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

0.9%

NYSE:TMO

2.7%

US Life Sciences

1.3%

US Market


1 Year Return

23.0%

NYSE:TMO

9.8%

US Life Sciences

2.0%

US Market

TMO outperformed the Life Sciences industry which returned 9.5% over the past year.

TMO outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

TMOIndustryMarket
7 Day0.9%2.7%1.3%
30 Day7.8%4.6%3.9%
90 Day4.1%-0.5%3.4%
1 Year23.3%23.0%10.0%9.8%4.2%2.0%
3 Year100.1%98.4%81.1%79.8%47.2%37.6%
5 Year145.8%141.5%119.7%109.3%60.5%42.9%

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 based on future cash flows and its price relative to the stock market?

33.71x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Thermo Fisher Scientific's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Thermo Fisher Scientific's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Thermo Fisher Scientific is poor value based on expected growth next year.


Price Based on Value of Assets

Thermo Fisher Scientific is good value based on assets compared to the US Life Sciences industry average.


Next Steps

Future Growth

How is Thermo Fisher Scientific expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Thermo Fisher Scientific's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).

Thermo Fisher Scientific's earnings are expected to grow by 10% yearly, however this is not considered high growth (20% yearly).

Thermo Fisher Scientific's revenue growth is positive but not above the United States of America market average.

Thermo Fisher Scientific's earnings growth is positive but not above the United States of America market average.

Thermo Fisher Scientific's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Thermo Fisher Scientific is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

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%).


Return on Equity

Thermo Fisher Scientific has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Thermo Fisher Scientific used its assets more efficiently than the US Life Sciences industry average last year based on Return on Assets.


Return on Capital Employed

Thermo Fisher Scientific has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Thermo Fisher Scientific's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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).


Balance Sheet

Low level of unsold assets.

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?

0.27%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Thermo Fisher Scientific's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Thermo Fisher Scientific's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

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

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.


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?

4.1yrs

Average management tenure


CEO

Marc Casper (51yo)

9.9yrs

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

Marc's remuneration is higher than average for companies of similar size in United States of America.

Marc's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.1yrs

Average Tenure

53yo

Average Age

The tenure for the Thermo Fisher Scientific management team is about average.


Board Age and Tenure

10.3yrs

Average Tenure

64yo

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.


Insider Trading

Thermo Fisher Scientific individual 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

  • Marc Casper (51yo)

    CEO, President & Director

    • Tenure: 9.9yrs
    • Compensation: US$18.61m
  • Peter Hornstra (59yo)

    VP & Chief Accounting Officer

    • Tenure: 18.7yrs
  • Mark Stevenson (56yo)

    Executive VP & COO

    • Tenure: 2.1yrs
    • Compensation: US$8.43m
  • Ken Apicerno

    Vice President of Investor Relations

    • Tenure: 12.8yrs
  • Michael Boxer (57yo)

    Senior VP & General Counsel

    • Tenure: 1.7yrs
  • Greg Herrema (53yo)

    Senior VP & President of Customer Channels

    • Tenure: 11.3yrs
    • Compensation: US$4.30m
  • Patrick Durbin (52yo)

    Senior VP & President of Specialty Diagnostics

    • Tenure: 3.9yrs
    • Compensation: US$3.93m
  • Stephen Williamson (52yo)

    Senior VP & CFO

    • Tenure: 4.1yrs
    • Compensation: US$4.80m
  • Karen Kirkwood

    Vice President of Corporate Communications

    • Tenure: 0yrs
  • Ryan Snyder

    Senior VP & Chief Information Officer

    • Tenure: 0.2yrs

Board Members

  • Scott Sperling (61yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$325.88k
  • Judy Lewent (70yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$331.26k
  • Tom Lynch (64yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$330.75k
  • Elaine Ullian (71yo)

    Independent Director

    • Tenure: 18.2yrs
    • Compensation: US$320.81k
  • Marc Casper (51yo)

    CEO, President & Director

    • Tenure: 9.9yrs
    • Compensation: US$18.61m
  • Jim Manzi (67yo)

    Non-Executive Chairman of the Board

    • Tenure: 12.3yrs
    • Compensation: US$485.75k
  • Nelson Chai (53yo)

    Independent Director

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

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$315.75k
  • Tyler Jacks (58yo)

    Director & Member of Scientific Advisory Board

    • Tenure: 10.3yrs
    • Compensation: US$330.75k
  • David Sabatini

    Member of Scientific Advisory Board

    • Tenure: 7.5yrs

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$119.202b
  • 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 Analysis2019/09/15 23:44
End of Day Share Price2019/09/13 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.