THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TMO • US8835561023
578.61 USD
-13.55 (-2.29%)
At close: Jan 30, 2026
578.99 USD
+0.38 (+0.07%)
After Hours: 1/30/2026, 8:21:31 PM
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. TMO has an excellent profitability rating, but there are concerns on its financial health. TMO is valued correctly, but it does not seem to be growing.
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.
- Of the past 5 years TMO 4 years were profitable.
- TMO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- TMO has a better Return On Assets (6.38%) than 84.48% of its industry peers.
- Looking at the Return On Equity, with a value of 12.88%, TMO belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 7.21%, TMO is in the better half of the industry, outperforming 77.59% of the companies in the same industry.
- TMO had an Average Return On Invested Capital over the past 3 years of 7.48%. This is significantly below the industry average of 13.31%.
| 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 84.48% 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 18.40%, TMO belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
- 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 41.38% 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.
- There is no outstanding debt for TMO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
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.
- TMO's Debt to FCF ratio of 5.84 is fine compared to the rest of the industry. TMO outperforms 65.52% of its industry peers.
- 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 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.67
WACC10.82%
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.
- 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.
- TMO has a Quick Ratio of 1.11. This is a normal value and indicates that TMO is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.11, TMO is not doing good in the industry: 70.69% of the companies in the same industry are doing better.
| 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 4.62% over the past year.
- The Earnings Per Share has been growing slightly by 3.19% on average over the past years.
EPS 1Y (TTM)4.62%
EPS 3Y-0.53%
EPS 5Y3.19%
EPS Q2Q%7.7%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%7.2%
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 10.96% yearly.
- Based on estimates for the next years, TMO will show a small growth in Revenue. The Revenue will grow by 4.93% on average per year.
EPS Next Y8.69%
EPS Next 2Y9.63%
EPS Next 3Y10.69%
EPS Next 5Y10.96%
Revenue Next Year5.08%
Revenue Next 2Y5.3%
Revenue Next 3Y5.23%
Revenue Next 5Y4.93%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 25.30, which means the current valuation is very expensive for TMO.
- 75.86% of the companies in the same industry are more expensive than TMO, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, TMO is valued at the same level.
- A Price/Forward Earnings ratio of 23.28 indicates a rather expensive valuation of TMO.
- Based on the Price/Forward Earnings ratio, TMO is valued a bit cheaper than the industry average as 77.59% of the companies are valued more expensively.
- TMO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.3 | ||
| Fwd PE | 23.28 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TMO is valued a bit cheaper than 68.97% 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 68.97% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.58 | ||
| EV/EBITDA | 22.87 |
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)2.91
PEG (5Y)7.94
EPS Next 2Y9.63%
EPS Next 3Y10.69%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.29%, TMO is not a good candidate for dividend investing.
- TMO's Dividend Yield is rather good when compared to the industry average which is at 0.09. TMO pays more dividend than 84.48% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, TMO's dividend is way lower than the S&P500 average.
| 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 2Y9.63%
EPS Next 3Y10.69%
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 3 / 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 8.69% in the next year.