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Thermo Fisher (TMO)
NYSE:TMO

Thermo Fisher (TMO) AI Stock Analysis

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TM

Thermo Fisher

(NYSE:TMO)

69Neutral
Thermo Fisher's overall stock score reflects its solid financial health and strategic initiatives, balanced by current technical weaknesses and valuation concerns. While strong profitability and strategic M&A activity are positives, challenges in revenue growth, macroeconomic pressures, and high valuation limit the score.
Positive Factors
Investment in Facilities
To support long-term growth and expand market share, TMO announced plans to invest US$2bn over the next four years in expanding its US manufacturing and R&D facilities, in response to growing customer demand.
Revenue Growth
Management maintained its full-year revenue guidance, projecting revenue growth of 1.0% to 3.1% for 2025.
Shareholder Opportunities
Thermo Fisher Scientific shares are at historical 5-year lows, presenting a potential attractive opportunity for investors.
Negative Factors
Export Challenges
Management guided to a $400M revenue hit due to reduced U.S exports (demand destruction), which, net of mitigation efforts and higher-cost China imports, should impact adjusted operating profit by $375M.
Revenue Headwinds
Thermo Fisher Scientific is facing a $400 million top-line headwind from US-to-China sales and a $500 million headwind related to US policy changes.
Tariffs and Policy Impact
The company revised its adjusted EPS guidance downward, expecting a range from a 0.6% decline to 4.4% growth, mainly due to the impact of tariffs.

Thermo Fisher (TMO) vs. S&P 500 (SPY)

Thermo Fisher Business Overview & Revenue Model

Company DescriptionThermo 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 MoneyThermo 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 Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Shows the revenue contribution of each business unit, indicating which areas are performing well and which may need strategic adjustments.
Chart InsightsThermo Fisher's Life Sciences Solutions segment is experiencing a steady decline, reflecting broader challenges in the academic and government markets as noted in the earnings call. In contrast, the Analytical Instruments segment shows resilience, supported by new product launches and strategic acquisitions like Soventum. Despite macroeconomic pressures, including US-China tariffs, the company maintains a robust outlook with projected revenue growth and strategic focus on innovation, which could mitigate some of the headwinds in the coming quarters.
Data provided by:Main Street Data

Thermo Fisher Financial Statement Overview

Summary
Thermo Fisher demonstrates strong financial health with stable profitability and efficient cash generation. The company maintains a balanced capital structure with moderate leverage. However, minor challenges exist in revenue growth and debt management.
Income Statement
82
Very Positive
Thermo Fisher's income statement shows impressive stability and profitability. The TTM (Trailing-Twelve-Months) gross profit margin stands at 41.74%, and the net profit margin is 15.19%, indicating strong profitability. The EBIT margin of 17.08% and EBITDA margin of 24.71% reflect efficient operations. While revenue has been relatively stable over the past periods, the company exhibited a slight decline in revenue from 2022 to TTM, indicating potential challenges in sales growth.
Balance Sheet
78
Positive
The balance sheet indicates a robust equity position with a debt-to-equity ratio of 0.69, suggesting moderate leverage. The return on equity (ROE) is 13.20%, reflecting decent profitability relative to shareholder investment. The equity ratio of 49.83% demonstrates a balanced capital structure, though the company carries a significant amount of debt, which requires careful management.
Cash Flow
75
Positive
Cash flow analysis reveals healthy operational cash flow with a TTM free cash flow to net income ratio of 1.03, underscoring efficient cash generation. The operating cash flow to net income ratio of 1.25 indicates strong cash conversion from profits. However, free cash flow growth is slightly negative compared to the previous period, highlighting the need to focus on future cash flow improvements.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
42.88B42.86B44.91B39.21B32.22B
Gross Profit
18.11B17.11B19.50B20.23B16.50B
EBIT
7.34B6.86B8.39B10.03B7.79B
EBITDA
11.54B11.08B11.94B12.96B10.19B
Net Income Common Stockholders
6.33B6.00B6.95B7.72B6.38B
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.57B8.08B8.52B4.48B10.32B
Total Assets
97.32B98.73B97.15B95.12B69.05B
Total Debt
31.27B34.92B34.49B34.87B21.73B
Net Debt
27.27B26.84B25.96B30.39B11.41B
Total Liabilities
47.65B51.88B53.01B54.15B34.53B
Stockholders Equity
49.55B46.73B43.98B40.79B34.51B
Cash FlowFree Cash Flow
7.27B6.93B6.91B7.02B6.82B
Operating Cash Flow
8.67B8.41B9.15B9.54B8.29B
Investing Cash Flow
-5.84B-5.14B-2.16B-21.93B-1.51B
Financing Cash Flow
-6.79B-3.62B-2.81B6.58B959.00M

