Thermo Fisher (TMO) AI Stock Analysis

• Market Cap: $156.49B
• Dividend Yield: 0.41%
• Average Volume (3M): 2.64M
• Price to Earnings (P/E): 24.3
• Beta (1Y): 0.75
• Revenue Growth: 0.96%
• EPS Growth: 9.19%
• Country: US
• Employees: 125,000
• Sector: Healthcare
• Sector Strength: 55
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 5.15
• Shares Outstanding: 377,493,930
• 10 Day Avg. Volume: 2,489,369
• 30 Day Avg. Volume: 2,635,485
• PEG Ratio: -3.24
• Price to Book (P/B): 4.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.24
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 1.42
• Enterprise Value/Gross Profit: 13.56
• Enterprise Value/Ebitda: 5.43
• 1Y Price Target: $558.78
• Price Target Upside: 34.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 69 Neutral
• 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

Attractive Investment Opportunity

Thermo Fisher Scientific shares are at historical 5-year lows, presenting a potential attractive opportunity for investors.

Revenue Guidance

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

Strategic Investment

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.

Negative Factors

Earnings 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 Impact

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.

Thermo Fisher Business Overview & Revenue Model

Company Description

Thermo Fisher Scientific Inc. (TMO) is a leading global provider of scientific instrumentation, reagents and consumables, and software services. The company operates in several sectors, including life sciences, industrial and applied sciences, clinical and diagnostics, and laboratory products and services. Its core products and services are designed to support scientific research, healthcare, and diagnostics, offering solutions that range from laboratory equipment and software to chemical reagents and genetic testing kits.

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
	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
5.95B	5.57B	8.08B	8.52B	4.48B	10.32B
	Total Assets
99.04B	97.32B	98.73B	97.15B	95.12B	69.05B
	Total Debt
34.19B	31.27B	34.92B	34.49B	34.87B	21.73B
	Net Debt
30.05B	27.27B	26.84B	25.96B	30.39B	11.41B
	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: 415.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 415.33 is above the 20-day moving average (MA) of 405.16, below the 50-day MA of 420.20, and below the 200-day MA of 521.99, indicating a neutral trend. The MACD of -3.57 indicates Negative momentum. The RSI at 52.32 is Neutral, neither overbought nor oversold. The STOCH value of 75.09 is Neutral, 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	$42.30B	48.44	59.33%	―	5.56%	4.66%
A	79 Outperform	$34.24B	29.72	18.88%	0.83%	0.56%	-4.08%
IQV	76 Outperform	$27.64B	21.65	21.65%	―	2.84%	-0.16%
DHR	72 Outperform	$145.01B	39.28	7.22%	0.63%	-9.19%	-12.75%
WAT	72 Outperform	$20.59B	31.70	40.82%	―	2.57%	8.31%
TMO	69 Neutral	$156.49B	24.33	13.73%	0.41%	0.96%	9.19%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%

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.