One-glance verdict
Overvalued
$387.68 our estimate vs market $648.43
Wall Street consensus: $645.15 (66.4% higher than our fair-value estimate)
67% above our estimate, beyond the bull case
Fundamentals snapshot
Thermo Fisher Scientific Inc.
TMO · NYQ · Healthcare · Diagnostics & Research
Current price
$648.43
52-week range
$435.27 - $653.40
Market cap
$239.76B
Balance sheet
Watch
5.72x Adequate
Net debt $38.48B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 4.0% last year.
- Reward Returns 13.5% on equity, ahead of 40% of its peers.
- Risk Net debt grew 12.8% over 3 years.
- Risk Stock trades 6.3% above its 5-year average P/E.
What this company does
Thermo Fisher Scientific Inc.
Thermo Fisher Scientific is like a massive hardware store for the science and healthcare industries, selling the instruments and daily supplies labs need to develop new drugs and run medical tests. The company makes most of its money from these essential products and services, creating a lot of recurring revenue (predictable sales from repeat customers who constantly need to restock). This makes them a fundamental supplier for medical and scientific progress around the world.
How the company got here
Thermo Fisher Scientific was formed in 2006 through the merger of two companies: Thermo Electron, a maker of scientific instruments, and Fisher Scientific, a longtime supplier of laboratory equipment and chemicals. This combination created a powerhouse in the science and healthcare industries. Since then, the company has grown significantly by acquiring other companies, which has allowed it to expand into new areas like genetics, disease diagnostics, and services that help pharmaceutical companies develop and manufacture new drugs.
What it actually does
Think of Thermo Fisher Scientific as a massive one-stop-shop for scientists, researchers, and healthcare professionals. They don't make the medicines you buy at the pharmacy, but they provide the essential tools, equipment, and services that other companies use to discover and produce them. This includes everything from lab instruments and chemicals to software that analyzes data and services that help run clinical trials (the process of testing new drugs on people).
Life Sciences Solutions
This is one of the company's largest segments and it provides the tools for biological and medical research. It sells the things scientists use daily to study genes and proteins, develop new drugs and vaccines, and diagnose diseases. Customers like pharmaceutical and biotechnology companies buy these products, which include everything from chemicals used in experiments to complex machines that analyze DNA. This segment is a major part of the company's business.
Analytical Instruments
This part of the company makes and sells high-tech machines that allow scientists to analyze materials in incredible detail. For example, their instruments can be used by a food company to ensure quality, an environmental agency to check for pollution, or a pharmaceutical company to verify the chemical makeup of a new drug. These instruments, along with the necessary software and services, are sold to a wide range of customers including industrial companies, government agencies, and research labs. This is a significant, but smaller, portion of the company's overall revenue.
Specialty Diagnostics
This segment focuses on providing the tools that doctors and hospitals use to diagnose diseases more quickly and accurately. They offer a wide variety of products like test kits, lab instruments, and culture media (substances that help bacteria grow so they can be identified). For instance, they make tests that can diagnose allergies, autoimmune diseases, and infections. Healthcare providers and clinical laboratories are the main customers for these products, which help improve patient care.
Laboratory Products and Biopharma Services
This is the company's largest business segment and has two main functions. First, it acts as a massive supplier of everyday laboratory products, from beakers and gloves to chemicals and storage freezers, primarily through its Fisher Scientific brand. Second, it offers a wide range of services to pharmaceutical and biotech companies, such as helping to manage clinical trials and manufacturing drugs on their behalf. This makes them a key partner for companies of all sizes in the drug development process.
