THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
USA - NYSE:TMO - US8835561023 - Common Stock
572.5 USD
+0.59 (+0.1%)
572.5 USD
0 (0%)
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. TMO scores excellent on profitability, 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
In the past year TMO was profitable.
TMO had a positive operating cash flow in the past year.
In the past 5 years TMO has always 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 6.38% is amongst the best of the industry. TMO outperforms 82.46% of its industry peers.
With an excellent Return On Equity value of 12.88%, TMO belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
The Return On Invested Capital of TMO (7.21%) is better than 77.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TMO is significantly below the industry average of 14.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 12.88% | ||
| ROIC | 7.21% |
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.8%
ROE(5y)15.76%
ROIC(3y)7.48%
ROIC(5y)8.55%
1.3 Margins
TMO has a better Profit Margin (15.02%) than 84.21% of its industry peers.
TMO's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 18.40%, 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 Operating Margin of TMO has grown nicely.
With a Gross Margin value of 41.43%, TMO perfoms like the industry average, outperforming 43.86% of the companies in the same 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 | 18.4% | ||
| PM (TTM) | 15.02% | ||
| GM | 41.43% |
OM growth 3Y-12.04%
OM growth 5Y1.61%
PM growth 3Y-9.15%
PM growth 5Y0.42%
GM growth 3Y-6.24%
GM growth 5Y-1.42%
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.
The number of shares outstanding for TMO has been reduced compared to 5 years ago.
Compared to 1 year ago, TMO has an improved debt to assets ratio.
2.2 Solvency
TMO has a debt to FCF ratio of 5.84. This is a neutral value as TMO would need 5.84 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.84, TMO is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
TMO has a Debt/Equity ratio of 0.62. This is a neutral value indicating TMO is somewhat dependend on debt financing.
TMO's Debt to Equity ratio of 0.62 is on the low side compared to the rest of the industry. TMO is outperformed by 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.7
WACC10.26%
2.3 Liquidity
TMO has a Current Ratio of 1.50. This is a normal value and indicates that TMO is financially healthy and should not expect problems in meeting its short term obligations.
TMO's Current ratio of 1.50 is on the low side compared to the rest of the industry. TMO is outperformed by 73.68% of its industry peers.
A Quick Ratio of 1.11 indicates that TMO should not have too much problems paying its short term obligations.
TMO has a Quick ratio of 1.11. This is in the lower half of the industry: TMO underperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.53% over the past year.
The Earnings Per Share has been growing by 12.12% on average over the past years. This is quite good.
TMO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.22%.
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)4.53%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%9.66%
Revenue 1Y (TTM)3.22%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%4.94%
3.2 Future
The Earnings Per Share is expected to grow by 9.78% on average over the next years. This is quite good.
Based on estimates for the next years, TMO will show a small growth in Revenue. The Revenue will grow by 4.62% on average per year.
EPS Next Y3.97%
EPS Next 2Y6.16%
EPS Next 3Y7.56%
EPS Next 5Y9.78%
Revenue Next Year2.82%
Revenue Next 2Y3.82%
Revenue Next 3Y4.52%
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.
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
A Price/Earnings ratio of 25.56 indicates a quite expensive valuation of TMO.
Based on the Price/Earnings ratio, TMO is valued a bit cheaper than 77.19% of the companies in the same industry.
TMO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 23.24, TMO is valued on the expensive side.
Based on the Price/Forward Earnings ratio, TMO is valued cheaper than 80.70% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TMO to the average of the S&P500 Index (22.82), we can say TMO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.56 | ||
| Fwd PE | 23.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TMO is valued a bit cheaper than the industry average as 77.19% of the companies are valued more expensively.
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 | 35.38 | ||
| EV/EBITDA | 22.73 |
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.
The decent profitability rating of TMO may justify a higher PE ratio.
PEG (NY)6.43
PEG (5Y)2.11
EPS Next 2Y6.16%
EPS Next 3Y7.56%
5. Dividend
5.1 Amount
TMO has a yearly dividend return of 0.30%, which is pretty low.
Compared to an average industry Dividend Yield of 0.54, TMO pays a better dividend. On top of this TMO pays more dividend than 84.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, TMO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
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 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
TMO pays out 9.48% of its income as dividend. This is a sustainable payout ratio.
