Morningstar Rating

Stock Research and Analysis

by Alex Morozov, CFA

Bulls Say

The firm's target market is approximately $95 billion. With total sales approaching $17 billion, Thermo Fisher is the largest supplier of research instruments and consumables.
Thermo Fisher is among the industry leaders in nearly every product category. The firm's catalog is ubiquitous in research labs across the globe.
In addition to being an efficient integrator of acquired businesses, company invests heavily in its own technology, particularly Mass Spectrometry, where it is one of the global leaders. Read more 

Bears Say

Thermo Fisher is an aggressive acquirer. The company's expansion strategy depends heavily on the success of its acquisitions. Its earnings numbers are polluted by significant non-GAAP adjustments.
The firm's diagnostic business relies on patient traffic. Lab volume growth has been lackadaisical coming out of the recession. A strong U.S. dollar is also a headwind in this business.
The company was able to fuel its acquisition spree by access to extremely inexpensive debt. Generating excess returns on acquisitions in a less favorable interest-rate environment might be more challenging. Read more 

Management

We give Thermo Fisher a Standard stewardship rating, but we believe this management team's performance will be ultimately judged on the success of the Life acquisition, along with the myriad other deals spurred by access to cheap financing. We think   Read more 

Profile

Thermo Fisher Scientific sells scientific instruments and laboratory equipment through its analytical technologies segment (about 19% of sales), diagnostic products (about   Read more 

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