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 18 industry peers in the Life Sciences Tools & Services industry. While TN8 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TN8 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
TN8 had positive earnings in the past year.
In the past year TN8 had a positive cash flow from operations.
Each year in the past 5 years TN8 has been profitable.
TN8 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TN8 has a better Return On Assets (6.58%) than 94.44% of its industry peers.
TN8 has a better Return On Equity (13.19%) than 94.44% of its industry peers.
TN8's Return On Invested Capital of 6.43% is fine compared to the rest of the industry. TN8 outperforms 61.11% of its industry peers.
TN8 had an Average Return On Invested Capital over the past 3 years of 6.66%. This is in line with the industry average of 6.90%.
| 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 94.44% of its industry peers.
TN8's Profit Margin has been stable in the last couple of years.
TN8 has a better Operating Margin (18.27%) than 77.78% of its industry peers.
TN8's Operating Margin has improved in the last couple of years.
TN8 has a Gross Margin of 41.34%. This is in the better half of the industry: TN8 outperforms 61.11% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TN8 is destroying value.
The number of shares outstanding for TN8 has been reduced compared to 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 3.40. This indicates that TN8 is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.40, TN8 is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
The Debt to FCF ratio of TN8 is 5.08, which is a neutral value as it means it would take TN8, 5.08 years of fcf income to pay off all of its debts.
TN8's Debt to FCF ratio of 5.08 is on the low side compared to the rest of the industry. TN8 is outperformed by 61.11% of its industry peers.
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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 3.4 |
ROIC/WACC0.63
WACC10.13%
2.3 Liquidity
TN8 has a Current Ratio of 1.77. 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 Current ratio, with a value of 1.77, TN8 is in the better half of the industry, outperforming 61.11% 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 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.30% over the past year.
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.
The Revenue has been growing slightly by 0.96% in the past year.
TN8 shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.92% yearly.
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
TN8 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.41% yearly.
Based on estimates for the next years, TN8 will show a small growth in Revenue. The Revenue will grow by 4.71% on average per year.
EPS Next Y3.08%
EPS Next 2Y6.81%
EPS Next 3Y8.35%
EPS Next 5Y11.41%
Revenue Next Year2.11%
Revenue Next 2Y4.09%
Revenue Next 3Y4.98%
Revenue Next 5Y4.71%
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 stable.
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
The Price/Earnings ratio is 18.14, which indicates a rather expensive current valuation of TN8.
Compared to the rest of the industry, the Price/Earnings ratio of TN8 indicates a rather cheap valuation: TN8 is cheaper than 88.89% of the companies listed in the same industry.
TN8 is valuated rather cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.93 indicates a correct valuation of TN8.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TN8 indicates a rather cheap valuation: TN8 is cheaper than 88.89% of the companies listed in the same industry.
TN8 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.14 | ||
| Fwd PE | 15.93 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TN8 indicates a somewhat cheap valuation: TN8 is cheaper than 61.11% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TN8.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.3 | ||
| EV/EBITDA | 16.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TN8 does not grow enough to justify the current Price/Earnings ratio.
TN8 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.88
PEG (5Y)1.5
EPS Next 2Y6.81%
EPS Next 3Y8.35%
5. Dividend
5.1 Amount
With a yearly dividend of 0.43%, TN8 is not a good candidate for dividend investing.
In the last 3 months the price of TN8 has falen by -28.18%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
TN8's Dividend Yield is comparable with the industry average which is at 0.87.
With a Dividend Yield of 0.43, TN8 pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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
9.16% of the earnings are spent on dividend by TN8. This is a low number and sustainable payout ratio.
The dividend of TN8 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.16%
EPS Next 2Y6.81%
EPS Next 3Y8.35%
FRA:TN8 (6/2/2025, 7:00:00 PM)
347.95
-9.2 (-2.58%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.19%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap131.35B
Analysts81.08
Price Target510.9 (46.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend1.34
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)-8.09%
PT rev (3m)-17.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.6%
EPS NY rev (1m)-4.04%
EPS NY rev (3m)-4.25%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.14 | ||
| Fwd PE | 15.93 | ||
| P/S | 3.5 | ||
| P/FCF | 22.3 | ||
| P/OCF | 18.43 | ||
| P/B | 3.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.31 |
EPS(TTM)19.18
EY5.51%
EPS(NY)21.84
Fwd EY6.28%
FCF(TTM)15.6
FCFY4.48%
OCF(TTM)18.88
OCFY5.43%
SpS99.52
BVpS114.58
TBVpS-28.83
PEG (NY)5.88
PEG (5Y)1.5
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 | 3.4 |
F-Score8
WACC10.13%
ROIC/WACC0.63
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 Y3.08%
EPS Next 2Y6.81%
EPS Next 3Y8.35%
EPS Next 5Y11.41%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y3.03%
Revenue growth 5Y10.92%
Sales Q2Q%0.18%
Revenue Next Year2.11%
Revenue Next 2Y4.09%
Revenue Next 3Y4.98%
Revenue Next 5Y4.71%
EBIT growth 1Y6.86%
EBIT growth 3Y-9.38%
EBIT growth 5Y12.7%
EBIT Next Year12.01%
EBIT Next 3Y9.78%
EBIT Next 5Y10.83%
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%