Thermo Fisher Scientific Inc.
Thermo Fisher Scientific Inc. Fundamental Analysis
Thermo Fisher Scientific Inc. (TN8.DE) shows moderate financial fundamentals with a PE ratio of 29.47, profit margin of 15.07%, and ROE of 13.14%. The company generates $44.0B in annual revenue with moderate year-over-year growth of 3.91%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.4/100 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 TN8.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakTN8.DE struggles to generate sufficient returns from assets.
Valuation Score
WeakTN8.DE trades at a premium to fair value.
Growth Score
WeakTN8.DE faces weak or negative growth trends.
Financial Health Score
ExcellentTN8.DE maintains a strong and stable balance sheet.
Profitability Score
ModerateTN8.DE maintains healthy but balanced margins.
Key Financial Metrics
Is TN8.DE Expensive or Cheap?
P/E Ratio
TN8.DE trades at 29.47 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TN8.DE's PEG of 10.12 indicates potential overvaluation.
Price to Book
The market values Thermo Fisher Scientific Inc. at 3.70 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.42 times EBITDA. This signals the market has high growth expectations.
How Well Does TN8.DE 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 17.50 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 $7.73B, showing steady but balanced cash generation.
Free Cash Flow
Thermo Fisher Scientific Inc. generates strong free cash flow of $6.22B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $16.74 in free cash annually.
FCF Yield
TN8.DE converts 3.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.39
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 TN8.DE Stacks Against Its Sector Peers
| Metric | TN8.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.47 | 29.17 | Neutral |
| ROE | 13.14% | 701.00% | Weak |
| Net Margin | 15.07% | -43676.00% (disorted) | Strong |
| Debt/Equity | 0.74 | 0.34 | Weak (High Leverage) |
| Current Ratio | 1.89 | 4.45 | Neutral |
| ROA | 6.09% | -18965.00% (disorted) | Weak |
TN8.DE 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
45.65%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
11.30%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
-0.67%
Industry Style: Defensive, Growth, Innovation
Declining