Thermo Fisher (TMO) AI Stock Analysis

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Thermo Fisher

(NYSE:TMO)

Rating:69Neutral

Price Target:―

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 and Expansion

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 Guidance

Management maintained its full-year revenue guidance, projecting revenue growth of 1.0% to 3.1% for 2025.

Negative Factors

Financial Performance

TMO lowered core growth assumptions to +1-3% from +3-4% due to incremental headwinds tied to China tariffs and U.S. policy.

Revenue Impact

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.

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

Market Cap

$156.19B

Dividend Yield0.39%

Average Volume (3M)2.96M

Price to Earnings (P/E)24.3

Beta (1Y)0.73

Revenue Growth0.96%

EPS Growth9.19%

CountryUS

Employees125,000

SectorHealthcare

Sector Strength44

IndustryMedical - Diagnostics & Research

Share Statistics

EPS (TTM)5.15

Shares Outstanding377,493,930

10 Day Avg. Volume2,837,269

30 Day Avg. Volume2,963,760

Financial Highlights & Ratios

PEG Ratio7.70

Price to Book (P/B)3.12

Price to Sales (P/S)0.00

P/FCF Ratio22.90

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$563.94

Price Target Upside41.59% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering20

Thermo Fisher Business Overview & Revenue Model

Company DescriptionThermo Fisher Scientific Inc. (TMO) is a global leader in serving science, offering a comprehensive range of products and services to various industries, including healthcare, pharmaceuticals, biotechnology, and academia. The company operates in four primary segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Biopharma Services. Thermo Fisher's core products and services include laboratory equipment, reagents, consumables, software, and services that enable scientific research, drug discovery, diagnostics, and manufacturing.

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

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

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

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

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
7.33B	7.34B	6.86B	8.39B	10.03B	7.79B
	EBITDA
10.60B	11.80B	11.08B	11.94B	12.96B	10.19B
	Net Income Common Stockholders
6.51B	6.33B	6.00B	6.95B	7.72B	6.38B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
950.00M	5.57B	8.08B	8.52B	4.48B	10.32B
	Total Assets
56.58B	97.32B	98.73B	97.15B	95.12B	69.05B
	Total Debt
20.94B	31.27B	34.92B	34.49B	34.87B	21.73B
	Net Debt
19.99B	27.27B	26.84B	25.96B	30.39B	11.41B
	Total Liabilities
30.46B	47.65B	51.88B	53.01B	54.15B	34.53B
	Stockholders Equity
26.12B	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

Negative

Last Price398.28

Price Trends

50DMA

452.58

Negative

100DMA

499.97

Negative

200DMA

536.78

Negative

Market Momentum

MACD

-11.80

Negative

RSI

37.06

Neutral

STOCH

40.81

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 398.28 is below the 20-day moving average (MA) of 416.69, below the 50-day MA of 452.58, and below the 200-day MA of 536.78, indicating a bearish trend. The MACD of -11.80 indicates Negative momentum. The RSI at 37.06 is Neutral, neither overbought nor oversold. The STOCH value of 40.81 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 (53)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IQV	76 Outperform	$24.83B	19.75	21.65%	―	2.84%	-0.16%
IDXX	74 Outperform	$41.95B	47.79	59.33%	―	5.56%	4.66%
WAT	71 Outperform	$21.34B	32.84	40.82%	―	2.57%	8.31%
A	69 Neutral	$32.34B	26.07	20.61%	0.85%	-3.00%	3.67%
TMO	69 Neutral	$156.19B	24.28	13.73%	0.39%	0.96%	9.19%
DHR	64 Neutral	$141.54B	38.34	7.22%	0.57%	-9.19%	-12.75%
Sector *	53 Neutral	$5.24B	3.07	-43.58%	2.80%	16.87%	-0.11%

* Healthcare Sector Average

Performance Comparison

TMO

Thermo Fisher

398.28

-190.81

-32.39%

Agilent

108.91

-42.83

-28.23%

DHR

Danaher

186.81

-79.12

-29.75%

IDXX

Idexx Laboratories

500.87

-17.07

-3.30%

WAT

Waters

347.36

-1.44

-0.41%

IQV

IQVIA Holdings

137.29

-88.74

-39.26%

Thermo Fisher Earnings Call Summary

Earnings Call Date:Apr 23, 2025

(Q1-2025)

% Change Since: -8.38%|

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.