THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
NYSE:TMO - US8835561023 - Common Stock
482.41 USD
-2.47 (-0.51%)
482.41 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TMO. TMO was compared to 55 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
TMO had positive earnings in the past year.
TMO had a positive operating cash flow in the past year.
In the past 5 years TMO has always been profitable.
TMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.50%, TMO belongs to the top of the industry, outperforming 83.64% of the companies in the same industry.
With an excellent Return On Equity value of 13.04%, TMO belongs to the best of the industry, outperforming 83.64% of the companies in the same industry.
TMO has a better Return On Invested Capital (7.01%) than 76.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TMO is significantly below the industry average of 15.96%.
| 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 better Profit Margin (15.24%) than 83.64% of its industry peers.
TMO's Profit Margin has been stable in the last couple of years.
TMO has a Operating Margin of 18.18%. This is amongst the best in the industry. TMO outperforms 81.82% of its industry peers.
TMO's Operating Margin has improved in the last couple of years.
TMO's Gross Margin of 41.34% is in line compared to the rest of the industry. TMO outperforms 43.64% of its industry peers.
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
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 a debt to FCF ratio of 5.71. This is a neutral value as TMO would need 5.71 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.71, TMO is doing good in the industry, outperforming 65.45% of the companies in the same industry.
A Debt/Equity ratio of 0.65 indicates that TMO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, TMO is doing worse than 70.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | N/A |
ROIC/WACC0.7
WACC10.09%
2.3 Liquidity
A Current Ratio of 1.93 indicates that TMO should not have too much problems paying its short term obligations.
TMO's Current ratio of 1.93 is in line compared to the rest of the industry. TMO outperforms 41.82% of its industry peers.
A Quick Ratio of 1.50 indicates that TMO should not have too much problems paying its short term obligations.
TMO has a Quick ratio (1.50) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.23% over the past year.
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.
Looking at the last year, TMO shows a small growth in Revenue. The Revenue has grown by 2.05% in the last year.
The Revenue has been growing by 10.92% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 9.36% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.55% on average over the next years.
EPS Next Y3.98%
EPS Next 2Y6.16%
EPS Next 3Y7.53%
EPS Next 5Y9.36%
Revenue Next Year2.6%
Revenue Next 2Y3.61%
Revenue Next 3Y4.32%
Revenue Next 5Y4.55%
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 decreasing.
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 22.04, the valuation of TMO can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TMO indicates a somewhat cheap valuation: TMO is cheaper than 78.18% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.07, TMO is valued at the same level.
With a Price/Forward Earnings ratio of 19.58, TMO is valued on the expensive side.
81.82% of the companies in the same industry are more expensive than TMO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.59. TMO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.04 | ||
| Fwd PE | 19.58 |
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 76.36% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TMO is valued a bit cheaper than the industry average as 74.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.52 | ||
| EV/EBITDA | 19.5 |
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)5.54
PEG (5Y)1.82
EPS Next 2Y6.16%
EPS Next 3Y7.53%
5. Dividend
5.1 Amount
With a yearly dividend of 0.35%, TMO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.55, TMO pays a better dividend. On top of this TMO pays more dividend than 87.27% of the companies listed in the same industry.
With a Dividend Yield of 0.35, TMO pays less dividend than the S&P500 average, which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
5.2 History
On average, the dividend of TMO grows each year by 15.37%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)15.37%
Div Incr Years7
Div Non Decr Years12
5.3 Sustainability
9.26% 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.
DP9.26%
EPS Next 2Y6.16%
EPS Next 3Y7.53%
482.41
-2.47 (-0.51%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners92.18%
Inst Owner Change-0.89%
Ins Owners0.09%
Ins Owner Change0.12%
Market Cap182.16B
Analysts81.14
Price Target564.58 (17.03%)
Short Float %1.01%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
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)1.22%
PT rev (3m)-1.76%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-4.72%
EPS NY rev (1m)0.77%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.04 | ||
| Fwd PE | 19.58 | ||
| P/S | 4.22 | ||
| P/FCF | 29.52 | ||
| P/OCF | 24.04 | ||
| P/B | 3.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.5 |
EPS(TTM)21.89
EY4.54%
EPS(NY)24.64
Fwd EY5.11%
FCF(TTM)16.34
FCFY3.39%
OCF(TTM)20.07
OCFY4.16%
SpS114.44
BVpS133.67
TBVpS-31.57
PEG (NY)5.54
PEG (5Y)1.82
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
WACC10.09%
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)0.23%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%-0.19%
EPS Next Y3.98%
EPS Next 2Y6.16%
EPS Next 3Y7.53%
EPS Next 5Y9.36%
Revenue 1Y (TTM)2.05%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%2.98%
Revenue Next Year2.6%
Revenue Next 2Y3.61%
Revenue Next 3Y4.32%
Revenue Next 5Y4.55%
EBIT growth 1Y5.17%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year13.42%
EBIT Next 3Y8.96%
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%