THERMO FISHER SCIENTIFIC INC (TMO) Fundamental Analysis & Valuation

NYSE:TMO • US8835561023

Current stock price

476.08 USD
-12.77 (-2.61%)
Last:

This TMO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. TMO Profitability Analysis

1.1 Basic Checks

  • In the past year TMO was profitable.
  • In the past year TMO had a positive cash flow from operations.
  • In the past 5 years TMO has always 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

1.2 Ratios

  • TMO's Return On Assets of 6.08% is amongst the best of the industry. TMO outperforms 82.14% of its industry peers.
  • TMO has a Return On Equity of 12.55%. This is amongst the best in the industry. TMO outperforms 83.93% of its industry peers.
  • TMO's Return On Invested Capital of 7.80% is amongst the best of the industry. TMO outperforms 82.14% of its industry peers.
  • TMO had an Average Return On Invested Capital over the past 3 years of 8.04%. This is below the industry average of 12.34%.
Industry RankSector Rank
ROA 6.08%
ROE 12.55%
ROIC 7.8%
ROA(3y)6.22%
ROA(5y)6.79%
ROE(3y)12.72%
ROE(5y)14.58%
ROIC(3y)8.04%
ROIC(5y)9.02%
TMO Yearly ROA, ROE, ROICTMO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • TMO has a Profit Margin of 15.05%. This is amongst the best in the industry. TMO outperforms 83.93% of its industry peers.
  • TMO's Profit Margin has declined in the last couple of years.
  • With an excellent Operating Margin value of 18.19%, TMO belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
  • TMO's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 41.09%, TMO is in line with its industry, outperforming 41.07% of the companies in the same industry.
  • TMO's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 18.19%
PM (TTM) 15.05%
GM 41.09%
OM growth 3Y-1.32%
OM growth 5Y-5.71%
PM growth 3Y-0.93%
PM growth 5Y-5.33%
GM growth 3Y-1.04%
GM growth 5Y-3.78%
TMO Yearly Profit, Operating, Gross MarginsTMO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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4

2. TMO Health Analysis

2.1 Basic Checks

  • TMO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, TMO has less shares outstanding
  • The number of shares outstanding for TMO has been reduced compared to 5 years ago.
  • Compared to 1 year ago, TMO has a worse debt to assets ratio.
TMO Yearly Shares OutstandingTMO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
TMO Yearly Total Debt VS Total AssetsTMO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

  • TMO has an Altman-Z score of 3.46. This indicates that TMO is financially healthy and has little risk of bankruptcy at the moment.
  • TMO's Altman-Z score of 3.46 is fine compared to the rest of the industry. TMO outperforms 71.43% of its industry peers.
  • The Debt to FCF ratio of TMO is 6.26, which is on the high side as it means it would take TMO, 6.26 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 6.26, TMO is doing good in the industry, outperforming 69.64% of the companies in the same industry.
  • A Debt/Equity ratio of 0.67 indicates that TMO is somewhat dependend on debt financing.
  • TMO has a worse Debt to Equity ratio (0.67) than 67.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF 6.26
Altman-Z 3.46
ROIC/WACC0.72
WACC10.78%
TMO Yearly LT Debt VS Equity VS FCFTMO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.3 Liquidity

  • TMO has a Current Ratio of 1.89. 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 worse Current ratio (1.89) than 66.07% of its industry peers.
  • TMO has a Quick Ratio of 1.53. 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 Quick ratio of 1.53 is on the low side compared to the rest of the industry. TMO is outperformed by 64.29% of its industry peers.
Industry RankSector Rank
Current Ratio 1.89
Quick Ratio 1.53
TMO Yearly Current Assets VS Current LiabilitesTMO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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4

3. TMO Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 4.62% over the past year.
  • The Earnings Per Share has been growing slightly by 3.19% on average over the past years.
  • TMO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.91%.
  • Measured over the past years, TMO shows a small growth in Revenue. The Revenue has been growing by 6.70% on average per year.
EPS 1Y (TTM)4.62%
EPS 3Y-0.53%
EPS 5Y3.19%
EPS Q2Q%7.7%
Revenue 1Y (TTM)3.91%
Revenue growth 3Y-0.27%
Revenue growth 5Y6.7%
Sales Q2Q%7.2%

