Business. ThermoFisher makes and sells analytical instruments, laboratory supplies, and laboratory services to the biotech-pharma, healthcare, process control, and basic science industries. Revenues are earned through wholesale distribution of products and direct sales to laboratories.
Market position. ThermoFisher is the leading provider of analytical instruments and laboratory supplies. The firm’s competitive advantages are its breadth of products and brand names (Thermo Scientific, Fisher Scientific) .
Upside potential. TMO:nyse is a large-cap growth stock with 91% institutional ownership. Investment returns are earned from stock price appreciation, not from payouts of dividends. Recent valuation ratios were P/E 15 and EPS $3.38. Standard and Poor’s credit rating is A (investment grade).
Downside potential. Major risks to ThermoFisher’s business are the 1) slow development of new products, 2) maturing markets for scientific supplies, and 3) dependence on customers’ capital spending.
Helpful links and references. ThermoFisher’s Corporate web site, competitors (ref 1), and market position (ref 1,2).
- Lab equipment/consumables index sales decline. (company overview), Instrument Business Outlook, ISSN: 1061-2203; volume 18, issue 1, 15 April 2009.
- Bathija, Sagar. Thermo Fisher Scientific, The M. J. Neely School of Business Education Investment Fund, July 4, 2009.