Now trading at a price of $515.35, Thermo Fisher Scientific has moved 0.0% so far today.
Over the last year, Thermo Fisher Scientific logged a -2.2% change, with its stock price reaching a high of $611.06 and a low of $475.77. Over the same period, the stock underperformed the S&P 500 index by -12.0%. As of April 2023, the company's 50-day average price was $546.15. Thermo Fisher Scientific Inc. provides life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services in the United States and internationally. Based in Waltham, MA, the large-cap Industrials company has 130,000 full time employees. Thermo Fisher Scientific has offered a 0.2% dividend yield over the last 12 months.
Growing Revenues With Increasing Reinvestment in the Business:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $25,542 | $32,218 | $39,211 | $44,915 |
| Gross Margins | 46.3% | 51.2% | 51.6% | 43.4% |
| Operating Margins | 16.4% | 24.5% | 26.1% | 18.9% |
| Net Margins | 14.47% | 19.79% | 19.7% | 15.47% |
| Net Income (MM) | $3,696 | $6,375 | $7,725 | $6,950 |
| Net Interest Income | -$452,000 | -$488,000 | -$493,000 | -$454,000 |
| Depreciation & Amort. | -$2,277,000 | -$2,325,000 | -$2,592,000 | -$3,381,000 |
| Earnings Per Share | $9.17 | $15.96 | $19.46 | $15.33 |
| EPS Growth | n/a | 74.05% | 21.93% | -21.22% |
| Diluted Shares (MM) | 403 | 399 | 397 | 386 |
| Free Cash Flow (MM) | $4,047 | $6,815 | $7,020 | $6,911 |
| Capital Expenditures (MM) | -$926 | -$1,474 | -$2,523 | -$2,243 |
| Net Current Assets (MM) | -$16,652 | -$12,588 | -$74,600 | -$27,777 |
| Current Ratio | 1.91 | 2.13 | 1.5 | 1.48 |
| Long Term Debt (MM) | $17,076 | $19,107 | $32,333 | $28,909 |
| Net Debt / EBITDA | 2.26 | 1.14 | 2.55 | 2.26 |
Thermo Fisher Scientific has growing revenues and increasing reinvestment in the business, strong margins with a stable trend, and wider gross margins than its peer group. The company also benefits from a strong EPS growth trend, consistent free cash flow, and healthy leverage. Furthermore, Thermo Fisher Scientific has just enough current assets to cover current liabilities.
The Market May Be Overvaluing Thermo Fisher Scientific's Earnings and Assets:
Thermo Fisher Scientific has a trailing twelve month P/E ratio of 35.6, compared to an average of 20.49 for the Industrials sector. Based on its EPS guidance of $26.54, the company has a forward P/E ratio of 20.6. According to the 23.7% compound average growth rate of Thermo Fisher Scientific's historical and projected earnings per share, the company's PEG ratio is 1.5. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 10.5%. On this basis, the company's PEG ratio is 3.4. This suggests that these shares are overvalued. Furthermore, Thermo Fisher Scientific is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.7 is higher than the sector average of 3.78. The company's shares are currently trading 168.2% above their Graham number.
Analysts Give Thermo Fisher Scientific an Average Rating of Buy:
The 22 analysts following Thermo Fisher Scientific have set target prices ranging from $505.0 to $700.0 per share, for an average of $626.55 with a buy rating. As of April 2023, the company is trading -12.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Thermo Fisher Scientific has a very low short interest because 0.8% of the company's shares are sold short. Institutions own 92.5% of the company's shares, and the insider ownership rate stands at 0.18%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 8% stake in the company is worth $16,796,625,504.