3.2 Future

  • The Earnings Per Share is expected to grow by 10.80% on average over the next years. This is quite good.
  • Based on estimates for the next years, TMO will show a small growth in Revenue. The Revenue will grow by 5.26% on average per year.
EPS Next Y8.45%
EPS Next 2Y8.79%
EPS Next 3Y9.32%
EPS Next 5Y10.8%
Revenue Next Year5.79%
Revenue Next 2Y5.45%
Revenue Next 3Y5.84%
Revenue Next 5Y5.26%

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 accelerating.
  • 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B 50B
TMO Yearly EPS VS EstimatesTMO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 10 20 30 40

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4

4. TMO Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 20.82 indicates a rather expensive valuation of TMO.
  • 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.
  • When comparing the Price/Earnings ratio of TMO to the average of the S&P500 Index (25.23), we can say TMO is valued inline with the index average.
  • With a Price/Forward Earnings ratio of 19.20, TMO is valued on the expensive side.
  • TMO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TMO is cheaper than 78.57% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.51. TMO is around the same levels.
Industry RankSector Rank
PE 20.82
Fwd PE 19.2
TMO Price Earnings VS Forward Price EarningsTMO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, TMO is valued a bit cheaper than the industry average as 73.21% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, TMO is valued a bit cheaper than the industry average as 73.21% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 28.1
EV/EBITDA 19.35
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 TMO does not grow enough to justify the current Price/Earnings ratio.
  • TMO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.46
PEG (5Y)6.53
EPS Next 2Y8.79%
EPS Next 3Y9.32%

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6

5. TMO Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.40%, 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 0.12. TMO pays more dividend than 85.71% of the companies in the same industry.
  • With a Dividend Yield of 0.40, TMO pays less dividend than the S&P500 average, which is at 1.90.
Industry RankSector Rank
Dividend Yield 0.4%

5.2 History

  • On average, the dividend of TMO grows each year by 14.67%, which is quite nice.
  • 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)14.67%
Div Incr Years7
Div Non Decr Years12
TMO Yearly Dividends per shareTMO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • 9.49% 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.
DP9.49%
EPS Next 2Y8.79%
EPS Next 3Y9.32%
TMO Yearly Income VS Free CF VS DividendTMO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
TMO Dividend Payout.TMO Dividend Payout, showing the Payout Ratio.TMO Dividend Payout.PayoutRetained Earnings

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TMO Fundamentals: All Metrics, Ratios and Statistics

THERMO FISHER SCIENTIFIC INC

NYSE:TMO (3/27/2026, 12:53:59 PM)

