THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TMO • US8835561023
548.26 USD
+5.43 (+1%)
Last: Feb 9, 2026, 03:24 PM
We assign a fundamental rating of 4 out of 10 to TMO. TMO was compared to 58 industry peers in the Life Sciences Tools & Services industry. TMO has a medium profitability rating, but doesn't score so well on its financial health evaluation. TMO has a correct valuation and a medium growth rate.
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.
- 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 6.08%, TMO belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
- TMO's Return On Equity of 12.55% is amongst the best of the industry. TMO outperforms 86.21% of its industry peers.
- TMO has a better Return On Invested Capital (7.80%) than 79.31% 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 13.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.08% | ||
| ROE | 12.55% | ||
| ROIC | 7.8% |
ROA(3y)6.22%
ROA(5y)6.79%
ROE(3y)12.72%
ROE(5y)14.58%
ROIC(3y)8.04%
ROIC(5y)9.02%
1.3 Margins
- TMO's Profit Margin of 15.05% is amongst the best of the industry. TMO outperforms 84.48% of its industry peers.
- TMO's Profit Margin has declined in the last couple of years.
- TMO has a Operating Margin of 18.19%. This is amongst the best in the industry. TMO outperforms 82.76% of its industry peers.
- TMO's Operating Margin has declined in the last couple of years.
- TMO has a Gross Margin (41.22%) which is comparable to the rest of the industry.
- TMO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.19% | ||
| PM (TTM) | 15.05% | ||
| GM | 41.22% |
OM growth 3Y-1.32%
OM growth 5Y-5.71%
PM growth 3Y-0.93%
PM growth 5Y-5.33%
GM growth 3Y-0.55%
GM growth 5Y-3.49%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TMO 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.
- TMO has a worse debt/assets ratio than last year.
2.2 Solvency
- TMO has a debt to FCF ratio of 6.26. This is a slightly negative value and a sign of low solvency as TMO would need 6.26 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 6.26, TMO is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
- A Debt/Equity ratio of 0.67 indicates that TMO is somewhat dependend on debt financing.
- TMO has a Debt to Equity ratio of 0.67. This is in the lower half of the industry: TMO underperforms 74.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | N/A |
ROIC/WACC0.71
WACC11.05%
2.3 Liquidity
- TMO has a Current Ratio of 1.89. 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 worse Current ratio (1.89) than 62.07% of its industry peers.
- TMO has a Quick Ratio of 1.53. 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 Quick ratio of 1.53. This is in the lower half of the industry: TMO underperforms 60.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.53 |
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.
- Looking at the last year, TMO shows a small growth in Revenue. The Revenue has grown by 3.91% in the last year.
- Measured over the past years, TMO shows a small growth in Revenue. The Revenue has been growing by 6.70% on average per year.
EPS 1Y (TTM)4.62%
EPS 3Y-0.53%
EPS 5Y3.19%
EPS Q2Q%7.7%
Revenue 1Y (TTM)3.91%
Revenue growth 3Y-0.27%
Revenue growth 5Y6.7%
Sales Q2Q%7.2%
3.2 Future
- The Earnings Per Share is expected to grow by 10.96% on average over the next years. This is quite good.
- 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 Y8.54%
EPS Next 2Y9%
EPS Next 3Y9.51%
EPS Next 5Y10.96%
Revenue Next Year5.68%
Revenue Next 2Y5.47%
Revenue Next 3Y5.78%
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.
- 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
- The Price/Earnings ratio is 23.97, which indicates a rather expensive current valuation of TMO.
- Based on the Price/Earnings ratio, TMO is valued a bit cheaper than the industry average as 77.59% of the companies are valued more expensively.
- TMO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.93.
- TMO is valuated rather expensively with a Price/Forward Earnings ratio of 22.09.
- 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's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.97 | ||
| Fwd PE | 22.09 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TMO is valued a bit cheaper than the industry average as 70.69% of the companies are valued more expensively.
- 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 | 32.73 | ||
| EV/EBITDA | 21.4 |
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)2.81
PEG (5Y)7.52
EPS Next 2Y9%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.32%, 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.
- With a Dividend Yield of 0.32, TMO pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
5.2 History
- On average, the dividend of TMO grows each year by 14.69%, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.69%
Div Incr Years7
Div Non Decr Years12
5.3 Sustainability
- 9.49% of the earnings are spent on dividend by TMO. This is a low number and sustainable payout ratio.