Thermo Fisher Technical Analysis

Technical Analysis Sentiment
Negative
Last Price424.24
Price Trends
50DMA
493.04
Negative
100DMA
520.05
Negative
200DMA
550.76
Negative
Market Momentum
MACD
-21.01
Negative
RSI
35.20
Neutral
STOCH
24.84
Neutral
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 424.24 is below the 20-day moving average (MA) of 447.39, below the 50-day MA of 493.04, and below the 200-day MA of 550.76, indicating a bearish trend. The MACD of -21.01 indicates Negative momentum. The RSI at 35.20 is Neutral, neither overbought nor oversold. The STOCH value of 24.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TMO.

Thermo Fisher Risk Analysis

Thermo Fisher disclosed 26 risk factors in its most recent earnings report. Thermo Fisher reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Thermo Fisher Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
MTMTD
74
Outperform
$22.13B26.20-680.23%2.22%12.78%
AA
72
Outperform
$29.28B23.6020.61%0.90%-3.00%3.67%
WAWAT
70
Outperform
$20.10B31.5442.82%0.07%-1.20%
TMTMO
69
Neutral
$169.62B27.1713.75%0.38%0.96%9.19%
DHDHR
67
Neutral
$141.09B38.227.22%0.57%-9.19%-12.75%
51
Neutral
$5.31B3.39-40.42%2.90%18.11%2.25%
BIBIO
47
Neutral
$7.01B-24.09%-3.92%-202.80%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TMO
Thermo Fisher
424.24
-150.98
-26.25%
A
Agilent
106.28
-32.28
-23.30%
BIO
Bio-Rad Laboratories
242.63
-34.48
-12.44%
DHR
Danaher
197.14
-48.51
-19.75%
MTD
Mettler-Toledo
1,061.79
-193.45
-15.41%
WAT
Waters
337.89
22.80
7.24%

Thermo Fisher Earnings Call Summary

Earnings Call Date:Apr 23, 2025
(Q1-2025)
|
% Change Since: -2.41%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance and strategic initiatives in innovation and M&A. However, significant challenges were noted due to macroeconomic conditions, US-China tariffs, and pressures in the academic and government markets.
Q1-2025 Updates
Positive Updates
Strong Q1 Financial Performance
Revenue for Q1 was $10.36 billion, with an adjusted operating income of $2.27 billion. Adjusted EPS grew by 1% to $5.15 per share.
Innovation and Product Launches
Several new products were launched, including the Thermo Scientific Vulcan automated lab and the next-generation Thermo Scientific Transcend, strengthening market leadership.
M&A and Capital Deployment
Announced the acquisition of Soventum's purification and filtration business for $4.1 billion, enhancing bioproduction capabilities. $1 billion in share repurchases and a 10% increase in dividends.
Negative Updates
Impact of US-China Tariffs
Expected $400 million revenue headwind due to tariffs, with significant impacts on products made in the US for the Chinese market.
Challenges in Academic and Government Markets
Revenue declined in academic and government sectors due to macro conditions in the U.S. and China, with expected muted purchases in 2025.
FX Headwinds and Operating Margin Pressure
Reported revenue was flat year over year, with a 1% headwind from foreign exchange. Adjusted operating margin was down 10 basis points from the previous year.
Company Guidance
During Thermo Fisher Scientific's 2025 First Quarter Conference Call, comprehensive guidance was provided amidst a changing macroeconomic landscape. The company reported a revenue of $10.36 billion and an adjusted operating income of $2.27 billion, achieving an adjusted operating margin of 21.9%. The adjusted EPS grew by 1% to $5.15 per share. Despite challenges such as tariffs and policy changes, Thermo Fisher updated its 2025 guidance to project revenues between $43.3 billion and $44.2 billion, with an adjusted EPS range of $21.76 to $22.84. The company's strategic focus on innovation, commercial execution, and capital deployment, including a $4.1 billion acquisition of Soventum's purification and filtration business, underpins its resilience and commitment to customer success. The guidance also reflects mitigation strategies against tariffs, with an anticipated full offset by next year.

Thermo Fisher Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Thermo Fisher Expands Board with Healthcare Executive
Positive
Feb 19, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.