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Thermo Fisher Scientific Inc TMO

Morningstar Rating
$581.64 +5.31 (0.92%)
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Company Report

Thermo Fisher Earnings: Revenue Under Pressure but in Line With Expectations

We are maintaining our $600 fair value estimate for wide-moat Thermo Fisher following its fourth-quarter results. As was the case in the prior quarter, the company is seeing continuing broad market weakness but managing it well, with core revenue down 4%. With demand softness likely to persist in the near term, the firm's approach to costs is impressive, with adjusted operating margin improving 70 basis points year over year. We maintain our wide moat rating.

Price vs Fair Value

TMO is trading at a 3% discount.
Price
$581.64
Fair Value
$815.00
Uncertainty
Medium
1-Star Price
$487.00
5-Star Price
$881.00
Economic Moat
Tlwqs
Capital Allocation
Ynysjbbb

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.

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News

Trading Information

Previous Close Price
$576.33
Day Range
$571.52582.54
52-Week Range
$415.60593.17
Bid/Ask
$569.00 / $583.74
Market Cap
$221.79 Bil
Volume/Avg
1.5 Mil / 1.6 Mil

Key Statistics

Price/Earnings (Normalized)
27.00
Price/Sales
5.27
Dividend Yield (Trailing)
0.24%
Dividend Yield (Forward)
0.27%
Total Yield
1.59%

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)
27.0018.4630.07
Price/Book Value
4.812.443.54
Price/Sales
5.273.217.97
Price/Cash Flow
25.3514.6427.66
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
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