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 Analysis

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

Stable Share Price: TMO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

TMO

-1.2%

US Life Sciences

-1.1%

US Market


1 Year Return

32.9%

TMO

17.5%

US Life Sciences

17.9%

US Market

Return vs Industry: TMO exceeded the US Life Sciences industry which returned 17.5% over the past year.

Return vs Market: TMO exceeded the US Market which returned 17.9% over the past year.


Shareholder returns

TMOIndustryMarket
7 Day-1.3%-1.2%-1.1%
30 Day0.4%-1.4%1.4%
90 Day7.8%5.8%6.9%
1 Year33.2%32.9%17.8%17.5%20.3%17.9%
3 Year112.6%110.7%92.4%91.1%47.8%38.3%
5 Year162.3%157.6%122.0%119.0%71.9%53.0%

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?

36.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TMO ($334.94) is trading above our estimate of fair value ($211.26)

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


Price To Earnings Ratio

PE vs Industry: TMO is good value based on its PE Ratio (36.2x) compared to the Life Sciences industry average (37.8x).

PE vs Market: TMO is poor value based on its PE Ratio (36.2x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: TMO is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: TMO is good value based on its PB Ratio (4.5x) compared to the US Life Sciences industry average (5.8x).


Next Steps

Future Growth

How is Thermo Fisher Scientific forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TMO's forecast earnings growth (10.4% per year) is above the savings rate (1.7%).

Earnings vs Market: TMO's earnings (10.4% per year) are forecast to grow slower than the US market (14.1% per year).

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

Revenue vs Market: TMO's revenue (5.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: TMO's revenue (5.3% 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 high in 3 years time (20%)


Next Steps

Past Performance

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

14.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TMO has high quality earnings.

Growing Profit Margin: TMO's current net profit margins (14.5%) are higher than last year (12.1%).


Past Earnings Growth Analysis

Earnings Trend: TMO's earnings have grown by 14.4% per year over the past 5 years.

Accelerating Growth: TMO's earnings growth over the past year (25.8%) exceeds its 5-year average (14.4% per year).

Earnings vs Industry: TMO earnings growth over the past year (25.8%) exceeded the Life Sciences industry 15.9%.


Return on Equity

High ROE: TMO's Return on Equity (12.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Thermo Fisher Scientific's financial position?


Financial Position Analysis

Short Term Liabilities: TMO's short term assets ($11.9B) exceed its short term liabilities ($6.2B).

Long Term Liabilities: TMO's short term assets ($11.9B) do not cover its long term liabilities ($22.3B).


Debt to Equity History and Analysis

Debt Level: TMO's debt to equity ratio (57.5%) is considered high.

Reducing Debt: TMO's debt to equity ratio has reduced from 70.9% to 57.5% over the past 5 years.

Debt Coverage: TMO's debt is well covered by operating cash flow (29.1%).

Interest Coverage: TMO's interest payments on its debt are well covered by EBIT (9.4x 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 0.7x debt).


Next Steps

Dividend

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

0.23%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%1.4%markettop25%3.7%industryaverage0.3%forecastin3Years0.3%

Current dividend yield vs market & industry

Notable Dividend: TMO's dividend (0.23%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: TMO's dividend (0.23%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

7.4yrs

Average management tenure


CEO

Marc Casper (51yo)

10.3yrs

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 ($USD18.61M) is above average for companies of similar size in the US market ($USD10.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Marc Casper
CEO, President & Director10.3yrsUS$18.61m0.079% $106.5m
Stephen Williamson
Senior VP & CFO4.5yrsUS$4.80m0.0086% $11.5m
Mark Stevenson
Executive VP & COO2.5yrsUS$8.43m0.023% $30.3m
Gregory Herrema
Senior VP & President of Customer Channels11.8yrsUS$4.30m0.0067% $9.0m
Peter Hornstra
VP & Chief Accounting Officer19.1yrsno data0.0044% $6.0m
Ryan Snyder
Senior VP & Chief Information Officer0.6yrsno datano data
Kenneth Apicerno
Vice President of Investor Relations13.3yrsno datano data
Michael Boxer
Senior VP & General Counsel2.1yrsno data0.0011% $1.5m
Karen Kirkwood
Vice President of Corporate Communications0yrsno datano data
Shiraz Ladiwala
Senior Vice President of Strategy & Corporate Development0yrsno datano data

7.4yrs

Average Tenure

54.5yo

Average Age

Experienced Management: TMO's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marc Casper
CEO, President & Director10.3yrsUS$18.61m0.079% $106.5m
Scott Sperling
Independent Director13.3yrsUS$325.88k0.018% $24.8m
Judy Lewent
Independent Director11.8yrsUS$331.26k0.0045% $6.1m
Thomas Lynch
Independent Director10.8yrsUS$330.75k0.0037% $4.9m
Elaine Ullian
Independent Director18.6yrsUS$320.81k0.0021% $2.8m
Jim Manzi
Non-Executive Chairman of the Board12.8yrsUS$485.75k0.0052% $7.0m
Nelson Chai
Independent Director9.2yrsUS$330.93k0.0030% $4.1m
Lars Sørensen
Independent Director3.8yrsUS$315.75k0.0021% $2.8m
Tyler Jacks
Director & Member of Scientific Advisory Board10.8yrsUS$330.75k0.0016% $2.1m
David Sabatini
Member of Scientific Advisory Board7.9yrsno datano data

10.8yrs

Average Tenure

64yo

Average Age

Experienced Board: TMO's board of directors are seasoned and experienced ( 10.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$134.308b
  • Shares outstanding: 400.99m
  • 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
TN8ETLX (Eurotlx)YesCommon StockITEURJan 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. The company’s Life Sciences Solutions segment offers reagents, instruments, and consumables for biological and medical research, discovery and production of new drugs and vaccines, and diagnosis of diseases to pharmaceutical, biotechnology, agricultural, clinical, academic, and government markets. Its Analytical Instruments segment provides instruments, consumables, software, and services for use in laboratory, on production line, and in field for pharmaceutical, biotechnology, academic, government, environmental, and research and industrial markets, as well as clinical laboratories. The company’s Specialty Diagnostics segment offers liquid, ready-to-use, and lyophilized immunodiagnostic reagent kits, as well as calibrators, controls, and calibration verification fluids; blood-test systems and antibody tests; dehydrated and prepared culture media, collection and transport systems, instrumentation, and consumables; cancer diagnosis and medical research products; human leukocyte antigen typing and testing for organ transplant market; and healthcare products. Its Laboratory Products and Services segment offers laboratory refrigerators and freezers, and ultralow-temperature freezers and cryopreservation storage tanks; temperature control, sample preparation and preservation, centrifugation, and biological safety cabinet products; water analysis equipment; laboratory plastics and chemicals; and pharma services. The company has a strategic collaboration with NX Prenatal Inc., Evosep, and Cedars-Sinai; research collaboration with Predictive Laboratories; strategic manufacturing collaboration with Amicus Therapeutics, Inc.; collaboration with Owlstone Medical; and agreement with Civica, Inc. The company was founded in 1956 and is headquartered in Waltham, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 01:10
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.