thermo fisher scientific inc
TRANSCRIPT
Thermo Fisher Scientific Inc.Mesfin Symons & Sean McGrath
Stock Summary
• NYSE Ticker: TMO• Sector: Health Care• Industry: Life Sciences
Tools & Services• Recommend: BUY
Market Cap: $52.0B52 week low:$117.152 week high:$170.0Target price:$165.46
OVERVIEW Headquartered in Waltham, MA50,000+ employees50 countries$17 Billion in annual revenue
What they doProvides Analytical instrumentsEquipmentEct.Serves:Biotechnology AcademicEct.
ExecutivesMarc N. Casper CEO
Alan B. Sachs CSO
Peter M. Wilver CFO
Business segment overviewLife Sciences SolutionsAnalytical InstrumentsSpecialty diagnosticsLaboratory Products and Services
Strategy for growth
Financials
FinancialsMetric. TMO Industry Avg.
Market Cap $52.17B $2.4B
Beta 0.97 .98
EPS $4.92 $3.81
Operating Margin 14.78% -61.02%
P/E 26.58 29.81
D/E 58.55% 38.62%
Total Revenue $16.97B $7.09B
Revenue Growth 0.45% 5.15%
Shares Outstanding $399.10M 214.13B
CompetitorsNAME TICKER MARKET
CAPEPS REVENUE
Illumina ILMN $23.66B $3.1 $2.22B
Waters Corp WAT $10.3B $5.65 $2.0B
Becton, Dickinson and Co
BDX $31.59 $3.25 $11.22B
Agilent Technologies Inc.
A $13.1B $1.40 $4.0B
RisksLarge debtUnstable economiesLawsuits Currency exchange ratesHealthcare reform legislation
Growth Innovation across segmentsPresence in Emerging Market Long-term Shareholder Value
Growth
SummaryLargest player in fieldConstant revenue growthMulti-faceted strategy for growthEmerging marketsInnovation
DCFHistorical
DCFBase case
DCFDownside
DCFOutput
Q&A
Q&A
Q&A
Analyst Price Target SummaryMean Target: $150.5
Median Target: $151.00
High Target: $170.00
Q&AHedging: “The currency-exchange contracts
principally hedge transactions denominated in euro, British pounds sterling, Swiss franc, Japanese yen, Norwegian kroner, and Swedish kronor.”
Share Buybacks
“The company expects its effective tax rate in 2016 will be less than 3% based on currently forecasted rates of profitability in the countries in which the company conducts business and expected generation of foreign tax credits.”
Competitors VS SegmentsRevenue (Billions) R&D
Illumina $2.224 10%Agilent Technologies $4.0 8%Becton, Dickson, and CO
$11.22 5.6%
Water Corp inc $2.0 1.2%Revenue (Billions) R&D
Life Sciences Solutions
$4.44 7.4%
Analytical Instruments
$3.21 6.3%
Specialty Diagnostics $3.29 5.2%
Laboratory Products and Services
$6.6 2.54%