The dividend of TMO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.48%
EPS Next 2Y6.16%
EPS Next 3Y7.56%
572.5
+0.59 (+0.1%)
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 Cap216.18B
Revenue(TTM)43.74B
Net Income(TTM)6.57B
Analysts81.76
Price Target566.27 (-1.09%)
Short Float %1.02%
Short Ratio1.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
Yearly Dividend1.52
Dividend Growth(5Y)15.37%
DP9.48%
Div Incr Years7
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.99%
Min EPS beat(2)1.61%
Max EPS beat(2)4.37%
EPS beat(4)3
Avg EPS beat(4)1.9%
Min EPS beat(4)-0.07%
Max EPS beat(4)4.37%
EPS beat(8)5
Avg EPS beat(8)2.24%
EPS beat(12)7
Avg EPS beat(12)1.19%
EPS beat(16)11
Avg EPS beat(16)4.2%
Revenue beat(2)2
Avg Revenue beat(2)0.79%
Min Revenue beat(2)0.62%
Max Revenue beat(2)0.95%
Revenue beat(4)4
Avg Revenue beat(4)0.47%
Min Revenue beat(4)0.04%
Max Revenue beat(4)0.95%
Revenue beat(8)6
Avg Revenue beat(8)0.12%
Revenue beat(12)7
Avg Revenue beat(12)0.36%
Revenue beat(16)11
Avg Revenue beat(16)2.75%
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 | 25.56 | ||
| Fwd PE | 23.24 | ||
| P/S | 4.94 | ||
| P/FCF | 35.38 | ||
| P/OCF | 28.26 | ||
| P/B | 4.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.73 |
EPS(TTM)22.4
EY3.91%
EPS(NY)24.63
Fwd EY4.3%
FCF(TTM)16.18
FCFY2.83%
OCF(TTM)20.26
OCFY3.54%
SpS115.82
BVpS135.12
TBVpS-38.41
PEG (NY)6.43
PEG (5Y)2.11
Graham Number260.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 12.88% | ||
| ROCE | 9.13% | ||
| ROIC | 7.21% | ||
| ROICexc | 7.52% | ||
| ROICexgc | 33.37% | ||
| OM | 18.4% | ||
| PM (TTM) | 15.02% | ||
| GM | 41.43% | ||
| FCFM | 13.97% |
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.8%
ROE(5y)15.76%
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%
ROICexgc growth 3Y-8.22%
ROICexgc 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-6.24%
GM growth 5Y-1.42%
F-Score8
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.84 | ||
| Debt/EBITDA | 2.94 | ||
| Cap/Depr | 55.1% | ||
| Cap/Sales | 3.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.55% | ||
| Profit Quality | 93% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | N/A |
F-Score8
WACC10.26%
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)4.53%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%9.66%
EPS Next Y3.97%
EPS Next 2Y6.16%
EPS Next 3Y7.56%
EPS Next 5Y9.78%
Revenue 1Y (TTM)3.22%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%4.94%
Revenue Next Year2.82%
Revenue Next 2Y3.82%
Revenue Next 3Y4.52%
Revenue Next 5Y4.62%
EBIT growth 1Y8.68%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year13.53%
EBIT Next 3Y9.14%
EBIT Next 5Y8.68%
FCF growth 1Y-6.66%
FCF growth 3Y2.29%
FCF growth 5Y12.42%
OCF growth 1Y-6.36%
OCF growth 3Y-2.36%
OCF growth 5Y11.75%
THERMO FISHER SCIENTIFIC INC / TMO FAQ
What is the ChartMill fundamental rating of THERMO FISHER SCIENTIFIC INC (TMO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TMO.
Can you provide the valuation status for THERMO FISHER SCIENTIFIC INC?
ChartMill assigns a valuation rating of 4 / 10 to THERMO FISHER SCIENTIFIC INC (TMO). This can be considered as Fairly Valued.
What is the profitability of TMO stock?
THERMO FISHER SCIENTIFIC INC (TMO) has a profitability rating of 7 / 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 25.56 and the Price/Book (PB) ratio is 4.24.
Can you provide the expected EPS growth for TMO stock?
The Earnings per Share (EPS) of THERMO FISHER SCIENTIFIC INC (TMO) is expected to grow by 3.97% in the next year.