Skip to Content

Thermo Fisher Scientific Inc TMO

Morningstar Rating
$580.05 −4.10 (0.70%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Demand Should Remain Strong for Thermo Fisher Even As Pandemic Revenue Fades

Thermo Fisher didn’t just come out of the toughest two years for the global economy unscathed, the company managed to deliver its best year ever despite challenges around the economy and spending budgets. Being the premier life science supplier and having an unmatched portfolio of products, resources, and manufacturing capabilities have allowed the firm to be among the first to market with a reliable coronavirus test and at capacity needed to meet massive demand. The coronavirus pandemic reaffirmed the company's entrenched and dominant positioning with the supply chain. Even as the pandemic revenue fades, the company 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 3% discount.
Price
$580.05
Fair Value
$361.00
Uncertainty
Medium
1-Star Price
$136.00
5-Star Price
$555.00
Economic Moat
Ddnpb
Capital Allocation
Ghcxslzjx

Bulls Say, Bears Say

Bulls

The firm's PCR-test windfall was massive, but has also led to market share gains within the instrumentation base.

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.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if TMO is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$584.15
Day Range
$578.30586.85
52-Week Range
$415.60603.82
Bid/Ask
$524.93 / $595.00
Market Cap
$221.18 Bil
Volume/Avg
46 / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
26.93
Price/Sales
5.25
Dividend Yield (Trailing)
0.25%
Dividend Yield (Forward)
0.27%
Total Yield
1.60%

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 mid-2023 (revenue figures include some cross-segment revenue): analytical technologies (16% of sales); specialty diagnostic products (10%); life science solutions (24%); 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
MRK
DHR
Price/Earnings (Normalized)
26.9318.2529.52
Price/Book Value
4.802.413.48
Price/Sales
5.253.177.82
Price/Cash Flow
25.2814.4827.15
Price/Earnings
TMO
MRK
DHR

Financial Strength

Metric
TMO
MRK
DHR
Quick Ratio
1.270.861.18
Current Ratio
1.751.561.68
Interest Coverage
4.9412.8917.58
Quick Ratio
TMO
MRK
DHR

Profitability

Metric
TMO
MRK
DHR
Return on Assets (Normalized)
8.68%6.04%5.68%
Return on Equity (Normalized)
18.83%11.03%9.47%
Return on Invested Capital (Normalized)
11.14%8.21%6.69%
Return on Assets
TMO
MRK
DHR
See how this stock stacks up to its competitors with Morningstar Investor

Diagnostics & Research Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
DHR
Danaher CorpRgmlt$186.0 Bil
IQV
IQVIA Holdings IncLcrzfc$46.2 Bil
IDXX
IDEXX Laboratories IncWgbjvs$44.0 Bil
A
Agilent Technologies IncSzyp$42.8 Bil
MTD
Mettler-Toledo International IncWfxqqb$28.1 Bil
ICLR
Icon PLCCcxbbsn$27.4 Bil
ILMN
Illumina IncPgnfh$20.7 Bil
WAT
Waters CorpDbfc$20.6 Bil
LH
Laboratory Corp of America HoldingsVdxlbn$17.6 Bil

Sponsor Center