Thermo Fisher Scientific, Inc. (TMO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

DexCom, Inc.

Abbott Laboratories

Intuitive Surgical, Inc.

Medtronic Plc

Edwards Lifesciences Corp.

Agilent Technologies, Inc.

Thermo Fisher Scientific, Inc.

Stryker Corp.

IDEXX Laboratories, Inc.

Danaher Corp.

Becton, Dickinson & Co.

Why is Thermo Fisher Scientific, Inc. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 11.00

Healthy long term growth as Net Sales has grown by an annual rate of 10.48% and Operating profit at 11.37%

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 7,578 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 4.44 times
INTEREST COVERAGE RATIO(Q) Lowest at 559.02

With ROCE of 10.03%, it has a attractive valuation with a 2.55 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 7.64%, its profits have risen by 4% ; the PEG ratio of the company is 5

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Thermo Fisher Scientific, Inc. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Thermo Fisher Scientific, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Thermo Fisher Scientific, Inc.

7.64%

-0.03

30.92%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.48%

EBIT Growth (5y)

11.37%

EBIT to Interest (avg)

11.00

Debt to EBITDA (avg)

2.32

Net Debt to Equity (avg)

0.57

Sales to Capital Employed (avg)

0.53

Tax Ratio

6.68%

Dividend Payout Ratio

9.43%

Pledged Shares

Institutional Holding

93.65%

ROCE (avg)

13.03%

ROE (avg)

16.96%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.44

EV to EBIT

25.43

EV to EBITDA

18.39

EV to Capital Employed

2.55

EV to Sales

4.61

PEG Ratio

4.99

Dividend Yield

0.36%

ROCE (Latest)

10.03%

ROE (Latest)

13.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 4.44

DIVIDEND PAYOUT RATIO(Y)

Highest at 10.05%

RAW MATERIAL COST(Y)

Fallen by 1.17% (YoY

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 7,578 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.44 times

INTEREST COVERAGE RATIO(Q)

Lowest at 559.02

INTEREST(Q)

Highest at USD 471 MM

Here's what is working for Thermo Fisher Scientific, Inc.

Dividend per share

Highest at USD 4.44 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 10.05%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 1.17% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Thermo Fisher Scientific, Inc.

Interest

At USD 471 MM has Grown at 55.45%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 559.02

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 4.44 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow

Lowest at USD 7,578 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

Highest at USD 471 MM

in the last five periods and Increased by 55.45% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)