Summary
- Thermo Fisher is a profitable company with moderate debt levels.
- The company’s earnings have shown strong growth over the last five years with more growth expected for 2020.
- Management is proactive and will divest any business unit that underperforms and replace it with new acquisitions that have the potential to perform.
- Thermo Fisher sees further growth opportunities in China.
Introduction
Thermo Fisher Scientific Inc. (TMO) is a global company in the medical research industry providing instruments, equipment and software. The company’s has shown solid growth over the years and more growth is forecast for 2020.
Management is proactive and seeks out opportunities. The company’s acquisition strategy is to look for businesses that will provide future growth and management will even divest its own business units if they underperform. Also, the company is expanding its operations in emerging markets as a means of boosting growth.
Over the long term I think that Thermo Fisher has the potential to grow well into the future along with its stock price.
