NYSE:TMO

Stock Analysis Report

Executive Summary

Thermo Fisher Scientific Inc. provides analytical and other instruments, laboratory equipment, software, consumables, reagents, instrument systems, chemicals, supplies, and services worldwide.

Snowflake

Fundamentals

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Thermo Fisher Scientific's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.8%

TMO

2.1%

US Life Sciences

0.4%

US Market


1 Year Return

34.6%

TMO

21.5%

US Life Sciences

11.4%

US Market

Return vs Industry: TMO exceeded the US Life Sciences industry which returned 21.5% over the past year.

Return vs Market: TMO exceeded the US Market which returned 11.4% over the past year.


Shareholder returns

TMOIndustryMarket
7 Day5.8%2.1%0.4%
30 Day2.2%-2.0%0.3%
90 Day2.2%-3.0%-1.2%
1 Year35.0%34.6%21.7%21.5%13.9%11.4%
3 Year102.5%100.6%88.6%87.1%47.2%37.6%
5 Year160.5%155.8%117.1%107.3%62.4%44.6%

Price Volatility Vs. Market

How volatile is Thermo Fisher Scientific's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Thermo Fisher Scientific undervalued compared to its fair value and its price relative to the market?

33.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TMO ($296.93) is trading above our estimate of fair value ($254.68)

Significantly Below Fair Value: TMO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TMO is poor value based on its PE Ratio (33.6x) compared to the Life Sciences industry average (33.6x).

PE vs Market: TMO is poor value based on its PE Ratio (33.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: TMO is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: TMO is good value based on its PB Ratio (4.1x) compared to the US Life Sciences industry average (4.4x).


Next Steps

Future Growth

How is Thermo Fisher Scientific forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TMO's forecast earnings growth (11% per year) is above the savings rate (2.7%).

Earnings vs Market: TMO's earnings (11% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: TMO's earnings are forecast to grow, but not significantly.

Revenue vs Market: TMO's revenue (5.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: TMO's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TMO's Return on Equity is forecast to be low in 3 years time (17.6%).


Next Steps

Past Performance

How has Thermo Fisher Scientific performed over the past 5 years?

12.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TMO's earnings have grown by 12.9% per year over the past 5 years.

Accelerating Growth: TMO's earnings growth over the past year (47.9%) exceeds its 5-year average (12.9% per year).

Earnings vs Industry: TMO earnings growth over the past year (47.9%) exceeded the Life Sciences industry 45%.


Return on Equity

High ROE: TMO's Return on Equity (12.3%) is considered low.


Return on Assets

ROA vs Industry: TMO has a higher Return on Assets than the Life Sciences industry average last year.


Return on Capital Employed

ROCE Improving: TMO has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Thermo Fisher Scientific's financial position?


Financial Position Analysis

Short Term Liabilities: TMO's short term assets ($11.2B) exceeds its short term liabilities ($7.5B)

Long Term Liabilities: TMO's short term assets (11.2B) do not cover its long term liabilities (21.7B)


Debt to Equity History and Analysis

Debt Level: TMO's debt to equity ratio (66.4%) is considered high

Reducing Debt: TMO's debt to equity ratio has reduced from 75.3% to 66.4% over the past 5 years.

Debt Coverage: TMO's debt is well covered by operating cash flow (26%).

Interest Coverage: TMO's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet

Inventory Level: TMO has a low level of unsold assets or inventory.

Debt Coverage by Assets: TMO's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Thermo Fisher Scientific's current dividend yield, its reliability and sustainability?

0.26%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%1.4%markettop25%3.7%industryaverage0.4%forecastin3Years0.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TMO's dividend (0.26%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: TMO's dividend (0.26%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: TMO is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: TMO is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: TMO is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TMO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Thermo Fisher Scientific's salary, the management and board of directors tenure and is there insider trading?

7.1yrs

Average management tenure


CEO

Marc Casper (51yo)

10yrs

Tenure

US$18,607,103

Compensation

Mr. Marc N. Casper has been the Chief Executive Officer and President of Thermo Fisher Scientific, Inc. since October 15, 2009. He joined Thermo Electron Corporation, a predecessor to Thermo Fisher Scienti ...


CEO Compensation Analysis

Compensation vs. Market: Marc's total compensation ($USD18.61M) is about average for companies of similar size in the US market ($USD11.17M).

Compensation vs Earnings: Marc's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.1yrs

Average Tenure

54.5yo

Average Age

Experienced Management: TMO's management team is seasoned and experienced (7.1 years average tenure).


Board Age and Tenure

10.4yrs

Average Tenure

64yo

Average Age

Experienced Board: TMO's board of directors are seasoned and experienced ( 10.4 years average tenure).


