THERMO FISHER SCIENTIFIC INC (TMO) Stock Fundamental Analysis
NYSE:TMO - New York Stock Exchange, Inc. - US8835561023 - Common Stock - Currency: USD
TMO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TMO was profitable.
In the past year TMO had a positive cash flow from operations.
TMO had positive earnings in each of the past 5 years.
In the past 5 years TMO always reported a positive cash flow from operatings.
1.2 Ratios
TMO's Return On Assets of 6.50% is amongst the best of the industry. TMO outperforms 87.04% of its industry peers.
Looking at the Return On Equity, with a value of 13.04%, TMO belongs to the top of the industry, outperforming 87.04% of the companies in the same industry.
The Return On Invested Capital of TMO (7.01%) is better than 75.93% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TMO is significantly below the industry average of 15.83%.
| 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 90.74% 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's Operating Margin of 18.18% is amongst the best of the industry. TMO outperforms 83.33% of its industry peers.
TMO's Operating Margin has improved in the last couple of years.
The Gross Margin of TMO (41.34%) is comparable to the rest of the industry.
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
TMO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TMO has less shares outstanding than it did 1 year ago.
TMO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TMO has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of TMO is 5.71, which is a neutral value as it means it would take TMO, 5.71 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.71, TMO is doing good in the industry, outperforming 64.81% of the companies in the same industry.
TMO has a Debt/Equity ratio of 0.65. This is a neutral value indicating TMO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.65, TMO is not doing good in the industry: 70.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | N/A |
ROIC/WACC0.68
WACC10.31%
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 on the low side compared to the rest of the industry. TMO is outperformed by 61.11% of its industry peers.
A Quick Ratio of 1.50 indicates that TMO should not have too much problems paying its short term obligations.
The Quick ratio of TMO (1.50) is worse than 62.96% of its industry peers.
| 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.
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)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 8.79% 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 4.89% yearly.
EPS Next Y3.18%
EPS Next 2Y6.76%
EPS Next 3Y8.41%
EPS Next 5Y8.79%
Revenue Next Year2.18%
Revenue Next 2Y4.08%
Revenue Next 3Y4.98%
Revenue Next 5Y4.89%
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
TMO is valuated rather expensively with a Price/Earnings ratio of 21.85.
Compared to the rest of the industry, the Price/Earnings ratio of TMO indicates a rather cheap valuation: TMO is cheaper than 81.48% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.05. TMO is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 19.20, the valuation of TMO can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TMO indicates a rather cheap valuation: TMO is cheaper than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.67. TMO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.85 | ||
| Fwd PE | 19.2 |
4.2 Price Multiples
TMO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TMO is cheaper than 77.78% of the companies in the same industry.
72.22% of the companies in the same industry are more expensive than TMO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.26 | ||
| EV/EBITDA | 19.35 |
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)6.87
PEG (5Y)1.8
EPS Next 2Y6.76%
EPS Next 3Y8.41%
5. Dividend
5.1 Amount
With a yearly dividend of 0.37%, TMO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.52, TMO pays a better dividend. On top of this TMO pays more dividend than 87.04% of the companies listed in the same industry.
With a Dividend Yield of 0.37, TMO pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
5.2 History
On average, the dividend of TMO grows each year by 15.37%, which is quite nice.
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)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%
478.32
+3.29 (+0.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners92.22%
Inst Owner Change-0.83%
Ins Owners0.1%
Ins Owner Change4.43%
Market Cap180.56B
Analysts81.14
Price Target557.79 (16.61%)
Short Float %1.17%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
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)-1.68%
PT rev (3m)-12.73%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-4.31%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-3.95%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.85 | ||
| Fwd PE | 19.2 | ||
| P/S | 4.18 | ||
| P/FCF | 29.26 | ||
| P/OCF | 23.83 | ||
| P/B | 3.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.35 |
EPS(TTM)21.89
EY4.58%
EPS(NY)24.91
Fwd EY5.21%
FCF(TTM)16.34
FCFY3.42%
OCF(TTM)20.07
OCFY4.2%
SpS114.47
BVpS133.71
TBVpS-31.58
PEG (NY)6.87
PEG (5Y)1.8
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
WACC10.31%
ROIC/WACC0.68
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 5Y8.79%
Revenue 1Y (TTM)2.05%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%2.98%
Revenue Next Year2.18%
Revenue Next 2Y4.08%
Revenue Next 3Y4.98%
Revenue Next 5Y4.89%
EBIT growth 1Y5.17%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year12.01%
EBIT Next 3Y9.78%
EBIT Next 5Y8.38%
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%