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Thermo Fisher Scientific

NYSE:TMO
Snowflake Description

Solid track record with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TMO
NYSE
$111B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Thermo Fisher Scientific Inc. provides analytical and other instruments, laboratory equipment, software, consumables, reagents, instrument systems, chemicals, supplies, and services worldwide. The last earnings update was 15 days ago. More info.


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TMO Share Price and Events
7 Day Returns
-0.1%
NYSE:TMO
-0.5%
US Life Sciences
-1%
US Market
1 Year Returns
20.1%
NYSE:TMO
10.4%
US Life Sciences
-0.4%
US Market
TMO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Thermo Fisher Scientific (TMO) -0.1% -6% 5.5% 20.1% 79.8% 127.8%
US Life Sciences -0.5% -4% 3.3% 10.4% 68.7% 100.3%
US Market -1% -3.3% 0.4% -0.4% 30.4% 37.1%
1 Year Return vs Industry and Market
  • TMO outperformed the Life Sciences industry which returned 10.4% over the past year.
  • TMO outperformed the Market in United States of America which returned -0.4% over the past year.
Price Volatility
TMO
Industry
5yr Volatility vs Market
Related Companies

TMO Value

 Is Thermo Fisher Scientific undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Thermo Fisher Scientific to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Thermo Fisher Scientific.

NYSE:TMO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:TMO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Life Sciences Unlevered Beta Simply Wall St/ S&P Global 1.01
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.01 (1 + (1- 21%) (17.87%))
1.102
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.102 * 5.96%)
9.3%

Discounted Cash Flow Calculation for NYSE:TMO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Thermo Fisher Scientific is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:TMO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.3%)
2020 4,893.82 Analyst x6 4,477.47
2021 5,714.30 Analyst x4 4,783.36
2022 6,333.50 Est @ 10.84% 4,850.64
2023 6,865.78 Est @ 8.4% 4,810.94
2024 7,325.91 Est @ 6.7% 4,696.64
2025 7,729.60 Est @ 5.51% 4,533.85
2026 8,091.05 Est @ 4.68% 4,342.11
2027 8,422.17 Est @ 4.09% 4,135.27
2028 8,732.41 Est @ 3.68% 3,922.83
2029 9,029.10 Est @ 3.4% 3,711.04
Present value of next 10 years cash flows $44,264.15
NYSE:TMO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $9,029.10 × (1 + 2.73%) ÷ (9.3% – 2.73%)
$141,209.34
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $141,209.34 ÷ (1 + 9.3%)10
$58,038.23
NYSE:TMO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $44,264.15 + $58,038.23
$102,302.38
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $102,302.38 / 400.48
$255.45
NYSE:TMO Discount to Share Price
Calculation Result
Value per share (USD) From above. $255.45
Current discount Discount to share price of $276.15
= -1 x ($276.15 - $255.45) / $255.45
-8.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Thermo Fisher Scientific is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Thermo Fisher Scientific's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Thermo Fisher Scientific's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:TMO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-29) in USD $8.83
NYSE:TMO Share Price ** NYSE (2019-08-16) in USD $276.15
United States of America Life Sciences Industry PE Ratio Median Figure of 21 Publicly-Listed Life Sciences Companies 34.35x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Thermo Fisher Scientific.

NYSE:TMO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:TMO Share Price ÷ EPS (both in USD)

= 276.15 ÷ 8.83

31.27x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Thermo Fisher Scientific is good value based on earnings compared to the US Life Sciences industry average.
  • Thermo Fisher Scientific is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Thermo Fisher Scientific's expected growth come at a high price?
Raw Data
NYSE:TMO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 31.27x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
10.9%per year
United States of America Life Sciences Industry PEG Ratio Median Figure of 19 Publicly-Listed Life Sciences Companies 2.74x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

NYSE:TMO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 31.27x ÷ 10.9%

2.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Thermo Fisher Scientific is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Thermo Fisher Scientific's assets?
Raw Data
NYSE:TMO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-29) in USD $71.74
NYSE:TMO Share Price * NYSE (2019-08-16) in USD $276.15
United States of America Life Sciences Industry PB Ratio Median Figure of 37 Publicly-Listed Life Sciences Companies 4.67x
United States of America Market PB Ratio Median Figure of 5,265 Publicly-Listed Companies 1.7x
NYSE:TMO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:TMO Share Price ÷ Book Value per Share (both in USD)

