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TMO (Thermo Fisher Scientific) Earnings Yield (Joel Greenblatt) % : 3.13% (As of Sep. 2024)


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What is Thermo Fisher Scientific Earnings Yield (Joel Greenblatt) %?

Thermo Fisher Scientific's Enterprise Value for the quarter that ended in Sep. 2024 was $265,086 Mil. Thermo Fisher Scientific's EBIT for the trailing twelve months (TTM) ended in Sep. 2024 was $8,299 Mil. Thermo Fisher Scientific's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2024 was 3.13%.

The historical rank and industry rank for Thermo Fisher Scientific's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

TMO' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.41   Med: 3.3   Max: 5.08
Current: 3.47

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Thermo Fisher Scientific was 5.08%. The lowest was 2.41%. And the median was 3.30%.

TMO's Earnings Yield (Joel Greenblatt) % is ranked better than
74.44% of 223 companies
in the Medical Diagnostics & Research industry
Industry Median: -3.31 vs TMO: 3.47

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Thermo Fisher Scientific's Forward Rate of Return (Yacktman) % for the quarter that ended in Sep. 2024 was 13.50%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Thermo Fisher Scientific Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Thermo Fisher Scientific's Earnings Yield (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Thermo Fisher Scientific Earnings Yield (Joel Greenblatt) % Chart

Thermo Fisher Scientific Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.28 3.97 3.19 3.55 3.30

Thermo Fisher Scientific Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Earnings Yield (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.37 3.30 3.18 3.50 3.13

Competitive Comparison of Thermo Fisher Scientific's Earnings Yield (Joel Greenblatt) %

For the Diagnostics & Research subindustry, Thermo Fisher Scientific's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Thermo Fisher Scientific's Earnings Yield (Joel Greenblatt) % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Thermo Fisher Scientific's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Thermo Fisher Scientific's Earnings Yield (Joel Greenblatt) % falls into.



Thermo Fisher Scientific Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Thermo Fisher Scientifics Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2023 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=7673/232175.36113
=3.30 %

Thermo Fisher Scientific's EBIT for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $8,299 Mil.



Thermo Fisher Scientific  (NYSE:TMO) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Thermo Fisher Scientific Earnings Yield (Joel Greenblatt) % Related Terms

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Thermo Fisher Scientific Business Description

Address
168 Third Avenue, Waltham, MA, USA, 02451
Thermo Fisher Scientific sells scientific instruments and laboratory equipment, diagnostics consumables, and life science reagents. The firm operates through four segments as of end-2023 (revenue figures include some cross-segment revenue): analytical technologies (17% of sales); specialty diagnostic products (10%); life science solutions (23%); and lab products and services, which includes CRO services (54%).
Executives
Marc N Casper officer: Senior Vice President C/O THERMO FISHER SCIENTIFIC, 168 THIRD AVENUE, WALTHAM MA 02451
Lisa P. Britt officer: Sr. VP and Chief HR Officer 168 THIRD AVENUE, WALTHAM MA 02451
Joseph R. Holmes officer: VP & Chief Accounting Officer 168 THIRD AVENUE, WALTHAM MA 02451
Gianluca Pettiti officer: Executive Vice President C/O BUTTERFLY NETWORK, INC., 530 OLD WHITFIELD STREET, GUILFORD CT 06437
Michael A Boxer officer: Sr. VP and Gen. Counsel 168 THIRD AVENUE, WALTHAM MA 02451
Michel Lagarde officer: Senior Vice President 450 LEXINGTON AVE., 31ST FLOOR, NEW YORK NY 10017
Stephen Williamson officer: Sr. VP and CFO 81 WYMAN STREET, WALTHAM MA 02451
Debora L Spar director C/O GOLDMAN, SACHS & CO., 200 WEST STREET, NEW YORK NY 10282
Jennifer M Johnson director C/O FRANKLIN RESOURCES, INC., ONE FRANKLIN PARKWAY, SAN MATEO CA 94403-1906
Jim P Manzi director 81 WYMAN ST, POST OFFICE BOX 9046, WALTHAM MA 02454
Ruby R Chandy director 630 DUNDEE ROAD, SUITE 400, NORTHBROOK IL 60062
Mark P Stevenson officer: Executive Vice President 850 LINCOLN CENTRE DRIVE, FOSTER CITY CA 94404
R. Alexandra Keith director ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Peter E Hornstra officer: Chief Accounting Officer 81 WYMAN ST, POST OFFICE BOX 9046, WALTHAM MA 02454
Syed A. Jafry officer: Sr. Vice President 345 E. MAIN STREET, WARSAW IN 46580