THERMO FISHER SCIENTIFIC INC (TN8.DE) Stock Fundamental Analysis
FRA:TN8 - Deutsche Boerse Ag - US8835561023 - Common Stock - Currency: EUR
Taking everything into account, TN8 scores 6 out of 10 in our fundamental rating. TN8 was compared to 15 industry peers in the Life Sciences Tools & Services industry. TN8 scores excellent on profitability, but there are some minor concerns on its financial health. TN8 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TN8 was profitable.
TN8 had a positive operating cash flow in the past year.
TN8 had positive earnings in each of the past 5 years.
Each year in the past 5 years TN8 had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TN8 (6.51%) is better than 88.24% of its industry peers.
TN8's Return On Equity of 12.78% is amongst the best of the industry. TN8 outperforms 88.24% of its industry peers.
TN8 has a Return On Invested Capital of 6.47%. This is comparable to the rest of the industry: TN8 outperforms 58.82% 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 6.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.51% | ||
| ROE | 12.78% | ||
| ROIC | 6.47% |
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
Looking at the Profit Margin, with a value of 14.78%, TN8 belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
In the last couple of years the Profit Margin of TN8 has remained more or less at the same level.
With a decent Operating Margin value of 17.99%, TN8 is doing good in the industry, outperforming 76.47% of the companies in the same industry.
In the last couple of years the Operating Margin of TN8 has grown nicely.
TN8 has a Gross Margin (41.28%) 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 | 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
TN8 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TN8 has been reduced compared to 1 year ago.
The number of shares outstanding for TN8 has been reduced compared to 5 years ago.
TN8 has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.07 indicates that TN8 is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.07, TN8 is doing good in the industry, outperforming 76.47% of the companies in the same industry.
TN8 has a debt to FCF ratio of 4.30. This is a neutral value as TN8 would need 4.30 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.30, TN8 is doing good in the industry, outperforming 64.71% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that TN8 is somewhat dependend on debt financing.
TN8's Debt to Equity ratio of 0.59 is in line compared to the rest of the industry. TN8 outperforms 58.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 4.07 |
ROIC/WACC0.6
WACC10.84%
2.3 Liquidity
A Current Ratio of 1.66 indicates that TN8 should not have too much problems paying its short term obligations.
TN8's Current ratio of 1.66 is in line compared to the rest of the industry. TN8 outperforms 52.94% of its industry peers.
TN8 has a Quick Ratio of 1.29. 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 better Quick ratio (1.29) than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
TN8 shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.49%.
TN8 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.12% yearly.
The Revenue has been growing slightly by 0.05% in the past year.
The Revenue has been growing by 10.92% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 11.71% on average over the next years. This is quite good.
TN8 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.61% yearly.
EPS Next Y7.66%
EPS Next 2Y9.03%
EPS Next 3Y10.26%
EPS Next 5Y11.71%
Revenue Next Year2.56%
Revenue Next 2Y4.57%
Revenue Next 3Y5.5%
Revenue Next 5Y5.61%
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
TN8 is valuated rather expensively with a Price/Earnings ratio of 24.07.
Based on the Price/Earnings ratio, TN8 is valued cheaper than 88.24% of the companies in the same industry.
When comparing the Price/Earnings ratio of TN8 to the average of the S&P500 Index (29.35), we can say TN8 is valued inline with the index average.
The Price/Forward Earnings ratio is 22.35, which indicates a rather expensive current valuation of TN8.
TN8's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. TN8 is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.07 | ||
| Fwd PE | 22.35 |
4.2 Price Multiples
TN8's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TN8 indicates a somewhat cheap valuation: TN8 is cheaper than 70.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.31 | ||
| EV/EBITDA | 20.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TN8 does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of TN8 may justify a higher PE ratio.
PEG (NY)3.14
PEG (5Y)1.99
EPS Next 2Y9.03%
EPS Next 3Y10.26%
5. Dividend
5.1 Amount
TN8 has a yearly dividend return of 0.33%, which is pretty low.
TN8's Dividend Yield is slightly below the industry average, which is at 0.79.
With a Dividend Yield of 0.33, TN8 pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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 9.20% 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.
DP9.2%
EPS Next 2Y9.03%
EPS Next 3Y10.26%
FRA:TN8 (3/7/2025, 7:00:00 PM)
484.5
-1.7 (-0.35%)
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 ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap182.78B
Analysts81.62
Price Target644.12 (32.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
Yearly Dividend1.4
Dividend Growth(5Y)15.37%
DP9.2%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)3.77%
PT rev (3m)1.7%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-5.93%
EPS NY rev (1m)0.88%
EPS NY rev (3m)-0.76%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-5.24%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.07 | ||
| Fwd PE | 22.35 | ||
| P/S | 4.63 | ||
| P/FCF | 27.31 | ||
| P/OCF | 22.9 | ||
| P/B | 4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.56 |
EPS(TTM)20.13
EY4.15%
EPS(NY)21.68
Fwd EY4.47%
FCF(TTM)17.74
FCFY3.66%
OCF(TTM)21.16
OCFY4.37%
SpS104.69
BVpS121.06
TBVpS-28.81
PEG (NY)3.14
PEG (5Y)1.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.51% | ||
| ROE | 12.78% | ||
| ROCE | 9.19% | ||
| ROIC | 6.47% | ||
| ROICexc | 6.93% | ||
| ROICexgc | 31.89% | ||
| 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)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 Turnover0.44
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 | 4.07 |
F-Score8
WACC10.84%
ROIC/WACC0.6
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 Y7.66%
EPS Next 2Y9.03%
EPS Next 3Y10.26%
EPS Next 5Y11.71%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%4.68%
Revenue Next Year2.56%
Revenue Next 2Y4.57%
Revenue Next 3Y5.5%
Revenue Next 5Y5.61%
EBIT growth 1Y5.44%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year18.02%
EBIT Next 3Y12.05%
EBIT Next 5Y10.41%
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%