THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TMO - US8835561023 - Common Stock
580.74 USD
+1.62 (+0.28%)
580.74 USD
0 (0%)
TMO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 57 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
In the past year TMO was profitable.
TMO had a positive operating cash flow in the past year.
In the past 5 years TMO has always been profitable.
In the past 5 years TMO always reported a positive cash flow from operatings.
1.2 Ratios
TMO has a better Return On Assets (6.38%) than 84.21% of its industry peers.
The Return On Equity of TMO (12.88%) is better than 85.96% of its industry peers.
TMO has a better Return On Invested Capital (7.21%) than 77.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TMO is significantly below the industry average of 13.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 12.88% | ||
| ROIC | 7.21% |
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.8%
ROE(5y)15.76%
ROIC(3y)7.48%
ROIC(5y)8.55%
1.3 Margins
TMO has a Profit Margin of 15.02%. This is amongst the best in the industry. TMO outperforms 84.21% of its industry peers.
TMO's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 18.40%, TMO belongs to the best 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 of 41.43%. This is comparable to the rest of the industry: TMO outperforms 43.86% of its industry peers.
In the last couple of years the Gross Margin of TMO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.4% | ||
| PM (TTM) | 15.02% | ||
| GM | 41.43% |
OM growth 3Y-12.04%
OM growth 5Y1.61%
PM growth 3Y-9.15%
PM growth 5Y0.42%
GM growth 3Y-6.24%
GM growth 5Y-1.42%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TMO is destroying value.
TMO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TMO has been reduced compared to 5 years ago.
The debt/assets ratio for TMO has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of TMO is 5.84, which is a neutral value as it means it would take TMO, 5.84 years of fcf income to pay off all of its debts.
TMO's Debt to FCF ratio of 5.84 is fine compared to the rest of the industry. TMO outperforms 66.67% of its industry peers.
TMO has a Debt/Equity ratio of 0.62. This is a neutral value indicating TMO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.62, TMO is doing worse than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.68
WACC10.61%
2.3 Liquidity
TMO has a Current Ratio of 1.50. This is a normal value and indicates that TMO is financially healthy and should not expect problems in meeting its short term obligations.
TMO's Current ratio of 1.50 is on the low side compared to the rest of the industry. TMO is outperformed by 75.44% of its industry peers.
A Quick Ratio of 1.11 indicates that TMO should not have too much problems paying its short term obligations.
TMO has a worse Quick ratio (1.11) than 71.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.53% over the past year.
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.
Looking at the last year, TMO shows a small growth in Revenue. The Revenue has grown by 3.22% 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)4.53%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%9.66%
Revenue 1Y (TTM)3.22%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%4.94%
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 9.66% yearly.
TMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.65% yearly.
EPS Next Y5.08%
EPS Next 2Y6.65%
EPS Next 3Y7.9%
EPS Next 5Y9.66%
Revenue Next Year3.54%
Revenue Next 2Y4.26%
Revenue Next 3Y4.7%
Revenue Next 5Y4.65%
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
TMO is valuated quite expensively with a Price/Earnings ratio of 25.93.
78.95% of the companies in the same industry are more expensive than TMO, based on the Price/Earnings ratio.
TMO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.36 indicates a rather expensive valuation of TMO.
78.95% of the companies in the same industry are more expensive than TMO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TMO to the average of the S&P500 Index (24.04), we can say TMO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.93 | ||
| Fwd PE | 23.36 |
4.2 Price Multiples
71.93% 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 68.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.71 | ||
| EV/EBITDA | 22.94 |
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)5.1
PEG (5Y)2.14
EPS Next 2Y6.65%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
TMO has a yearly dividend return of 0.30%, which is pretty low.
Compared to an average industry Dividend Yield of 0.09, TMO pays a better dividend. On top of this TMO pays more dividend than 85.96% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, TMO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
5.2 History
The dividend of TMO is nicely growing with an annual growth rate of 15.42%!
TMO has paid a dividend for at least 10 years, which is a reliable track record.
TMO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.42%
Div Incr Years7
Div Non Decr Years12
5.3 Sustainability
TMO pays out 9.48% 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.
