1. Mesfin Symons & Sean McGrath

2. Stock Summary
• NYSE Ticker: TMO
• Sector: Health Care
• Industry: Life Sciences Tools
& Services
• Recommend: BUY
 Market Cap: $52.0B
 52 week low:$117.1
 52 week high:$170.0
 Target price:$165.46

3. OVERVIEW
 Headquartered in Waltham, MA
 50,000+ employees
 50 countries
 $17 Billion in annual revenue

4. What they do
Provides
 Analytical instruments
 Equipment
 Ect.
Serves:
 Biotechnology
 Academic
 Ect.

5. Executives
 Marc N. Casper
CEO
 Alan B. Sachs
CSO
 Peter M. Wilver
CFO

6. Business segment overview
 Life Sciences Solutions
 Analytical Instruments
 Specialty diagnostics
 Laboratory Products and Services

8. Strategy for growth

9. Financials

10. Financials
Metric. TMO Industry Avg.
Market Cap $52.17B $2.4B
Beta 0.97 .98
EPS $4.92 $3.81
Operating Margin 14.78% -61.02%
P/E 26.58 29.81
D/E 58.55% 38.62%
Total Revenue $16.97B $7.09B
Revenue Growth 0.45% 5.15%
Shares Outstanding $399.10M 214.13B

11. Competitors
NAME TICKER MARKET CAP EPS REVENUE
Illumina ILMN $23.66B $3.1 $2.22B
Waters Corp WAT $10.3B $5.65 $2.0B
Becton,
Dickinson and
Co
BDX $31.59 $3.25 $11.22B
Agilent
Technologies
Inc.
A $13.1B $1.40 $4.0B

12. Risks
 Large debt
 Unstable economies
 Lawsuits
 Currency exchange rates
 Healthcare reform legislation

13. Growth
 Innovation across segments
 Presence in Emerging Market
 Long-term Shareholder Value

14. Growth

15. Summary
 Largest player in field
 Constant revenue growth
 Multi-faceted strategy for growth
 Emerging markets
 Innovation

16. DCF
 Historical

17. DCF
 Base case

18. DCF
 Downside

19. DCF
 Output

20. Q&A

21. Q&A

22. Q&A

23. Analyst Price Target Summary
 Mean Target: $150.5
 Median Target: $151.00
 High Target: $170.00

24. Q&A
 Hedging: “The currency-exchange contracts principally
hedge transactions denominated in euro, British pounds
sterling, Swiss franc, Japanese yen, Norwegian kroner, and
Swedish kronor.”
 Share Buybacks
 “The company expects its effective tax rate in 2016 will be
less than 3% based on currently forecasted rates of
profitability in the countries in which the company
conducts business and expected generation of foreign tax
credits.”

25. Competitors VS Segments
Revenue (Billions) R&D
Illumina $2.224 10%
Agilent Technologies $4.0 8%
Becton, Dickson, and CO $11.22 5.6%
Water Corp inc $2.0 1.2%
Revenue (Billions) R&D
Life Sciences Solutions $4.44 7.4%
Analytical Instruments $3.21 6.3%
Specialty Diagnostics $3.29 5.2%
Laboratory Products and
Services
$6.6 2.54%