= 276.15 ÷ 71.74

3.85x

* Primary Listing of Thermo Fisher Scientific.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Thermo Fisher Scientific is good value based on assets compared to the US Life Sciences industry average.
X
Value checks
We assess Thermo Fisher Scientific's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Life Sciences industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Life Sciences industry average (and greater than 0)? (1 check)
  5. Thermo Fisher Scientific has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TMO Future Performance

 How is Thermo Fisher Scientific expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Thermo Fisher Scientific expected to grow at an attractive rate?
  • Thermo Fisher Scientific's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Thermo Fisher Scientific's earnings growth is positive but not above the United States of America market average.
  • Thermo Fisher Scientific's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:TMO Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:TMO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 10.9%
NYSE:TMO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 5.4%
United States of America Life Sciences Industry Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Life Sciences Industry Revenue Growth Rate Market Cap Weighted Average 7.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:TMO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:TMO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 31,974 1
2022-12-31 29,961 2
2021-12-31 28,289 6,489 4,662 10
2020-12-31 26,914 5,680 4,024 16
2019-12-31 25,442 4,955 3,775 16
NYSE:TMO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-29 24,868 4,964 3,541
2019-03-30 24,630 5,114 3,174
2018-12-31 24,358 4,543 2,938
2018-09-29 23,898 4,608 2,570
2018-06-30 23,094 4,317 2,395
2018-03-31 22,006 3,722 2,256
2017-12-31 20,918 4,005 2,228
2017-09-30 19,824 3,344 2,330
2017-07-01 19,199 3,220 2,270
2017-04-01 18,744 3,284 2,174
2016-12-31 18,274 3,258 2,025
2016-10-01 17,973 3,281 1,999
2016-07-02 17,606 3,220 2,003

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Thermo Fisher Scientific's earnings are expected to grow by 10.9% yearly, however this is not considered high growth (20% yearly).
  • Thermo Fisher Scientific's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:TMO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Thermo Fisher Scientific Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TMO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 11.52 12.27 10.52 4.00
2020-12-31 9.75 10.25 9.01 6.00
2019-12-31 9.29 9.49 9.15 5.00
NYSE:TMO Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-29 8.83
2019-03-30 7.91
2018-12-31 7.31
2018-09-29 6.39
2018-06-30 5.97
2018-03-31 5.67
2017-12-31 5.64
2017-09-30 5.93
2017-07-01 5.78
2017-04-01 5.52
2016-12-31 5.13
2016-10-01 5.05
2016-07-02 5.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Thermo Fisher Scientific is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Thermo Fisher Scientific's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Thermo Fisher Scientific has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TMO Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Thermo Fisher Scientific's growth in the last year to its industry (Life Sciences).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Thermo Fisher Scientific's year on year earnings growth rate has been positive over the past 5 years.
  • Thermo Fisher Scientific's 1-year earnings growth exceeds its 5-year average (47.9% vs 12.9%)
  • Thermo Fisher Scientific's earnings growth has exceeded the US Life Sciences industry average in the past year (47.9% vs 45%).
Earnings and Revenue History
Thermo Fisher Scientific's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Thermo Fisher Scientific Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TMO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-29 24,868.00 3,541.00 6,015.00 985.00
2019-03-30 24,630.00 3,174.00 6,023.00 981.00
2018-12-31 24,358.00 2,938.00 6,013.00 967.00
2018-09-29 23,898.00 2,570.00 6,019.00 949.00
2018-06-30 23,094.00 2,395.00 5,888.00 926.00
2018-03-31 22,006.00 2,256.00 5,632.00 906.00
2017-12-31 20,918.00 2,228.00 5,428.00 887.00
2017-09-30 19,824.10 2,330.40 5,214.40 866.80
2017-07-01 19,199.00 2,269.90 5,064.00 833.10
2017-04-01 18,744.20 2,173.70 4,999.00 793.50
2016-12-31 18,274.00 2,025.00 4,883.00 754.00
2016-10-01 17,973.40 1,998.90 4,814.10 722.50
2016-07-02 17,605.70 2,002.70 4,710.80 710.80
2016-04-02 17,341.40 1,997.50 4,639.30 703.00
2015-12-31 16,965.00 1,980.00 4,566.00 692.00
2015-09-26 16,805.70 1,978.00 4,632.70 694.50
2015-06-27 16,853.90 1,970.60 4,732.10 698.10
2015-03-28 16,904.90 1,737.50 4,823.40 707.20
2014-12-31 16,889.60 1,895.50 4,787.50 691.10
2014-09-27 15,863.70 1,634.50 4,414.70 613.30
2014-06-28 14,884.10 1,482.30 4,030.50 534.00
2014-03-29 13,802.30 1,481.40 3,638.30 447.00
2013-12-31 13,090.30 1,279.10 3,372.80 395.50
2013-09-28 12,882.70 1,321.90 3,357.00 389.30
2013-06-29 12,776.60 1,303.60 3,358.20 385.40
2013-03-30 12,644.60 1,318.40 3,346.60 382.90
2012-12-31 12,509.90 1,258.40 3,342.40 376.40
2012-09-29 12,339.90 1,165.10 3,311.60 373.40

