TMO Value Scorecard - Thermo Fisher Scientific

Value Scorecard · run 2026-10-18

13 value checks: 12 scored 1 to 5, plus moat evidence

32/60

low-moderate value score

Earnings & returns

EPS Trend

4/5

Diluted EPS: $17.63 (2022), $15.45 (2023), $16.53 (2024), $17.74 (2025). It rose every year but one and ended above 2022; the framework scores that as 4.

ROE Trend

3/5

ROE (net income / common equity): 15.8% (2022), 12.8% (2023), 12.8% (2024), 12.6% (2025). Median 12.8%, lowest 12.6%; the framework scores a median 10-15% as 3.

ROIC

2/5

ROIC of 8.1%: operating income of $7.75B divided by $95.15B of capital (total assets $110.34B minus current liabilities $15.19B), fiscal year to Dec 31, 2025, as filed in the 10-K (SEC EDGAR). The framework scores 5-10% as 2.

Profit Margins

4/5

Net margin of 15.0%; the framework scores 10-20% as 4; gross margin 41.0%, operating margin 18.8%.

Balance sheet & cash

Debt-to-Equity

3/5

Debt-to-equity of 0.81; the framework scores 0.8-1.5 as 3 (total debt $42.55B, total cash $4.06B).

Free Cash Flow

2/5

Free cash flow (operating cash flow minus capital expenditure): $6.91B (2022), $6.93B (2023), $7.27B (2024), $6.29B (2025). It ended at or below 2022; the framework scores that as 2.

Retained Earnings

5/5

Retained earnings, as filed in the 10-Ks (SEC EDGAR): $41.91B (2022), $47.36B (2023), $53.10B (2024), $59.16B (2025). It rose every year; the framework scores that as 5.

Valuation models

Graham IV

1/5

IV = EPS x (8.5 + 2g) x (4.4 / Y) = $18.58 x (8.5 + 2 x 7.2) x (4.4 / 4.5) = $416.03. Current price $690.00; price is 65.9% above the model value.

DCF Value

1/5

FCF/share = $16.869, stage 1 growth = 2.0% for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $67.63, PV of terminal value = $170.16, DCF value = $237.80. Current price $690.00; price is 190.2% above the model value.

Margin of Safety

1/5

Graham value $416.03 (price is 65.9% above the model value); DCF value $237.80 (price is 190.2% above the model value).

Price-to-Book

2/5

P/B of 4.84; the framework scores 3.0-5.0 as 2.

Business quality

Moat Evidence

Not scored

A moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.

Return on capital, each year

Above 15% in 0 of 10 years (2016-2025); lowest 6.0%, highest 13.3%.

Gross margin, each year

Not reported: the filings don’t state a gross profit or cost of revenue figure, as is common for oil and gas companies, banks and insurers.

Competition, in the company’s own words · 10-K filed Feb 26, 2026

The company encounters aggressive and able competition in virtually all of the markets we serve. Because of the diversity of our products and services, we face many different types of competitors and competition. Our competitors include a broad range of manufacturers, third-party distributors and service providers. Competitive climates in many of the markets we serve are characterized by changing technology and

The opening of the company’s “Competition” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.

Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.

Capital Allocation

4/5

Capital allocation, 2022-2025: dividends or buybacks paid in every year (pass); $15.20B paid out against $27.40B of free cash flow (pass); total debt $34.49B to $39.38B, up 14.2%, 3.4x EBITDA (fail: up more than 10% and above 2x EBITDA); shares outstanding 0.39B to 0.38B, down 3.7% (pass). 3 of 4 tests passed; the framework scores that as 4.

Filings

Company notices to the SEC

Not scored

Three kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.

These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.

How the Graham and DCF values were calculated

  Graham Formula:
    IV = EPS x (8.5 + 2g) x (4.4 / Y)
    EPS = $18.58, g = 7.2%, Y = 4.5
    IV = $416.03
    Current price $690.00 vs Graham value $416.03 — price is 65.9% above the model value.

  DCF:
    FCF/share = $16.869
    Stage 1 growth = 2.0% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
      Y1: $17.206 → PV $15.642
      Y2: $17.550 → PV $14.505
      Y3: $17.901 → PV $13.450
      Y4: $18.259 → PV $12.471
      Y5: $18.625 → PV $11.564
    Stage 1 PV sum = $67.63
    Terminal value at end of Y5 = $274.05
    PV of terminal value = $170.16
    DCF value = $237.80
    Current price $690.00 vs DCF value $237.80 — price is 190.2% above the model value.

Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $690.00. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.

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