Thermo Fisher (TMO) AI Stock Analysis

• Market Cap: $165.21B
• Dividend Yield: 0.36%
• Average Volume (3M): 1.86M
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.85
• Revenue Growth: 0.05%
• EPS Growth: 6.87%
• Country: US
• Employees: 125,000
• Sector: Healthcare
• Sector Strength: 76
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 16.52
• Shares Outstanding: 377,261,170
• 10 Day Avg. Volume: 2,005,371
• 30 Day Avg. Volume: 1,858,108
• PEG Ratio: 3.85
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.56
• Price to Cash Flow (P/CF): 14.80
• P/FCF Ratio: 14.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $666.88
• Price Target Upside: 52.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

Thermo Fisher demonstrates strong financial performance and promising earnings growth, but faces challenges with recent technical trends and a relatively high valuation. The strategic board appointment could positively impact its healthcare strategy.

Positive Factors

Acquisition Synergies

Thermo Fisher Scientific expects to realize $125 million of operating income synergies within the first 5 years post-acquisition, enhancing profitability.

Bioprocessing Market Position

The acquisition would enhance Thermo Fisher's existing offerings and strengthen its position in the bioprocessing market.

Financial Performance

Thermo Fisher (TMO) delivered a strong performance in 4Q24, with revenue up by 4.7% YoY and adjusted EPS up by 7.6%, beating consensus.

Negative Factors

Earnings Impact

The acquisition is expected to be dilutive to earnings per share in the first year, indicating a potential short-term financial drawback.

Operating Margin

The acquired business is dilutive on operating margin and accounts for only a small percentage of Thermo Fisher Scientific's sales, suggesting limited impact from dilution.

Segment Volatility

Solventum has experienced volatility in its bioprocessing segment, which may pose a challenge for Thermo Fisher.

Thermo Fisher Business Overview & Revenue Model

Company Description

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. The company's Life Sciences Solutions segment offers reagents, instruments, and consumables for biological and medical research, discovery, and production of drugs and vaccines, as well as diagnosis of infections and diseases; and solutions include biosciences, genetic sciences, and bio production to pharmaceutical, biotechnology, agricultural, clinical, healthcare, academic, and government markets. Its Analytical Instruments segment provides instruments, consumables, software, and services for pharmaceutical, biotechnology, academic, government, environmental, and other research and industrial markets, as well as clinical laboratories. The company's Specialty Diagnostics segment offers liquid, ready-to-use, and lyophilized immunodiagnostic reagent kits, as well as calibrators, controls, protein detection assays, and instruments; immunodiagnostics develops, manufactures and markets complete bloodtest systems to support the clinical diagnosis and monitoring of allergy, asthma and autoimmune diseases; dehydrated and prepared culture media, collection and transport systems, instrumentation, and consumables; human leukocyte antigen typing and testing for organ transplant market; and healthcare products. Its Laboratory Products and Biopharma Services segment provides laboratory products, research and safety market channel, and pharma services and clinical research. It offers products and services through a direct sales force, customer-service professionals, electronic commerce, and third-party distributors under Thermo Scientific; Applied Biosystems; Invitrogen; Fisher Scientific; Unity Lab Services; and Patheon and PPD. Thermo Fisher Scientific Inc. was founded in 1956 and is headquartered in Waltham, Massachusetts.

How the Company Makes Money

Thermo Fisher makes money through the sale of a diverse array of products and services across its four main business segments. The Life Sciences Solutions segment generates revenue by providing reagents, instruments, and consumables used in biological and medical research. The Analytical Instruments segment earns income from selling precision scientific instruments and software for laboratory use. The Specialty Diagnostics segment focuses on diagnostic kits, reagents, and instruments for clinical and research applications, contributing significantly to the company's revenue. The Laboratory Products and Biopharma Services segment offers laboratory equipment, supplies, and biopharmaceutical services, including contract manufacturing and clinical trial support. Thermo Fisher's earnings are bolstered by strategic partnerships with leading pharmaceutical and biotechnology companies, as well as its global presence, which helps it capture a broad customer base and leverage economies of scale.