What management is betting on now
The company's leadership is focused on being an essential partner to the pharmaceutical and biotech industries as they develop new and more complex medicines, like gene therapies. They are expanding their services to support every stage of drug development, from initial research to running clinical trials and manufacturing. Management is also investing in high-growth areas like diagnostics and using artificial intelligence (AI) to help their customers discover and produce new drugs faster and more efficiently. Their strategy involves continuing to acquire companies that add new technologies and capabilities.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$1.89B
FY2024 Q4
$2.81B
FY2025 Q1
$361.00M
FY2025 Q2
$1.10B
FY2025 Q3
$1.83B
FY2025 Q4
$2.99B
FY2026 Q1
$816.00M
FY2026 Q2
$1.68B
Revenue
$11.99B
Net income
$1.74B
Diluted EPS
4.68
Operating cash flow
$2.12B
Free cash flow
$1.68B
Fetching…
Sources
Revenue
$11.01B
Net income
$1.65B
Diluted EPS
4.43
Operating cash flow
$1.19B
Free cash flow
$816.00M
Fetching…
Sources
Revenue
$12.21B
Net income
$1.96B
Diluted EPS
5.21
Operating cash flow
$3.46B
Free cash flow
$2.99B
Fetching…
Sources
Revenue
$11.12B
Net income
$1.62B
Diluted EPS
4.27
Operating cash flow
$2.24B
Free cash flow
$1.83B
Fetching…
Sources
Revenue
$10.86B
Net income
$1.62B
Diluted EPS
4.28
Operating cash flow
$1.40B
Free cash flow
$1.10B
Fetching…
Sources
Revenue
$10.36B
Net income
$1.51B
Diluted EPS
3.98
Operating cash flow
$723.00M
Free cash flow
$361.00M
Fetching…
Sources
Revenue
$11.39B
Net income
$6.33B
Diluted EPS
4.78
Operating cash flow
$3.29B
Free cash flow
$2.81B
Fetching…
Sources
Revenue
$10.60B
Net income
$1.63B
Diluted EPS
4.25
Operating cash flow
$2.17B
Free cash flow
$1.89B
Fetching…
Sources
Is it cheap or expensive?
Fair value $387.68 vs current price $648.43
Wall Street consensus is the average analyst price target: $645.15 (66.4% higher than our fair-value estimate).
Our most-likely fair value is $387.68 a share — about 40.2% below today's price of $648.43, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $38.5B. Interest coverage 5.7x.
Net debt
$38.48B
Interest coverage
5.72x
Thermo Fisher Scientific Inc.'s profit covers its interest bill about 5.7 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
TMO
BASELINE
Thermo Fisher Scientific Inc.
Total debt $42.55B Interest coverage 5.72x This is the baseline the peer rows are being compared against.
Total debt $27.86B Interest coverage 17.70x +210% vs TMO Carries about 3.1x more debt cushion than TMO.
Total debt $16.81B Interest coverage 4.87x -15% vs TMO Has roughly the same debt cushion as TMO.
Total debt $4.15B Interest coverage 13.21x +131% vs TMO Carries about 2.3x more debt cushion than TMO.
Total debt $16.25B Interest coverage 3.14x -45% vs TMO Carries about 1.8x less debt cushion than TMO.
Total debt $2.14B Interest coverage 16.32x +186% vs TMO Carries about 2.9x more debt cushion than TMO.
What you should know
The case for and against TMO
3 Rewards
3 Risks
Rewards
-
Revenue grew 4.0% last year.
-
Returns 13.5% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 12.8% over 3 years.
-
Stock trades 6.3% above its 5-year average P/E.
-
Insider ownership is only 0.1% (peer median: 0.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
34.49x
Forward P/E
23.55x
P/B
4.55x
P/S
5.17x
EV/EBITDA
23.71x
PEG ratio
1.83x
Profitability
How much profit each dollar creates
Gross margin
41.0%
Operating margin
18.8%
Net margin
15.0%
ROE
13.5%
ROA
5.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.81x
Current ratio
1.55x
Quick ratio
1.01x
Total debt
$42.55B
Total cash
$4.06B
Growth
How the business has been compounding
Revenue TTM
$46.34B
Revenue 5Y CAGR
3.2%
EPS TTM
18.80
EPS 5Y CAGR
0.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$9.01B
Free CF TTM
$6.29B
FCF margin
13.6%
Dividend
Shareholder payout
Yield
0.3%
Payout ratio
9.7%
Last ex-div date
2026-09-15