476.08

-12.77 (-2.61%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)01-29
Earnings (Next)04-21
Inst Owners95.38%
Inst Owner Change12.09%
Ins Owners0.09%
Ins Owner Change7.52%
Market Cap176.85B
Revenue(TTM)44.56B
Net Income(TTM)6.70B
Analysts83.03
Price Target678.16 (42.45%)
Short Float %0.96%
Short Ratio1.44
Dividend
Industry RankSector Rank
Dividend Yield 0.4%
Yearly Dividend1.68
Dividend Growth(5Y)14.67%
DP9.49%
Div Incr Years7
Div Non Decr Years12
Ex-Date03-13
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.64%
Min EPS beat(2)0.91%
Max EPS beat(2)4.37%
EPS beat(4)3
Avg EPS beat(4)1.7%
Min EPS beat(4)-0.07%
Max EPS beat(4)4.37%
EPS beat(8)6
Avg EPS beat(8)2.42%
EPS beat(12)7
Avg EPS beat(12)1.02%
EPS beat(16)11
Avg EPS beat(16)2.83%
Revenue beat(2)2
Avg Revenue beat(2)1.08%
Min Revenue beat(2)0.95%
Max Revenue beat(2)1.21%
Revenue beat(4)4
Avg Revenue beat(4)0.77%
Min Revenue beat(4)0.28%
Max Revenue beat(4)1.21%
Revenue beat(8)6
Avg Revenue beat(8)0.22%
Revenue beat(12)7
Avg Revenue beat(12)-0.27%
Revenue beat(16)11
Avg Revenue beat(16)1.95%
PT rev (1m)0%
PT rev (3m)7.43%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-6.04%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-1.46%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.8%
Valuation
Industry RankSector Rank
PE 20.82
Fwd PE 19.2
P/S 3.97
P/FCF 28.1
P/OCF 22.62
P/B 3.31
P/tB N/A
EV/EBITDA 19.35
EPS(TTM)22.87
EY4.8%
EPS(NY)24.8
Fwd EY5.21%
FCF(TTM)16.94
FCFY3.56%
OCF(TTM)21.05
OCFY4.42%
SpS119.94
BVpS143.77
TBVpS-31.74
PEG (NY)2.46
PEG (5Y)6.53
Graham Number271.99
Profitability
Industry RankSector Rank
ROA 6.08%
ROE 12.55%
ROCE 8.52%
ROIC 7.8%
ROICexc 8.73%
ROICexgc 37.4%
OM 18.19%
PM (TTM) 15.05%
GM 41.09%
FCFM 14.12%
ROA(3y)6.22%
ROA(5y)6.79%
ROE(3y)12.72%
ROE(5y)14.58%
ROIC(3y)8.04%
ROIC(5y)9.02%
ROICexc(3y)8.83%
ROICexc(5y)9.85%
ROICexgc(3y)40.31%
ROICexgc(5y)46.65%
ROCE(3y)8.78%
ROCE(5y)9.93%
ROICexgc growth 3Y-13.91%
ROICexgc growth 5Y-12.87%
ROICexc growth 3Y-6.93%
ROICexc growth 5Y-10.12%
OM growth 3Y-1.32%
OM growth 5Y-5.71%
PM growth 3Y-0.93%
PM growth 5Y-5.33%
GM growth 3Y-1.04%
GM growth 5Y-3.78%
F-Score5
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF 6.26
Debt/EBITDA 3.29
Cap/Depr 54.86%
Cap/Sales 3.42%
Interest Coverage 5.03
Cash Conversion 71.82%
Profit Quality 93.87%
Current Ratio 1.89
Quick Ratio 1.53
Altman-Z 3.46
F-Score5
WACC10.78%
ROIC/WACC0.72
Cap/Depr(3y)47.77%
Cap/Depr(5y)61.4%
Cap/Sales(3y)3.38%
Cap/Sales(5y)4.31%
Profit Quality(3y)108.04%
Profit Quality(5y)102.29%
High Growth Momentum
Growth
EPS 1Y (TTM)4.62%
EPS 3Y-0.53%
EPS 5Y3.19%
EPS Q2Q%7.7%
EPS Next Y8.45%
EPS Next 2Y8.79%
EPS Next 3Y9.32%
EPS Next 5Y10.8%
Revenue 1Y (TTM)3.91%
Revenue growth 3Y-0.27%
Revenue growth 5Y6.7%
Sales Q2Q%7.2%
Revenue Next Year5.79%
Revenue Next 2Y5.45%
Revenue Next 3Y5.84%
Revenue Next 5Y5.26%
EBIT growth 1Y5.05%
EBIT growth 3Y-1.59%
EBIT growth 5Y0.61%
EBIT Next Year19.1%
EBIT Next 3Y11.62%
EBIT Next 5Y10.22%
FCF growth 1Y-13.4%
FCF growth 3Y-3.07%
FCF growth 5Y-1.58%
OCF growth 1Y-9.8%
OCF growth 3Y-5.12%
OCF growth 5Y-1.16%

THERMO FISHER SCIENTIFIC INC / TMO Fundamental Analysis FAQ

What is the ChartMill fundamental rating of THERMO FISHER SCIENTIFIC INC (TMO) stock?

ChartMill assigns a fundamental rating of 5 / 10 to TMO.


What is the valuation status of THERMO FISHER SCIENTIFIC INC (TMO) stock?

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 6 / 10.


What is the financial health of THERMO FISHER SCIENTIFIC INC (TMO) stock?

The financial health rating of THERMO FISHER SCIENTIFIC INC (TMO) is 4 / 10.


What is the expected EPS growth for THERMO FISHER SCIENTIFIC INC (TMO) stock?

The Earnings per Share (EPS) of THERMO FISHER SCIENTIFIC INC (TMO) is expected to grow by 8.45% in the next year.