Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A- . The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, attractive valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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Highlights from the ratings report include:
- TMO's revenue growth has slightly outpaced the industry average of 5.2%. Since the same quarter one year prior, revenues slightly increased by 8.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- THERMO FISHER SCIENTIFIC INC has improved earnings per share by 41.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, THERMO FISHER SCIENTIFIC INC increased its bottom line by earning $2.65 versus $2.44 in the prior year. This year, the market expects an improvement in earnings ($4.80 versus $2.65).
- Net operating cash flow has increased to $507.50 million or 43.07% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 19.16%.
- 46.50% is the gross profit margin for THERMO FISHER SCIENTIFIC INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.50% trails the industry average.
Thermo Fisher Scientific, Inc. provides analytical instruments, equipment, reagents and consumables, software, and services for research, manufacture, analysis, discovery, and diagnostics. The company has a P/E ratio of 18.7, below the average health services industry P/E ratio of 19.1 and above the S&P 500 P/E ratio of 17.7. Thermo Fisher Scientific has a market cap of $20.95 billion and is part of the
industry. Shares are up 25.8% year to date as of the close of trading on Friday.
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--Written by a member of TheStreet Ratings Staff.