DP9.48%
EPS Next 2Y6.65%
EPS Next 3Y7.9%
580.74
+1.62 (+0.28%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners92.88%
Inst Owner Change-0.3%
Ins Owners0.09%
Ins Owner Change4.79%
Market Cap218.19B
Revenue(TTM)43.74B
Net Income(TTM)6.57B
Analysts81.29
Price Target646.25 (11.28%)
Short Float %1.36%
Short Ratio2.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
Yearly Dividend1.52
Dividend Growth(5Y)15.42%
DP9.48%
Div Incr Years7
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.99%
Min EPS beat(2)1.61%
Max EPS beat(2)4.37%
EPS beat(4)3
Avg EPS beat(4)1.9%
Min EPS beat(4)-0.07%
Max EPS beat(4)4.37%
EPS beat(8)5
Avg EPS beat(8)2.24%
EPS beat(12)7
Avg EPS beat(12)1.19%
EPS beat(16)11
Avg EPS beat(16)4.2%
Revenue beat(2)2
Avg Revenue beat(2)0.79%
Min Revenue beat(2)0.62%
Max Revenue beat(2)0.95%
Revenue beat(4)4
Avg Revenue beat(4)0.47%
Min Revenue beat(4)0.04%
Max Revenue beat(4)0.95%
Revenue beat(8)6
Avg Revenue beat(8)0.12%
Revenue beat(12)7
Avg Revenue beat(12)0.36%
Revenue beat(16)11
Avg Revenue beat(16)2.75%
PT rev (1m)3.35%
PT rev (3m)13.99%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-0.83%
EPS NY rev (1m)0.06%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.93 | ||
| Fwd PE | 23.36 | ||
| P/S | 4.99 | ||
| P/FCF | 35.71 | ||
| P/OCF | 28.52 | ||
| P/B | 4.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.94 |
EPS(TTM)22.4
EY3.86%
EPS(NY)24.86
Fwd EY4.28%
FCF(TTM)16.26
FCFY2.8%
OCF(TTM)20.36
OCFY3.51%
SpS116.41
BVpS135.81
TBVpS-38.61
PEG (NY)5.1
PEG (5Y)2.14
Graham Number261.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 12.88% | ||
| ROCE | 9.13% | ||
| ROIC | 7.21% | ||
| ROICexc | 7.52% | ||
| ROICexgc | 33.37% | ||
| OM | 18.4% | ||
| PM (TTM) | 15.02% | ||
| GM | 41.43% | ||
| FCFM | 13.97% |
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.8%
ROE(5y)15.76%
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%
ROICexgc growth 3Y-8.22%
ROICexgc 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-6.24%
GM growth 5Y-1.42%
F-Score8
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.84 | ||
| Debt/EBITDA | 2.94 | ||
| Cap/Depr | 55.1% | ||
| Cap/Sales | 3.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.55% | ||
| Profit Quality | 93% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | N/A |
F-Score8
WACC10.61%
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)4.53%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%9.66%
EPS Next Y5.08%
EPS Next 2Y6.65%
EPS Next 3Y7.9%
EPS Next 5Y9.66%
Revenue 1Y (TTM)3.22%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%4.94%
Revenue Next Year3.54%
Revenue Next 2Y4.26%
Revenue Next 3Y4.7%
Revenue Next 5Y4.65%
EBIT growth 1Y8.68%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year15.31%
EBIT Next 3Y9.32%
EBIT Next 5Y9.16%
FCF growth 1Y-6.66%
FCF growth 3Y2.29%
FCF growth 5Y12.42%
OCF growth 1Y-6.36%
OCF growth 3Y-2.36%
OCF growth 5Y11.75%
THERMO FISHER SCIENTIFIC INC / TMO FAQ
What is the ChartMill fundamental rating of THERMO FISHER SCIENTIFIC INC (TMO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TMO.
Can you provide the valuation status for THERMO FISHER SCIENTIFIC INC?
ChartMill assigns a valuation rating of 4 / 10 to THERMO FISHER SCIENTIFIC INC (TMO). This can be considered as Fairly Valued.
What is the profitability of TMO stock?
THERMO FISHER SCIENTIFIC INC (TMO) has a profitability rating of 7 / 10.
What is the valuation of THERMO FISHER SCIENTIFIC INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for THERMO FISHER SCIENTIFIC INC (TMO) is 25.93 and the Price/Book (PB) ratio is 4.28.
Can you provide the expected EPS growth for TMO stock?
The Earnings per Share (EPS) of THERMO FISHER SCIENTIFIC INC (TMO) is expected to grow by 5.08% in the next year.