THERMO FISHER SCIENTIFIC INC (TMO) Fundamental Analysis & Valuation

NYSE:TMO • US8835561023

Current stock price

466.26 USD
-3.96 (-0.84%)
At close:
462.16 USD
-4.1 (-0.88%)
After Hours:

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

  • 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.
  • 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

  • Looking at the Return On Assets, with a value of 6.05%, TMO belongs to the top of the industry, outperforming 82.46% of the companies in the same industry.
  • TMO has a Return On Equity of 13.18%. This is amongst the best in the industry. TMO outperforms 87.72% of its industry peers.
  • With an excellent Return On Invested Capital value of 7.62%, TMO belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for TMO is below the industry average of 11.01%.
Industry RankSector Rank
ROA 6.05%
ROE 13.18%
ROIC 7.62%
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

  • With an excellent Profit Margin value of 15.15%, TMO belongs to the best of the industry, outperforming 82.46% of the companies in the same industry.
  • In the last couple of years the Profit Margin of TMO has declined.
  • TMO's Operating Margin of 18.15% is amongst the best of the industry. TMO outperforms 82.46% of its industry peers.
  • TMO's Operating Margin has declined in the last couple of years.
  • TMO has a Gross Margin (40.89%) which is in line with its industry peers.
  • In the last couple of years the Gross Margin of TMO has declined.
Industry RankSector Rank
OM 18.15%
PM (TTM) 15.15%
GM 40.89%
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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3

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.
  • 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
  • TMO has a worse debt/assets ratio than last year.
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

  • The Debt to FCF ratio of TMO is 6.40, which is on the high side as it means it would take TMO, 6.40 years of fcf income to pay off all of its debts.
  • TMO has a better Debt to FCF ratio (6.40) than 66.67% of its industry peers.
  • TMO has a Debt/Equity ratio of 0.77. This is a neutral value indicating TMO is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.77, TMO is not doing good in the industry: 73.68% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 6.4
Altman-Z N/A
ROIC/WACC0.7
WACC10.84%
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 1.53. This is a normal value and indicates that TMO is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.53, TMO is doing worse than 78.95% of the companies in the same industry.
  • TMO has a Quick Ratio of 1.15. 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 (1.15) is worse than 77.19% of its industry peers.
Industry RankSector Rank
Current Ratio 1.53
Quick Ratio 1.15
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

  • TMO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.75%.
  • TMO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.19% yearly.
  • TMO shows a small growth in Revenue. In the last year, the Revenue has grown by 5.36%.
  • The Revenue has been growing slightly by 6.70% on average over the past years.
EPS 1Y (TTM)5.75%
EPS 3Y-0.53%
EPS 5Y3.19%
EPS Q2Q%5.63%
Revenue 1Y (TTM)5.36%
Revenue growth 3Y-0.27%
Revenue growth 5Y6.7%
Sales Q2Q%6.18%

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 12.97% on average per year.
  • 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 Y8.48%
EPS Next 2Y8.83%
EPS Next 3Y9.44%
EPS Next 5Y12.97%
Revenue Next Year6.12%
Revenue Next 2Y5.61%
Revenue Next 3Y5.97%
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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5

4. TMO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 20.13, the valuation of TMO can be described as rather expensive.
  • Based on the Price/Earnings ratio, TMO is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
  • TMO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.54.
  • A Price/Forward Earnings ratio of 17.21 indicates a rather expensive 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 82.46% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of TMO to the average of the S&P500 Index (21.68), we can say TMO is valued slightly cheaper.
Industry RankSector Rank
PE 20.13
Fwd PE 17.21
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 68.42% of the companies are valued more expensively.
  • 70.18% of the companies in the same industry are more expensive than TMO, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 25.69
EV/EBITDA 19.48
TMO Per share dataTMO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -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)2.37
PEG (5Y)6.32
EPS Next 2Y8.83%
EPS Next 3Y9.44%

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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.
  • Compared to an average industry Dividend Yield of 0.11, TMO pays a better dividend. On top of this TMO pays more dividend than 87.72% of the companies listed in the same industry.
  • With a Dividend Yield of 0.40, TMO pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.4%

5.2 History

  • The dividend of TMO is nicely growing with an annual growth rate of 14.67%!
  • 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 Years8
Div Non Decr Years13
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

  • 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 2Y8.83%
EPS Next 3Y9.44%
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 (4/29/2026, 6:40:00 PM)

After market: 462.16 -4.1 (-0.88%)

