TMO Financial Analysis

Analysis Date: 1/31/2025

Business Model

Thermo Fisher generates revenue through four main segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Biopharma Services

Revenue Sources

• Laboratory Products and Biopharma Services (52.1% of revenue)
• Life Sciences Solutions (22.9% of revenue)
• Analytical Instruments (19.2% of revenue)
• Specialty Diagnostics (10.2% of revenue)

Revenue Distribution by Channel

• Laboratory Products and Biopharma Services: $5,936M
• Life Sciences Solutions: $2,604M

Income Statement Analysis

• Revenue grew 5% year-over-year to $11.40 billion
• Operating margin improved to 17.7% from 17.0% year-over-year
• Adjusted operating margin expanded 50 basis points to 23.9%

Balance Sheet Analysis

• Strong balance sheet with $5.6B in cash and short-term investments
• Total debt reduced to $31.3B from $34.9B year-over-year

Cash Flow Analysis

• Generated $8.7B operating cash flow and $7.3B free cash flow in 2024

Capital Allocation

Returned $4.6B to shareholders through $4.0B in share repurchases and $0.6B in dividends. Completed acquisition of Olink for proteomics research capabilities. Maintained disciplined capital deployment strategy focused on strategic M&A and shareholder returns.

Management Commentary

Finished 2024 with excellent financial performance, delivering strong growth on top and bottom line in Q4

Drove meaningful share gain and enabled customer success through proven growth strategy

Well-positioned to deliver excellent performance in 2025

Overall Sentiment: Very positive on execution and future outlook, highlighting strong momentum entering 2025

Recommendation

Rating: Buy

Reason for Rating: Strong execution, market leadership position, and positive growth outlook support a Buy rating

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/31/2025, 5:23:34 AM