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Thermo Fisher Scientific Inc TMO

Morningstar Rating
$593.03 +15.10 (2.61%)
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Company Report

While Thermo Fisher's Near-Term Environment Is Constrained, Long-Term Prospects Are Strong

Thermo Fisher didn’t just come out of the toughest two years for the global economy unscathed, the company delivered some of its best results. Being the premier life science supplier and having an unmatched portfolio of products, resources, and manufacturing capabilities have allowed the firm to meet massive demand. The pandemic reaffirmed the company's entrenched and dominant positioning with the supply chain, and the current budget-constrained environment still leaves the company in a better position than most of its peers. Thermo Fisher remains in a great position to leverage its share gains in the biopharma channel and capitalize on strong long-term demand.

Price vs Fair Value

TMO is trading at a 589% premium.
Price
$577.93
Fair Value
$473.00
Uncertainty
Medium
1-Star Price
$631.30
5-Star Price
$616.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Thermo Fisher is among the industry's best when it comes to cost control. As near-term spending is constrained, the company's margins show exceptional resilence.

Bears

The company was able to fuel its acquisition spree via access to extremely inexpensive debt. Generating excess returns on acquisitions in a current less favorable interest-rate environment might be more challenging.

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News

Trading Information

Previous Close Price
$577.93
Day Range
$578.81594.03
52-Week Range
$415.60603.82
Bid/Ask
$535.00 / $597.00
Market Cap
$226.37 Bil
Volume/Avg
1.3 Mil / 1.4 Mil

Key Statistics

Price/Earnings (Normalized)
26.73
Price/Sales
5.26
Dividend Yield (Trailing)
0.24%
Dividend Yield (Forward)
0.26%
Total Yield
1.61%

Company Profile

Thermo Fisher Scientific sells scientific instruments and laboratory equipment, diagnostics consumables, and life science reagents. The firm operates through four segments as of end-2023 (revenue figures include some cross-segment revenue): analytical technologies (17% of sales); specialty diagnostic products (10%); life science solutions (23%); and lab products and services, which includes CRO services (54%).
Sector
Healthcare
Industry
Diagnostics & Research
Stock Style Box
Large Core
Total Number of Employees
122,000

Competitors

Valuation

Metric
TMO
WAT
DHR
Price/Earnings (Normalized)
26.7328.6330.88
Price/Book Value
4.8515.883.46
Price/Sales
5.266.868.27
Price/Cash Flow
25.7824.1828.14
Price/Earnings
TMO
WAT
DHR

Financial Strength

Metric
TMO
WAT
DHR
Quick Ratio
1.191.391.34
Current Ratio
1.702.221.85
Interest Coverage
4.838.2815.85
Quick Ratio
TMO
WAT
DHR

Profitability

Metric
TMO
WAT
DHR
Return on Assets (Normalized)
8.69%17.19%5.15%
Return on Equity (Normalized)
18.71%88.59%8.40%
Return on Invested Capital (Normalized)
10.97%25.75%6.02%
Return on Assets
TMO
WAT
DHR
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Diagnostics & Research Industry Comparables

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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
DHR
Danaher CorpPyvyyhzySdngcg$184.8 Bil
A
Agilent Technologies IncJlpfftmnlzThl$43.9 Bil
IQV
IQVIA Holdings IncJftymkcXrdnq$42.6 Bil
IDXX
IDEXX Laboratories IncSxmljbhxMrdkb$42.1 Bil
MTD
Mettler-Toledo International IncPrgkwsmsqnLxhrb$32.3 Bil
ICLR
Icon PLCLgxyyzfWpgyfm$26.1 Bil
WAT
Waters CorpJtpdqzllyCpgw$20.8 Bil
ILMN
Illumina IncXwxmxcfhfVysjzm$17.6 Bil
LH
Laboratory Corp of America HoldingsGgkzhhflkPzqlxm$17.4 Bil

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