THERMO FISHER SCIENTIFIC INC (TMO)
US8835561023 - Common Stock
TMO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 58 industry peers in the Life Sciences Tools & Services industry. TMO has an excellent profitability rating, but 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
TMO had positive earnings in the past year.
In the past year TMO had a positive cash flow from operations.
TMO had positive earnings in each of the past 5 years.
TMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TMO has a Return On Assets of 6.07%. This is amongst the best in the industry. TMO outperforms 82.76% of its industry peers.
With an excellent Return On Equity value of 12.83%, TMO belongs to the best of the industry, outperforming 84.48% of the companies in the same industry.
TMO has a Return On Invested Capital of 6.82%. This is in the better half of the industry: TMO outperforms 77.59% of its industry peers.
TMO had an Average Return On Invested Capital over the past 3 years of 8.30%. This is in line with the industry average of 9.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 12.83% | ||
| ROIC | 6.82% |
ROA(3y)7.12%
ROA(5y)7.38%
ROE(3y)15.86%
ROE(5y)15.7%
ROIC(3y)8.3%
ROIC(5y)8.38%
1.3 Margins
TMO's Profit Margin of 13.99% is amongst the best of the industry. TMO outperforms 84.48% of its industry peers.
In the last couple of years the Profit Margin of TMO has grown nicely.
Looking at the Operating Margin, with a value of 17.08%, TMO belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
In the last couple of years the Operating Margin of TMO has remained more or less at the same level.
TMO has a Gross Margin (39.90%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of TMO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.08% | ||
| PM (TTM) | 13.99% | ||
| GM | 39.9% |
OM growth 3Y-11.24%
OM growth 5Y1.48%
PM growth 3Y-10.92%
PM growth 5Y3.01%
GM growth 3Y-7.01%
GM growth 5Y-2.19%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TMO is destroying value.
The number of shares outstanding for TMO has been reduced compared to 1 year ago.
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
TMO has an Altman-Z score of 4.01. This indicates that TMO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.01, TMO is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
The Debt to FCF ratio of TMO is 5.04, which is a neutral value as it means it would take TMO, 5.04 years of fcf income to pay off all of its debts.
TMO has a better Debt to FCF ratio (5.04) than 79.31% of its industry peers.
TMO has a Debt/Equity ratio of 0.67. This is a neutral value indicating TMO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.67, TMO is not doing good in the industry: 70.69% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.04 | ||
| Altman-Z | 4.01 |
ROIC/WACC0.57
WACC11.94%
2.3 Liquidity
TMO has a Current Ratio of 1.75. 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 1.75. This is in the lower half of the industry: TMO underperforms 72.41% of its industry peers.
TMO has a Quick Ratio of 1.39. 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 Quick ratio (1.39) than 70.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The earnings per share for TMO have decreased by -7.31% in the last year.
TMO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.14% yearly.
Looking at the last year, TMO shows a decrease in Revenue. The Revenue has decreased by -4.58% in the last year.
TMO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.96% yearly.
EPS 1Y (TTM)-7.31%
EPS 3Y3.28%
EPS 5Y14.14%
EPS growth Q2Q5%
Revenue 1Y (TTM)-4.58%
Revenue growth 3Y9.98%
Revenue growth 5Y11.96%
Revenue growth Q2Q-4.93%
3.2 Future
The Earnings Per Share is expected to grow by 11.76% on average over the next years. This is quite good.
TMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.67% yearly.
EPS Next Y1.11%
EPS Next 2Y6.34%
EPS Next 3Y8.01%
EPS Next 5Y11.76%
Revenue Next Year0.18%
Revenue Next 2Y3.63%
Revenue Next 3Y4.75%
Revenue Next 5Y5.67%
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 stable.
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
Based on the Price/Earnings ratio of 26.52, the valuation of TMO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TMO indicates a rather cheap valuation: TMO is cheaper than 82.76% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.06, TMO is valued at the same level.
The Price/Forward Earnings ratio is 26.23, which means the current valuation is very expensive for TMO.
Based on the Price/Forward Earnings ratio, TMO is valued cheaply inside the industry as 81.03% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TMO to the average of the S&P500 Index (20.72), we can say TMO is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 26.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TMO indicates a somewhat cheap valuation: TMO is cheaper than 77.59% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TMO is valued cheaper than 82.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.48 | ||
| EV/EBITDA | 22.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TMO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)23.9
PEG (5Y)1.88
EPS Next 2Y6.34%
EPS Next 3Y8.01%
5. Dividend
5.1 Amount
With a yearly dividend of 0.27%, TMO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.65, TMO pays a better dividend. On top of this TMO pays more dividend than 89.66% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, TMO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
5.2 History
On average, the dividend of TMO grows each year by 15.23%, which is quite nice.
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)15.23%
Div Incr Years6
Div Non Decr Years11
5.3 Sustainability
TMO pays out 8.72% 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.
DP8.72%
EPS Next 2Y6.34%
EPS Next 3Y8.01%
THERMO FISHER SCIENTIFIC INC
NYSE:TMO (5/2/2024, 7:23:08 PM)
After market: 571.25 0 (0%)571.25
-3.74 (-0.65%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap218.05B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 26.23 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)23.9
PEG (5Y)1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 12.83% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.08% | ||
| PM (TTM) | 13.99% | ||
| GM | 39.9% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-7.31%
EPS 3Y3.28%
EPS 5Y
EPS growth Q2Q
EPS Next Y1.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.58%
Revenue growth 3Y9.98%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y