EUROFINS SCIENTIFIC (ERF.PA) Stock Fundamental Analysis
EPA:ERF - FR0014000MR3 - Common Stock
63.84 EUR
+1.06 (+1.69%)
ERF gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 18 industry peers in the Life Sciences Tools & Services industry. While ERF has a great profitability rating, 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
In the past year ERF was profitable.
ERF had a positive operating cash flow in the past year.
In the past 5 years ERF has always been profitable.
Each year in the past 5 years ERF had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.54%, ERF is doing good in the industry, outperforming 61.11% 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 72.22% of its industry peers.
ERF has a Return On Invested Capital of 9.79%. This is amongst the best in the industry. ERF outperforms 88.89% of its industry peers.
ERF had an Average Return On Invested Capital over the past 3 years of 8.70%. This is in line with the industry average of 7.23%.
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 has a Profit Margin of 5.44%. This is comparable to the rest of the industry: ERF outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of ERF has grown nicely.
ERF has a Operating Margin of 15.59%. This is in the better half of the industry: ERF outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of ERF has grown nicely.
The Gross Margin of ERF (23.29%) is worse than 72.22% 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.
The number of shares outstanding for ERF has been reduced compared to 1 year ago.
The number of shares outstanding for ERF has been increased compared to 5 years ago.
ERF has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.71 indicates that ERF is not a great score, but indicates 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.
With a decent Debt to FCF ratio value of 5.25, ERF is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.77 indicates that ERF is somewhat dependend on debt financing.
The Debt to Equity ratio of ERF (0.77) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 5.25 | ||
| Altman-Z | 2.71 |
ROIC/WACC1.28
WACC7.67%
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
The Earnings Per Share has grown by an nice 16.50% over the past year.
Measured over the past years, ERF shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.34% on average per year.
ERF shows a small growth in Revenue. In the last year, the Revenue has grown by 2.53%.
The Revenue has been growing by 8.78% on average over the past years. This is quite good.
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 12.66% on average over the next years. This is quite good.
ERF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.20% yearly.
EPS Next Y13.37%
EPS Next 2Y13.55%
EPS Next 3Y13.96%
EPS Next 5Y12.66%
Revenue Next Year5.88%
Revenue Next 2Y6.06%
Revenue Next 3Y6.35%
Revenue Next 5Y6.2%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.73 indicates a rather expensive valuation of ERF.
Compared to the rest of the industry, the Price/Earnings ratio of ERF indicates a rather cheap valuation: ERF is cheaper than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.06, ERF is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.03, which indicates a correct valuation of ERF.
88.89% of the companies in the same industry are more expensive than ERF, based on the Price/Forward Earnings ratio.
ERF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.73 | ||
| Fwd PE | 16.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERF is valued cheaper than 88.89% of the companies in the same industry.
94.44% of the companies in the same industry are more expensive than ERF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.83 | ||
| EV/EBITDA | 8.71 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ERF may justify a higher PE ratio.
ERF's earnings are expected to grow with 13.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.33
PEG (5Y)0.97
EPS Next 2Y13.55%
EPS Next 3Y13.96%
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, ERF is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.71, ERF pays a better dividend. On top of this ERF pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, ERF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
The dividend of ERF is nicely growing with an annual growth rate of 16.51%!
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 2Y13.55%
EPS Next 3Y13.96%
EPA:ERF (9/5/2025, 7:00:00 PM)
63.84
+1.06 (+1.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners34.16%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap11.63B
Analysts70
Price Target64.9 (1.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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)7.5%
PT rev (3m)9.3%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.66%
EPS NY rev (3m)-1.66%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.73 | ||
| Fwd PE | 16.03 | ||
| P/S | 1.69 | ||
| P/FCF | 14.83 | ||
| P/OCF | 8.84 | ||
| P/B | 2.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.71 |
EPS(TTM)3.6
EY5.64%
EPS(NY)3.98
Fwd EY6.24%
FCF(TTM)4.3
FCFY6.74%
OCF(TTM)7.22
OCFY11.31%
SpS37.84
BVpS25.45
TBVpS-3.69
PEG (NY)1.33
PEG (5Y)0.97
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
WACC7.67%
ROIC/WACC1.28
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 Y13.37%
EPS Next 2Y13.55%
EPS Next 3Y13.96%
EPS Next 5Y12.66%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y1.14%
Revenue growth 5Y8.78%
Sales Q2Q%5.64%
Revenue Next Year5.88%
Revenue Next 2Y6.06%
Revenue Next 3Y6.35%
Revenue Next 5Y6.2%
EBIT growth 1Y14.03%
EBIT growth 3Y-10.93%
EBIT growth 5Y12.66%
EBIT Next Year87.7%
EBIT Next 3Y30.85%
EBIT Next 5Y22.29%
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%