Insider Trading

Insider Buying: TMO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$500,27919 Aug 19
Jim Manzi
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman of the Board
Shares1,833
Max PriceUS$272.95
SellUS$74,45106 Jun 19
C. Harris
EntityIndividual
Shares275
Max PriceUS$270.74
SellUS$867,81505 Mar 19
Gregory Herrema
EntityIndividual
Role
Senior Key Executive
Senior VP & President of Customer Channels
Shares3,299
Max PriceUS$263.05
SellUS$369,89827 Feb 19
Gregory Herrema
EntityIndividual
Role
Senior Key Executive
Senior VP & President of Customer Channels
Shares1,458
Max PriceUS$253.72
SellUS$277,17604 Dec 18
Tyler Jacks
EntityIndividual
Role
Member of the Board of Directors
Director & Member of Scientific Advisory Board
Shares1,100
Max PriceUS$251.98
SellUS$1,787,04530 Nov 18
Gregory Herrema
EntityIndividual
Role
Senior Key Executive
Senior VP & President of Customer Channels
Shares7,235
Max PriceUS$247.00
SellUS$1,144,08720 Nov 18
Tyler Jacks
EntityIndividual
Role
Member of the Board of Directors
Director & Member of Scientific Advisory Board
Shares4,772
Max PriceUS$239.75

Ownership Breakdown


Management Team

  • Shiraz Ladiwala

    Senior Vice President of Strategy & Corporate Development

    • Tenure: 0yrs
  • Marc Casper (51yo)

    CEO, President & Director

    • Tenure: 10yrs
    • Compensation: US$18.61m
  • Peter Hornstra (59yo)

    VP & Chief Accounting Officer

    • Tenure: 18.8yrs
  • Mark Stevenson (56yo)

    Executive VP & COO

    • Tenure: 2.2yrs
    • Compensation: US$8.43m
  • Ken Apicerno

    Vice President of Investor Relations

    • Tenure: 12.9yrs
  • Michael Boxer (57yo)

    Senior VP & General Counsel

    • Tenure: 1.8yrs
  • Greg Herrema (53yo)

    Senior VP & President of Customer Channels

    • Tenure: 11.4yrs
    • Compensation: US$4.30m
  • Stephen Williamson (52yo)

    Senior VP & CFO

    • Tenure: 4.2yrs
    • Compensation: US$4.80m
  • Karen Kirkwood

    Vice President of Corporate Communications

    • Tenure: 0yrs
  • Ryan Snyder

    Senior VP & Chief Information Officer

    • Tenure: 0.3yrs

Board Members

  • Scott Sperling (61yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: US$325.88k
  • Judy Lewent (70yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$331.26k
  • Tom Lynch (64yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: US$330.75k
  • Elaine Ullian (71yo)

    Independent Director

    • Tenure: 18.3yrs
    • Compensation: US$320.81k
  • Marc Casper (51yo)

    CEO, President & Director

    • Tenure: 10yrs
    • Compensation: US$18.61m
  • Jim Manzi (67yo)

    Non-Executive Chairman of the Board

    • Tenure: 12.4yrs
    • Compensation: US$485.75k
  • Nelson Chai (53yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$330.93k
  • Lars Sørensen (65yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$315.75k
  • Tyler Jacks (58yo)

    Director & Member of Scientific Advisory Board

    • Tenure: 10.4yrs
    • Compensation: US$330.75k
  • David Sabatini

    Member of Scientific Advisory Board

    • Tenure: 7.6yrs

Company Information

Thermo Fisher Scientific Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Thermo Fisher Scientific Inc.
  • Ticker: TMO
  • Exchange: NYSE
  • Founded: 1956
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$118.913b
  • Shares outstanding: 400.48m
  • Website: https://www.thermofisher.com

Number of Employees


Location

  • Thermo Fisher Scientific Inc.
  • 168 Third Avenue
  • Waltham
  • Massachusetts
  • 2451
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TMONYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1980
TN8DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980
TMO *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1980
TFSSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1980
0R0HLSE (London Stock Exchange)YesCommon StockGBUSDJan 1980
TMOFWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1980
TMOS34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1/4 COM USD1BRBRLApr 2016
TMOBASE (Buenos Aires Stock Exchange)CEDEAR EACH 11 REP 1 COM USD1.00ARARSApr 2019

Biography

Thermo Fisher Scientific Inc. provides analytical and other instruments, laboratory equipment, software, consumables, reagents, instrument systems, chemicals, supplies, and services worldwide. Its Life Sci ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:44
End of Day Share Price2019/10/23 00:00
Earnings2019/06/29
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.