Thermo Fisher (TMO) AI Stock Analysis

• Market Cap: $161.48B
• Dividend Yield: 0.4%
• Average Volume (3M): 2.62M
• Price to Earnings (P/E): 25.1
• Beta (1Y): 0.75
• Revenue Growth: 0.96%
• EPS Growth: 9.19%
• Country: US
• Employees: 125,000
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 5.15
• Shares Outstanding: 377,493,930
• 10 Day Avg. Volume: 3,040,500
• 30 Day Avg. Volume: 2,623,665
• PEG Ratio: 7.51
• Price to Book (P/B): 3.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.34
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 10.11
• Enterprise Value/Ebitda: 4.04
• 1Y Price Target: $552.00
• Price Target Upside: 28.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 73 Outperform
• Price Target: $470.00 ▲(9.47%Upside)

Thermo Fisher's overall stock score is driven by its robust financial performance and strategic resilience highlighted in the earnings call. Technical indicators suggest caution, while valuation metrics are fair. The company's ability to manage challenges such as tariffs and debt will be crucial for future performance.

Positive Factors

Financial Performance

The revised deal is estimated to be accretive by approximately 24 cents pre-financing costs, which is seen as an incremental positive.

Investment Plan

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.

Strategic Initiatives

If successful, this transaction could streamline Thermo Fisher Scientific's operations and focus on other growth areas.

Negative Factors

EPS Guidance

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.

Profit Margins

SOLV expects that holding onto the water business will reduce prior gross margin/operating margin benefits post-close, suggesting lower margins for the Drinking Water Filtration business.

Revenue Uncertainty

The divestment includes parts of the diagnostics business that generate significant sales, leading to uncertainty about the impact on TMO's revenue.

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 a diversified revenue model that includes the sale of scientific instruments, laboratory equipment, and consumables. It earns significant income from its laboratory products and services segment, which provides a wide array of products such as lab equipment, chemicals, and supplies to various industries including healthcare, pharmaceuticals, and academic research. The company also generates revenue from its life sciences solutions segment, which includes reagents, instruments, and consumables used in biological and medical research. Additionally, its specialty diagnostics segment offers diagnostic test kits, instruments, and reagents that are widely used in clinical laboratories. Thermo Fisher's analytical instruments segment provides precision laboratory instruments and software solutions. Key partnerships with research institutions, pharmaceutical companies, and healthcare providers, alongside strategic acquisitions, also play a significant role in expanding its market reach and enhancing its product offerings, thus contributing to its earnings.

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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.90B	42.88B	42.86B	44.91B	39.21B	32.22B
Gross Profit	17.83B	17.70B	17.11B	19.50B	20.23B	16.50B
EBITDA	10.60B	11.80B	11.08B	11.94B	12.96B	10.19B
Net Income	6.51B	6.33B	6.00B	6.95B	7.72B	6.38B
Balance Sheet
Total Assets	99.04B	97.32B	98.73B	97.15B	95.12B	69.05B
Cash, Cash Equivalents and Short-Term Investments	5.95B	5.57B	8.08B	8.52B	4.48B	10.32B
Total Debt	34.19B	31.27B	34.92B	34.49B	34.87B	21.73B
Total Liabilities	49.55B	47.65B	51.88B	53.01B	54.15B	34.53B
Stockholders Equity	49.36B	49.55B	46.73B	43.98B	40.79B	34.51B
Cash Flow
Free Cash Flow	6.72B	7.27B	6.93B	6.91B	7.02B	6.82B
Operating Cash Flow	8.14B	8.67B	8.41B	9.15B	9.54B	8.29B
Investing Cash Flow	-4.34B	-5.84B	-5.14B	-2.16B	-21.93B	-1.51B
Financing Cash Flow	-5.07B	-6.79B	-3.62B	-2.81B	6.58B	959.00M

Thermo Fisher Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 429.33
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TMO, the sentiment is Neutral. The current price of 429.33 is above the 20-day moving average (MA) of 407.97, above the 50-day MA of 410.37, and below the 200-day MA of 507.22, indicating a neutral trend. The MACD of 2.72 indicates Negative momentum. The RSI at 62.83 is Neutral, neither overbought nor oversold. The STOCH value of 88.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TMO.

Thermo Fisher Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDXX	82 Outperform	$43.99B	50.54	59.33%	―	5.56%	4.66%
A	79 Outperform	$34.48B	29.94	18.88%	0.82%	0.56%	-4.08%
IQV	77 Outperform	$28.41B	22.38	21.65%	―	2.84%	-0.16%
TMO	73 Outperform	$161.48B	25.10	13.73%	0.40%	0.96%	9.19%
WAT	73 Outperform	$20.84B	31.76	40.82%	―	2.57%	8.31%
DHR	72 Outperform	$145.42B	39.39	7.22%	0.63%	-9.19%	-12.75%
Sector *	52 Neutral	$7.50B	0.31	-61.87%	2.27%	17.10%	1.59%

Thermo Fisher Corporate Events

Thermo Fisher Shareholders Elect Board, Reject Proposals

At the Annual Meeting on May 21, 2025, Thermo Fisher shareholders elected board nominees for a one-year term and ratified PricewaterhouseCoopers LLP as the independent auditor for 2025. However, a proposal on executive compensation was not approved, and a shareholder proposal to remove the one-year holding period for calling special meetings was also rejected.

The most recent analyst rating on (TMO) stock is a Buy with a $680.00 price target. To see the full list of analyst forecasts on Thermo Fisher stock, see the TMO Stock Forecast page.

Thermo Fisher Approves CEO’s $60M Stock Award

On May 21, 2025, Thermo Fisher‘s Board of Directors approved a 5-year performance-based restricted stock unit award for CEO Marc N. Casper, aimed at securing his leadership until May 2030 and driving substantial shareholder returns. The award, valued at approximately $60 million, is designed to incentivize sustained shareholder value growth through total shareholder return outperformance, with payouts based on performance relative to the S&P 500 over a set period.

The most recent analyst rating on (TMO) stock is a Buy with a $680.00 price target. To see the full list of analyst forecasts on Thermo Fisher stock, see the TMO Stock Forecast page.