THERMO FISHER SCIENTIFIC INC (1TMO.MI) Stock Fundamental Analysis
BIT:1TMO - Euronext Milan - US8835561023 - Common Stock - Currency: EUR
Overall 1TMO gets a fundamental rating of 5 out of 10. We evaluated 1TMO against 959 industry peers in the Life Sciences Tools & Services industry. 1TMO has an excellent profitability rating, 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.
In the past year 1TMO had a positive cash flow from operations.
In the past 5 years 1TMO has always been profitable.
Each year in the past 5 years 1TMO had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.58%, 1TMO belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
1TMO has a Return On Equity of 13.19%. This is amongst the best in the industry. 1TMO outperforms 88.89% of its industry peers.
The Return On Invested Capital of 1TMO (6.85%) is better than 66.67% of its industry peers.
1TMO had an Average Return On Invested Capital over the past 3 years of 7.10%. This is below the industry average of 11.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 13.19% | ||
| 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
The Profit Margin of 1TMO (15.19%) is better than 88.89% 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 72.22% of its industry peers.
1TMO's Operating Margin has improved in the last couple of years.
1TMO has a Gross Margin (41.34%) which is in line with its industry peers.
1TMO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.27% | ||
| PM (TTM) | 15.19% | ||
| 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.
1TMO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1TMO has less shares outstanding
The debt/assets ratio for 1TMO has been reduced compared to a year ago.
2.2 Solvency
1TMO has an Altman-Z score of 3.43. This indicates that 1TMO is financially healthy and has little risk of bankruptcy at the moment.
1TMO has a better Altman-Z score (3.43) than 66.67% of its industry peers.
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.
With a Debt to FCF ratio value of 5.08, 1TMO perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that 1TMO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, 1TMO is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 3.43 |
ROIC/WACC0.67
WACC10.18%
2.3 Liquidity
1TMO has a Current Ratio of 1.77. This is a normal value and indicates that 1TMO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 1TMO (1.77) is better than 66.67% of its industry peers.
A Quick Ratio of 1.38 indicates that 1TMO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.38, 1TMO is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
| 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.
1TMO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.12% yearly.
1TMO shows a small growth in Revenue. In the last year, the Revenue has grown by 0.96%.
1TMO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.92% yearly.
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.
The Revenue is expected to grow by 4.71% on average over the next years.
EPS Next Y3.08%
EPS Next 2Y6.81%
EPS Next 3Y8.35%
EPS Next 5Y11.41%
Revenue Next Year2.11%
Revenue Next 2Y4.09%
Revenue Next 3Y4.98%
Revenue Next 5Y4.71%
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.
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
1TMO is valuated rather expensively with a Price/Earnings ratio of 18.40.
83.33% of the companies in the same industry are more expensive than 1TMO, based on the Price/Earnings ratio.
1TMO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.52.
A Price/Forward Earnings ratio of 16.15 indicates a correct valuation of 1TMO.
Based on the Price/Forward Earnings ratio, 1TMO is valued a bit cheaper than 72.22% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1TMO to the average of the S&P500 Index (22.25), we can say 1TMO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.4 | ||
| Fwd PE | 16.15 |
4.2 Price Multiples
1TMO's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1TMO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.61 | ||
| EV/EBITDA | 16.5 |
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.
1TMO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.97
PEG (5Y)1.52
EPS Next 2Y6.81%
EPS Next 3Y8.35%
5. Dividend
5.1 Amount
1TMO has a yearly dividend return of 0.43%, which is pretty low.
1TMO's Dividend Yield is comparable with the industry average which is at 2.85.
Compared to an average S&P500 Dividend Yield of 2.38, 1TMO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
On average, the dividend of 1TMO grows each year by 15.37%, which is quite nice.
Dividend Growth(5Y)15.37%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
9.16% 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.
DP9.16%
EPS Next 2Y6.81%
EPS Next 3Y8.35%
BIT:1TMO (6/3/2025, 7:00:00 PM)
352.65
+2.9 (+0.83%)
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 Cap133.12B
Analysts81.08
Price Target511.86 (45.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend1.34
Dividend Growth(5Y)15.37%
DP9.16%
Div Incr Years0
Div Non Decr Years0
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)-17.05%
PT rev (3m)-17.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.6%
EPS NY rev (1m)-4.04%
EPS NY rev (3m)-4.25%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.4 | ||
| Fwd PE | 16.15 | ||
| P/S | 3.54 | ||
| P/FCF | 22.61 | ||
| P/OCF | 18.68 | ||
| P/B | 3.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.5 |
EPS(TTM)19.17
EY5.44%
EPS(NY)21.83
Fwd EY6.19%
FCF(TTM)15.6
FCFY4.42%
OCF(TTM)18.88
OCFY5.35%
SpS99.48
BVpS114.54
TBVpS-28.82
PEG (NY)5.97
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 13.19% | ||
| ROCE | 9.13% | ||
| ROIC | 6.85% | ||
| ROICexc | 7.36% | ||
| ROICexgc | 32.47% | ||
| OM | 18.27% | ||
| PM (TTM) | 15.19% | ||
| GM | 41.34% | ||
| 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 | 47.53% | ||
| Cap/Sales | 3.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.27% | ||
| Profit Quality | 103.22% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 3.43 |
F-Score8
WACC10.18%
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 Y3.08%
EPS Next 2Y6.81%
EPS Next 3Y8.35%
EPS Next 5Y11.41%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%0.18%
Revenue Next Year2.11%
Revenue Next 2Y4.09%
Revenue Next 3Y4.98%
Revenue Next 5Y4.71%
EBIT growth 1Y6.86%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year12.01%
EBIT Next 3Y9.78%
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%