Thermo Fisher Scientific logged a 1.7% change during today's morning session, and is now trading at a price of $521.66 per share.
Thermo Fisher Scientific returned gains of 5.2% last year, with its stock price reaching a high of $627.88 and a low of $487.06. Over the same period, the stock underperformed the S&P 500 index by -26.1%. The company's 50-day average price was $570.01. Thermo Fisher Scientific Inc. provides life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services in the North America, Europe, Asia-Pacific, and internationally. Based in Waltham, MA, the Large-Cap Industrials company has 122,000 full time employees. Thermo Fisher Scientific has offered a 0.3% dividend yield over the last 12 months.
Strong Revenue Growth but Significant Leverage Levels:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $24,358 | $25,542 | $32,218 | $39,211 | $44,915 | $42,857 |
| Operating Margins | 16% | 18% | 24% | 26% | 19% | 16% |
| Net Margins | 12% | 14% | 20% | 20% | 15% | 14% |
| Net Income (M) | $2,938 | $3,696 | $6,375 | $7,728 | $6,960 | $5,955 |
| Net Interest Expense (M) | $667 | $676 | $553 | $536 | $726 | $1,375 |
| Depreciation & Amort. (M) | $2,267 | $564 | $658 | $831 | $986 | $1,068 |
| Diluted Shares (M) | 406 | 403 | 399 | 397 | 394 | 388 |
| Earnings Per Share | $7.24 | $9.17 | $15.96 | $19.46 | $17.63 | $15.45 |
| EPS Growth | n/a | 26.66% | 74.05% | 21.93% | -9.4% | -12.37% |
| Avg. Price | $219.09 | $276.26 | $381.32 | $529.06 | $560.27 | $521.66 |
| P/E Ratio | 29.97 | 29.9 | 23.7 | 26.97 | 31.56 | 33.61 |
| Free Cash Flow (M) | $3,785 | $4,047 | $6,815 | $6,789 | $6,911 | $6,927 |
| CAPEX (M) | $758 | $926 | $1,474 | $2,523 | $2,243 | $1,479 |
| EV / EBITDA | 17.34 | 24.48 | 19.65 | 21.98 | 26.14 | 28.75 |
| Total Debt (M) | $18,990 | $18,428 | $24,356 | $34,870 | $34,488 | $34,917 |
| Net Debt / EBITDA | 2.79 | 3.11 | 1.66 | 2.8 | 2.77 | 3.39 |
| Current Ratio | 1.73 | 1.92 | 2.13 | 1.5 | 1.48 | 1.75 |
Thermo Fisher Scientific benefits from rapidly growing revenues and increasing reinvestment in the business, generally positive cash flows, and strong operating margins with a stable trend. The company's financial statements show a strong EPS growth trend and a decent current ratio of 1.75. Furthermore, Thermo Fisher Scientific has significant leverage levels.
Thermo Fisher Scientific's Valuation Is in Line With Its Sector Averages:
Thermo Fisher Scientific has a trailing twelve month P/E ratio of 35.7, compared to an average of 25.42 for the Industrials sector. Based on its EPS guidance of $23.49, the company has a forward P/E ratio of 24.3. Thermo Fisher Scientific's PEG ratio is 2.74 on the basis of the 13.0% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. Furthermore, Thermo Fisher Scientific is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.07 is higher than the sector average of 3.2. The company's shares are currently trading 154.9% below their Graham number.
Thermo Fisher Scientific Has an Average Rating of Buy:
The 28 analysts following Thermo Fisher Scientific have set target prices ranging from $585.2 to $767.0 per share, for an average of $653.94 with a buy rating. The company is trading -20.2% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Thermo Fisher Scientific has a very low short interest because 0.9% of the company's shares are sold short. Institutions own 90.8% 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 Vanguard Group Inc, whose 9% stake in the company is worth $17,242,276,332.
