THERMO FISHER SCIENTIFIC INC. (TMO) Stock Analysis
THERMO FISHER SCIENTIFIC INC. (TMO) Stock Analysis
Analysis from 10-Q filed 2025-10-31. Data as of Q4 2025.
Overall Grade: F (Concerning)
THERMO FISHER SCIENTIFIC INC. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 8.4% | Near cost of capital |
| FCF Margin | 14.1% | Healthy cash flow |
| Debt/Equity | 0.7x | Moderate leverage |
Investment Thesis: Healthy free cash flow margin of 14.1% provides financial flexibility for growth and shareholder returns.
Explore THERMO FISHER SCIENTIFIC INC.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: THERMO FISHER SCIENTIFIC INC. earns 8.4% ROIC, Top 50% in Other
THERMO FISHER SCIENTIFIC INC.'s trailing-twelve-month ROIC of 8.4% ranks Top 50% in Other companies (sector median: 4.3%), driven by NOPAT margin of 16.1% combined with asset turnover of 0.4x. Source: 10-Q filed 2025-10-31.
| Metric | TMO | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 8.4% | Adequate | Above sector median of 4.3% |
| Return on Equity (ROE) | 13.3% | Adequate | Moderate equity returns |
| Operating Margin | 17.4% | Good | Efficient operations |
Cash Flow: THERMO FISHER SCIENTIFIC INC. generates $6.3B FCF at 14.1% margin, positive NaN/8 quarters
THERMO FISHER SCIENTIFIC INC. generated $6.3B in free cash flow (TTM), a 14.1% FCF margin, a margin that ranks Top 5% in Other. Operating cash flow exceeds net income by 1.2x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-31.
| Metric | TMO | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 14.1% | Good | Healthy cash generation |
| Free Cash Flow (TTM) | $6.3B | Good | Positive cash generation |
| OCF/Net Income | 1.2x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: THERMO FISHER SCIENTIFIC INC. at 0.7x leverage
THERMO FISHER SCIENTIFIC INC.'s debt-to-equity ratio of 0.7x reflects elevated leverage. Total debt of $39.4B offset by $10.1B in cash. Source: 10-Q filed 2025-10-31.
| Metric | TMO | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.7x | Adequate | Moderate leverage |
| Net Cash Position | $-29.3B | Warning | Net debt position |
Valuation: THERMO FISHER SCIENTIFIC INC. trades at 32.6x earnings
THERMO FISHER SCIENTIFIC INC. trades at a P/E of 32.6x. Free cash flow yield of 2.9% reflects market expectations for growth.
| Metric | TMO | Rating | Context |
|---|---|---|---|
| P/E Ratio | 32.6x | Adequate | Premium valuation |
| EV/Sales | 5.6x | Adequate | Growth premium priced in |
| FCF Yield | 2.9% | Adequate | Lower cash yield |
| Dividend Yield | 0.3% | Adequate | Growth focus over income |
Capital Allocation: THERMO FISHER SCIENTIFIC INC. returns 1.7% shareholder yield
THERMO FISHER SCIENTIFIC INC.'s total shareholder yield is 1.7% (dividends 0.3% + buybacks 1.4%). Source: 10-Q filed 2025-10-31.
| Metric | TMO | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 1.7% | Adequate | Dividend + buyback yield combined |
| Buyback Yield | 1.4% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $3.7B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 8.4% | Top 50% | 2.0x above |
| Free Cash Flow Margin | 14.1% | Top 5% | - |
| Operating Margin | 17.4% | Top 25% | 3.4x above |
| Return on Equity (ROE) | 13.3% | Top 50% | 1.9x above |
| P/E Ratio | 32.6x | N/A | - |
Financial Scorecard
| Metric | TMO | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 8.4% | Adequate | Top 50% of sector (median: 4.3%) |
| Free Cash Flow Margin | 14.1% | Good | Top 5% of sector (median: 0.0%) |
| Debt to Equity Ratio | 73.7% | Adequate | Elevated but manageable |
| P/E Ratio (Price-to-Earnings) | 32.6x | Adequate | Growth premium |
| Free Cash Flow Yield | 2.9% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is THERMO FISHER SCIENTIFIC INC.'s Return on Invested Capital (ROIC)?
THERMO FISHER SCIENTIFIC INC. (TMO) has a trailing twelve-month Return on Invested Capital (ROIC) of 8.4%. This compares above the sector median of 4.3%. An ROIC near 8-12% is approximately the cost of capital for most companies.
Q: What is THERMO FISHER SCIENTIFIC INC.'s Free Cash Flow Margin?
THERMO FISHER SCIENTIFIC INC. (TMO) has a free cash flow margin of 14.1%, generating $6.3 billion in free cash flow over the trailing twelve months. A FCF margin between 10-20% represents healthy cash generation for most industries.
Q: Is THERMO FISHER SCIENTIFIC INC. stock overvalued or undervalued?
THERMO FISHER SCIENTIFIC INC. (TMO) trades at a P/E ratio of 32.6x, which is above the sector median of N/A. The EV/Sales multiple is 5.6x. Free cash flow yield is 2.9%, reflecting growth expectations priced into the stock.
Q: Does THERMO FISHER SCIENTIFIC INC. pay a dividend?
THERMO FISHER SCIENTIFIC INC. (TMO) currently pays a dividend yield of 0.3%. Including share buybacks, the total shareholder yield is 1.7%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: How much debt does THERMO FISHER SCIENTIFIC INC. have?
THERMO FISHER SCIENTIFIC INC. (TMO) has a debt-to-equity ratio of 0.7x with total debt of $39.4 billion. Net debt position is $29.3 billion.
Q: What is THERMO FISHER SCIENTIFIC INC.'s revenue and earnings growth?
THERMO FISHER SCIENTIFIC INC. (TMO) grew revenue by 3.9% year-over-year. Earnings per share increased by 7.3% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: Is THERMO FISHER SCIENTIFIC INC. buying back stock?
THERMO FISHER SCIENTIFIC INC. (TMO) repurchased $3.0 billion of stock over the trailing twelve months. This represents a buyback yield of 1.4%.
Q: How does THERMO FISHER SCIENTIFIC INC. compare to competitors in Other?
Compared to other companies in Other, THERMO FISHER SCIENTIFIC INC. (TMO) shows: ROIC of 8.4% is above the sector median of 4.3% (Top 36%). FCF margin of 14.1% exceeds the sector median of 0.0% (Top 0% of sector). These rankings are based on MetricDuck's analysis of all Other companies with available SEC filings.
Q: What warning signs should I watch for with THERMO FISHER SCIENTIFIC INC.?
THERMO FISHER SCIENTIFIC INC. (TMO) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-31. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.