THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
NYSE:TMO - New York Stock Exchange, Inc. - US8835561023 - Common Stock - Currency: USD
Taking everything into account, TMO scores 5 out of 10 in our fundamental rating. TMO was compared to 55 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.
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
TMO's Return On Assets of 6.58% is amongst the best of the industry. TMO outperforms 87.27% of its industry peers.
TMO's Return On Equity of 13.19% is amongst the best of the industry. TMO outperforms 87.27% of its industry peers.
With a decent Return On Invested Capital value of 7.21%, TMO is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TMO is significantly below the industry average of 13.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 13.19% | ||
| ROIC | 7.21% |
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
Looking at the Profit Margin, with a value of 15.19%, TMO belongs to the top of the industry, outperforming 89.09% of the companies in the same industry.
TMO's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 18.27%, TMO belongs to the best of the industry, outperforming 83.64% of the companies in the same industry.
TMO's Operating Margin has improved in the last couple of years.
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 | 18.27% | ||
| PM (TTM) | 15.19% | ||
| 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
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
Compared to 5 years ago, TMO has less shares outstanding
Compared to 1 year ago, TMO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.48 indicates that TMO is not in any danger for bankruptcy at the moment.
TMO has a better Altman-Z score (3.48) than 70.91% of its industry peers.
The Debt to FCF ratio of TMO is 5.08, which is a neutral value as it means it would take TMO, 5.08 years of fcf income to pay off all of its debts.
TMO's Debt to FCF ratio of 5.08 is fine compared to the rest of the industry. TMO outperforms 65.45% of its industry peers.
TMO has a Debt/Equity ratio of 0.64. This is a neutral value indicating TMO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, TMO is not doing good in the industry: 69.09% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 3.48 |
ROIC/WACC0.7
WACC10.25%
2.3 Liquidity
TMO has a Current Ratio of 1.77. 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 1.77. This is in the lower half of the industry: TMO underperforms 65.45% of its industry peers.
A Quick Ratio of 1.38 indicates that TMO should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.38, TMO is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
TMO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.30%.
TMO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.12% yearly.
TMO shows a small growth in Revenue. In the last year, the Revenue has grown by 0.96%.
Measured over the past years, TMO shows a quite strong growth in Revenue. The Revenue has been growing by 10.92% on average per year.
EPS 1Y (TTM)1.3%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%0.78%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%0.18%
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 8.79% yearly.
Based on estimates for the next years, TMO will show a small growth in Revenue. The Revenue will grow by 4.89% on average per year.
EPS Next Y3.08%
EPS Next 2Y6.81%
EPS Next 3Y8.35%
EPS Next 5Y8.79%
Revenue Next Year2.11%
Revenue Next 2Y4.09%
Revenue Next 3Y4.98%
Revenue Next 5Y4.89%
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
The Price/Earnings ratio is 18.96, which indicates a rather expensive current valuation of TMO.
TMO's Price/Earnings ratio is rather cheap when compared to the industry. TMO is cheaper than 85.45% of the companies in the same industry.
TMO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.55.
A Price/Forward Earnings ratio of 16.65 indicates a correct 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 85.45% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.40, TMO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.96 | ||
| Fwd PE | 16.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TMO indicates a rather cheap valuation: TMO is cheaper than 81.82% of the companies listed 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 78.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.3 | ||
| EV/EBITDA | 16.91 |
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)6.15
PEG (5Y)1.56
EPS Next 2Y6.81%
EPS Next 3Y8.35%
5. Dividend
5.1 Amount
TMO has a yearly dividend return of 0.43%, which is pretty low.
The stock price of TMO dropped by -20.48% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 0.53, TMO pays a better dividend. On top of this TMO pays more dividend than 89.09% of the companies listed in the same industry.
With a Dividend Yield of 0.43, TMO pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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
9.16% of the earnings are spent on dividend by TMO. This is a low number and sustainable payout ratio.
TMO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP9.16%
EPS Next 2Y6.81%
EPS Next 3Y8.35%
415.15
+0.61 (+0.15%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.19%
Inst Owner Change0.08%
Ins Owners0.1%
Ins Owner Change4.46%
Market Cap156.71B
Analysts81.11
Price Target574.67 (38.42%)
Short Float %1.21%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend1.52
Dividend Growth(5Y)15.37%
DP9.16%
Div Incr Years7
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.81%
Min EPS beat(2)-0.07%
Max EPS beat(2)1.69%
EPS beat(4)2
Avg EPS beat(4)1.26%
Min EPS beat(4)-0.34%
Max EPS beat(4)3.75%
EPS beat(8)4
Avg EPS beat(8)0.79%
EPS beat(12)7
Avg EPS beat(12)1.85%
EPS beat(16)11
Avg EPS beat(16)5.33%
Revenue beat(2)2
Avg Revenue beat(2)0.16%
Min Revenue beat(2)0.04%
Max Revenue beat(2)0.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-1.36%
Max Revenue beat(4)0.28%
Revenue beat(8)4
Avg Revenue beat(8)-0.68%
Revenue beat(12)7
Avg Revenue beat(12)1.53%
Revenue beat(16)11
Avg Revenue beat(16)3.62%
PT rev (1m)-10.09%
PT rev (3m)-15.36%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-6.59%
EPS NY rev (1m)-4.04%
EPS NY rev (3m)-4.25%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.96 | ||
| Fwd PE | 16.65 | ||
| P/S | 3.65 | ||
| P/FCF | 23.3 | ||
| P/OCF | 19.25 | ||
| P/B | 3.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.91 |
EPS(TTM)21.9
EY5.28%
EPS(NY)24.94
Fwd EY6.01%
FCF(TTM)17.82
FCFY4.29%
OCF(TTM)21.56
OCFY5.19%
SpS113.64
BVpS130.84
TBVpS-32.92
PEG (NY)6.15
PEG (5Y)1.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 13.19% | ||
| ROCE | 9.13% | ||
| ROIC | 7.21% | ||
| ROICexc | 7.75% | ||
| ROICexgc | 34.2% | ||
| OM | 18.27% | ||
| PM (TTM) | 15.19% | ||
| GM | 41.34% | ||
| FCFM | 15.68% |
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-Score8
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.08 | ||
| Debt/EBITDA | 2.9 | ||
| Cap/Depr | 47.53% | ||
| Cap/Sales | 3.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.27% | ||
| Profit Quality | 103.22% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 3.48 |
F-Score8
WACC10.25%
ROIC/WACC0.7
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)1.3%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%0.78%
EPS Next Y3.08%
EPS Next 2Y6.81%
EPS Next 3Y8.35%
EPS Next 5Y8.79%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%0.18%
Revenue Next Year2.11%
Revenue Next 2Y4.09%
Revenue Next 3Y4.98%
Revenue Next 5Y4.89%
EBIT growth 1Y6.86%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year12.01%
EBIT Next 3Y9.78%
EBIT Next 5Y8.38%
FCF growth 1Y19.66%
FCF growth 3Y2.29%
FCF growth 5Y12.42%
OCF growth 1Y5.98%
OCF growth 3Y-2.36%
OCF growth 5Y11.75%