Thermo Fisher Scientific Stock Analysis (NYSE:TMO)

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$182.18 $0.63 (0.35%) TMO stock closing price Jul 21, 2017 (Closing)
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Thermo Fisher Scientific
Updated on : Jul 21, 2017
previous close
TMO 182.2 (0%)
S&P 500 2472.5 (0%)
Closing Price On: Jul 21, 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:
-0.5%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
16.44B
Debt/Equity Ratio:
 0.76
Compared to the industry
Cash Flow
Operating cash flow:
$361.5M
Net Income:
$551.4M
Dividend Yield
TMO dividend yield:
0.33%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
PE Valuation
High Debt Burden
Cash Flow
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
TMO PS :
3.8
Industry PS :
5.2
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 (3.5/5)

Our Thermo Fisher Scientific stock opinion is based on fundamentals of the company. This Thermo Fisher Scientific stock analysis is based on latest Q1 earnings for 2017. 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 13.6% was exceptional.
  • Net margins came in at average 11.6% for Thermo Fisher Scientific over the last twelve months.
  • The price to earnings multiple of 21.3 is attractive when compared with the industry average PE ratio of 24.4.
  • When compared with the Medical Instruments industry average PS ratio of 5.2, the price-to-sales ratio of 3.8 for TMO stock is attractive.
  • 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 healthy free cash flow margin of 5.6%.

Should you sell TMO stock?

  • With a debt/equity ratio of  0.76, Thermo Fisher Scientific is highly leveraged in comparison to Medical peers.
  • Cash flow from operations is low at 0.7 times the net income.

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