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 54 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 decent growth rate and is not valued too expensively.
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
The Return On Assets of TMO (6.50%) is better than 85.19% of its industry peers.
TMO has a Return On Equity of 13.04%. This is amongst the best in the industry. TMO outperforms 85.19% of its industry peers.
With a decent Return On Invested Capital value of 7.01%, TMO is doing good in the industry, outperforming 75.93% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TMO is significantly below the industry average of 15.98%.
| 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
With an excellent Profit Margin value of 15.24%, TMO belongs to the best of the industry, outperforming 87.04% of the companies in the same industry.
In the last couple of years the Profit Margin of TMO has remained more or less at the same level.
TMO has a Operating Margin of 18.18%. This is amongst the best in the industry. TMO outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of TMO has grown nicely.
TMO has a Gross Margin of 41.34%. This is comparable to the rest of the industry: TMO outperforms 44.44% of its industry peers.
TMO's Gross Margin has been stable in the last couple of years.
| 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
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
The debt/assets ratio for TMO has been reduced compared to a year ago.
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.
TMO has a Debt to FCF ratio of 5.71. This is in the better half of the industry: TMO outperforms 62.96% of its industry peers.
TMO has a Debt/Equity ratio of 0.65. This is a neutral value indicating TMO is somewhat dependend on debt financing.
TMO's Debt to Equity ratio of 0.65 is on the low side compared to the rest of the industry. TMO is outperformed by 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | N/A |
ROIC/WACC0.67
WACC10.46%
2.3 Liquidity
A Current Ratio of 1.93 indicates that TMO should not have too much problems paying its short term obligations.
The Current ratio of TMO (1.93) is comparable to the rest of the industry.
TMO has a Quick 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.
Looking at the Quick ratio, with a value of 1.50, TMO is in line with its industry, outperforming 40.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
TMO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.23%.
TMO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.12% yearly.
The Revenue has been growing slightly by 2.05% in the past year.
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)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
Based on estimates for the next years, TMO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.36% on average per year.
Based on estimates for the next years, TMO will show a small growth in Revenue. The Revenue will grow by 4.55% on average per year.
EPS Next Y3.18%
EPS Next 2Y6.76%
EPS Next 3Y8.41%
EPS Next 5Y9.36%
Revenue Next Year2.49%
Revenue Next 2Y3.65%
Revenue Next 3Y4.39%
Revenue Next 5Y4.55%
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
Based on the Price/Earnings ratio of 22.27, the valuation of TMO can be described as rather expensive.
Based on the Price/Earnings ratio, TMO is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TMO to the average of the S&P500 Index (26.82), we can say TMO is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.57, TMO is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TMO indicates a somewhat cheap valuation: TMO is cheaper than 79.63% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.24, TMO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.27 | ||
| Fwd PE | 19.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TMO is valued a bit cheaper than the industry average as 74.07% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TMO is valued a bit cheaper than 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.83 | ||
| EV/EBITDA | 19.67 |
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)7
PEG (5Y)1.84
EPS Next 2Y6.76%
EPS Next 3Y8.41%
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 0.54, TMO pays a better dividend. On top of this TMO pays more dividend than 87.04% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, TMO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
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
9.26% 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 2Y6.76%
EPS Next 3Y8.41%
487.54
-1.47 (-0.3%)
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-0.91%
Ins Owners0.09%
Ins Owner Change4.72%
Market Cap184.04B
Analysts80.57
Price Target562.62 (15.4%)
Short Float %0.99%
Short Ratio1.31
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)-0.83%
PT rev (3m)-2.78%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)-4.72%
EPS NY rev (1m)0%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.27 | ||
| Fwd PE | 19.57 | ||
| P/S | 4.26 | ||
| P/FCF | 29.83 | ||
| P/OCF | 24.29 | ||
| P/B | 3.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.67 |
EPS(TTM)21.89
EY4.49%
EPS(NY)24.91
Fwd EY5.11%
FCF(TTM)16.34
FCFY3.35%
OCF(TTM)20.07
OCFY4.12%
SpS114.47
BVpS133.71
TBVpS-31.58
PEG (NY)7
PEG (5Y)1.84
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
WACC10.46%
ROIC/WACC0.67
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 Y3.18%
EPS Next 2Y6.76%
EPS Next 3Y8.41%
EPS Next 5Y9.36%
Revenue 1Y (TTM)2.05%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%2.98%
Revenue Next Year2.49%
Revenue Next 2Y3.65%
Revenue Next 3Y4.39%
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%