THERMO FISHER SCIENTIFIC INC (TN8.DE) Stock Fundamental Analysis
FRA:TN8 - Deutsche Boerse Ag - US8835561023 - Common Stock - Currency: EUR
Overall TN8 gets a fundamental rating of 5 out of 10. We evaluated TN8 against 16 industry peers in the Life Sciences Tools & Services industry. While TN8 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TN8 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TN8 had positive earnings in the past year.
In the past year TN8 had a positive cash flow from operations.
Each year in the past 5 years TN8 has been profitable.
TN8 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TN8 has a better Return On Assets (6.58%) than 93.75% of its industry peers.
Looking at the Return On Equity, with a value of 13.19%, TN8 belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
The Return On Invested Capital of TN8 (6.43%) is better than 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TN8 is in line with the industry average of 6.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 13.19% | ||
| ROIC | 6.43% |
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.81%
ROE(5y)15.77%
ROIC(3y)6.66%
ROIC(5y)7.62%
1.3 Margins
TN8's Profit Margin of 15.19% is amongst the best of the industry. TN8 outperforms 93.75% of its industry peers.
In the last couple of years the Profit Margin of TN8 has remained more or less at the same level.
Looking at the Operating Margin, with a value of 18.27%, TN8 is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of TN8 has grown nicely.
The Gross Margin of TN8 (41.34%) is comparable to the rest of the industry.
TN8's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.27% | ||
| PM (TTM) | 15.19% | ||
| GM | 41.34% |
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 TN8 is destroying value.
Compared to 1 year ago, TN8 has less shares outstanding
The number of shares outstanding for TN8 has been reduced compared to 5 years ago.
The debt/assets ratio for TN8 has been reduced compared to a year ago.
2.2 Solvency
TN8 has an Altman-Z score of 3.47. This indicates that TN8 is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TN8 (3.47) is comparable to the rest of the industry.
The Debt to FCF ratio of TN8 is 5.08, which is a neutral value as it means it would take TN8, 5.08 years of fcf income to pay off all of its debts.
TN8's Debt to FCF ratio of 5.08 is on the low side compared to the rest of the industry. TN8 is outperformed by 62.50% of its industry peers.
TN8 has a Debt/Equity ratio of 0.64. This is a neutral value indicating TN8 is somewhat dependend on debt financing.
TN8 has a Debt to Equity ratio of 0.64. This is in the lower half of the industry: TN8 underperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 3.47 |
ROIC/WACC0.67
WACC9.61%
2.3 Liquidity
TN8 has a Current Ratio of 1.77. This is a normal value and indicates that TN8 is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.77, TN8 is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
A Quick Ratio of 1.38 indicates that TN8 should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.38, TN8 is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.30% over the past year.
TN8 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.12% yearly.
Looking at the last year, TN8 shows a small growth in Revenue. The Revenue has grown by 0.96% in the last year.
Measured over the past years, TN8 shows a quite strong growth in Revenue. The Revenue has been growing by 10.92% on average per year.
EPS 1Y (TTM)1.3%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%0.78%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%0.18%
3.2 Future
TN8 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.79% yearly.
The Revenue is expected to grow by 4.89% on average over the next years.
EPS Next Y3.15%
EPS Next 2Y6.79%
EPS Next 3Y8.38%
EPS Next 5Y8.79%
Revenue Next Year2.15%
Revenue Next 2Y4.1%
Revenue Next 3Y5.02%
Revenue Next 5Y4.89%
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.
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
Based on the Price/Earnings ratio of 18.59, the valuation of TN8 can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TN8 indicates a rather cheap valuation: TN8 is cheaper than 87.50% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TN8 to the average of the S&P500 Index (27.15), we can say TN8 is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.33, the valuation of TN8 can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TN8 indicates a rather cheap valuation: TN8 is cheaper than 87.50% of the companies listed in the same industry.
TN8 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.59 | ||
| Fwd PE | 16.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TN8 is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as TN8.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.85 | ||
| EV/EBITDA | 16.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TN8 may justify a higher PE ratio.