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Thermo Fisher Scientific has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Thermo Fisher Scientific used its assets more efficiently than the US Life Sciences industry average last year based on Return on Assets.
  • Thermo Fisher Scientific has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Thermo Fisher Scientific's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Life Sciences industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Thermo Fisher Scientific has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TMO Health

 How is Thermo Fisher Scientific's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Thermo Fisher Scientific's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Thermo Fisher Scientific is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Thermo Fisher Scientific's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Thermo Fisher Scientific's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Thermo Fisher Scientific Company Filings, last reported 1 month ago.

NYSE:TMO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-29 28,729.00 19,086.00 2,288.00
2019-03-30 27,693.00 18,248.00 1,106.00
2018-12-31 27,586.00 19,107.00 2,103.00
2018-09-29 26,890.00 18,954.00 1,098.00
2018-06-30 26,445.00 19,592.00 937.00
2018-03-31 26,123.00 21,098.00 950.00
2017-12-31 25,413.00 21,132.00 1,335.00
2017-09-30 24,701.80 22,090.30 741.10
2017-07-01 22,391.60 16,896.00 611.00
2017-04-01 21,795.20 17,186.60 713.30
2016-12-31 21,540.00 16,737.00 786.00
2016-10-01 21,658.60 18,912.50 1,970.00
2016-07-02 21,263.90 14,147.80 663.10
2016-04-02 20,924.40 15,045.00 826.80
2015-12-31 21,350.20 12,488.40 452.10
2015-09-26 20,850.20 13,321.20 503.40
2015-06-27 20,679.80 14,064.20 807.50
2015-03-28 19,914.80 14,870.20 873.00
2014-12-31 20,548.10 14,567.70 1,343.50
2014-09-27 20,510.60 14,482.80 543.60
2014-06-28 20,658.60 15,578.50 605.90
2014-03-29 20,430.60 17,368.60 1,522.70
2013-12-31 16,856.10 10,492.50 5,830.50
2013-09-28 16,437.30 7,114.00 1,860.30
2013-06-29 15,802.80 7,114.40 1,423.90
2013-03-30 15,599.50 7,118.40 1,008.30
2012-12-31 15,464.70 7,124.30 809.90
2012-09-29 15,290.50 7,472.30 836.50
  • Thermo Fisher Scientific's level of debt (66.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (75.3% vs 66.4% today).
  • Debt is well covered by operating cash flow (26%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.7x coverage).
X
Financial health checks
We assess Thermo Fisher Scientific's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Thermo Fisher Scientific has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TMO Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.28%
Current annual income from Thermo Fisher Scientific dividends. Estimated to be 0.28% next year.
If you bought $2,000 of Thermo Fisher Scientific shares you are expected to receive $6 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Thermo Fisher Scientific's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
  • Thermo Fisher Scientific's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).
Upcoming dividend payment

