THERMO FISHER SCIENTIFIC INC (TN8.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TN8 - US8835561023 - Common Stock
516.6 EUR
-7.4 (-1.41%)
We assign a fundamental rating of 4 out of 10 to TN8. TN8 was compared to 22 industry peers in the Life Sciences Tools & Services industry. TN8 has only an average score on both its financial health and profitability. While showing a medium growth rate, TN8 is valued expensive at the moment.
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.
- In the past 5 years TN8 has always been profitable.
- Each year in the past 5 years TN8 had a positive operating cash flow.
1.2 Ratios
- TN8's Return On Assets of 6.38% is fine compared to the rest of the industry. TN8 outperforms 72.73% of its industry peers.
- TN8 has a Return On Equity of 12.88%. This is in the better half of the industry: TN8 outperforms 77.27% of its industry peers.
- TN8 has a Return On Invested Capital (6.43%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for TN8 is below the industry average of 9.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 12.88% | ||
| ROIC | 6.43% |
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.8%
ROE(5y)15.76%
ROIC(3y)6.66%
ROIC(5y)7.62%
1.3 Margins
- TN8 has a better Profit Margin (15.02%) than 77.27% of its industry peers.
- TN8's Profit Margin has been stable in the last couple of years.
- With a decent Operating Margin value of 18.40%, TN8 is doing good in the industry, outperforming 72.73% of the companies in the same industry.
- TN8's Operating Margin has improved in the last couple of years.
- TN8 has a Gross Margin (41.43%) which 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 | 18.4% | ||
| 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 TN8 is destroying value.
- Compared to 1 year ago, TN8 has less shares outstanding
- Compared to 5 years ago, TN8 has less shares outstanding
- Compared to 1 year ago, TN8 has an improved debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of TN8 is 5.84, which is a neutral value as it means it would take TN8, 5.84 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 5.84, TN8 perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
- A Debt/Equity ratio of 0.62 indicates that TN8 is somewhat dependend on debt financing.
- The Debt to Equity ratio of TN8 (0.62) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.6
WACC10.66%
2.3 Liquidity
- A Current Ratio of 1.50 indicates that TN8 should not have too much problems paying its short term obligations.
- The Current ratio of TN8 (1.50) is comparable to the rest of the industry.
- TN8 has a Quick Ratio of 1.11. This is a normal value and indicates that TN8 is financially healthy and should not expect problems in meeting its short term obligations.
- TN8 has a Quick ratio (1.11) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- TN8 shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.53%.
- Measured over the past years, TN8 shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.12% on average per year.
- TN8 shows a small growth in Revenue. In the last year, the Revenue has grown by 3.22%.
- 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)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
- Based on estimates for the next years, TN8 will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.66% on average per year.
- TN8 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 2Y6.64%
EPS Next 3Y7.93%
EPS Next 5Y9.66%
Revenue Next Year3.54%
Revenue Next 2Y4.31%
Revenue Next 3Y4.71%
Revenue Next 5Y4.65%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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
- Based on the Price/Earnings ratio of 27.51, the valuation of TN8 can be described as expensive.
- TN8's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of TN8 to the average of the S&P500 Index (28.60), we can say TN8 is valued inline with the index average.
- A Price/Forward Earnings ratio of 24.79 indicates a rather expensive valuation of TN8.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TN8 is on the same level as its industry peers.
- TN8's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.51 | ||
| Fwd PE | 24.79 |
4.2 Price Multiples
- TN8's Enterprise Value to EBITDA is on the same level as the industry average.
- TN8's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.89 | ||
| EV/EBITDA | 24.48 |
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)5.42
PEG (5Y)2.27
EPS Next 2Y6.64%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.27%, TN8 is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.48, TN8 has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, TN8's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
5.2 History
- The dividend of TN8 is nicely growing with an annual growth rate of 15.42%!
Dividend Growth(5Y)15.42%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- TN8 pays out 9.48% of its income as dividend. This is a sustainable payout ratio.
- The dividend of TN8 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.48%
EPS Next 2Y6.64%
EPS Next 3Y7.93%
THERMO FISHER SCIENTIFIC INC / TN8.DE FAQ
What is the fundamental rating for TN8 stock?
ChartMill assigns a fundamental rating of 4 / 10 to TN8.DE.
What is the valuation status for TN8 stock?
ChartMill assigns a valuation rating of 2 / 10 to THERMO FISHER SCIENTIFIC INC (TN8.DE). This can be considered as Overvalued.
What is the profitability of TN8 stock?
THERMO FISHER SCIENTIFIC INC (TN8.DE) has a profitability rating of 6 / 10.
Can you provide the financial health for TN8 stock?
The financial health rating of THERMO FISHER SCIENTIFIC INC (TN8.DE) is 4 / 10.
Can you provide the dividend sustainability for TN8 stock?
The dividend rating of THERMO FISHER SCIENTIFIC INC (TN8.DE) is 3 / 10 and the dividend payout ratio is 9.48%.