466.26

-3.96 (-0.84%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Industry Strength17.39
Industry Growth53.42
Earnings (Last)04-23
Earnings (Next)07-21
Inst Owners95.33%
Inst Owner Change-0.87%
Ins Owners0.09%
Ins Owner Change7.56%
Market Cap173.27B
Revenue(TTM)45.20B
Net Income(TTM)6.85B
Analysts84
Price Target642.2 (37.73%)
Short Float %1.22%
Short Ratio2.18
Dividend
Industry RankSector Rank
Dividend Yield 0.4%
Yearly Dividend1.68
Dividend Growth(5Y)14.67%
DP9.48%
Div Incr Years8
Div Non Decr Years13
Ex-Date03-13
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.88%
Min EPS beat(2)0.91%
Max EPS beat(2)2.84%
EPS beat(4)4
Avg EPS beat(4)2.43%
Min EPS beat(4)0.91%
Max EPS beat(4)4.37%
EPS beat(8)6
Avg EPS beat(8)1.84%
EPS beat(12)8
Avg EPS beat(12)1.34%
EPS beat(16)11
Avg EPS beat(16)2%
Revenue beat(2)2
Avg Revenue beat(2)0.81%
Min Revenue beat(2)0.4%
Max Revenue beat(2)1.21%
Revenue beat(4)4
Avg Revenue beat(4)0.8%
Min Revenue beat(4)0.4%
Max Revenue beat(4)1.21%
Revenue beat(8)6
Avg Revenue beat(8)0.18%
Revenue beat(12)8
Avg Revenue beat(12)-0.19%
Revenue beat(16)11
Avg Revenue beat(16)1.35%
PT rev (1m)-1.61%
PT rev (3m)0.85%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-6.13%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-1.39%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.99%
Valuation
Industry RankSector Rank
PE 20.13
Fwd PE 17.21
P/S 3.83
P/FCF 25.69
P/OCF 20.91
P/B 3.34
P/tB N/A
EV/EBITDA 19.48
EPS(TTM)23.16
EY4.97%
EPS(NY)27.09
Fwd EY5.81%
FCF(TTM)18.15
FCFY3.89%
OCF(TTM)22.29
OCFY4.78%
SpS121.62
BVpS139.77
TBVpS-60.26
PEG (NY)2.37
PEG (5Y)6.32
Graham Number269.875 (-42.12%)
Profitability
Industry RankSector Rank
ROA 6.05%
ROE 13.18%
ROCE 8.32%
ROIC 7.62%
ROICexc 7.88%
ROICexgc 35.66%
OM 18.15%
PM (TTM) 15.15%
GM 40.89%
FCFM 14.93%
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-Score4
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 6.4
Debt/EBITDA 3.64
Cap/Depr 54.73%
Cap/Sales 3.41%
Interest Coverage 250
Cash Conversion 75.2%
Profit Quality 98.51%
Current Ratio 1.53
Quick Ratio 1.15
Altman-Z N/A
F-Score4
WACC10.84%
ROIC/WACC0.7
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)5.75%
EPS 3Y-0.53%
EPS 5Y3.19%
EPS Q2Q%5.63%
EPS Next Y8.48%
EPS Next 2Y8.83%
EPS Next 3Y9.44%
EPS Next 5Y12.97%
Revenue 1Y (TTM)5.36%
Revenue growth 3Y-0.27%
Revenue growth 5Y6.7%
Sales Q2Q%6.18%
Revenue Next Year6.12%
Revenue Next 2Y5.61%
Revenue Next 3Y5.97%
Revenue Next 5Y5.26%
EBIT growth 1Y4.68%
EBIT growth 3Y-1.59%
EBIT growth 5Y0.61%
EBIT Next Year19.38%
EBIT Next 3Y11.63%
EBIT Next 5Y10.22%
FCF growth 1Y-10.77%
FCF growth 3Y-3.07%
FCF growth 5Y-1.58%
OCF growth 1Y-7.2%
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 5 / 10 to THERMO FISHER SCIENTIFIC INC (TMO). This can be considered as Fairly Valued.


How profitable is THERMO FISHER SCIENTIFIC INC (TMO) stock?

THERMO FISHER SCIENTIFIC INC (TMO) has a profitability rating of 6 / 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 20.13 and the Price/Book (PB) ratio is 3.34.


What is the earnings growth outlook for THERMO FISHER SCIENTIFIC INC?

The Earnings per Share (EPS) of THERMO FISHER SCIENTIFIC INC (TMO) is expected to grow by 8.48% in the next year.