THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
NYSE:TMO - New York Stock Exchange, Inc. - US8835561023 - Common Stock - Currency: USD
Overall TMO gets a fundamental rating of 6 out of 10. We evaluated TMO against 56 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TMO was profitable.
TMO had a positive operating cash flow in the past year.
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 has a better Return On Assets (6.51%) than 87.50% of its industry peers.
TMO's Return On Equity of 12.78% is amongst the best of the industry. TMO outperforms 87.50% of its industry peers.
TMO's Return On Invested Capital of 7.26% is amongst the best of the industry. TMO outperforms 80.36% of its industry peers.
TMO had an Average Return On Invested Capital over the past 3 years of 7.48%. This is below the industry average of 12.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.51% | ||
| ROE | 12.78% | ||
| ROIC | 7.26% |
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.81%
ROE(5y)15.77%
ROIC(3y)7.48%
ROIC(5y)8.55%
1.3 Margins
TMO's Profit Margin of 14.78% is amongst the best of the industry. TMO outperforms 89.29% of its industry peers.
In the last couple of years the Profit Margin of TMO has remained more or less at the same level.
With an excellent Operating Margin value of 17.99%, TMO belongs to the best of the industry, outperforming 83.93% 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 of 41.28%. This is comparable to the rest of the industry: TMO outperforms 41.07% of its industry peers.
TMO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.99% | ||
| PM (TTM) | 14.78% | ||
| GM | 41.28% |
OM growth 3Y-12.04%
OM growth 5Y1.61%
PM growth 3Y-9.15%
PM growth 5Y0.42%
GM growth 3Y-5.61%
GM growth 5Y-1.03%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for TMO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.60 indicates that TMO is not in any danger for bankruptcy at the moment.
TMO's Altman-Z score of 3.60 is fine compared to the rest of the industry. TMO outperforms 73.21% of its industry peers.
The Debt to FCF ratio of TMO is 4.30, which is a neutral value as it means it would take TMO, 4.30 years of fcf income to pay off all of its debts.
TMO's Debt to FCF ratio of 4.30 is fine compared to the rest of the industry. TMO outperforms 75.00% of its industry peers.
TMO has a Debt/Equity ratio of 0.59. This is a neutral value indicating TMO is somewhat dependend on debt financing.
The Debt to Equity ratio of TMO (0.59) is worse than 66.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 3.6 |
ROIC/WACC0.71
WACC10.26%
2.3 Liquidity
TMO has a Current Ratio of 1.66. This is a normal value and indicates that TMO is financially healthy and should not expect problems in meeting its short term obligations.
TMO's Current ratio of 1.66 is on the low side compared to the rest of the industry. TMO is outperformed by 69.64% of its industry peers.
TMO has a Quick Ratio of 1.29. This is a normal value and indicates that TMO is financially healthy and should not expect problems in meeting its short term obligations.
TMO's Quick ratio of 1.29 is on the low side compared to the rest of the industry. TMO is outperformed by 69.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.49% over the past year.
The Earnings Per Share has been growing by 12.12% on average over the past years. This is quite good.
The Revenue has been growing slightly by 0.05% in the past year.
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)1.49%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%7.58%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%4.68%
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 11.41% on average per year.
TMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.71% yearly.
EPS Next Y7.82%
EPS Next 2Y9.12%
EPS Next 3Y10.27%
EPS Next 5Y11.41%
Revenue Next Year2.56%
Revenue Next 2Y4.55%
Revenue Next 3Y5.39%
Revenue Next 5Y4.71%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
A Price/Earnings ratio of 19.56 indicates a rather expensive valuation of TMO.
TMO's Price/Earnings ratio is a bit cheaper when compared to the industry. TMO is cheaper than 78.57% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. TMO is valued slightly cheaper when compared to this.
TMO is valuated rather expensively with a Price/Forward Earnings ratio of 18.14.
TMO's Price/Forward Earnings ratio is rather cheap when compared to the industry. TMO is cheaper than 80.36% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TMO to the average of the S&P500 Index (21.08), we can say TMO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.56 | ||
| Fwd PE | 18.14 |
4.2 Price Multiples
TMO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TMO is cheaper than 80.36% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TMO is valued cheaply inside the industry as 80.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.21 | ||
| EV/EBITDA | 17.14 |
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)2.5
PEG (5Y)1.61
EPS Next 2Y9.12%
EPS Next 3Y10.27%
5. Dividend
5.1 Amount
With a yearly dividend of 0.40%, TMO is not a good candidate for dividend investing.
