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THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis

USA - NYSE:TMO - US8835561023 - Common Stock

556.41 USD
+12.57 (+2.31%)
Last: 10/21/2025, 9:41:08 AM
Fundamental Rating

5

Overall TMO gets a fundamental rating of 5 out of 10. We evaluated TMO against 57 industry peers in the Life Sciences Tools & Services industry. While TMO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TMO has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year TMO was profitable.
TMO had a positive operating cash flow in the past year.
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.
TMO Yearly Net Income VS EBIT VS OCF VS FCFTMO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

1.2 Ratios

Looking at the Return On Assets, with a value of 6.50%, TMO belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
TMO has a better Return On Equity (13.04%) than 84.21% of its industry peers.
With a decent Return On Invested Capital value of 7.01%, TMO is doing good in the industry, outperforming 77.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TMO is significantly below the industry average of 14.93%.
Industry RankSector 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%
TMO Yearly ROA, ROE, ROICTMO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

TMO has a Profit Margin of 15.24%. This is amongst the best in the industry. TMO outperforms 84.21% 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 82.46% of the companies in the same industry.
In the last couple of years the Operating Margin of TMO has grown nicely.
TMO has a Gross Margin (41.34%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of TMO has remained more or less at the same level.
Industry RankSector 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%
TMO Yearly Profit, Operating, Gross MarginsTMO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TMO is destroying value.
Compared to 1 year ago, TMO has less shares outstanding
TMO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TMO has an improved debt to assets ratio.
TMO Yearly Shares OutstandingTMO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
TMO Yearly Total Debt VS Total AssetsTMO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

2.2 Solvency

The Debt to FCF ratio of TMO is 5.71, which is a neutral value as it means it would take TMO, 5.71 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.71, TMO is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.65 indicates that TMO is somewhat dependend on debt financing.
TMO has a worse Debt to Equity ratio (0.65) than 68.42% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.65
Debt/FCF 5.71
Altman-Z N/A
ROIC/WACC0.68
WACC10.27%
TMO Yearly LT Debt VS Equity VS FCFTMO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.3 Liquidity

TMO has a Current Ratio of 1.93. This is a normal value and indicates that TMO is financially healthy and should not expect problems in meeting its short term obligations.
TMO has a Current ratio of 1.93. This is comparable to the rest of the industry: TMO outperforms 43.86% of its industry peers.
A Quick Ratio of 1.50 indicates that TMO should not have too much problems paying its short term obligations.
The Quick ratio of TMO (1.50) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.93
Quick Ratio 1.5
TMO Yearly Current Assets VS Current LiabilitesTMO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

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%.
Measured over the past years, TMO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.12% on average per year.
TMO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.05%.
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

TMO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.78% yearly.
The Revenue is expected to grow by 4.62% on average over the next years.
EPS Next Y4.02%
EPS Next 2Y6.1%
EPS Next 3Y7.53%
EPS Next 5Y9.78%
Revenue Next Year2.76%
Revenue Next 2Y3.79%
Revenue Next 3Y4.46%
Revenue Next 5Y4.62%

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.
TMO Yearly Revenue VS EstimatesTMO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10B 20B 30B 40B 50B
TMO Yearly EPS VS EstimatesTMO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10 20 30

4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 25.42, TMO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TMO is valued a bit cheaper than the industry average as 77.19% of the companies are valued more expensively.
TMO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.69.
With a Price/Forward Earnings ratio of 22.61, TMO is valued on the expensive side.
Based on the Price/Forward Earnings ratio, TMO is valued cheaply inside the industry as 80.70% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TMO to the average of the S&P500 Index (23.18), we can say TMO is valued inline with the index average.
Industry RankSector Rank
PE 25.42
Fwd PE 22.61
TMO Price Earnings VS Forward Price EarningsTMO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

77.19% 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 a bit cheaper when compared to the industry. TMO is cheaper than 68.42% of the companies in the same industry.
Industry RankSector Rank
P/FCF 34.05
EV/EBITDA 21.66
TMO Per share dataTMO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100

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)6.32
PEG (5Y)2.1
EPS Next 2Y6.1%
EPS Next 3Y7.53%

6

5. Dividend

5.1 Amount

TMO has a yearly dividend return of 0.32%, which is pretty low.
Compared to an average industry Dividend Yield of 0.55, TMO pays a better dividend. On top of this TMO pays more dividend than 84.21% of the companies listed in the same industry.
With a Dividend Yield of 0.32, TMO pays less dividend than the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 0.32%

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
TMO Yearly Dividends per shareTMO Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

TMO pays out 9.26% 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.
DP9.26%
EPS Next 2Y6.1%
EPS Next 3Y7.53%
TMO Yearly Income VS Free CF VS DividendTMO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B
TMO Dividend Payout.TMO Dividend Payout, showing the Payout Ratio.TMO Dividend Payout.PayoutRetained Earnings

THERMO FISHER SCIENTIFIC INC

NYSE:TMO (10/21/2025, 9:41:08 AM)

556.41

+12.57 (+2.31%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)07-23 2025-07-23/bmo
Earnings (Next)10-22 2025-10-22/bmo
Inst Owners91.65%
Inst Owner Change0.19%
Ins Owners0.09%
Ins Owner Change0.53%
Market Cap210.11B
Analysts81.76
Price Target566.27 (1.77%)
Short Float %1.02%
Short Ratio1.61
Dividend
Industry RankSector Rank
Dividend Yield 0.32%
Yearly Dividend1.52
Dividend Growth(5Y)15.37%
DP9.26%
Div Incr Years7
Div Non Decr Years12
Ex-Date09-15 2025-09-15 (0.43)
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)-0.12%
PT rev (3m)1.52%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.56%
Valuation
Industry RankSector Rank
PE 25.42
Fwd PE 22.61
P/S 4.86
P/FCF 34.05
P/OCF 27.73
P/B 4.16
P/tB N/A
EV/EBITDA 21.66
EPS(TTM)21.89
EY3.93%
EPS(NY)24.61
Fwd EY4.42%
FCF(TTM)16.34
FCFY2.94%
OCF(TTM)20.07
OCFY3.61%
SpS114.44
BVpS133.67
TBVpS-31.57
PEG (NY)6.32
PEG (5Y)2.1
Profitability
Industry RankSector 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 RankSector 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
WACC10.27%
ROIC/WACC0.68
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 5Y9.78%
Revenue 1Y (TTM)2.05%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%2.98%
Revenue Next Year2.76%
Revenue Next 2Y3.79%
Revenue Next 3Y4.46%
Revenue Next 5Y4.62%
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%