Now trading at a price of $486.36, Thermo Fisher Scientific has moved -0.8% so far today.
Thermo Fisher Scientific returned losses of -10.0% last year, with its stock price reaching a high of $609.85 and a low of $415.6. Over the same period, the stock underperformed the S&P 500 index by -26.0%. As of April 2023, the company's 50-day average price was $476.04. 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 0.3% dividend yield over the last 12 months.
Growing Revenues With Increasing Reinvestment in the Business:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $24,358 | $25,542 | $32,218 | $39,211 | $44,915 | $43,524 |
| Gross Margins | 16% | 18% | 24% | 26% | 19% | 15% |
| Operating Margins | 16% | 18% | 24% | 26% | 19% | 15% |
| Net Margins | 12% | 14% | 20% | 20% | 15% | 13% |
| Net Income (MM) | $2,938 | $3,696 | $6,375 | $7,728 | $6,960 | $5,726 |
| Net Interest Expense (MM) | n/a | $676 | $553 | $536 | $726 | $1,068 |
| Depreciation & Amort. (MM) | $2,267 | $1,713 | $1,667 | $1,761 | $2,395 | $2,377 |
| Earnings Per Share | $7.24 | $9.17 | $15.96 | $19.46 | $17.63 | $14.63 |
| Diluted Shares (MM) | 406 | 403 | 399 | 397 | 394 | 381 |
| Free Cash Flow (MM) | $3,785 | $4,047 | $6,815 | $6,789 | $6,911 | $5,854 |
| Capital Expenditures (MM) | $758 | $926 | $1,474 | $2,523 | $2,243 | $1,839 |
| Net Current Assets (MM) | $1,963 | $2,455 | $8,323 | $2,137 | $3,981 | $1,841 |
| Long Term Debt (MM) | $17,719 | $17,076 | $19,107 | $32,333 | $28,909 | $29,194 |
| Net Debt / EBITDA | 2.79 | 2.43 | 1.2 | 2.58 | 2.41 | 3.39 |
Thermo Fisher Scientific has growing revenues and increasing reinvestment in the business, decent operating margins with a stable trend, and a strong EPS growth trend. However, the firm has slimmer gross margins than its peers. Finally, we note that Thermo Fisher Scientific has irregular cash flows and significant leverage.
Thermo Fisher Scientific's Valuation Is in Line With Its Sector Averages:
Thermo Fisher Scientific has a trailing twelve month P/E ratio of 31.2, compared to an average of 20.49 for the Industrials sector. Based on its EPS guidance of $22.04, the company has a forward P/E ratio of 21.6. Thermo Fisher Scientific's PEG ratio is 3.43 on the basis of the 9.1% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. The market is placing a fair value on Thermo Fisher Scientific's equity, since its P/B ratio of 4.15 is comparable to its sector average of 3.78. The company's shares are currently trading 149.5% above their Graham number.
There's an Analyst Consensus of Some Upside Potential for Thermo Fisher Scientific:
The 23 analysts following Thermo Fisher Scientific have set target prices ranging from $435.0 to $635.0 per share, for an average of $525.14 with a buy rating. As of April 2023, the company is trading -9.3% 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 0.7% of the company's shares are sold short. Institutions own 91.8% of the company's shares, and the insider ownership rate stands at 0.19%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 8% stake in the company is worth $15,933,512,053.
