Last Updated: 14 Sep 2024
Executive Summary
Thermo Fisher Scientific Inc. (TMO) is a leading provider of scientific instrumentation, reagents, consumables, software, and services to healthcare, life science, and other laboratories. The company has a strong financial position with a market capitalization of $233.46 billion, EBITDA of $10.765 billion, and EPS of $16.13. TMO's trailing PE ratio is 37.89, and its forward PE ratio is 25.32. The company's 52-week high is $627.48, and its 52-week low is $414.5. The current stock price is $611.17.
Company Overview
Thermo Fisher Scientific was formed in 2006 through the merger of Thermo Electron and Fisher Scientific. The company is headquartered in Waltham, Massachusetts, and has operations in over 50 countries. TMO's products and services are used in a wide range of applications, including drug discovery, diagnostics, environmental monitoring, and food safety.
Fundamental Analysis
TMO's financial performance has been strong in recent years. The company's revenue has grown from $24.3 billion in 2016 to $42.35 billion in 2023. TMO's net income has also grown significantly, from $3.6 billion in 2016 to $6.2 billion in 2023. The company's gross profit margin has remained relatively stable at around 45%.
TMO's return on assets (ROA) and return on equity (ROE) are both above industry averages. The company's ROA is 4.83%, and its ROE is 13.5%. TMO's debt-to-equity ratio is 1.25, which is below the industry average.
Technical Analysis
TMO's stock price has been trending higher in recent months. The stock broke out of a bullish triangle pattern in early 2023, and it has since rallied to its 52-week high. The stock is currently trading above its 50-day and 200-day moving averages. The relative strength index (RSI) is above 70, which indicates that the stock is overbought.
Short Term Outlook
TMO's stock price is likely to continue to trend higher in the short term. The company's strong financial performance and positive technical outlook suggest that the stock is undervalued. The stock could reach its analyst target price of $632.54 in the next 12 months.
Long Term Outlook
TMO's long-term outlook is also positive. The company is a leader in the life sciences industry, and it is well-positioned to benefit from the growing demand for scientific instrumentation and services. The company's strong financial position and commitment to innovation should allow it to continue to grow its market share and deliver strong returns to shareholders.
Analyst Recommendations
The majority of analysts who cover TMO have a buy or strong buy rating on the stock. The average analyst target price is $632.54.