Thermo Fisher Financial Statement Overview

Summary

Thermo Fisher is in a strong financial position with high profitability, solid equity, and robust cash flows. Despite slowing revenue growth and rising debt levels, the company maintains strong margins and cash generation.

Income Statement

Thermo Fisher demonstrates strong profitability with a consistently high gross profit margin and improving EBIT margin over time. The net profit margin is robust, suggesting effective cost management. However, the revenue growth rate has slightly declined recently, indicating potential market saturation or competitive pressures.

Balance Sheet

The company maintains a solid equity position, with a moderate debt-to-equity ratio indicating manageable leverage. Return on Equity has been stable, reflecting strong shareholder returns. Yet, the increase in debt over time could pose future financial risks if not managed carefully.

Cash Flow

Thermo Fisher shows strong cash flow generation with a positive free cash flow trajectory and a healthy operating cash flow to net income ratio. The free cash flow to net income ratio remains robust, though capital expenditures have been increasing, which may affect future cash reserves.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
42.88B	42.86B	44.91B	39.21B	32.22B
	Gross Profit
18.11B	17.11B	19.50B	20.23B	16.50B
	EBIT
7.34B	6.86B	8.39B	10.03B	7.79B
	EBITDA
11.54B	11.08B	11.94B	12.96B	10.19B
	Net Income Common Stockholders
6.33B	6.00B	6.95B	7.72B	6.38B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.57B	8.08B	8.52B	4.48B	10.32B
	Total Assets
97.32B	98.73B	97.15B	95.12B	69.05B
	Total Debt
31.27B	34.92B	34.49B	34.87B	21.73B
	Net Debt
27.27B	26.84B	25.96B	30.39B	11.41B
	Total Liabilities
47.65B	51.88B	53.01B	54.15B	34.53B
	Stockholders Equity
49.55B	46.73B	43.98B	40.79B	34.51B
Cash Flow		Free Cash Flow
7.27B	6.93B	6.91B	7.02B	6.82B
	Operating Cash Flow
8.67B	8.41B	9.15B	9.54B	8.29B
	Investing Cash Flow
-5.84B	-5.14B	-2.16B	-21.93B	-1.51B
	Financing Cash Flow
-6.79B	-3.62B	-2.81B	6.58B	959.00M

Thermo Fisher Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 437.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TMO, the sentiment is Negative. The current price of 437.91 is below the 20-day moving average (MA) of 505.80, below the 50-day MA of 532.55, and below the 200-day MA of 558.80, indicating a bearish trend. The MACD of -9.97 indicates Positive momentum. The RSI at 25.42 is Positive, neither overbought nor oversold. The STOCH value of 12.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TMO.

Thermo Fisher Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTD	72 Outperform	$21.31B	25.24	-680.23%	―	2.22%	12.78%
WAT	72 Outperform	$19.30B	30.33	42.82%	―	0.07%	-1.20%
TMO	70 Outperform	$165.21B	26.48	13.15%	0.36%	0.05%	6.87%
A	68 Neutral	$31.27B	25.20	20.61%	0.93%	-3.00%	3.67%
DHR	65 Neutral	$130.05B	34.37	7.57%	0.62%	-13.50%	-17.25%
BIO	49 Neutral	$6.33B	―	-24.09%	―	-3.92%	-202.80%
Sector *	48 Neutral	$6.36B	1.09	-49.92%	2.63%	17.17%	0.95%

Thermo Fisher Corporate Events

Thermo Fisher Expands Board with Healthcare Executive

On February 19, 2025, Thermo Fisher Scientific Inc. expanded its board of directors to include Karen S. Lynch, a seasoned healthcare executive with extensive experience at companies like CVS Health, Aetna, and Cigna. This strategic appointment is expected to bolster the company’s industry positioning, particularly in healthcare solutions, as Lynch brings a wealth of knowledge and leadership experience that could influence Thermo Fisher’s operations and impact its stakeholders positively.