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Interested in investing in Thermo Fisher Scientific? Take a look at this article to find out everything you need to know.

Thermo Fisher Scientific is posting strong results for the first quarter of 2021. This American multinational company recorded a better-than-expected profit thanks to the sale of Covid-19-related devices. The company is handling a difficult economic situation better than many others. 

How attractive is the stock to investors? Is the outlook for the company's future good? Let’s take a closer look at Thermo Fisher Scientific stock.

Presentation of the action

Company profile

Thermo Fisher Scientific is a U.S. multinational corporation formed from the merger of two major companies in 2006: Thermo Electron Corporation and Fisher Scientific. This group specializes in the design and sale of laboratory equipment and scientific instruments. Its turnover is divided differently according to the products it sells:

  • Laboratory equipment, for example, accounts for 65.4% of revenues
  • Scientific analysis instruments account for 20.7%
  • Diagnostic equipment and products represent 13.9% of total sales.

As a US-based company, 48.4% of its revenues are generated there. The remainder are generated in North America (2.1%), Europe (24.9%), China (10.8%), Asia-Pacific (10.8%) and other nations (3%).

The company's history

With an eye to expansion, the American multinational has formed several partnerships. In 2013, it acquired the company Life Technologie. In 2014, it sold part of its business, including magnetic beads, to General Electric.

But Thermo Fisher Scientific didn't stop there. In 2016, it acquired Affymetrix, a company specializing in genetic analysis. Recently, it acquired the Belgian gene therapy company Qiagen and Henogen.

Its IPO allowed it to raise even more funds to expand its activities. Currently, its market capitalization is estimated at 175,896 MUSD. As for the shareholding, it is held by :

  • Capital Research and Management Company
  • Vanguard Group Inc.
  • BlackRock, Inc
  • MFS Investment Management KK
  • Massachusetts Financial
  • Services Companycial Services Company
  • Capital Research Global Investors
  • T. Rowe Price Associates, Inc.
  • State Street Corporation
  • Capital World Investors

Advantages Thermo Fisher Scientific stock 

Resilience in the face of the Covid-19 crisis

Despite the economic crisis, 2020 was a good year for the company. Its profits actually increased, especially in its three divisions (specialty diagnostics with 43.70%, laboratory products and services with 15.50% and life sciences solutions divisions with 77.40%).

This resilience is explained by the strong demand for essential Covid-19-related products. These include antibody PCR tests, personal protective equipment and consumables.

The situation is not likely to change for at least two years. According to financial analysts, demand may remain constant despite the arrival of the vaccine and after the opening of the borders. In both cases, testing will remain relevant.

Product variety

Thermo Fisher Scientific is a dynamic company. In 14 years, the multinational has bought out 55 companies, allowing it to acquire over 200 brands. Thanks to its acquisition capacity, its growth remains stable (about 4% every year), despite some bad figures.

In addition, the company is not afraid of challenges, acquiring smaller companies to increase its influence.

Financial statement

Thermo Fisher is not lagging financially, and 2020 was a fruitful year for the company. Its profits actually increased by 26% compared to 2019. The group currently has:

  • A more or less consistent cash balance with 10.30 billion dollars
  • Smaller debts estimated at $21.70 billion with loan maturity through 2024. Cash flow is fairly stable, as it has no liquidity issues.