PEG (NY)5.91
PEG (5Y)1.53
EPS Next 2Y6.79%
EPS Next 3Y8.38%
5. Dividend
5.1 Amount
TN8 has a yearly dividend return of 0.42%, which is pretty low.
Compared to an average industry Dividend Yield of 0.73, TN8 has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, TN8's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
5.2 History
On average, the dividend of TN8 grows each year by 15.37%, which is quite nice.
Dividend Growth(5Y)15.37%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
TN8 pays out 9.16% of its income as dividend. This is a sustainable payout ratio.
TN8's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP9.16%
EPS Next 2Y6.79%
EPS Next 3Y8.38%
FRA:TN8 (6/30/2025, 7:00:00 PM)
347.75
-4.2 (-1.19%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners92.22%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap131.27B
Analysts81.11
Price Target492.58 (41.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Yearly Dividend1.3
Dividend Growth(5Y)15.37%
DP9.16%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.81%
Min EPS beat(2)-0.07%
Max EPS beat(2)1.69%
EPS beat(4)2
Avg EPS beat(4)1.26%
Min EPS beat(4)-0.34%
Max EPS beat(4)3.75%
EPS beat(8)4
Avg EPS beat(8)0.79%
EPS beat(12)7
Avg EPS beat(12)1.85%
EPS beat(16)11
Avg EPS beat(16)5.33%
Revenue beat(2)2
Avg Revenue beat(2)0.16%
Min Revenue beat(2)0.04%
Max Revenue beat(2)0.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-1.36%
Max Revenue beat(4)0.28%
Revenue beat(8)4
Avg Revenue beat(8)-0.68%
Revenue beat(12)7
Avg Revenue beat(12)1.53%
Revenue beat(16)11
Avg Revenue beat(16)3.62%
PT rev (1m)-3.59%
PT rev (3m)-23.53%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-6.53%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-4.19%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.59 | ||
| Fwd PE | 16.33 | ||
| P/S | 3.58 | ||
| P/FCF | 22.85 | ||
| P/OCF | 18.87 | ||
| P/B | 3.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.82 |
EPS(TTM)18.71
EY5.38%
EPS(NY)21.3
Fwd EY6.13%
FCF(TTM)15.22
FCFY4.38%
OCF(TTM)18.42
OCFY5.3%
SpS97.1
BVpS111.79
TBVpS-28.12
PEG (NY)5.91
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 13.19% | ||
| ROCE | 9.13% | ||
| ROIC | 6.43% | ||
| ROICexc | 6.9% | ||
| ROICexgc | 30.48% | ||
| OM | 18.27% | ||
| PM (TTM) | 15.19% | ||
| GM | 41.34% | ||
| FCFM | 15.68% |
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.81%
ROE(5y)15.77%
ROIC(3y)6.66%
ROIC(5y)7.62%
ROICexc(3y)7.33%
ROICexc(5y)8.51%
ROICexgc(3y)36.42%
ROICexgc(5y)41.56%
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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.08 | ||
| Debt/EBITDA | 2.9 | ||
| Cap/Depr | 47.53% | ||
| Cap/Sales | 3.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.27% | ||
| Profit Quality | 103.22% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 3.47 |
F-Score8
WACC9.61%
ROIC/WACC0.67
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)1.3%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%0.78%
EPS Next Y3.15%
EPS Next 2Y6.79%
EPS Next 3Y8.38%
EPS Next 5Y8.79%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%0.18%
Revenue Next Year2.15%
Revenue Next 2Y4.1%
Revenue Next 3Y5.02%
Revenue Next 5Y4.89%
EBIT growth 1Y6.86%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year12.01%
EBIT Next 3Y9.78%
EBIT Next 5Y8.38%
FCF growth 1Y19.66%
FCF growth 3Y2.29%
FCF growth 5Y12.42%
OCF growth 1Y5.98%
OCF growth 3Y-2.36%
OCF growth 5Y11.75%