Antradienis, 21 gegužės, 2024
US Stocks

Thermo Fisher Scientific Inc Shares

Thermo Fisher Scientific Inc. is the largest high-technology company in the world. It offers products and services for science, creating and manufacturing products for scientific research and diagnostics. Its clients include pharmaceutical and biotechnology companies, hospital diagnostic laboratories, universities, research institutes, government agencies, and other institutions worldwide.

Thermo Fisher Scientific Baltic is a division in Lithuania. The company employs around 55,000 employees in over 50 countries. The main brands of the company are Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, and Unity Lab Services.


Main businesses: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, Laboratory Products and Services. The company is a market leader. This allows the company to maintain relatively high profitability ratios and withstand competitive pressure.

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Thermo Fisher Scientific Inc

Finances

Company finances are managed by assuming the risk necessary to maintain competitiveness. All obligations constitute 121% of Equity. The percentage is increasing due to the repurchase of Treasury shares. In order to cover Long-term debts with Net profit in 2022, it would take approximately 4.15 years.

Funds are needed for the development and market implementation of new products. The market is highly dynamic, requiring constant innovation. In order to remain a leader, it is necessary to meet high standards. The best approach is to create the standards ourselves. Many competitors of the company use its products for their research and services.

The company’s profit growth dynamics have a stable positive trend. The average annual growth rate of EPS over the past 10 years was as high as 18.57%, while the average annual growth rate of EPS over the past 5 years was 25.83%. The average 10-year ROAE stands at 12.71%. The return has increased and is now even better.

The company invests exclusively within its competence framework. The company’s operations require constant capital investments. And $1 invested in long-term assets earns a staggering $3.70 EPS.

If the shareholders of the company would like to sell their shares and invest today in a 10-year US Treasury Bond and achieve the same return as the company provided in 2022, then they should sell the shares for $471 USD.

After fully evaluating the performance indicators, we have an investment decision score:

Thermo Fisher Scientific Inc
Investicinis sprendimas

Thermo Fisher Scientific Inc shares

The company’s stocks are listed on the New York Stock Exchange (NYSE). The ticker is TMO.

The company has its own share buyback program. The reserve is formed annually and typically fully utilized. In 2022 alone, the company created value for shareholders through share repurchases and dividend payments totaling $3.455 billion USD, which represents about half of the Net profit.

The company’s dividend yield is very low. However, the average dividend growth rate reaches as high as 8.31%. Investors highly value this company, and the stock price has risen significantly. Therefore, we have a question about what investment yield we can expect for such a price.

The GRAPES method calculated price reaches 496 USD. As we can see, both the fixed interest rates and the theoretical prices of GRAPES are slightly lower than the market price at the time of writing, despite the fact that the price has been in correction for some time.

Since the announcement of the idea, investors have already received a pre-tax return of 328% or an average annual return of 21.67%. Is it possible to expect such returns in the future? Based on today’s calculations, over a five to six-year perspective, one can expect an average annual stock price growth of 10%-17%. With dividends, the return may be slightly higher.

Thermo Fisher Scientific Inc

We recommend continuing to ACCUMULATE stocks, and reinvesting dividends.


Technical analysis


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