THERMO FISHER SCIENTIFIC INC (1TMO.MI) Stock Fundamental Analysis
BIT:1TMO - Euronext Milan - US8835561023 - Common Stock - Currency: EUR
1TMO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 16 industry peers in the Life Sciences Tools & Services industry. 1TMO scores excellent on profitability, but there are some minor concerns on its financial health. 1TMO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
1TMO had positive earnings in the past year.
In the past year 1TMO had a positive cash flow from operations.
Each year in the past 5 years 1TMO has been profitable.
1TMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1TMO's Return On Assets of 6.58% is amongst the best of the industry. 1TMO outperforms 93.75% of its industry peers.
1TMO has a Return On Equity of 13.20%. This is amongst the best in the industry. 1TMO outperforms 93.75% of its industry peers.
1TMO has a Return On Invested Capital of 6.85%. This is in the better half of the industry: 1TMO outperforms 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1TMO is in line with the industry average of 6.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 13.2% | ||
| ROIC | 6.85% |
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.81%
ROE(5y)15.77%
ROIC(3y)7.1%
ROIC(5y)8.12%
1.3 Margins
1TMO has a Profit Margin of 15.19%. This is amongst the best in the industry. 1TMO outperforms 93.75% of its industry peers.
1TMO's Profit Margin has been stable in the last couple of years.
The Operating Margin of 1TMO (18.27%) is better than 87.50% of its industry peers.
1TMO's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 41.51%, 1TMO perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
In the last couple of years the Gross Margin of 1TMO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.27% | ||
| PM (TTM) | 15.19% | ||
| GM | 41.51% |
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
1TMO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, 1TMO has less shares outstanding
Compared to 5 years ago, 1TMO has less shares outstanding
Compared to 1 year ago, 1TMO has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of 1TMO is 5.08, which is a neutral value as it means it would take 1TMO, 5.08 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.08, 1TMO is in line with its industry, outperforming 43.75% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that 1TMO is somewhat dependend on debt financing.
The Debt to Equity ratio of 1TMO (0.64) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | N/A |
ROIC/WACC0.67
WACC10.16%
2.3 Liquidity
A Current Ratio of 1.77 indicates that 1TMO should not have too much problems paying its short term obligations.
1TMO has a better Current ratio (1.77) than 68.75% of its industry peers.
1TMO has a Quick Ratio of 1.38. This is a normal value and indicates that 1TMO is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of 1TMO (1.38) is better than 81.25% of its industry peers.
| 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.
Measured over the past years, 1TMO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.12% on average per year.
Looking at the last year, 1TMO shows a small growth in Revenue. The Revenue has grown by 0.96% in the last year.
The Revenue has been growing by 10.92% on average over the past years. This is quite good.
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
1TMO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.41% yearly.
1TMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.71% yearly.
EPS Next Y7.42%
EPS Next 2Y8.75%
EPS Next 3Y9.92%
EPS Next 5Y11.41%
Revenue Next Year2.47%
Revenue Next 2Y4.49%
Revenue Next 3Y5.29%
Revenue Next 5Y4.71%
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 stable.
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
A Price/Earnings ratio of 19.20 indicates a rather expensive valuation of 1TMO.
Compared to the rest of the industry, the Price/Earnings ratio of 1TMO indicates a rather cheap valuation: 1TMO is cheaper than 87.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.10, 1TMO is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.27, which indicates a correct valuation of 1TMO.
Based on the Price/Forward Earnings ratio, 1TMO is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
1TMO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.2 | ||
| Fwd PE | 16.27 |
4.2 Price Multiples
1TMO's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, 1TMO is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.61 | ||
| EV/EBITDA | 17.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1TMO does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 1TMO may justify a higher PE ratio.
PEG (NY)2.59
PEG (5Y)1.58
EPS Next 2Y8.75%
EPS Next 3Y9.92%
5. Dividend
5.1 Amount
1TMO has a yearly dividend return of 0.41%, which is pretty low.
Compared to an average industry Dividend Yield of 0.82, 1TMO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, 1TMO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
The dividend of 1TMO is nicely growing with an annual growth rate of 15.37%!
Dividend Growth(5Y)15.37%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1TMO pays out 9.16% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1TMO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.16%
EPS Next 2Y8.75%
EPS Next 3Y9.92%
BIT:1TMO (4/29/2025, 7:00:00 PM)
370.8
-1.9 (-0.51%)
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 Cap139.97B
Analysts81.08
Price Target556.62 (50.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend1.34
Dividend Growth(5Y)15.37%
DP9.16%
Div Incr YearsN/A
Div Non Decr YearsN/A
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)-10.21%
PT rev (3m)-11.79%
EPS NQ rev (1m)-6.53%
EPS NQ rev (3m)-7.9%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-0.73%
Revenue NQ rev (1m)-0.83%
Revenue NQ rev (3m)-3.77%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.2 | ||
| Fwd PE | 16.27 | ||
| P/S | 3.7 | ||
| P/FCF | 23.61 | ||
| P/OCF | 19.51 | ||
| P/B | 3.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.12 |
EPS(TTM)19.31
EY5.21%
EPS(NY)22.79
Fwd EY6.15%
FCF(TTM)15.71
FCFY4.24%
OCF(TTM)19.01
OCFY5.13%
SpS100.19
BVpS115.27
TBVpS-29.1
PEG (NY)2.59
PEG (5Y)1.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 13.2% | ||
| ROCE | 9.13% | ||
| ROIC | 6.85% | ||
| ROICexc | 7.36% | ||
| ROICexgc | 32.47% | ||
| OM | 18.27% | ||
| PM (TTM) | 15.19% | ||
| GM | 41.51% | ||
| FCFM | 15.68% |
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.81%
ROE(5y)15.77%
ROIC(3y)7.1%
ROIC(5y)8.12%
ROICexc(3y)7.8%
ROICexc(5y)9.07%
ROICexgc(3y)38.8%
ROICexgc(5y)44.27%
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 | 47.52% | ||
| Cap/Sales | 3.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.26% | ||
| Profit Quality | 103.22% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | N/A |
F-Score8
WACC10.16%
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 Y7.42%
EPS Next 2Y8.75%
EPS Next 3Y9.92%
EPS Next 5Y11.41%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%0.18%
Revenue Next Year2.47%
Revenue Next 2Y4.49%
Revenue Next 3Y5.29%
Revenue Next 5Y4.71%
EBIT growth 1Y6.86%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year17.95%
EBIT Next 3Y12.12%
EBIT Next 5Y10.83%
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%