TMO - Embedded Expectations Analysis - 2018 09 10
Thermo Fisher Scientific Inc. (TMO:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 20.3x Uniform P/E. However, even at these levels, the market has bearish expectations for the firm, and management has concerns about investments, tariff headwinds, and growth sustainabilitySpecifically, management may be concerned about their ability to sustain elevated earnings and revenue levels, and strength in their end markets. Additionally, they may lack confidence in the sustainability of favorable foreign exchange rates, and may be concerned about their ability to generate value from their strategic investments. Also, they may lack confidence in their ability to meet their revised revenue guidance, and may be downplaying concerns about tariff headwinds. Finally, they may be concerned about their ability to sustain growth momentum in their Analytical Instruments segment, and in their newly acquired Patheon business
Thermo Fisher Scientific is engaged in serving science. The company's segments include: Life Sciences Solutions, which provides reagents, instruments and consumables used in biological and medical research, discovery and production of new drugs and vaccines as well as diagnosis of disease; Analytical Instruments, which provides instruments, consumables, software and services that are used for a range of applications in the laboratory, on the production line and in the field; and Specialty Diagnostics, which provides diagnostic test kits, reagents, culture media, instruments and associated products for customers in healthcare, clinical, pharmaceutical, industrial, and food safety laboratories.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.