THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
USA - NYSE:TMO - US8835561023 - Common Stock
483.2 USD
+21.16 (+4.58%)
We assign a fundamental rating of 5 out of 10 to TMO. TMO was compared to 56 industry peers in the Life Sciences Tools & Services industry. While TMO has a great profitability rating, 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.
TMO had a positive operating cash flow in the past year.
TMO had positive earnings in each of the past 5 years.
TMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TMO has a better Return On Assets (6.50%) than 83.93% of its industry peers.
The Return On Equity of TMO (13.04%) is better than 83.93% of its industry peers.
TMO's Return On Invested Capital of 7.01% is fine compared to the rest of the industry. TMO outperforms 76.79% of its industry peers.
TMO had an Average Return On Invested Capital over the past 3 years of 7.48%. This is significantly below the industry average of 14.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.5% | ||
| ROE | 13.04% | ||
| ROIC | 7.01% |
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.81%
ROE(5y)15.77%
ROIC(3y)7.48%
ROIC(5y)8.55%
1.3 Margins
TMO's Profit Margin of 15.24% is amongst the best of the industry. TMO outperforms 83.93% of its industry peers.
In the last couple of years the Profit Margin of TMO has remained more or less at the same level.
Looking at the Operating Margin, with a value of 18.18%, TMO belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
TMO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 41.34%, TMO is in line with its industry, outperforming 42.86% of the companies in the same industry.
TMO's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
The debt/assets ratio for TMO has been reduced compared to a year ago.
2.2 Solvency
TMO has a debt to FCF ratio of 5.71. This is a neutral value as TMO would need 5.71 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.71, TMO is doing good in the industry, outperforming 66.07% of the companies in the same industry.
TMO has a Debt/Equity ratio of 0.65. This is a neutral value indicating TMO is somewhat dependend on debt financing.
The Debt to Equity ratio of TMO (0.65) is worse than 69.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | N/A |
ROIC/WACC0.69
WACC10.21%
2.3 Liquidity
A Current Ratio of 1.93 indicates that TMO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.93, TMO is in line with its industry, outperforming 42.86% of the companies in the same industry.
A Quick Ratio of 1.50 indicates that TMO should not have too much problems paying its short term obligations.
TMO has a Quick ratio (1.50) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
TMO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.23%.
TMO 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 2.05% in the past year.
TMO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.92% yearly.
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, TMO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.36% on average per year.
Based on estimates for the next years, TMO will show a small growth in Revenue. The Revenue will grow by 4.55% on average per year.
EPS Next Y4.02%
EPS Next 2Y6.1%
EPS Next 3Y7.53%
EPS Next 5Y9.36%
Revenue Next Year2.69%
Revenue Next 2Y3.73%
Revenue Next 3Y4.43%
Revenue Next 5Y4.55%
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.
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 22.07, the valuation of TMO can be described as rather expensive.
TMO's Price/Earnings ratio is rather cheap when compared to the industry. TMO is cheaper than 82.14% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.67. TMO is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 19.64, 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 80.36% of the companies listed in the same industry.
TMO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.07 | ||
| Fwd PE | 19.64 |
4.2 Price Multiples
76.79% of the companies in the same industry are more expensive than TMO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TMO is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.57 | ||
| EV/EBITDA | 18.78 |
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)5.49
PEG (5Y)1.82
EPS Next 2Y6.1%
EPS Next 3Y7.53%
5. Dividend
5.1 Amount
With a yearly dividend of 0.37%, TMO is not a good candidate for dividend investing.
TMO's Dividend Yield is rather good when compared to the industry average which is at 0.57. TMO pays more dividend than 87.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, TMO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
5.2 History
The dividend of TMO is nicely growing with an annual growth rate of 15.37%!
TMO has been paying a dividend for at least 10 years, so it has a reliable track record.
TMO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.37%
Div Incr Years7
Div Non Decr Years12
5.3 Sustainability
9.26% of the earnings are spent on dividend by TMO. This is a low number and sustainable payout ratio.
The dividend of TMO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.26%
EPS Next 2Y6.1%
EPS Next 3Y7.53%
NYSE:TMO (9/30/2025, 2:41:55 PM)
483.2
+21.16 (+4.58%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.65%
Inst Owner Change-0.9%
Ins Owners0.09%
Ins Owner Change0.53%
Market Cap182.46B
Analysts81.14
Price Target566.93 (17.33%)
Short Float %1.02%
Short Ratio1.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Yearly Dividend1.52
Dividend Growth(5Y)15.37%
DP9.26%
Div Incr Years7
Div Non Decr Years12
Ex-Date
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)1%
PT rev (3m)-0.07%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-0.33%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.07 | ||
| Fwd PE | 19.64 | ||
| P/S | 4.22 | ||
| P/FCF | 29.57 | ||
| P/OCF | 24.08 | ||
| P/B | 3.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.78 |
EPS(TTM)21.89
EY4.53%
EPS(NY)24.61
Fwd EY5.09%
FCF(TTM)16.34
FCFY3.38%
OCF(TTM)20.07
OCFY4.15%
SpS114.44
BVpS133.67
TBVpS-31.57
PEG (NY)5.49
PEG (5Y)1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.5% | ||
| ROE | 13.04% | ||
| ROCE | 8.88% | ||
| ROIC | 7.01% | ||
| ROICexc | 7.56% | ||
| ROICexgc | 31.47% | ||
| 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)7.48%
ROIC(5y)8.55%
ROICexc(3y)8.22%
ROICexc(5y)9.55%
ROICexgc(3y)40.87%
ROICexgc(5y)46.64%
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
WACC10.21%
ROIC/WACC0.69
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 Y4.02%
EPS Next 2Y6.1%
EPS Next 3Y7.53%
EPS Next 5Y9.36%
Revenue 1Y (TTM)2.05%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%2.98%
Revenue Next Year2.69%
Revenue Next 2Y3.73%
Revenue Next 3Y4.43%
Revenue Next 5Y4.55%
EBIT growth 1Y5.17%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year13.53%
EBIT Next 3Y9.14%
EBIT Next 5Y8.68%
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%