Strong Price-to-Earnings Ratio
Decent Price-to-Sales Ratio
Strong Return on Equity
Healthy Profit Margins
Strong Liquidity Position
Manageable Debt Levels
🏅 Strong Revenue Growth
🛡️ Competitive Positioning
🔬 Continuous Innovation
📈 Positive Guidance for 2025
🌍 Expansion Opportunities
High EV/EBITDA Ratio
Premium Valuation Compared to Peers
Moderate Operating Profit Margin
Low Cash Ratio
⚠️ Headwinds from Pandemic Runoff
Overall, Thermo Fisher Scientific demonstrates a strong business quality through solid revenue growth, competitive positioning, and continuous innovation. Future prospects are also promising, with positive guidance for 2025 and ongoing expansion opportunities, albeit with some headwinds due to the pandemic's impact.
Analysis Date: January 30, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$206.87
Current Market Price: $431.52
IV/P Ratio: 0.48x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-109.00000000000001%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for TMO
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (26.46)
P/B ratio ≤ 1.5 (3.38)
Current ratio ≥ 2.0 (1.66x)
Long-term debt < Net current assets (3.30x)
Margin of safety (-109.00000000000001%)
TMO does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
The return on equity (ROE) stands at 13.24%, indicating efficient use of equity capital to generate profits.
With a net profit margin of 14.78%, TMO shows strong profitability after all expenses, reflecting good operational efficiency.
An operating profit margin of 17.10% suggests that while the company is profitable, there may be areas for operational improvement.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
13.24%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
1.88%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
41.49%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
14.78%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
A current ratio of 1.66 indicates that TMO has more than enough current assets to cover its current liabilities, suggesting a solid liquidity position.
The debt-to-equity ratio of 0.63 indicates a conservative approach to leveraging, which bodes well for the company's financial stability.
With a cash ratio of 0.30, TMO may face challenges in meeting short-term obligations purely through cash reserves.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.63x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.66x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Thermo Fisher reported a 5% year-over-year revenue growth in Q4 2024, reaching $11.4 billion, indicating robust operational execution and market demand.
The company has strengthened its trusted partner status with customers, leading to market share gains across all end markets, particularly in pharma and biotech.
Thermo Fisher has successfully launched several high-impact products in 2024, such as the Thermo Scientific Stellar mass spectrometer, enhancing its industry leadership.
The company has provided a revenue guidance for 2025 in the range of $43.5 billion to $44 billion, with an expectation of 3% to 4% organic growth, reflecting confidence in market recovery.
Thermo Fisher is investing in partnerships and collaborations, such as with the National Cancer Institute, which will enhance its capabilities and market reach.
The guidance for 2025 includes a 1% headwind from the remaining runoff of pandemic-related revenue, which could impact growth in the clinical research segment.