Thermo Fisher Scientific Receives Strong Growth Rating

A recent report highlights Thermo Fisher Scientific's strong performance in growth evaluation, with significant strengths in revenue growth, EPS consistency, and valuation metrics, although some long-term concerns remain.

Date: 06-10-2024

AI Rating: 6

The report presents a detailed evaluation of Thermo Fisher Scientific Inc. (TMO) using a growth investment strategy. The overall rating for TMO is 69%, which indicates that the stock is positioned favorably among growth stocks. This rating demonstrates solid fundamentals while also reflecting some weaknesses that investors should consider.

Notably, TMO passes several important tests under the growth investment strategy:

P/E Ratio: PASS
Revenue Growth in Relation to EPS Growth: PASS
Sales Growth Rate: PASS
Current Quarter Earnings: PASS
Quarterly Earnings One Year Ago: PASS
Positive Earnings Growth Rate for Current Quarter: PASS
EPS Growth for Current Quarter Must be Greater Than Prior 3 Quarters: PASS
EPS Growth for Current Quarter Must be Greater Than the Historical Growth Rate: PASS
Insider Transactions: PASS

However, there are notable weaknesses:

Earnings Growth Rate for the Past Several Quarters: FAIL
Earnings Persistence: FAIL
Long-term EPS Growth: FAIL
Total Debt/Equity Ratio: FAIL

The significant concern arises from the fails which indicate issues with long-term earnings growth and elevated debt levels relative to equity. This could create some uncertainty for prospective investors about the sustainability of TMO's growth. In contrast, the company exhibits strong short-term growth indicators and relative valuation metrics.

In summary, while TMO demonstrates robust current performance with positive signs in sales and earnings growth, the long-term outlook is marred by inconsistent earnings growth and high debt, which could impact future stock performance.

Stocks: TMO