1.07%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.38 | ||
| Fwd PE | 23.71 | ||
| P/S | 5.1 | ||
| P/FCF | 36.51 | ||
| P/OCF | 29.16 | ||
| P/B | 4.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.48 |
EPS(TTM)22.4
EY3.79%
EPS(NY)24.92
Fwd EY4.22%
FCF(TTM)16.18
FCFY2.74%
OCF(TTM)20.26
OCFY3.43%
SpS115.82
BVpS135.12
TBVpS-38.41
PEG (NY)5.25
PEG (5Y)2.18
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
WACC9.88%
ROIC/WACC0.73
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 Y5.02%
EPS Next 2Y6.77%
EPS Next 3Y7.78%
EPS Next 5Y9.66%
Revenue 1Y (TTM)3.22%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%4.94%
Revenue Next Year3.49%
Revenue Next 2Y4.24%
Revenue Next 3Y4.65%
Revenue Next 5Y4.65%
EBIT growth 1Y8.68%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year13.53%
EBIT Next 3Y9.14%
EBIT Next 5Y9.93%
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 26.38 and the Price/Book (PB) ratio is 4.37.
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 5.02% in the next year.