Morningstar Rating

Stock Research and Analysis

by James Krapfel, CFA

Bulls Say

Tyco has well-respected brands such as Tyco, Tyco Integrated Security, SimplexGrinnell, Sensormatic, Wormald, Scott, and ADT. Tyco can sometimes extract premium pricing from the brand equity.
Tyco enjoys a leading share in the $70 billion security and fire installation and services market and a top-two position in the $30 billion security and fire product market. The firm is in a prime position to steal share from the highly fragmented market.
An ongoing recovery in commercial construction should buttress financial results further. Read more 

Bears Say

Significant uncertainty resides in the company's longstanding tax dispute with the IRS, as well as with its asbestos liabilities, which could ultimately cost the company north of a billion dollars.
Prospects for secular growth in the North America installation and services market are limited, given the already high penetration of security and fire systems installed in commercial buildings and other end markets.
Organic revenue growth has averaged a supbpar 2% since the company undertook its split in September 2012. Accelerated growth continues to get postponed. Read more 

Management

George Oliver has served as CEO since Tyco completed its most recent split in September 2012. Since joining Tyco in 2006, Oliver was president of Tyco safety products from 2006 to 2010 and was named president of Tyco electrical and metal products (now   Read more 

Profile

Tyco is a global provider of security products and services, fire detection and suppression products and services, and life safety products. Brand names include Tyco, Tyco   Read more 

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