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$TMO @thermofisher : A surprisingly low-profile picks & shovels science behemoth. Let's review some key points here - thread.
5 year share price performance +229.49%
2020 FY revs +26% YoY
2020 FY adj EPS +58% YoY (+214% vs FY 2016, see chart)
2020 FY FCF $6.8 Billion
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5 year share price performance +229.49%
2020 FY revs +26% YoY
2020 FY adj EPS +58% YoY (+214% vs FY 2016, see chart)
2020 FY FCF $6.8 Billion
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2020 FY buybacks: $1.8 Billion
2020 R&D $1.2 Billion
2020 Capex $1.7 Billion
Markets: 33% Diagnostics & Healthcare, 8% Pharma $ Biotech, 16% Academic & Gov, 13% Industrial & Applied
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2020 R&D $1.2 Billion
2020 Capex $1.7 Billion
Markets: 33% Diagnostics & Healthcare, 8% Pharma $ Biotech, 16% Academic & Gov, 13% Industrial & Applied
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Highly diversified geographically: 53% NA, 26% Euro, 18% Asia-Pacific, 3% RoW (China 2nd largest market after US)
Majority of revenues are recurring: 58% consumables, 21% services, 21% Software, Instruments & Equipment
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Majority of revenues are recurring: 58% consumables, 21% services, 21% Software, Instruments & Equipment
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Personal thoughts: Huge company ($189B MC) but culture of agility & ongoing war against bureaucratic creep/stasis, led by low-profile maestro CEO Marc Casper. Response to Covid demonstrated flexibility - captured $ billions. Didn't blink on pace of accretive acquisitions.
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Massive windfall on covid related diagnostics -> building the war chest -> cash equivalents of $10.33 billion year end compared with $7.54 billion at end Q3.
Increasing covid therapeutics/vaccine revs ~500 million 2020, est. 1 billion in 2021.
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Increasing covid therapeutics/vaccine revs ~500 million 2020, est. 1 billion in 2021.
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High margins - Gross margin 53.9% (+761 bps YoY) Adj. operating margin 33.3% (+ 858 bps YoY)
Tagline: "serving science" - appropos of the overall investment thesis of an increasingly wealthy & aged world in pursuit of health/longevity as a (the?) primary objective of our time
Tagline: "serving science" - appropos of the overall investment thesis of an increasingly wealthy & aged world in pursuit of health/longevity as a (the?) primary objective of our time
No need to pick winners - $TMO is preferred arms dealer to virtually everyone in the science/healthcare/bio/pharm space.
Relatively subdued share price action last 6 months reflects (misguided/overblown) "concerns" re comps this year = opportunity.
Relatively subdued share price action last 6 months reflects (misguided/overblown) "concerns" re comps this year = opportunity.
Thanks for reading. 
I'm in this one for minimum 2 decades
I'm in this one for minimum 2 decades
