Thermo Fisher Scientific Inc (TMO) Stock

Thermo Fisher Scientific Inc trades at a P/E ratio of 33.12, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 23.36 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.14 indicates a premium valuation even accounting for growth.

With a beta of 0.90, Thermo Fisher Scientific Inc is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 4.26 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Thermo Fisher Scientific Inc achieves a profit margin of 15.00%, meaning it retains $15.00 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 19.30% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 13.10% and ROA at 4.94%, the company achieves moderate returns on invested capital.

Thermo Fisher Scientific Inc's revenue grew by 4.90% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 0.50% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against DIAGNOSTICS & RESEARCH industry averages for proper context.

Thermo Fisher Scientific Inc offers a dividend yield of 0.29%, paying $1.68 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Dec 15, 2025.

The dividend sustainability can be assessed through the payout ratio - Thermo Fisher Scientific Inc pays $1.68 per share in dividends against earnings of $17.48 per share, resulting in a payout ratio of 9.61%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Jan 15, 2026.

Thermo Fisher Scientific Inc has a market capitalization of $217.5B, classifying it as a mega-cap stock (over $200B). These are the largest, most established companies globally, typically offering stability and liquidity but with more modest growth potential. Mega-caps often pay dividends and weather economic downturns better than smaller companies. With 375.71M shares outstanding, the company's ownership is relatively concentrated. As a major player in the DIAGNOSTICS & RESEARCH industry, it competes with other firms in this sector.

Thermo Fisher Scientific Inc's book value per share is $135.79, while the current stock price is $575.89, resulting in a price-to-book (P/B) ratio of 4.24. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

25 analysts cover TMO with 72% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $631.92 implies 9.7% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:4 Strong Buy, 14 Buy, 7 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.