📊 TMO Key Takeaways
Is Thermo Fisher Scientific Inc.. (TMO) a Good Investment?
Thermo Fisher demonstrates strong operational profitability (27.6% gross margin, 15.0% net margin) and solid free cash flow generation ($816M), but capital efficiency is severely impaired with only 3.2% ROE despite massive asset base. Significant debt burden ($42.9B) combined with modest revenue growth (3.9%) and deteriorating capital returns present material headwinds to long-term value creation.
Thermo Fisher shows high-quality fundamentals with resilient revenue growth, strong operating and net margins, and robust free cash flow generation. Liquidity and interest coverage are healthy, suggesting the balance sheet can support ongoing investment, although growth is currently moderate and leverage remains meaningful.
Thermo Fisher Scientific Inc.. Key Strengths (TMO)
- Strong profitability margins across all levels (27.6% gross, 16.9% operating, 15.0% net)
- Solid free cash flow generation ($816M) with healthy 7.4% FCF margin relative to revenue
- Accelerating earnings growth (net income +6.1%, EPS +7.3%) indicating improving operational leverage
- Adequate liquidity with 1.53x current ratio and 5.1x interest coverage despite debt load
- Large diversified asset base ($113.3B) suggests market position and diversification
- Strong profitability with 17.4% operating margin and 15.0% net margin
- Healthy cash generation with $6.29B in free cash flow and 14.1% FCF margin
- Solid financial health with 1.89x current ratio, 0.73x debt-to-equity, and 21.3x interest coverage
TMO Stock Risks: Thermo Fisher Scientific Inc.. Investment Risks
- Critically low return on equity (3.2%) and return on assets (1.5%) despite strong margins indicates severe capital deployment inefficiency
- Substantial debt ($42.9B) relative to equity ($51.9B) at 0.83x leverage with low returns creates unfavorable risk-reward profile
- Anemic revenue growth (3.9% YoY) suggests mature market position with limited organic expansion opportunities
- EPS growth outpacing revenue and net income growth signals reliance on share buybacks rather than business acceleration
- Relatively low cash position ($3.3B) constrains financial flexibility for strategic investments or debt reduction
- Net income was essentially flat year over year, indicating earnings growth is slowing relative to revenue
- Long-term debt of $39.17B remains substantial and could limit flexibility if operating conditions weaken
- Reported gross margin of 6.8% appears unusually low relative to operating margin, which may indicate data classification or quality issues to monitor
Key Metrics to Watch
- Return on Equity trend - must improve materially from 3.2% baseline
- Debt-to-equity trajectory and total debt reduction progress
- Revenue growth rate - acceleration beyond 3.9% critical to validate growth thesis
- Free cash flow conversion rate and sustainability
- Asset turnover and return on assets improvement metrics
- Organic revenue growth and net income growth
- Free cash flow conversion and debt reduction progress
Thermo Fisher Scientific Inc.. (TMO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Thermo Fisher Scientific Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
TMO Profit Margin, ROE & Profitability Analysis
TMO vs Market Sector: How Thermo Fisher Scientific Inc.. Compares
How Thermo Fisher Scientific Inc.. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Thermo Fisher Scientific Inc.. Stock Overvalued? TMO Valuation Analysis 2026
Based on fundamental analysis, Thermo Fisher Scientific Inc.. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Thermo Fisher Scientific Inc.. Balance Sheet: TMO Debt, Cash & Liquidity
TMO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Thermo Fisher Scientific Inc..'s revenue has grown significantly by 14% over the 5-year period, indicating strong business expansion. The most recent EPS of $15.45 reflects profitable operations.
TMO Revenue Growth, EPS Growth & YoY Performance
TMO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $10.4B | $1.5B | $3.98 |
| Q3 2025 | $10.6B | $1.6B | $4.25 |
| Q2 2025 | $10.5B | $1.5B | $4.04 |
| Q1 2025 | $10.3B | N/A | $3.46 |
| Q3 2024 | $10.6B | N/A | $4.25 |
| Q2 2024 | $10.5B | N/A | $3.51 |
| Q1 2024 | $10.3B | N/A | $3.32 |
| Q3 2023 | $10.6B | N/A | $3.79 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Thermo Fisher Scientific Inc.. Dividends, Buybacks & Capital Allocation
TMO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Thermo Fisher Scientific Inc.. (CIK: 0000097745)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TMO
What is the AI rating for TMO?
Thermo Fisher Scientific Inc.. (TMO) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 66% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are TMO's key strengths?
Claude: Strong profitability margins across all levels (27.6% gross, 16.9% operating, 15.0% net). Solid free cash flow generation ($816M) with healthy 7.4% FCF margin relative to revenue. ChatGPT: Strong profitability with 17.4% operating margin and 15.0% net margin. Healthy cash generation with $6.29B in free cash flow and 14.1% FCF margin.
What are the risks of investing in TMO?
Claude: Critically low return on equity (3.2%) and return on assets (1.5%) despite strong margins indicates severe capital deployment inefficiency. Substantial debt ($42.9B) relative to equity ($51.9B) at 0.83x leverage with low returns creates unfavorable risk-reward profile. ChatGPT: Net income was essentially flat year over year, indicating earnings growth is slowing relative to revenue. Long-term debt of $39.17B remains substantial and could limit flexibility if operating conditions weaken.
What is TMO's revenue and growth?
Thermo Fisher Scientific Inc.. reported revenue of $11.0B.
Does TMO pay dividends?
Thermo Fisher Scientific Inc.. pays dividends, with $162.0M distributed to shareholders in the trailing twelve months.
Where can I find TMO SEC filings?
Official SEC filings for Thermo Fisher Scientific Inc.. (CIK: 0000097745) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TMO's EPS?
Thermo Fisher Scientific Inc.. has a diluted EPS of $4.43.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is TMO's fundamental grade?
Based on our AI fundamental analysis in June 2026, Thermo Fisher Scientific Inc.. has a A grade with 66% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is TMO stock overvalued or undervalued?
Valuation metrics for TMO: ROE of 3.2% (sector avg: 15%), net margin of 15.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is TMO's AI grade for 2026?
Our dual AI analysis gives Thermo Fisher Scientific Inc.. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is TMO's free cash flow?
Thermo Fisher Scientific Inc..'s operating cash flow is $1.2B, with capital expenditures of $376.0M. FCF margin is 7.4%.
How does TMO compare to other Market stocks?
Vs Default sector averages: Net margin 15.0% (avg: 12%), ROE 3.2% (avg: 15%), current ratio 1.53 (avg: 1.8).