THERMO FISHER SCIENTIFIC INC (TN8.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TN8 - US8835561023 - Common Stock
516.6 EUR
-7.4 (-1.41%)
TN8 gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 22 industry peers in the Life Sciences Tools & Services industry. Both the profitability and the financial health of TN8 get a neutral evaluation. Nothing too spectacular is happening here. TN8 is valied quite expensively at the moment, while it does show 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.
- TN8 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of TN8 (6.38%) is better than 72.73% of its industry peers.
- The Return On Equity of TN8 (12.88%) is better than 77.27% of its industry peers.
- TN8 has a Return On Invested Capital (6.43%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for TN8 is below the industry average of 9.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 12.88% | ||
| ROIC | 6.43% |
ROA(3y)6.58%
ROA(5y)7.42%
ROE(3y)13.8%
ROE(5y)15.76%
ROIC(3y)6.66%
ROIC(5y)7.62%
1.3 Margins
- TN8's Profit Margin of 15.02% is fine compared to the rest of the industry. TN8 outperforms 77.27% of its industry peers.
- TN8's Profit Margin has been stable in the last couple of years.
- TN8's Operating Margin of 18.40% is fine compared to the rest of the industry. TN8 outperforms 72.73% of its industry peers.
- In the last couple of years the Operating Margin of TN8 has grown nicely.
- The Gross Margin of TN8 (41.43%) 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 | 18.4% | ||
| 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 TN8 is destroying value.
- Compared to 1 year ago, TN8 has less shares outstanding
- Compared to 5 years ago, TN8 has less shares outstanding
- The debt/assets ratio for TN8 has been reduced compared to a year ago.
2.2 Solvency
- TN8 has a debt to FCF ratio of 5.84. This is a neutral value as TN8 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, TN8 is in line with its industry, outperforming 59.09% of the companies in the same industry.
- TN8 has a Debt/Equity ratio of 0.62. This is a neutral value indicating TN8 is somewhat dependend on debt financing.
- TN8 has a Debt to Equity ratio (0.62) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.6
WACC10.66%
2.3 Liquidity
- TN8 has a Current Ratio of 1.50. This is a normal value and indicates that TN8 is financially healthy and should not expect problems in meeting its short term obligations.
- TN8 has a Current ratio of 1.50. This is comparable to the rest of the industry: TN8 outperforms 59.09% of its industry peers.
- TN8 has a Quick Ratio of 1.11. This is a normal value and indicates that TN8 is financially healthy and should not expect problems in meeting its short term obligations.
- TN8's Quick ratio of 1.11 is in line compared to the rest of the industry. TN8 outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- TN8 shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.53%.
- TN8 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.12% yearly.
- TN8 shows a small growth in Revenue. In the last year, the Revenue has grown by 3.22%.
- The Revenue has been growing by 10.92% on average over the past years. This is quite good.
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
- TN8 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.66% yearly.
- TN8 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.65% yearly.
EPS Next Y5.08%
EPS Next 2Y6.64%
EPS Next 3Y7.93%
EPS Next 5Y9.66%
Revenue Next Year3.54%
Revenue Next 2Y4.31%
Revenue Next 3Y4.71%
Revenue Next 5Y4.65%
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
- TN8 is valuated quite expensively with a Price/Earnings ratio of 27.61.
- The rest of the industry has a similar Price/Earnings ratio as TN8.
- TN8 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 24.89, TN8 is valued on the expensive side.
- The rest of the industry has a similar Price/Forward Earnings ratio as TN8.
- When comparing the Price/Forward Earnings ratio of TN8 to the average of the S&P500 Index (25.83), we can say TN8 is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.61 | ||
| Fwd PE | 24.89 |
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.
- TN8's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.04 | ||
| EV/EBITDA | 24.25 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of TN8 may justify a higher PE ratio.
PEG (NY)5.44
PEG (5Y)2.28
EPS Next 2Y6.64%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
- TN8 has a yearly dividend return of 0.27%, which is pretty low.
- TN8's Dividend Yield is comparable with the industry average which is at 0.48.
- Compared to an average S&P500 Dividend Yield of 1.82, TN8's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
5.2 History
- The dividend of TN8 is nicely growing with an annual growth rate of 15.42%!
Dividend Growth(5Y)15.42%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- TN8 pays out 9.48% 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.
DP9.48%
EPS Next 2Y6.64%
EPS Next 3Y7.93%
THERMO FISHER SCIENTIFIC INC / TN8.DE FAQ
What is the fundamental rating for TN8 stock?
ChartMill assigns a fundamental rating of 4 / 10 to TN8.DE.
What is the valuation status for TN8 stock?
ChartMill assigns a valuation rating of 2 / 10 to THERMO FISHER SCIENTIFIC INC (TN8.DE). This can be considered as Overvalued.
What is the profitability of TN8 stock?
THERMO FISHER SCIENTIFIC INC (TN8.DE) has a profitability rating of 6 / 10.
Can you provide the financial health for TN8 stock?
The financial health rating of THERMO FISHER SCIENTIFIC INC (TN8.DE) is 4 / 10.
Can you provide the dividend sustainability for TN8 stock?
The dividend rating of THERMO FISHER SCIENTIFIC INC (TN8.DE) is 3 / 10 and the dividend payout ratio is 9.48%.