Thermo Fisher Scientific Inc
Exchange: NYSESector: HealthcareIndustry: Diagnostics & Research
Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue over $40 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services, Patheon and PPD.
Did you know?
Trading 33% above its estimated fair value of $353.23.
Current Price
$526.60
+2.05%GoodMoat Value
$353.23
32.9% overvaluedProfile
Valuation (TTM)
Market Cap$197.85B
P/E29.51
EV$208.91B
P/B3.70
Shares Out375.71M
P/Sales4.44
Revenue$44.56B
EV/EBITDA19.84
Thermo Fisher Scientific Inc (TMO) Stock Analysis
GoodMoat Analysis
Thermo Fisher Scientific appears to be a high-quality business with a durable competitive moat, but its current valuation is unfavourable from a value investing perspective. The stock trades at a significant premium to the GoodMoat target price, suggesting a lack of margin of safety. This analysis suggests proceeding with caution.
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Thermo Fisher Scientific is a global leader in providing scientific instruments, reagents, consumables, software, and services to laboratories in the life sciences, healthcare, and industrial sectors. Its business model is built on mission-critical products with high switching costs, creating a strong competitive moat. Applying the GoodMoat framework, the company likely scores highly on criteria such as Switching Costs (long-term contracts, integrated systems), Scale Privilege (global infrastructure), and Strategic Partnerships, indicating a durable advantage. Its financials show solid quality with a 17.4% operating margin, 12.6% ROE, and manageable debt. However, the valuation assessment is concerning. The current price of $490.77 is 39% above the GoodMoat target of $353.23, which implies a negative margin of safety. With a P/E of 27.5x and a free cash flow yield of only 3.4%, the stock is priced for perfection, especially given its modest 7.2% YoY revenue growth. Following the Decision Framework, the business likely passes the Moat & Quality Gate, but fails the Valuation & Risk Gate. The extreme premium to the target price and the modest growth rate relative to the multiple present an unfavourable risk/reward profile for a value-oriented investor seeking a margin of safety. Analysis based on data as of 2024-05-15.
Market Cap$197.85B
Current Price$526.60
P/E Ratio29.51
Forward P/E—
PEG Ratio3.29
EPS$17.74
Book Value$142.15
P/B Ratio3.70
TMO Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 7.6% FCF growth (CAGR)
Cash vs Debt
Net Debt: 29.5B
Revenue
25.5B
FY19
32.2B
FY20
39.2B
FY21
44.9B
FY22
42.9B
FY23
42.9B
FY24
44.6B
FY25
Net Income
3.7B
FY19
6.4B
FY20
7.7B
FY21
7.0B
FY22
6.0B
FY23
6.3B
FY24
6.7B
FY25
TMO 52-Week Range
$389.22
$638.80
50-Day MA: $502.99200-Day MA: $522.93
Did you know?
Earnings per share grew at a 10.4% CAGR.
Thermo Fisher Scientific Inc (TMO) Financial Summary
Thermo Fisher Scientific Inc (TMO) is a Healthcare company in the Diagnostics & Research industry, listed on NYSE. The stock currently trades at $526.60 with a market capitalization of $197.85B.
Key valuation metrics include a P/E ratio of 29.51, price-to-book ratio of 3.70, and EPS of $17.74. The company reports a profit margin of 15.0% and return on equity of 12.6%.
TMO Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $197.85B |
| P/E Ratio | 29.51 |
| EPS | $17.74 |
| P/B Ratio | 3.70 |
| P/S Ratio | 4.44 |
| EV/EBITDA | 19.84 |
| Dividend Yield | 0.32% |
| Profit Margin | 15.0% |
| Return on Equity | 12.6% |
| Debt/Equity | 0.74 |
TMO Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $25.54B | $3.70B |
| FY20 | $32.22B | $6.38B |
| FY21 | $39.21B | $7.72B |
| FY22 | $44.91B | $6.95B |
| FY23 | $42.86B | $6.00B |
| FY24 | $42.88B | $6.33B |
| FY25 | $44.56B | $6.70B |
Thermo Fisher Scientific Inc (TMO) Valuation
Based on GoodMoat's DCF model, Thermo Fisher Scientific Inc has a fair value estimate of $353.23. At the current price of $526.60, the stock appears 49.1% overvalued relative to our intrinsic value estimate.
TMO Quality Indicators
Thermo Fisher Scientific Inc maintains a profit margin of 15.0% and an operating margin of 17.4%. Return on equity stands at 12.6%. The current ratio is 1.89. Debt-to-equity ratio is 0.74.
About Thermo Fisher Scientific Inc
Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue over $40 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services, Patheon and PPD.
TMO Free Cash Flow
Thermo Fisher Scientific Inc generated $6.34B in trailing twelve-month free cash flow, representing an FCF yield of 3.20%. This moderate FCF yield indicates reasonable cash generation.
TMO Shares Outstanding
Thermo Fisher Scientific Inc has 0.38 billion shares outstanding at a share price of $526.60, giving it a market capitalization of $197.85B.
TMO Recent Insider Trades
Recent insider transactions at Thermo Fisher Scientific Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Shafer Michael D (Executive Vice President) | SELL | 1,607 | $802535.80 |
| CASPER MARC N (Chairman & CEO) | SELL | 20 | $10073.20 |
| CASPER MARC N (Chairman & CEO) | SELL | 360 | $178304.40 |