Thermo Fisher Scientific Inc. Scores High in Growth Model

Thermo Fisher Scientific Inc. achieves a strong 69% rating under the Growth Investor model. This score indicates a solid underlying fundamental performance but highlights some areas of concern regarding earnings persistence and long-term growth. Investors should monitor these factors closely.

Date: 23-02-2025

AI Rating: 6

Overview of Analysis

Thermo Fisher Scientific Inc. (TMO) has received a rating of 69% based on the Growth Investor model criteria. This suggests that while TMO demonstrates strong fundamentals, some aspects could concern investors moving forward.

Revenue Growth

The report indicates that TMO has passed the revenue growth and sales growth rate criteria. This points toward the company's ability to generate growing sales, which is a positive indication for future stock performance.

Earnings Growth

Despite passing multiple tests for current quarter earnings growth and quarterly earnings comparisons, TMO has failed in the overall earnings growth rate over the past several quarters and in long-term EPS growth. These failures suggest that while TMO may have short-term earnings success, its long-term growth trajectory may not be as strong, which could negatively impact investor sentiment.

Profit Margins & Free Cash Flow

The analysis does not specifically mention profit margins or free cash flow, so no direct assessments can be made in these areas. However, the passing of the total debt/equity ratio suggests that TMO is managing its debt well, which is positive for operating performance.

Returns and Stability

The report also notes insider transactions as a passing criteria, which may suggest confidence from those within the company. However, the failures in earnings persistence may signal concerns regarding the stability of earnings over time.

Conclusion

Overall, while TMO demonstrates several strengths, including revenue growth and reasonable valuations, the weaknesses in earnings persistence and long-term growth could affect its stock price. Investors should weigh these factors carefully when considering an investment in TMO.

Stocks: TMO