THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TMO - US8835561023 - Common Stock
636.3 USD
+17.29 (+2.79%)
636.3 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 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.
- TMO had positive earnings in each of the past 5 years.
- In the past 5 years TMO always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.38%, TMO belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
- TMO's Return On Equity of 12.88% is amongst the best of the industry. TMO outperforms 85.96% of its industry peers.
- The Return On Invested Capital of TMO (7.21%) is better than 77.19% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital 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's Profit Margin of 15.02% is amongst the best of the industry. TMO outperforms 84.21% of its industry peers.
- TMO's Profit Margin has been stable in the last couple of years.
- TMO has a better Operating Margin (18.40%) than 82.46% of its industry peers.
- In the last couple of years the Operating Margin of TMO has grown nicely.
- TMO's Gross Margin of 41.43% is in line compared to the rest of the industry. TMO outperforms 42.11% of 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
- 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.
- The number of shares outstanding for TMO has been reduced compared to 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 5.84. This is a neutral value as TMO would need 5.84 years to pay back of all of its debts.
- The Debt to FCF ratio of TMO (5.84) is better than 66.67% of its industry peers.
- A Debt/Equity ratio of 0.62 indicates that TMO is somewhat dependend on debt financing.
- TMO has a worse Debt to Equity ratio (0.62) than 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.66
WACC10.89%
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 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
- 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%.
- TMO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.92% yearly.
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
- The Earnings Per Share is expected to grow by 9.66% on average over the next years. This is quite good.
- TMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.65% yearly.
EPS Next Y5.08%
EPS Next 2Y6.65%
EPS Next 3Y7.9%
EPS Next 5Y9.66%
Revenue Next Year3.54%
Revenue Next 2Y4.29%
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 28.41.
- Compared to the rest of the industry, the Price/Earnings ratio of TMO indicates a somewhat cheap valuation: TMO is cheaper than 77.19% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, TMO is valued at the same level.
- With a Price/Forward Earnings ratio of 25.59, TMO can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TMO indicates a somewhat cheap valuation: TMO is cheaper than 78.95% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.30, TMO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.41 | ||
| Fwd PE | 25.59 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TMO is valued a bit cheaper than 66.67% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, TMO is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.13 | ||
| EV/EBITDA | 24.27 |
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.
- TMO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.59
PEG (5Y)2.34
EPS Next 2Y6.65%
EPS Next 3Y7.9%
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 0.09. TMO pays more dividend than 84.21% 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 1.86.
| 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%
636.3
+17.29 (+2.79%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)10-22 2025-10-22/bmo
Earnings (Next)01-29 2026-01-29/amc
Inst Owners92.78%
Inst Owner Change-0.13%
Ins Owners0.1%
Ins Owner Change4.79%
Market Cap239.06B
Revenue(TTM)43.74B
Net Income(TTM)6.57B
Analysts83.13
Price Target661.6 (3.98%)
Short Float %1.04%
Short Ratio2.18
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)4.81%
PT rev (3m)16.83%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-1.13%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.41 | ||
| Fwd PE | 25.59 | ||
| P/S | 5.47 | ||
| P/FCF | 39.13 | ||
| P/OCF | 31.25 | ||
| P/B | 4.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.27 |
EPS(TTM)22.4
EY3.52%
EPS(NY)24.86
Fwd EY3.91%
FCF(TTM)16.26
FCFY2.56%
OCF(TTM)20.36
OCFY3.2%
SpS116.41
BVpS135.81
TBVpS-38.61
PEG (NY)5.59
PEG (5Y)2.34
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
WACC10.89%
ROIC/WACC0.66
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 2Y4.29%
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.