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TMO

Balancing Thermo Fisher Scientific Inc's Technicals with Fundamental Analysis

Now trading at a price of $571.55, Thermo Fisher Scientific Inc has moved -0.8% so far today.

Thermo Fisher Scientific Inc returned gains of 12.3% last year, with its stock price reaching a high of $610.97 and a low of $385.46. Over the same period, the stock returned a similar cumulative performance to the S&P 500. The company's 50-day average price was $531.14.

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 125,000 full time employees. Thermo Fisher Scientific Inc has offered a 0.3% dividend yield over the last 12 months.

Growing Revenues but Significant Leverage Levels:

2019 2020 2021 2022 2023 2024
Revenue (M) $25,542 $32,218 $39,211 $44,915 $42,857 $42,879
Operating Margins 18% 24% 26% 19% 16% 17%
Net Margins 14% 20% 20% 15% 14% 15%
Net Income (M) $3,696 $6,375 $7,728 $6,960 $5,955 $6,338
Net Interest Expense (M) $676 $553 $536 $726 $1,375 $1,570
Depreciation & Amort. (M) $564 $658 $831 $986 $1,068 $1,156
Diluted Shares (M) 403 399 397 394 388 383
Earnings Per Share $9.17 $15.96 $19.46 $17.63 $15.45 $16.53
EPS Growth n/a 74.05% 21.93% -9.4% -12.37% 6.99%
Avg. Price $276.26 $381.32 $529.06 $560.27 $530.79 $576.03
P/E Ratio 29.9 23.7 26.97 31.56 34.2 34.74
Free Cash Flow (M) $4,047 $6,815 $6,789 $6,911 $6,927 $7,267
CAPEX (M) $926 $1,474 $2,523 $2,243 $1,479 $1,400
EV / EBITDA 24.48 19.65 21.98 26.14 29.19 29.31
Total Debt (M) $18,428 $24,356 $34,870 $34,488 $34,917 $33,286
Net Debt / EBITDA 3.11 1.66 2.8 2.77 3.39 3.45
Current Ratio 1.92 2.13 1.5 1.48 1.75 1.66

Thermo Fisher Scientific Inc has growing revenues and increasing reinvestment in the business and generally positive cash flows. Additionally, the company's financial statements display a strong EPS growth trend and a decent current ratio of 1.66. Furthermore, Thermo Fisher Scientific Inc has decent operating margins with a stable trend and significant leverage levels.

Thermo Fisher Scientific Inc's Valuation Is in Line With Its Sector Averages:

Thermo Fisher Scientific Inc has a trailing twelve month P/E ratio of 30.6, compared to an average of 24.03 for the Industrials sector. Based on its EPS guidance of $23.49, the company has a forward P/E ratio of 22.6. Thermo Fisher Scientific Inc's PEG ratio is 2.68 on the basis of the 11.4% 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 Inc is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.21 is higher than the sector average of 2.89. The company's shares are currently trading 160.5% below their Graham number.

There's an Analyst Consensus of Some Upside Potential for Thermo Fisher Scientific Inc:

The 21 analysts following Thermo Fisher Scientific Inc have set target prices ranging from $533.16 to $675.0 per share, for an average of $613.58 with a buy rating. The company is trading -6.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Thermo Fisher Scientific Inc has a very low short interest because 1.2% of the company's shares are sold short. Institutions own 92.9% of the company's shares, and the insider ownership rate stands at 0.15%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $19,344,510,778.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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