Thermo Fisher Scientific: Back To Normal


  • Thermo Fisher’s sales and earnings headwinds from declining Covid testing is finally nearing an end.
  • The core business outside of Covid is growing at 14% organically this year and the long-term plan of 7-9% growth looks achievable.
  • The company can grow faster than the market due to its one-stop shop for contract research, bioproduction, diagnostic tools, and analytical instruments.
  • The pullback in the share price to around $500 puts TMO back in the buy territory.

Gas Chromatograph Autosampler in Operation

Gannet77/E+ via Getty Images

Covid Testing Gives Way To Core Growth

As I predicted back in February 2022, Thermo Fisher Scientific (NYSE:TMO) took a breather in 2022 from its strong Covid-driven results of the prior two years. On

Thermo Fisher core revenue growth

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Thermo Fisher customer value proposition

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Thermo Fisher Acquisition history

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Thermo Fisher Income Statement Projection

Author Spreadsheet

2019 2020 2021 2022
Net Income (non-GAAP) $ 4,975 $ 7,812 $ 9,978 $ 9,100
Free Cash Flow $ 4,083 $ 6,823 $ 6,809 $ 7,000
FCF Conversion 82% 87% 68% 77%

Thermo Fisher DCF Analysis

Author Spreadsheet

Thermo Fisher Debt/EBITDA

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Thermo Fisher Capital Return

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Disclosure: I/we have a beneficial long position in the shares of TMO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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