The stock price of TMO dropped by -23.61% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
TMO's Dividend Yield is rather good when compared to the industry average which is at 0.54. TMO pays more dividend than 89.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.57, TMO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
5.2 History
The dividend of TMO is nicely growing with an annual growth rate of 15.37%!
TMO has been paying a dividend for at least 10 years, so it has a reliable track record.
TMO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.37%
Div Incr Years7
Div Non Decr Years12
5.3 Sustainability
TMO pays out 9.20% of its income as dividend. This is a sustainable payout ratio.
TMO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP9.2%
EPS Next 2Y9.12%
EPS Next 3Y10.27%
427.5
-9.29 (-2.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.19%
Inst Owner Change0%
Ins Owners0.1%
Ins Owner Change1.03%
Market Cap161.38B
Analysts81.11
Price Target673.55 (57.56%)
Short Float %1.1%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Yearly Dividend1.52
Dividend Growth(5Y)15.37%
DP9.2%
Div Incr Years7
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.67%
Min EPS beat(2)-0.34%
Max EPS beat(2)1.69%
EPS beat(4)3
Avg EPS beat(4)3.13%
Min EPS beat(4)-0.34%
Max EPS beat(4)7.43%
EPS beat(8)4
Avg EPS beat(8)0.69%
EPS beat(12)8
Avg EPS beat(12)3.2%
EPS beat(16)12
Avg EPS beat(16)5.79%
Revenue beat(2)1
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-1.36%
Max Revenue beat(2)0.04%
Revenue beat(4)2
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-1.36%
Max Revenue beat(4)0.71%
Revenue beat(8)3
Avg Revenue beat(8)-0.79%
Revenue beat(12)7
Avg Revenue beat(12)2.34%
Revenue beat(16)11
Avg Revenue beat(16)3.66%
PT rev (1m)-0.8%
PT rev (3m)1.25%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-6.05%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.56 | ||
| Fwd PE | 18.14 | ||
| P/S | 3.76 | ||
| P/FCF | 22.21 | ||
| P/OCF | 18.62 | ||
| P/B | 3.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.14 |
EPS(TTM)21.86
EY5.11%
EPS(NY)23.57
Fwd EY5.51%
FCF(TTM)19.25
FCFY4.5%
OCF(TTM)22.96
OCFY5.37%
SpS113.59
BVpS131.35
TBVpS-31.26
PEG (NY)2.5
PEG (5Y)1.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.51% | ||
| ROE | 12.78% | ||
| ROCE | 9.19% | ||
| ROIC | 7.26% | ||
| ROICexc | 7.77% | ||
| ROICexgc | 35.79% | ||
| OM | 17.99% | ||
| PM (TTM) | 14.78% | ||
| GM | 41.28% | ||
| FCFM | 16.95% |
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.81%
ROE(5y)15.77%
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%
ROICexcg growth 3Y-8.22%
ROICexcg 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-5.61%
GM growth 5Y-1.03%
F-Score8
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.3 | ||
| Debt/EBITDA | 2.68 | ||
| Cap/Depr | 45.05% | ||
| Cap/Sales | 3.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.07% | ||
| Profit Quality | 114.69% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.6 |
F-Score8
WACC10.26%
ROIC/WACC0.71
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)1.49%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%7.58%
EPS Next Y7.82%
EPS Next 2Y9.12%
EPS Next 3Y10.27%
EPS Next 5Y11.41%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%4.68%
Revenue Next Year2.56%
Revenue Next 2Y4.55%
Revenue Next 3Y5.39%
Revenue Next 5Y4.71%
EBIT growth 1Y5.44%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year17.95%
EBIT Next 3Y12.12%
EBIT Next 5Y10.83%
FCF growth 1Y4.91%
FCF growth 3Y2.29%
FCF growth 5Y12.42%
OCF growth 1Y3.1%
OCF growth 3Y-2.36%
OCF growth 5Y11.75%