Purchase Thermo Fisher Scientific before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:TMO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
United States of America Life Sciences Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 0.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:TMO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.85 6.00
2020-12-31 0.77 9.00
2019-12-31 0.74 8.00
NYSE:TMO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-07-11 0.760 0.269
2019-05-23 0.760 0.266
2019-02-26 0.760 0.284
2018-11-08 0.680 0.286
2018-07-13 0.680 0.291
2018-05-24 0.680 0.322
2018-01-31 0.680 0.322
2017-11-09 0.600 0.304
2017-07-12 0.600 0.324
2017-05-18 0.600 0.343
2017-02-28 0.600 0.376
2016-11-10 0.600 0.408
2016-07-07 0.600 0.391
2016-05-18 0.600 0.401
2016-02-25 0.600 0.421
2015-11-12 0.600 0.448
2015-07-10 0.600 0.463
2015-05-21 0.600 0.461
2015-02-26 0.600 0.458
2014-11-07 0.600 0.476
2014-07-10 0.600 0.499
2014-05-21 0.600 0.507
2014-02-27 0.600 0.502
2013-11-07 0.600 0.549
2013-07-12 0.600 0.650
2013-05-23 0.600 0.699
2013-02-27 0.600 0.754
2012-11-08 0.600 0.898
2012-07-12 0.520 0.903
2012-05-24 0.520 1.022
2012-02-29 0.520 0.948

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Thermo Fisher Scientific is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Thermo Fisher Scientific is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Thermo Fisher Scientific's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Thermo Fisher Scientific's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of Thermo Fisher Scientific's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Thermo Fisher Scientific's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Thermo Fisher Scientific afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Thermo Fisher Scientific has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TMO Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Marc Casper
COMPENSATION $18,607,103
AGE 51
TENURE AS CEO 9.8 years
CEO Bio

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 Scientific in 2001. Mr. Casper served as the Chief Operating Officer of Thermo Fisher Scientific, Inc. from May 2008 to October 2009 and served as its Executive Vice President from November 2006 to October 2009. He served as a Senior Vice President at Thermo Fisher Scientific, Inc. from December 2003 to November 2006. He served as President, Chief Executive Officer and Director of Kendro Laboratory Products. Mr. Casper has been a Director of Thermo Fisher Scientific, Inc. since October 15, 2009 and U.S. Bancorp since March 1, 2016. He served as a Director of Zimmer Biomet Holdings, Inc. from February 27, 2009 to May 7, 2013. He served as a Director of Zimmer Holdings, Inc. from 2009 to 2013 and The Advisory Board Company from February 2003 to September 11, 2009. He served as a Director of Sunol Molecular Corporation. Mr. Casper holds a B.A. in Economics from Wesleyan University and an M.B.A. with high distinction from Harvard Business School.

CEO Compensation
  • Marc's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Marc's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Thermo Fisher Scientific management team in years:

4
Average Tenure
53
Average Age
  • The tenure for the Thermo Fisher Scientific management team is about average.
Management Team

Marc Casper

TITLE
CEO, President & Director
COMPENSATION
$19M
AGE
51
TENURE
9.8 yrs

Stephen Williamson

TITLE
Senior VP & CFO
COMPENSATION
$5M
AGE
52
TENURE
4 yrs

Mark Stevenson

TITLE
Executive VP & COO
COMPENSATION
$8M
AGE
56
TENURE
2 yrs

Greg Herrema

TITLE
Senior VP & President of Customer Channels
COMPENSATION
$4M
AGE
53
TENURE
11.3 yrs

Patrick Durbin

TITLE
Senior VP & President of Specialty Diagnostics
COMPENSATION
$4M
AGE
52
TENURE
3.8 yrs

Peter Hornstra

TITLE
VP & Chief Accounting Officer
AGE
59
TENURE
18.6 yrs

Ryan Snyder

TITLE
Senior VP & Chief Information Officer
TENURE
0.1 yrs

Ken Apicerno

TITLE
Vice President of Investor Relations
TENURE
12.8 yrs

Michael Boxer

TITLE
Senior VP & General Counsel
AGE
57
TENURE
1.6 yrs

Karen Kirkwood

TITLE
Vice President of Corporate Communications
Board of Directors Tenure

Average tenure and age of the Thermo Fisher Scientific board of directors in years:

10.3
Average Tenure
64
Average Age
  • The average tenure for the Thermo Fisher Scientific board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Jim Manzi

TITLE
Non-Executive Chairman of the Board
COMPENSATION
$486K
AGE
67
TENURE
12.3 yrs

