EUROFINS SCIENTIFIC (ERF.PA) Stock Fundamental Analysis
Europe - EPA:ERF - FR0014000MR3 - Common Stock
62.9 EUR
+0.06 (+0.1%)
ERF gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 20 industry peers in the Life Sciences Tools & Services industry. ERF has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ERF. These ratings could make ERF a good candidate for value investing.
1. Profitability
1.1 Basic Checks
ERF had positive earnings in the past year.
ERF had a positive operating cash flow in the past year.
ERF had positive earnings in each of the past 5 years.
In the past 5 years ERF always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.54%, ERF is in line with its industry, outperforming 50.00% of the companies in the same industry.
ERF has a Return On Equity of 8.09%. This is in the better half of the industry: ERF outperforms 61.11% of its industry peers.
The Return On Invested Capital of ERF (9.79%) is better than 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ERF is in line with the industry average of 7.27%.
The last Return On Invested Capital (9.79%) for ERF is above the 3 year average (8.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.54% | ||
| ROE | 8.09% | ||
| ROIC | 9.79% |
ROA(3y)3.79%
ROA(5y)5.05%
ROE(3y)7.94%
ROE(5y)10.72%
ROIC(3y)8.7%
ROIC(5y)10.54%
1.3 Margins
ERF's Profit Margin of 5.44% is on the low side compared to the rest of the industry. ERF is outperformed by 61.11% of its industry peers.
ERF's Profit Margin has improved in the last couple of years.
The Operating Margin of ERF (15.59%) is better than 61.11% of its industry peers.
ERF's Operating Margin has improved in the last couple of years.
ERF has a Gross Margin of 23.29%. This is amonst the worse of the industry: ERF underperforms 83.33% of its industry peers.
In the last couple of years the Gross Margin of ERF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.59% | ||
| PM (TTM) | 5.44% | ||
| GM | 23.29% |
OM growth 3Y-11.93%
OM growth 5Y3.56%
PM growth 3Y-23.05%
PM growth 5Y9.75%
GM growth 3Y-7.6%
GM growth 5Y1.83%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ERF is still creating some value.
Compared to 1 year ago, ERF has less shares outstanding
ERF has more shares outstanding than it did 5 years ago.
ERF has a better debt/assets ratio than last year.
2.2 Solvency
ERF has an Altman-Z score of 2.71. This is not the best score and indicates that ERF is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ERF (2.71) is comparable to the rest of the industry.
The Debt to FCF ratio of ERF is 5.25, which is a neutral value as it means it would take ERF, 5.25 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.25, ERF is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
A Debt/Equity ratio of 0.77 indicates that ERF is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.77, ERF is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 5.25 | ||
| Altman-Z | 2.71 |
ROIC/WACC1.3
WACC7.51%
2.3 Liquidity
ERF has a Current Ratio of 1.26. This is a normal value and indicates that ERF is financially healthy and should not expect problems in meeting its short term obligations.
ERF has a worse Current ratio (1.26) than 77.78% of its industry peers.
A Quick Ratio of 1.19 indicates that ERF should not have too much problems paying its short term obligations.
ERF's Quick ratio of 1.19 is fine compared to the rest of the industry. ERF outperforms 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
ERF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.50%, which is quite good.
ERF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.34% yearly.
ERF shows a small growth in Revenue. In the last year, the Revenue has grown by 2.53%.
ERF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.78% yearly.
EPS 1Y (TTM)16.5%
EPS 3Y-21.42%
EPS 5Y18.34%
EPS Q2Q%19.61%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y1.14%
Revenue growth 5Y8.78%
Sales Q2Q%5.64%
3.2 Future
The Earnings Per Share is expected to grow by 13.34% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.27% on average over the next years.
EPS Next Y14.76%
EPS Next 2Y14.31%
EPS Next 3Y14.14%
EPS Next 5Y13.34%
Revenue Next Year5.44%
Revenue Next 2Y5.6%
Revenue Next 3Y6.01%
Revenue Next 5Y7.27%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.47, ERF is valued on the expensive side.
83.33% of the companies in the same industry are more expensive than ERF, based on the Price/Earnings ratio.
ERF's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.86.
A Price/Forward Earnings ratio of 15.58 indicates a correct valuation of ERF.
Based on the Price/Forward Earnings ratio, ERF is valued cheaper than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, ERF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 15.58 |
4.2 Price Multiples
ERF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ERF is cheaper than 83.33% of the companies in the same industry.
