thermo fisher scientific inc

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%