Marc Casper

TITLE
CEO, President & Director
COMPENSATION
$19M
AGE
51
TENURE
9.8 yrs

Judy Lewent

TITLE
Independent Director
COMPENSATION
$331K
AGE
70
TENURE
11.3 yrs

Tom Lynch

TITLE
Independent Director
COMPENSATION
$331K
AGE
64
TENURE
10.3 yrs

Tyler Jacks

TITLE
Director & Member of Scientific Advisory Board
COMPENSATION
$331K
AGE
58
TENURE
10.3 yrs

Nelson Chai

TITLE
Independent Director
COMPENSATION
$331K
AGE
53
TENURE
8.7 yrs

Lars Sørensen

TITLE
Independent Director
COMPENSATION
$316K
AGE
65
TENURE
3.3 yrs

Elaine Ullian

TITLE
Independent Director
COMPENSATION
$321K
AGE
71
TENURE
18.1 yrs

Scott Sperling

TITLE
Independent Director
COMPENSATION
$326K
AGE
61
TENURE
12.8 yrs

David Sabatini

TITLE
Member of Scientific Advisory Board
TENURE
7.4 yrs
Who owns this company?
Recent Insider Trading
  • Thermo Fisher Scientific individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Jun 19 Sell C. Harris Individual 05. Jun 19 05. Jun 19 -275 $270.74 $-74,451
05. Mar 19 Sell Gregory Herrema Individual 01. Mar 19 01. Mar 19 -3,299 $263.05 $-867,815
27. Feb 19 Sell Gregory Herrema Individual 25. Feb 19 25. Feb 19 -1,458 $253.72 $-369,898
04. Dec 18 Sell Tyler Jacks Individual 04. Dec 18 04. Dec 18 -1,100 $251.98 $-277,176
30. Nov 18 Sell Gregory Herrema Individual 29. Nov 18 29. Nov 18 -7,235 $247.00 $-1,787,045
20. Nov 18 Sell Tyler Jacks Individual 19. Nov 18 19. Nov 18 -4,772 $239.75 $-1,144,087
X
Management checks
We assess Thermo Fisher Scientific's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Thermo Fisher Scientific has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TMO News

Simply Wall St News

How Much Did Thermo Fisher Scientific Inc.'s (NYSE:TMO) CEO Pocket Last Year?

We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. … Thus we can conclude that Marc Casper receives more in total compensation than the median of a group of large companies in the same market as Thermo Fisher Scientific Inc.. … We compared the total CEO remuneration paid by Thermo Fisher Scientific Inc., and compared it to remuneration at a group of other large companies.

Simply Wall St -

Thermo Fisher Scientific Inc.'s (NYSE:TMO) Earnings Grew 48%, Did It Beat Long-Term Trend?

View our latest analysis for Thermo Fisher Scientific Did TMO's recent earnings growth beat the long-term trend and the industry? … While Thermo Fisher Scientific has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. … I suggest you continue to research Thermo Fisher Scientific to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for TMO’s future growth?

Simply Wall St -

Is Thermo Fisher Scientific Inc.'s (NYSE:TMO) Stock Available For A Good Price After Accounting For Growth?

Thermo Fisher Scientific is trading at price-to-earnings (PE) ratio of 37.39x, this tells us the stock is overvalued compared to the US market average ratio of 17.73x , and undervalued based on its latest annual earnings update compared to the Life Sciences average of 38.97x. … But, seeing as Thermo Fisher Scientific is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio. … A PE ratio of 37.39x and expected year-on-year earnings growth of 14% give Thermo Fisher Scientific a quite high PEG ratio of 2.63x.

Simply Wall St -

Thermo Fisher Scientific Inc. (NYSE:TMO): Can Growth Justify Its June Share Price?

This illustrates that Thermo Fisher Scientific is overvalued compared to the US market average ratio of 17.73x , and undervalued based on its latest annual earnings update compared to the Life Sciences average of 38.97x. … However, to properly examine the value of a high-growth stock such as Thermo Fisher Scientific, we must reflect its earnings growth into the valuation. … This means that, when we account for Thermo Fisher Scientific's growth, the stock can be viewed as overvalued , based on fundamental analysis.

Simply Wall St -

Is Thermo Fisher Scientific's (NYSE:TMO) Share Price Gain Of 139% Well Earned?

