THERMO FISHER SCIENTIFIC INC (TN8.DE) Stock Fundamental Analysis
FRA:TN8 - Deutsche Boerse Ag - US8835561023 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to TN8. TN8 was compared to 16 industry peers in the Life Sciences Tools & Services industry. TN8 scores excellent on profitability, but there are some minor concerns on its financial health. TN8 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TN8 had positive earnings in the past year.
TN8 had a positive operating cash flow in the past year.
TN8 had positive earnings in each of the past 5 years.
In the past 5 years TN8 always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.58%, TN8 belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.19%, TN8 belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.43%, TN8 is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TN8 is in line with the industry average of 6.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 13.19% | ||
| ROIC | 6.43% |
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.81%
ROE(5y)15.77%
ROIC(3y)6.66%
ROIC(5y)7.62%
1.3 Margins
TN8's Profit Margin of 15.19% is amongst the best of the industry. TN8 outperforms 93.75% of its industry peers.
TN8's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 18.27%, TN8 is doing good in the industry, outperforming 75.00% of the companies in the same industry.
TN8's Operating Margin has improved in the last couple of years.
TN8 has a Gross Margin (41.34%) which is comparable to the rest of the industry.
TN8's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.27% | ||
| PM (TTM) | 15.19% | ||
| 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
TN8 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TN8 has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TN8 has been reduced compared to 5 years ago.
TN8 has a better debt/assets ratio than last year.
2.2 Solvency
TN8 has an Altman-Z score of 3.54. This indicates that TN8 is financially healthy and has little risk of bankruptcy at the moment.
TN8 has a Altman-Z score (3.54) which is in line with its industry peers.
TN8 has a debt to FCF ratio of 5.08. This is a neutral value as TN8 would need 5.08 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.08, TN8 is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.64 indicates that TN8 is somewhat dependend on debt financing.
TN8's Debt to Equity ratio of 0.64 is on the low side compared to the rest of the industry. TN8 is outperformed by 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 3.54 |
ROIC/WACC0.64
WACC10.04%
2.3 Liquidity
A Current Ratio of 1.77 indicates that TN8 should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.77, TN8 is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
TN8 has a Quick Ratio of 1.38. This is a normal value and indicates that TN8 is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.38, TN8 is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
TN8 shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.30%.
Measured over the past years, TN8 shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.12% on average per year.
TN8 shows a small growth in Revenue. In the last year, the Revenue has grown by 0.96%.
Measured over the past years, TN8 shows a quite strong growth in Revenue. The Revenue has been growing by 10.92% on average per year.
EPS 1Y (TTM)1.3%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%0.78%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%0.18%
3.2 Future
Based on estimates for the next years, TN8 will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.79% on average per year.
The Revenue is expected to grow by 4.89% on average over the next years.
EPS Next Y3.15%
EPS Next 2Y6.79%
EPS Next 3Y8.38%
EPS Next 5Y8.79%
Revenue Next Year2.15%
Revenue Next 2Y4.1%
Revenue Next 3Y5.02%
Revenue Next 5Y4.89%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 20.04, the valuation of TN8 can be described as rather expensive.
Based on the Price/Earnings ratio, TN8 is valued cheaper than 87.50% of the companies in the same industry.
TN8 is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.60 indicates a rather expensive valuation of TN8.
Based on the Price/Forward Earnings ratio, TN8 is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TN8 to the average of the S&P500 Index (21.90), we can say TN8 is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.04 | ||
| Fwd PE | 17.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TN8 is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TN8 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.64 | ||
| EV/EBITDA | 17.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TN8 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.37
PEG (5Y)1.65
EPS Next 2Y6.79%
EPS Next 3Y8.38%
5. Dividend
5.1 Amount
TN8 has a yearly dividend return of 0.42%, which is pretty low.
Compared to an average industry Dividend Yield of 0.73, TN8 has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, TN8's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
5.2 History
On average, the dividend of TN8 grows each year by 15.37%, which is quite nice.
Dividend Growth(5Y)15.37%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
TN8 pays out 9.16% of its income as dividend. This is a sustainable payout ratio.
TN8's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP9.16%
EPS Next 2Y6.79%
EPS Next 3Y8.38%
FRA:TN8 (7/4/2025, 7:00:00 PM)
372.5
+9.35 (+2.57%)
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 ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap140.62B
Analysts81.11
Price Target492.58 (32.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Yearly Dividend1.3
Dividend Growth(5Y)15.37%
DP9.16%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.81%
Min EPS beat(2)-0.07%
Max EPS beat(2)1.69%
EPS beat(4)2
Avg EPS beat(4)1.26%
Min EPS beat(4)-0.34%
Max EPS beat(4)3.75%
EPS beat(8)4
Avg EPS beat(8)0.79%
EPS beat(12)7
Avg EPS beat(12)1.85%
EPS beat(16)11
Avg EPS beat(16)5.33%
Revenue beat(2)2
Avg Revenue beat(2)0.16%
Min Revenue beat(2)0.04%
Max Revenue beat(2)0.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-1.36%
Max Revenue beat(4)0.28%
Revenue beat(8)4
Avg Revenue beat(8)-0.68%
Revenue beat(12)7
Avg Revenue beat(12)1.53%
Revenue beat(16)11
Avg Revenue beat(16)3.62%
PT rev (1m)-3.59%
PT rev (3m)-23.53%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-6.53%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-4.19%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.04 | ||
| Fwd PE | 17.6 | ||
| P/S | 3.86 | ||
| P/FCF | 24.64 | ||
| P/OCF | 20.35 | ||
| P/B | 3.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.38 |
EPS(TTM)18.59
EY4.99%
EPS(NY)21.16
Fwd EY5.68%
FCF(TTM)15.12
FCFY4.06%
OCF(TTM)18.3
OCFY4.91%
SpS96.45
BVpS111.05
TBVpS-27.94
PEG (NY)6.37
PEG (5Y)1.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 13.19% | ||
| ROCE | 9.13% | ||
| ROIC | 6.43% | ||
| ROICexc | 6.9% | ||
| ROICexgc | 30.48% | ||
| OM | 18.27% | ||
| PM (TTM) | 15.19% | ||
| GM | 41.34% | ||
| FCFM | 15.68% |
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.81%
ROE(5y)15.77%
ROIC(3y)6.66%
ROIC(5y)7.62%
ROICexc(3y)7.33%
ROICexc(5y)8.51%
ROICexgc(3y)36.42%
ROICexgc(5y)41.56%
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-Score8
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.08 | ||
| Debt/EBITDA | 2.9 | ||
| Cap/Depr | 47.53% | ||
| Cap/Sales | 3.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.27% | ||
| Profit Quality | 103.22% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 3.54 |
F-Score8
WACC10.04%
ROIC/WACC0.64
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)1.3%
EPS 3Y-4.52%
EPS 5Y12.12%
EPS Q2Q%0.78%
EPS Next Y3.15%
EPS Next 2Y6.79%
EPS Next 3Y8.38%
EPS Next 5Y8.79%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%0.18%
Revenue Next Year2.15%
Revenue Next 2Y4.1%
Revenue Next 3Y5.02%
Revenue Next 5Y4.89%
EBIT growth 1Y6.86%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year12.01%
EBIT Next 3Y9.78%
EBIT Next 5Y8.38%
FCF growth 1Y19.66%
FCF growth 3Y2.29%
FCF growth 5Y12.42%
OCF growth 1Y5.98%
OCF growth 3Y-2.36%
OCF growth 5Y11.75%