Thermo Fisher Scientific Inc.
Thermo Fisher Scientific Inc. Fundamental Analysis
Thermo Fisher Scientific Inc. (TMO) shows moderate financial fundamentals with a PE ratio of 28.58, profit margin of 15.07%, and ROE of 13.14%. The company generates $44.5B in annual revenue with weak year-over-year growth of 0.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TMO's fundamental strength across five key dimensions:
Efficiency Score
WeakTMO struggles to generate sufficient returns from assets.
Valuation Score
WeakTMO trades at a premium to fair value.
Growth Score
WeakTMO faces weak or negative growth trends.
Financial Health Score
ExcellentTMO maintains a strong and stable balance sheet.
Profitability Score
ModerateTMO maintains healthy but balanced margins.
Key Financial Metrics
Is TMO Expensive or Cheap?
P/E Ratio
TMO trades at 28.58 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TMO's PEG of 11.53 indicates potential overvaluation.
Price to Book
The market values Thermo Fisher Scientific Inc. at 3.59 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.37 times EBITDA. This signals the market has high growth expectations.
How Well Does TMO Make Money?
Net Profit Margin
For every $100 in sales, Thermo Fisher Scientific Inc. keeps $15.07 as profit after all expenses.
Operating Margin
Core operations generate 17.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.14 in profit for every $100 of shareholder equity.
ROA
Thermo Fisher Scientific Inc. generates $6.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Thermo Fisher Scientific Inc. produces operating cash flow of $7.81B, showing steady but balanced cash generation.
Free Cash Flow
Thermo Fisher Scientific Inc. generates strong free cash flow of $6.29B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $16.74 in free cash annually.
FCF Yield
TMO converts 3.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
11.53
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.59
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.30
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.89
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How TMO Stacks Against Its Sector Peers
| Metric | TMO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.58 | 29.43 | Neutral |
| ROE | 13.14% | 800.00% | Weak |
| Net Margin | 15.07% | -20145.00% (disorted) | Strong |
| Debt/Equity | 0.74 | 0.30 | Weak (High Leverage) |
| Current Ratio | 1.89 | 4.64 | Neutral |
| ROA | 6.09% | -17936.00% (disorted) | Weak |
TMO outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Thermo Fisher Scientific Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
75.79%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
79.48%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
82.49%
Industry Style: Defensive, Growth, Innovation
High Growth