Thermo Fisher Scientific Stock Analysis (NYSE:TMO)

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$165.33 $1.37 (0.82%) TMO stock closing price Apr 28, 2017 (Closing)
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Thermo Fisher Scientific
Updated on : Apr 28, 2017
previous close
TMO 165.3 (0%)
S&P 500 2384.2 (0%)
Closing Price On: Apr 28, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical Instruments
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2017-Q1
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
13.6%
Sector Average:
0.6%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
17.07B
Debt/Equity Ratio:
 0.78
Compared to the industry
Cash Flow
Operating cash flow:
$361.5M
Net Income:
$551.4M
Dividend Yield
TMO dividend yield:
0.36%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
PE Valuation
High Debt Burden
Cash Flow
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
TMO PS :
3.4
Industry PS :
4.7
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
4.3%
Return on Equity:
10.1%
Free Cash Flow Margin:
5.6%
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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 (3.6/5)

Our Thermo Fisher Scientific stock opinion is based on fundamentals of the company. This Thermo Fisher Scientific stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy TMO stock?

  • Thermo Fisher Scientific had a healthy average operating margin of 13.6% over the last 4 quarters.
  • Net margins stood at a healthy 11.6% (average) for Thermo Fisher Scientific in the Trailing Twelve Months.
  • TMO stock is trading at an earnings multiple of 19.3 which is better than the industry average of 22.5.
  • TMO stock is trading at a favorable price to sales multiple of 3.4 as against the Medical Instruments industry average multiple of 4.7.
  • Thermo Fisher Scientific generates a high return on invested capital of 4.3%.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Thermo Fisher Scientific at 10.1%.
  • The company has a good Free Cash Flow (FCF) margin of 5.6%.

Should you sell TMO stock?

  • With a debt/equity ratio of  0.78, Thermo Fisher Scientific is highly leveraged in comparison to Medical peers.
  • The company has an operating cash flow which is 0.7 times the net income. This is not a healthy sign.

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