- TMO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP9.49%
EPS Next 2Y9%
EPS Next 3Y9.51%
NYSE:TMO (2/9/2026, 3:24:09 PM)
548.26
+5.43 (+1%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)01-29 2026-01-29/bmo
Earnings (Next)04-21 2026-04-21/bmo
Inst Owners92.78%
Inst Owner Change-2.48%
Ins Owners0.1%
Ins Owner Change4.84%
Market Cap205.99B
Revenue(TTM)44.56B
Net Income(TTM)6.70B
Analysts83.13
Price Target678.16 (23.69%)
Short Float %1.04%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
Yearly Dividend1.68
Dividend Growth(5Y)14.69%
DP9.49%
Div Incr Years7
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.64%
Min EPS beat(2)0.91%
Max EPS beat(2)4.37%
EPS beat(4)3
Avg EPS beat(4)1.7%
Min EPS beat(4)-0.07%
Max EPS beat(4)4.37%
EPS beat(8)6
Avg EPS beat(8)2.42%
EPS beat(12)7
Avg EPS beat(12)1.02%
EPS beat(16)11
Avg EPS beat(16)2.83%
Revenue beat(2)2
Avg Revenue beat(2)1.08%
Min Revenue beat(2)0.95%
Max Revenue beat(2)1.21%
Revenue beat(4)4
Avg Revenue beat(4)0.77%
Min Revenue beat(4)0.28%
Max Revenue beat(4)1.21%
Revenue beat(8)6
Avg Revenue beat(8)0.22%
Revenue beat(12)7
Avg Revenue beat(12)-0.27%
Revenue beat(16)11
Avg Revenue beat(16)1.95%
PT rev (1m)4.94%
PT rev (3m)8.59%
EPS NQ rev (1m)-5.63%
EPS NQ rev (3m)-5.81%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)-1.29%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.97 | ||
| Fwd PE | 22.09 | ||
| P/S | 4.62 | ||
| P/FCF | 32.73 | ||
| P/OCF | 26.34 | ||
| P/B | 3.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.4 |
EPS(TTM)22.87
EY4.17%
EPS(NY)24.82
Fwd EY4.53%
FCF(TTM)16.75
FCFY3.06%
OCF(TTM)20.81
OCFY3.8%
SpS118.59
BVpS142.17
TBVpS-31.37
PEG (NY)2.81
PEG (5Y)7.52
Graham Number270.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.08% | ||
| ROE | 12.55% | ||
| ROCE | 8.52% | ||
| ROIC | 7.8% | ||
| ROICexc | 8.73% | ||
| ROICexgc | 37.4% | ||
| OM | 18.19% | ||
| PM (TTM) | 15.05% | ||
| GM | 41.22% | ||
| FCFM | 14.13% |
ROA(3y)6.22%
ROA(5y)6.79%
ROE(3y)12.72%
ROE(5y)14.58%
ROIC(3y)8.04%
ROIC(5y)9.02%
ROICexc(3y)8.83%
ROICexc(5y)9.85%
ROICexgc(3y)40.31%
ROICexgc(5y)46.65%
ROCE(3y)8.78%
ROCE(5y)9.93%
ROICexgc growth 3Y-13.91%
ROICexgc growth 5Y-12.87%
ROICexc growth 3Y-6.93%
ROICexc growth 5Y-10.12%
OM growth 3Y-1.32%
OM growth 5Y-5.71%
PM growth 3Y-0.93%
PM growth 5Y-5.33%
GM growth 3Y-0.55%
GM growth 5Y-3.49%
F-Score5
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 6.26 | ||
| Debt/EBITDA | 3.29 | ||
| Cap/Depr | 54.86% | ||
| Cap/Sales | 3.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.83% | ||
| Profit Quality | 93.88% | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | N/A |
F-Score5
WACC11.05%
ROIC/WACC0.71
Cap/Depr(3y)47.77%
Cap/Depr(5y)61.4%
Cap/Sales(3y)3.38%
Cap/Sales(5y)4.31%
Profit Quality(3y)108.05%
Profit Quality(5y)102.29%
High Growth Momentum
Growth
EPS 1Y (TTM)4.62%
EPS 3Y-0.53%
EPS 5Y3.19%
EPS Q2Q%7.7%
EPS Next Y8.54%
EPS Next 2Y9%
EPS Next 3Y9.51%
EPS Next 5Y10.96%
Revenue 1Y (TTM)3.91%
Revenue growth 3Y-0.27%
Revenue growth 5Y6.7%
Sales Q2Q%7.2%
Revenue Next Year5.68%
Revenue Next 2Y5.47%
Revenue Next 3Y5.78%
Revenue Next 5Y4.93%
EBIT growth 1Y5.05%
EBIT growth 3Y-1.59%
EBIT growth 5Y0.61%
EBIT Next Year19.29%
EBIT Next 3Y11.41%
EBIT Next 5Y10.61%
FCF growth 1Y-13.39%
FCF growth 3Y-3.07%
FCF growth 5Y-1.58%
OCF growth 1Y-9.78%
OCF growth 3Y-5.12%
OCF growth 5Y-1.16%
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 4 / 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 6 / 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 8.54% in the next year.