EUROFINS SCIENTIFIC (ERF.PA)
FR0014000MR3 - Common Stock
ERF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 15 industry peers in the Life Sciences Tools & Services industry. There are concerns on the financial health of ERF while its profitability can be described as average. ERF is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ERF was profitable.
In the past year ERF had a positive cash flow from operations.
Each year in the past 5 years ERF has been profitable.
In the past 5 years ERF always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ERF (2.36%) is comparable to the rest of the industry.
The Return On Equity of ERF (5.05%) is worse than 66.67% of its industry peers.
The Return On Invested Capital of ERF (7.33%) is better than 73.33% of its industry peers.
ERF had an Average Return On Invested Capital over the past 3 years of 10.55%. This is in line with the industry average of 8.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 5.05% | ||
| ROIC | 7.33% |
ROA(3y)5.38%
ROA(5y)4.78%
ROE(3y)11.1%
ROE(5y)10.42%
ROIC(3y)10.55%
ROIC(5y)9.93%
1.3 Margins
ERF's Profit Margin of 3.94% is on the low side compared to the rest of the industry. ERF is outperformed by 66.67% of its industry peers.
ERF's Profit Margin has declined in the last couple of years.
ERF has a worse Operating Margin (12.92%) than 60.00% of its industry peers.
In the last couple of years the Operating Margin of ERF has remained more or less at the same level.
With a Gross Margin value of 20.93%, ERF is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
ERF's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.92% | ||
| PM (TTM) | 3.94% | ||
| GM | 20.93% |
OM growth 3Y-11.78%
OM growth 5Y-1.27%
PM growth 3Y-24.89%
PM growth 5Y-3.22%
GM growth 3Y-6.94%
GM growth 5Y1.92%
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.
ERF has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ERF has more shares outstanding
ERF has a worse debt/assets ratio than last year.
2.2 Solvency
ERF has an Altman-Z score of 2.66. 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.
Looking at the Altman-Z score, with a value of 2.66, ERF is doing worse than 60.00% of the companies in the same industry.
ERF has a debt to FCF ratio of 8.39. This is a slightly negative value and a sign of low solvency as ERF would need 8.39 years to pay back of all of its debts.
ERF has a Debt to FCF ratio (8.39) which is comparable to the rest of the industry.
ERF has a Debt/Equity ratio of 0.65. This is a neutral value indicating ERF is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, ERF is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 8.39 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.9
WACC8.19%
2.3 Liquidity
ERF has a Current Ratio of 1.45. This is a normal value and indicates that ERF is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.45, ERF is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
ERF has a Quick Ratio of 1.38. 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 Quick ratio (1.38) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
ERF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -56.01%.
Measured over the past 5 years, ERF shows a small growth in Earnings Per Share. The EPS has been growing by 6.31% on average per year.
Looking at the last year, ERF shows a decrease in Revenue. The Revenue has decreased by -2.94% in the last year.
The Revenue has been growing by 11.49% on average over the past years. This is quite good.
EPS 1Y (TTM)-56.01%
EPS 3Y-20.53%
EPS 5Y6.31%
EPS growth Q2Q6.85%
Revenue 1Y (TTM)-2.94%
Revenue growth 3Y6.2%
Revenue growth 5Y11.49%
Revenue growth Q2Q0.14%
3.2 Future
Based on estimates for the next years, ERF will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.55% on average per year.
Based on estimates for the next years, ERF will show a quite strong growth in Revenue. The Revenue will grow by 8.95% on average per year.
EPS Next Y21.46%
EPS Next 2Y18.99%
EPS Next 3Y16.87%
EPS Next 5Y15.55%
Revenue Next Year7.68%
Revenue Next 2Y7.45%
Revenue Next 3Y7.58%
Revenue Next 5Y8.95%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 46.50, ERF can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as ERF.
Compared to an average S&P500 Price/Earnings ratio of 24.80, ERF is valued quite expensively.
With a Price/Forward Earnings ratio of 19.58, ERF is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ERF indicates a somewhat cheap valuation: ERF is cheaper than 80.00% of the companies listed in the same industry.
ERF's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.5 | ||
| Fwd PE | 19.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ERF indicates a rather cheap valuation: ERF is cheaper than 86.67% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ERF is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.43 | ||
| EV/EBITDA | 9.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ERF does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as ERF's earnings are expected to grow with 16.87% in the coming years.
PEG (NY)2.17
PEG (5Y)7.37
EPS Next 2Y18.99%
EPS Next 3Y16.87%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, ERF is not a good candidate for dividend investing.
ERF's Dividend Yield is rather good when compared to the industry average which is at 0.63. ERF pays more dividend than 86.67% of the companies in the same industry.
With a Dividend Yield of 0.83, ERF pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
On average, the dividend of ERF grows each year by 37.65%, which is quite nice.
Dividend Growth(5Y)37.65%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
ERF pays out 74.81% of its income as dividend. This is not a sustainable payout ratio.
ERF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP74.81%
EPS Next 2Y18.99%
EPS Next 3Y16.87%
EUROFINS SCIENTIFIC
EPA:ERF (4/19/2024, 5:35:30 PM)
59.52
-0.56 (-0.93%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.5 | ||
| Fwd PE | 19.58 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.17
PEG (5Y)7.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 5.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.92% | ||
| PM (TTM) | 3.94% | ||
| GM | 20.93% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-56.01%
EPS 3Y-20.53%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.94%
Revenue growth 3Y6.2%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y