ERF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ERF is cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.61 | ||
| EV/EBITDA | 8.72 |
4.3 Compensation for Growth
ERF's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ERF has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ERF's earnings are expected to grow with 14.14% in the coming years.
PEG (NY)1.18
PEG (5Y)0.95
EPS Next 2Y14.31%
EPS Next 3Y14.14%
5. Dividend
5.1 Amount
ERF has a yearly dividend return of 0.95%, which is pretty low.
ERF's Dividend Yield is rather good when compared to the industry average which is at 0.71. ERF pays more dividend than 88.89% of the companies in the same industry.
With a Dividend Yield of 0.95, ERF pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
On average, the dividend of ERF grows each year by 16.51%, which is quite nice.
Dividend Growth(5Y)16.51%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ERF pays out 54.91% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ERF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP54.91%
EPS Next 2Y14.31%
EPS Next 3Y14.14%
EPA:ERF (10/3/2025, 7:00:00 PM)
62.9
+0.06 (+0.1%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners37.21%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap11.46B
Analysts68.89
Price Target65.1 (3.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend0.52
Dividend Growth(5Y)16.51%
DP54.91%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.31%
PT rev (3m)7.91%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.22%
EPS NY rev (3m)-0.46%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 15.58 | ||
| P/S | 1.66 | ||
| P/FCF | 14.61 | ||
| P/OCF | 8.71 | ||
| P/B | 2.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.72 |
EPS(TTM)3.6
EY5.72%
EPS(NY)4.04
Fwd EY6.42%
FCF(TTM)4.3
FCFY6.84%
OCF(TTM)7.22
OCFY11.48%
SpS37.84
BVpS25.45
TBVpS-3.69
PEG (NY)1.18
PEG (5Y)0.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.54% | ||
| ROE | 8.09% | ||
| ROCE | 12.64% | ||
| ROIC | 9.79% | ||
| ROICexc | 10.74% | ||
| ROICexgc | 34.1% | ||
| OM | 15.59% | ||
| PM (TTM) | 5.44% | ||
| GM | 23.29% | ||
| FCFM | 11.37% |
ROA(3y)3.79%
ROA(5y)5.05%
ROE(3y)7.94%
ROE(5y)10.72%
ROIC(3y)8.7%
ROIC(5y)10.54%
ROICexc(3y)9.52%
ROICexc(5y)11.6%
ROICexgc(3y)31.02%
ROICexgc(5y)39.55%
ROCE(3y)11.31%
ROCE(5y)13.7%
ROICexcg growth 3Y-18.17%
ROICexcg growth 5Y3.78%
ROICexc growth 3Y-15.5%
ROICexc growth 5Y6.63%
OM growth 3Y-11.93%
OM growth 5Y3.56%
PM growth 3Y-23.05%
PM growth 5Y9.75%
GM growth 3Y-7.6%
GM growth 5Y1.83%
F-Score7
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 5.25 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 84.94% | ||
| Cap/Sales | 7.7% | ||
| Interest Coverage | 9.93 | ||
| Cash Conversion | 77.37% | ||
| Profit Quality | 209.21% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 2.71 |
F-Score7
WACC7.51%
ROIC/WACC1.3
Cap/Depr(3y)89.21%
Cap/Depr(5y)85.64%
Cap/Sales(3y)8.63%
Cap/Sales(5y)7.99%
Profit Quality(3y)162.79%
Profit Quality(5y)158.88%
High Growth Momentum
Growth
EPS 1Y (TTM)16.5%
EPS 3Y-21.42%
EPS 5Y18.34%
EPS Q2Q%19.61%
EPS Next Y14.76%
EPS Next 2Y14.31%
EPS Next 3Y14.14%
EPS Next 5Y13.34%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y1.14%
Revenue growth 5Y8.78%
Sales Q2Q%5.64%
Revenue Next Year5.44%
Revenue Next 2Y5.6%
Revenue Next 3Y6.01%
Revenue Next 5Y7.27%
EBIT growth 1Y14.03%
EBIT growth 3Y-10.93%
EBIT growth 5Y12.66%
EBIT Next Year86.11%
EBIT Next 3Y30.34%
EBIT Next 5Y22%
FCF growth 1Y113.13%
FCF growth 3Y-7.69%
FCF growth 5Y25.62%
OCF growth 1Y31.31%
OCF growth 3Y-4.44%
OCF growth 5Y14.24%