One-glance verdict
Overvalued
$492.31 our estimate vs market $697.00
Wall Street consensus: $752.12 (52.8% higher than our fair-value estimate)
42% above our estimate, beyond the bull case
Fundamentals snapshot
Thermo Fisher Scientific Inc.
TMO · NYQ · Healthcare · Diagnostics & Research
Current price
$697.00
52-week range
$435.27 - $711.85
Market cap
$258.25B
Balance sheet
Watch
5.72x Adequate
Net debt $35.31B. 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 6.3% last year.
- Reward Returns 13.4% on equity, ahead of 40% of its peers.
- Risk Stock trades 13.4% above its 5-year average P/E.
- Risk Net debt grew 12.8% over 3 years.
What this company does
Thermo Fisher Scientific Inc.
Thermo Fisher Scientific is like a giant supermarket for the science and medical world, selling the instruments and daily supplies used for research and patient testing. Much of its money comes from selling consumables (products that are used up and must be reordered, like test kits), which creates a reliable income stream as customers keep coming back. Because their products are essential for developing new drugs and diagnosing diseases, the company plays a foundational role in healthcare innovation.
How the company got here
Thermo Fisher Scientific was officially born in 2006 from the merger of two long-standing science-focused companies: Thermo Electron, a maker of analytical instruments founded in 1956, and Fisher Scientific, a laboratory supplier with roots going back to 1902. This combination created a powerhouse in the scientific world. Since then, the company has grown significantly by acquiring other specialized companies, which has allowed it to expand its offerings in areas like genetic testing, drug development services, and diagnostics. These acquisitions have been a key part of its strategy to become a one-stop shop for scientists and researchers.
What it actually does
Think of Thermo Fisher Scientific as a giant superstore for scientists, doctors, and researchers. They don't sell directly to everyday consumers, but their products are essential for making many things you rely on, from new medicines to the food you eat. The company provides everything from the basic tools found in a lab, like beakers and freezers, to highly advanced instruments that can analyze DNA or detect tiny amounts of chemicals. They also offer services to help pharmaceutical companies run clinical trials (the process of testing new drugs on people) and manufacture medicines. Their goal is to provide the tools and support that help their customers make the world healthier, cleaner, and safer.
Life Sciences Solutions
This part of the company provides the essential ingredients and tools for biological and medical research, making up a significant portion of the company's business. Imagine scientists trying to develop a new vaccine or understand a disease; this segment sells them the necessary supplies, like reagents (chemicals used in experiments), and instruments to study genes and cells. Pharmaceutical and biotechnology companies are major customers, buying these products to discover and produce new drugs. A large portion of this segment's sales comes from consumables (products that are used up and need to be repurchased regularly), which creates a steady stream of revenue.
Analytical Instruments
This segment focuses on selling high-tech machines that perform detailed analysis of chemical and biological substances. These are not your everyday instruments; they include things like mass spectrometers and chromatographs, which can identify and measure the different components of a mixture with extreme precision. Customers in the pharmaceutical industry use these instruments for quality control to ensure their products are safe and effective, while government agencies might use them for environmental testing. This part of the business is more cyclical (meaning its sales can go up and down with the broader economy) because it relies on other companies making large purchases of expensive equipment.
Specialty Diagnostics
This division provides a wide array of tests and equipment used in hospitals and clinical laboratories to diagnose diseases and monitor patient health, representing a smaller slice of the company's total revenue. This includes everything from blood tests for allergies and autoimmune diseases to tests that can identify infectious diseases. The goal of these products is to help doctors make faster and more accurate diagnoses, which can lead to better and more cost-effective patient care. This segment has grown through acquisitions of companies with specialized diagnostic technologies.
Laboratory Products and Biopharma Services
This is the largest part of Thermo Fisher's business and acts as both a massive supplier of everyday lab equipment and a partner to pharmaceutical companies. Through its Fisher Scientific brand, it offers a huge catalog of laboratory supplies, from chemicals to safety equipment. A major and growing part of this segment is providing services to other drug companies, such as managing clinical trials and manufacturing medicines on their behalf. This allows pharmaceutical companies to outsource (hire another company to do work for them) complex parts of the drug development process.
What management is betting on now
The company's leadership is focused on being an essential partner to the scientific and healthcare industries from the early research stage all the way to the production of new medicines. A key part of their strategy is to continue acquiring companies that add new technologies and services, particularly to support their pharmaceutical and biotech customers. They are also investing heavily in innovation, including using artificial intelligence (AI) to speed up drug discovery and improve their own operations. Management also emphasizes a system they call the Practical Process Improvement (PPI) Business System, which is their way of continuously finding ways to operate more efficiently and effectively.
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 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
FY2026 Q3
$2.11B
Revenue
$12.14B
Net income
$1.72B
Diluted EPS
4.64
Operating cash flow
$2.55B
Free cash flow
$2.11B
Fetching…
Sources
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
Is it cheap or expensive?
Fair value $492.31 vs current price $697.00
Wall Street consensus is the average analyst price target: $752.12 (52.8% higher than our fair-value estimate).
Our most-likely fair value is $492.31 a share — about 29.4% below today's price of $697.00, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $35.3B. Interest coverage 5.7x.
Net debt
$35.31B
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 $41.37B Interest coverage 5.72x This is the baseline the peer rows are being compared against.
Total debt $27.78B 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 $16.31B 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 6.3% last year.
-
Returns 13.4% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 13.4% above its 5-year average P/E.
-
Net debt grew 12.8% over 3 years.
-
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)
36.76x
Forward P/E
25.10x
P/B
4.71x
P/S
5.45x
EV/EBITDA
24.05x
PEG ratio
2.03x
Profitability
How much profit each dollar creates
Gross margin
41.2%
Operating margin
20.2%
Net margin
14.9%
ROE
13.4%
ROA
5.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.75x
Current ratio
1.81x
Quick ratio
1.11x
Total debt
$41.37B
Total cash
$6.06B
Growth
How the business has been compounding
Revenue TTM
$47.35B
Revenue 5Y CAGR
3.2%
EPS TTM
18.96
EPS 5Y CAGR
0.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$9.32B
Free CF TTM
$6.29B
FCF margin
13.3%
Dividend
Shareholder payout
Yield
0.3%
Payout ratio
9.7%
Last ex-div date
2026-09-15