Thermo Fisher Scientific Stock Analysis (NYSE:TMO)

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$143.51 $0.81 (0.56%) TMO stock closing price Jan 20, 2017 (Closing)
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Thermo Fisher Scientific
Updated on : Jan 20, 2017
previous close
TMO 143.5 (0%)
S&P 500 2271.3 (0%)
Closing Price On: Jan 20, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical Instruments
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2016-Q3
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
13.3%
Sector Average:
-1.3%
5 Quarter Net Profit
Net Margins
2016-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
17.99B
Debt/Equity Ratio:
 0.83
Compared to the industry
Cash Flow
Operating cash flow:
$771.8M
Net Income:
$473.5M
Dividend Yield
TMO dividend yield:
0.42%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
TMO PS :
3.2
Industry PS :
4.4
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
4.3%
Return on Equity:
9.4%
Free Cash Flow Margin:
15.4%
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Thermo Fisher Scientific Analysis Video

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View Thermo Fisher Scientific stock analysis video. This is our TMO analyst opinion covering the buy and sell arguments for TMO stock.

Thermo Fisher Scientific Inc. Stock Rating (3.5/5)

Our Thermo Fisher Scientific stock opinion is based on fundamentals of the company. This Thermo Fisher Scientific stock analysis is based on latest Q3 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy TMO stock?

  • Thermo Fisher Scientific's average operating margin of 13.3% was exceptional.
  • Net margins came in at average 11.1% for Thermo Fisher Scientific over the last twelve months.
  • The operating cash flow looks good at 1.6 times the net income.
  • The Thermo Fisher Scientific stock currently trades at a price to earnings ratio of 18. We rate this as a positive, compared to the industry average of 21.9.
  • The lower PS ratio 3.2 for TMO stock versus Medical Instruments industry average of 4.4 is a positive for the company.
  • Thermo Fisher Scientific has an attractive ROIC (Return on Invested Capital) of 4.3%
  • Thermo Fisher Scientific has a good Return On Equity (ROE) of 9.4%.
  • The company has a good Free Cash Flow (FCF) margin of 15.4%.

Should you sell TMO stock?

  • With a debt/equity ratio of  0.83, Thermo Fisher Scientific is highly leveraged in comparison to Medical peers.

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