THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TMO - US8835561023 - Common Stock
572.77 USD
-2.47 (-0.43%)
572.77 USD
0 (0%)
Taking everything into account, TMO scores 5 out of 10 in our fundamental rating. TMO was compared to 58 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
TMO had positive earnings in the past year.
In the past year TMO had a positive cash flow from operations.
Each year in the past 5 years TMO has been profitable.
In the past 5 years TMO always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.38%, TMO belongs to the best of the industry, outperforming 84.48% of the companies in the same industry.
TMO's Return On Equity of 12.88% is amongst the best of the industry. TMO outperforms 86.21% of its industry peers.
TMO has a better Return On Invested Capital (7.21%) than 77.59% 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 13.53%.
| 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
The Profit Margin of TMO (15.02%) is better than 84.48% of its industry peers.
TMO's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 18.40%, TMO belongs to the top of the industry, outperforming 82.76% 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 41.43%, TMO is in line with its industry, outperforming 43.10% 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 | 18.4% | ||
| 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.
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.
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.
With a decent Debt to FCF ratio value of 5.84, TMO is doing good in the industry, outperforming 65.52% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that TMO is somewhat dependend on debt financing.
TMO has a worse Debt to Equity ratio (0.62) than 67.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.72
WACC10.04%
2.3 Liquidity
A Current Ratio of 1.50 indicates that TMO should not have too much problems paying 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 74.14% of its industry peers.
TMO has a Quick Ratio of 1.11. This is a normal value and indicates that TMO is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TMO (1.11) is worse than 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
TMO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.53%.
The Earnings Per Share has been growing by 12.12% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.22% in the past 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
Based on estimates for the next years, TMO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.66% on average per year.
TMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.65% yearly.
EPS Next Y5.02%
EPS Next 2Y6.77%
EPS Next 3Y7.78%
EPS Next 5Y9.66%
Revenue Next Year3.49%
Revenue Next 2Y4.24%
Revenue Next 3Y4.65%
Revenue Next 5Y4.65%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 25.57 indicates a quite expensive valuation of TMO.
Based on the Price/Earnings ratio, TMO is valued cheaply inside the industry as 81.03% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TMO to the average of the S&P500 Index (26.46), we can say TMO is valued inline with the index average.
The Price/Forward Earnings ratio is 22.98, which indicates a rather expensive current valuation of TMO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TMO indicates a rather cheap valuation: TMO is cheaper than 82.76% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.10. TMO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.57 | ||
| Fwd PE | 22.98 |
4.2 Price Multiples
TMO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TMO is cheaper than 77.59% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TMO indicates a somewhat cheap valuation: TMO is cheaper than 68.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.22 | ||
| EV/EBITDA | 22.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TMO does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of TMO may justify a higher PE ratio.
PEG (NY)5.09
PEG (5Y)2.11
EPS Next 2Y6.77%
EPS Next 3Y7.78%
5. Dividend
5.1 Amount
TMO has a yearly dividend return of 0.29%, which is pretty low.
Compared to an average industry Dividend Yield of 0.45, TMO pays a better dividend. On top of this TMO pays more dividend than 86.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, TMO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
5.2 History
On average, the dividend of TMO grows each year by 15.42%, which is quite nice.
TMO has paid a dividend for at least 10 years, which is a reliable track record.
TMO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y6.77%
EPS Next 3Y7.78%
572.77
-2.47 (-0.43%)
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-0.32%
Ins Owners0.09%
Ins Owner Change-0.46%
Market Cap215.20B
Revenue(TTM)43.74B
Net Income(TTM)6.57B
Analysts80.63
Price Target625.32 (9.17%)
Short Float %1.46%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
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)0.12%
PT rev (3m)11.4%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-0.81%
EPS NY rev (1m)1.01%
EPS NY rev (3m)1%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.57 | ||
| Fwd PE | 22.98 | ||
| P/S | 4.92 | ||
| P/FCF | 35.22 | ||
| P/OCF | 28.13 | ||
| P/B | 4.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.75 |
EPS(TTM)22.4
EY3.91%
EPS(NY)24.92
Fwd EY4.35%
FCF(TTM)16.26
FCFY2.84%
OCF(TTM)20.36
OCFY3.55%
SpS116.41
BVpS135.81
TBVpS-38.61
PEG (NY)5.09
PEG (5Y)2.11
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
WACC10.04%
ROIC/WACC0.72
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 Y5.02%
EPS Next 2Y6.77%
EPS Next 3Y7.78%
EPS Next 5Y9.66%
Revenue 1Y (TTM)3.22%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%4.94%
Revenue Next Year3.49%
Revenue Next 2Y4.24%
Revenue Next 3Y4.65%
Revenue Next 5Y4.65%
EBIT growth 1Y8.68%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year13.53%
EBIT Next 3Y9.14%
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 5 / 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 25.57 and the Price/Book (PB) ratio is 4.22.
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 5.02% in the next year.