THERMO FISHER SCIENTIFIC INC (1TMO.MI) Stock Fundamental Analysis
BIT:1TMO - Euronext Milan - US8835561023 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1TMO. 1TMO was compared to 18 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
1TMO had positive earnings in the past year.
1TMO had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 6.50%, 1TMO belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
1TMO's Return On Equity of 13.04% is amongst the best of the industry. 1TMO outperforms 90.91% of its industry peers.
1TMO has a better Return On Invested Capital (6.66%) than 63.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1TMO is in line with the industry average of 6.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.5% | ||
| ROE | 13.04% | ||
| ROIC | 6.66% |
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's Profit Margin of 15.24% is amongst the best of the industry. 1TMO outperforms 90.91% of its industry peers.
In the last couple of years the Profit Margin of 1TMO has remained more or less at the same level.
Looking at the Operating Margin, with a value of 18.18%, 1TMO is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Operating Margin of 1TMO has grown nicely.
1TMO has a Gross Margin (41.34%) which is in line with its industry peers.
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 | 18.18% | ||
| PM (TTM) | 15.24% | ||
| 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 1TMO is destroying value.
The number of shares outstanding for 1TMO has been reduced compared to 1 year ago.
1TMO has less shares outstanding than it did 5 years ago.
1TMO has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of 1TMO is 5.71, which is a neutral value as it means it would take 1TMO, 5.71 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1TMO (5.71) is comparable to the rest of the industry.
1TMO has a Debt/Equity ratio of 0.65. This is a neutral value indicating 1TMO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.65, 1TMO perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | N/A |
ROIC/WACC0.82
WACC8.14%
2.3 Liquidity
A Current Ratio of 1.93 indicates that 1TMO should not have too much problems paying its short term obligations.
1TMO has a Current ratio of 1.93. This is in the better half of the industry: 1TMO outperforms 77.27% of its industry peers.
1TMO has a Quick Ratio of 1.50. This is a normal value and indicates that 1TMO is financially healthy and should not expect problems in meeting its short term obligations.
1TMO has a Quick ratio of 1.50. This is amongst the best in the industry. 1TMO outperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.23% over the past year.
1TMO 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, 1TMO shows a small growth in Revenue. The Revenue has grown by 2.05% 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)0.23%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%-0.19%
Revenue 1Y (TTM)2.05%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%2.98%
3.2 Future
Based on estimates for the next years, 1TMO will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.79% on average per year.
1TMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.89% yearly.
EPS Next Y3.18%
EPS Next 2Y6.76%
EPS Next 3Y8.41%
EPS Next 5Y8.79%
Revenue Next Year2.49%
Revenue Next 2Y3.65%
Revenue Next 3Y4.39%
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
1TMO is valuated rather expensively with a Price/Earnings ratio of 18.77.
Compared to the rest of the industry, the Price/Earnings ratio of 1TMO indicates a rather cheap valuation: 1TMO is cheaper than 86.36% of the companies listed in the same industry.
1TMO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.24.
With a Price/Forward Earnings ratio of 16.49, 1TMO is valued correctly.
1TMO's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1TMO is cheaper than 86.36% of the companies in the same industry.
1TMO is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.77 | ||
| Fwd PE | 16.49 |
4.2 Price Multiples
1TMO's Enterprise Value to EBITDA is on the same level as the industry average.
1TMO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.14 | ||
| EV/EBITDA | 16.98 |
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)5.9
PEG (5Y)1.55
EPS Next 2Y6.76%
EPS Next 3Y8.41%
5. Dividend
5.1 Amount
With a yearly dividend of 0.37%, 1TMO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.73, 1TMO has a dividend in line with its industry peers.
With a Dividend Yield of 0.37, 1TMO pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
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 Years0
Div Non Decr Years0
5.3 Sustainability
9.26% of the earnings are spent on dividend by 1TMO. This is a low number and sustainable payout ratio.
The dividend of 1TMO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.26%
EPS Next 2Y6.76%
EPS Next 3Y8.41%
BIT:1TMO (7/22/2025, 7:00:00 PM)
360.3
+4.05 (+1.14%)
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 Cap136.01B
Analysts81.14
Price Target486.21 (34.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Yearly Dividend1.33
Dividend Growth(5Y)15.37%
DP9.26%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.77%
Min EPS beat(2)-0.07%
Max EPS beat(2)1.61%
EPS beat(4)2
Avg EPS beat(4)0.72%
Min EPS beat(4)-0.34%
Max EPS beat(4)1.69%
EPS beat(8)5
Avg EPS beat(8)1.74%
EPS beat(12)7
Avg EPS beat(12)1.2%
EPS beat(16)11
Avg EPS beat(16)5.31%
Revenue beat(2)2
Avg Revenue beat(2)0.45%
Min Revenue beat(2)0.28%
Max Revenue beat(2)0.62%
Revenue beat(4)3
Avg Revenue beat(4)-0.1%
Min Revenue beat(4)-1.36%
Max Revenue beat(4)0.62%
Revenue beat(8)5
Avg Revenue beat(8)-0.15%
Revenue beat(12)7
Avg Revenue beat(12)0.84%
Revenue beat(16)11
Avg Revenue beat(16)3.32%
PT rev (1m)-4.76%
PT rev (3m)-12.65%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)-4.79%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-3.95%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.77 | ||
| Fwd PE | 16.49 | ||
| P/S | 3.59 | ||
| P/FCF | 25.14 | ||
| P/OCF | 20.47 | ||
| P/B | 3.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.98 |
EPS(TTM)19.2
EY5.33%
EPS(NY)21.85
Fwd EY6.06%
FCF(TTM)14.33
FCFY3.98%
OCF(TTM)17.6
OCFY4.89%
SpS100.38
BVpS117.25
TBVpS-27.69
PEG (NY)5.9
PEG (5Y)1.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.5% | ||
| ROE | 13.04% | ||
| ROCE | 8.88% | ||
| ROIC | 6.66% | ||
| ROICexc | 7.18% | ||
| ROICexgc | 29.87% | ||
| OM | 18.18% | ||
| PM (TTM) | 15.24% | ||
| GM | 41.34% | ||
| FCFM | 14.28% |
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-Score7
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.71 | ||
| Debt/EBITDA | 3.08 | ||
| Cap/Depr | 49.03% | ||
| Cap/Sales | 3.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.63% | ||
| Profit Quality | 93.71% | ||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | N/A |
F-Score7
WACC8.14%
ROIC/WACC0.82
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)0.23%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%-0.19%
EPS Next Y3.18%
EPS Next 2Y6.76%
EPS Next 3Y8.41%
EPS Next 5Y8.79%
Revenue 1Y (TTM)2.05%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%2.98%
Revenue Next Year2.49%
Revenue Next 2Y3.65%
Revenue Next 3Y4.39%
Revenue Next 5Y4.89%
EBIT growth 1Y5.17%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year12.01%
EBIT Next 3Y9.78%
EBIT Next 5Y8.38%
FCF growth 1Y5.4%
FCF growth 3Y2.29%
FCF growth 5Y12.42%
OCF growth 1Y-1.49%
OCF growth 3Y-2.36%
OCF growth 5Y11.75%