THERMO FISHER SCIENTIFIC INC (TMO)
US8835561023 - Common Stock
TMO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 58 industry peers in the Life Sciences Tools & Services industry. TMO scores excellent on profitability, but there are some minor concerns on its financial health. TMO is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years TMO has been profitable.
Each year in the past 5 years TMO had a positive operating cash flow.
1.2 Ratios
TMO has a Return On Assets of 6.21%. This is amongst the best in the industry. TMO outperforms 82.76% of its industry peers.
TMO's Return On Equity of 13.26% is amongst the best of the industry. TMO outperforms 87.93% of its industry peers.
TMO's Return On Invested Capital of 6.97% is fine compared to the rest of the industry. TMO outperforms 77.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TMO is below the industry average of 11.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 13.26% | ||
| ROIC | 6.97% |
ROA(3y)7.12%
ROA(5y)7.38%
ROE(3y)15.86%
ROE(5y)15.7%
ROIC(3y)8.3%
ROIC(5y)8.38%
1.3 Margins
TMO's Profit Margin of 14.20% is amongst the best of the industry. TMO outperforms 84.48% of its industry peers.
TMO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.26%, TMO belongs to the top 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 remained more or less at the same level.
TMO has a Gross Margin (40.40%) which is in line with its industry peers.
In the last couple of years the Gross Margin of TMO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.26% | ||
| PM (TTM) | 14.2% | ||
| GM | 40.4% |
OM growth 3Y-11.24%
OM growth 5Y1.48%
PM growth 3Y-10.92%
PM growth 5Y3.01%
GM growth 3Y-7.01%
GM growth 5Y-2.19%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TMO is destroying value.
TMO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TMO has less shares outstanding
TMO has a better debt/assets ratio than last year.
2.2 Solvency
TMO has an Altman-Z score of 4.01. This indicates that TMO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TMO (4.01) is better than 67.24% of its industry peers.
TMO has a debt to FCF ratio of 4.71. This is a neutral value as TMO would need 4.71 years to pay back of all of its debts.
TMO's Debt to FCF ratio of 4.71 is fine compared to the rest of the industry. TMO outperforms 75.86% of its industry peers.
TMO has a Debt/Equity ratio of 0.68. This is a neutral value indicating TMO is somewhat dependend on debt financing.
The Debt to Equity ratio of TMO (0.68) is worse than 70.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.71 | ||
| Altman-Z | 4.01 |
ROIC/WACC0.58
WACC11.92%
2.3 Liquidity
TMO has a Current Ratio of 1.70. This is a normal value and indicates that TMO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TMO (1.70) is worse than 75.86% of its industry peers.
TMO has a Quick Ratio of 1.33. This is a normal value and indicates that TMO is financially healthy and should not expect problems in meeting its short term obligations.
TMO's Quick ratio of 1.33 is on the low side compared to the rest of the industry. TMO is outperformed by 77.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
TMO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.85%.
The Earnings Per Share has been growing by 14.14% on average over the past years. This is quite good.
Looking at the last year, TMO shows a decrease in Revenue. The Revenue has decreased by -3.00% in the last year.
The Revenue has been growing by 11.96% on average over the past years. This is quite good.
EPS 1Y (TTM)2.85%
EPS 3Y3.28%
EPS 5Y14.14%
EPS Q2Q%1.59%
Revenue 1Y (TTM)-3%
Revenue growth 3Y9.98%
Revenue growth 5Y11.96%
Sales Q2Q%-3.41%
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 10.42% yearly.
TMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.05% yearly.
EPS Next Y1.82%
EPS Next 2Y6.79%
EPS Next 3Y8.41%
EPS Next 5Y10.42%
Revenue Next Year0.53%
Revenue Next 2Y3.79%
Revenue Next 3Y4.93%
Revenue Next 5Y5.05%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.27, the valuation of TMO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TMO indicates a rather cheap valuation: TMO is cheaper than 84.48% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TMO to the average of the S&P500 Index (28.05), we can say TMO is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 23.12, the valuation of TMO can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TMO indicates a rather cheap valuation: TMO is cheaper than 82.76% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.07. TMO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.27 | ||
| Fwd PE | 23.12 |
4.2 Price Multiples
77.59% of the companies in the same industry are more expensive than TMO, based on the Enterprise Value to EBITDA ratio.
TMO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TMO is cheaper than 82.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.68 | ||
| EV/EBITDA | 22.53 |
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 TMO may justify a higher PE ratio.
PEG (NY)14.44
PEG (5Y)1.86
EPS Next 2Y6.79%
EPS Next 3Y8.41%
5. Dividend
5.1 Amount
With a yearly dividend of 0.28%, TMO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.64, TMO pays a better dividend. On top of this TMO pays more dividend than 89.66% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, TMO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
5.2 History
The dividend of TMO is nicely growing with an annual growth rate of 15.23%!
TMO has paid a dividend for at least 10 years, which is a reliable track record.
TMO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.23%
Div Incr Years6
Div Non Decr Years11
5.3 Sustainability
TMO pays out 8.97% of its income as dividend. This is a sustainable payout ratio.
TMO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP8.97%
EPS Next 2Y6.79%
EPS Next 3Y8.41%
THERMO FISHER SCIENTIFIC INC
NYSE:TMO (5/31/2024, 7:09:38 PM)
After market: 567.98 0 (0%)567.98
+5.22 (+0.93%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap216.81B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.27 | ||
| Fwd PE | 23.12 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)14.44
PEG (5Y)1.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 13.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.26% | ||
| PM (TTM) | 14.2% | ||
| GM | 40.4% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2.85%
EPS 3Y3.28%
EPS 5Y
EPS Q2Q%
EPS Next Y1.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3%
Revenue growth 3Y9.98%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y