During five years of share price growth, Thermo Fisher Scientific achieved compound earnings per share (EPS) growth of 15% per year. … NYSE:TMO Past and Future Earnings, June 14th 2019 We know that Thermo Fisher Scientific has improved its bottom line lately, but is it going to grow revenue? … Before spending more time on Thermo Fisher Scientific it might be wise to click here to see if insiders have been buying or selling shares.

Simply Wall St -

Does Thermo Fisher Scientific (NYSE:TMO) Deserve A Spot On Your Watchlist?

But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Thermo Fisher Scientific (NYSE:TMO). … See our latest analysis for Thermo Fisher Scientific How Fast Is Thermo Fisher Scientific Growing? … We would not expect to see insiders owning a large percentage of a US$107b company like Thermo Fisher Scientific.

Simply Wall St -

How Did Thermo Fisher Scientific Inc.'s (NYSE:TMO) 11% ROE Fare Against The Industry?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Thermo Fisher Scientific: 11% = US$3.2b ÷ US$28b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Combining Thermo Fisher Scientific's Debt And Its 11% Return On Equity Thermo Fisher Scientific has a debt to equity ratio of 0.68, which is far from excessive. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

Is Thermo Fisher Scientific Inc.'s (NYSE:TMO) CEO Overpaid Relative To Its Peers?

View our latest analysis for Thermo Fisher Scientific How Does Marc Casper's Compensation Compare With Similar Sized Companies? … The graphic below shows how CEO compensation at Thermo Fisher Scientific has changed from year to year. … If you want to buy a stock that is better than Thermo Fisher Scientific, this free list of high return, low debt companies is a great place to look.

Simply Wall St -

Are Thermo Fisher Scientific Inc. (NYSE:TMO) Investors Paying Above The Intrinsic Value?

by taking the foreast future cash flows of the company and discounting them back to today's value. … We generally believe that a company's value is the present value of all of the cash it will generate in the future. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Does Thermo Fisher Scientific Inc.'s (NYSE:TMO) 32% Earnings Growth Reflect The Long-Term Trend?

Measuring Thermo Fisher Scientific Inc.'s (NYSE:TMO) track record of past performance is a valuable exercise for investors. … Today I will assess TMO's recent performance announced on 31 December 2018 and compare these figures to its historical trend and industry movements. … Commentary On TMO's Past Performance.

Simply Wall St -

TMO Company Info

Description

Thermo Fisher Scientific Inc. provides analytical and other instruments, laboratory equipment, software, consumables, reagents, instrument systems, chemicals, supplies, and services worldwide. Its 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 offers 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. Its 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; products for cancer diagnosis and medical research; human leukocyte antigen typing and testing for organ transplant market; and healthcare products. It serves healthcare, clinical, pharmaceutical, industrial, and food safety laboratories. 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. Thermo Fisher Scientific Inc. has a strategic collaboration with NX Prenatal Inc. and Evosep; research collaboration with Predictive Laboratories; and strategic manufacturing collaboration with Amicus Therapeutics, Inc. The company was founded in 1956 and is headquartered in Waltham, Massachusetts.

Details
Name: Thermo Fisher Scientific Inc.
TMO
Exchange: NYSE
Founded: 1956
$110,591,376,705
400,475,744
Website: http://www.thermofisher.com
Address: Thermo Fisher Scientific Inc.
168 Third Avenue,
Waltham,
Massachusetts, 02451,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE TMO Common Stock New York Stock Exchange US USD 02. Jan 1980
DB TN8 Common Stock Deutsche Boerse AG DE EUR 02. Jan 1980
LSE 0R0H Common Stock London Stock Exchange GB USD 02. Jan 1980
SWX TFS Common Stock SIX Swiss Exchange CH CHF 02. Jan 1980
WBAG TMOF Common Stock Wiener Boerse AG AT EUR 02. Jan 1980
BMV TMO * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1980
BASE TMO CEDEAR EACH 11 REP 1 COM USD1.00 Buenos Aires Stock Exchange AR ARS 12. Apr 2019
BOVESPA TMOS34 BDR EACH REPR 1/4 COM USD1 Bolsa de Valores de Sao Paulo BR BRL 25. Apr 2016
Number of employees
Current staff
Staff numbers
70,000
Thermo Fisher Scientific employees.
Industry
Life Sciences Tools and Services
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/17 23:47
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/13
Last earnings filing: 2019/08/02
Last earnings reported: 2019/06/29
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.