THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
USA - NYSE:TMO - US8835561023 - Common Stock
556.41 USD
+12.57 (+2.31%)
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.
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.
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 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 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 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.
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 5.71, 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | N/A |
ROIC/WACC0.68
WACC10.27%
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 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%.
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.42 | ||
| Fwd PE | 22.61 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.05 | ||
| EV/EBITDA | 21.66 |
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%
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 Rank | Sector 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
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%
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)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
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)-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 Rank | Sector 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 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
WACC10.27%
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%