EUROFINS SCIENTIFIC (ERF.PA)
FR0014000MR3 - Common Stock
Overall ERF gets a fundamental rating of 4 out of 10. We evaluated ERF against 16 industry peers in the Life Sciences Tools & Services industry. Both the profitability and the financial health of ERF get a neutral evaluation. Nothing too spectacular is happening here. ERF has a correct valuation and a medium growth rate.
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.
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.
ERF has a worse Return On Equity (5.05%) than 68.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.33%, ERF is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ERF is above the industry average of 6.71%.
| 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
With a Profit Margin value of 3.94%, ERF is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of ERF has declined.
The Operating Margin of ERF (12.92%) is worse than 62.50% 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: 81.25% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ERF has grown nicely.
| 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
ERF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ERF has been reduced compared to 1 year ago.
Compared to 5 years ago, ERF has more shares outstanding
Compared to 1 year ago, ERF has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.50 indicates that ERF is not a great score, but indicates only limited risk for bankruptcy at the moment.
ERF has a Altman-Z score (2.50) which is comparable to the rest of the industry.
The Debt to FCF ratio of ERF is 8.39, which is on the high side as it means it would take ERF, 8.39 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 8.39, ERF is doing good in the industry, outperforming 68.75% of the companies in the same industry.
A Debt/Equity ratio of 0.65 indicates that ERF is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, ERF is in line with its industry, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 8.39 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.87
WACC8.46%
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: 81.25% 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.
Looking at the Quick ratio, with a value of 1.38, ERF is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The earnings per share for ERF have decreased strongly by -56.01% in the last year.
ERF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.31% yearly.
The Revenue has decreased by -2.94% in the past year.
Measured over the past years, ERF shows a quite strong growth in Revenue. The Revenue has been growing by 11.49% on average per year.
EPS 1Y (TTM)-56.01%
EPS 3Y-20.53%
EPS 5Y6.31%
EPS Q2Q%6.85%
Revenue 1Y (TTM)-2.94%
Revenue growth 3Y6.2%
Revenue growth 5Y11.49%
Sales Q2Q%0.14%
3.2 Future
ERF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.30% yearly.
Based on estimates for the next years, ERF will show a quite strong growth in Revenue. The Revenue will grow by 8.80% on average per year.
EPS Next Y20.14%
EPS Next 2Y18.36%
EPS Next 3Y16.9%
EPS Next 5Y17.3%
Revenue Next Year8.09%
Revenue Next 2Y7.81%
Revenue Next 3Y7.58%
Revenue Next 5Y8.8%
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
ERF is valuated quite expensively with a Price/Earnings ratio of 41.91.
Compared to the rest of the industry, the Price/Earnings ratio of ERF is on the same level as its industry peers.
ERF is valuated expensively when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.84, which indicates a rather expensive current valuation of ERF.
87.50% 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 similar valuation than the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.91 | ||
| Fwd PE | 17.84 |
4.2 Price Multiples
ERF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ERF is cheaper than 87.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ERF is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.01 | ||
| EV/EBITDA | 8.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ERF's earnings are expected to grow with 16.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.08
PEG (5Y)6.64
EPS Next 2Y18.36%
EPS Next 3Y16.9%
5. Dividend
5.1 Amount
ERF has a Yearly Dividend Yield of 1.03%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.67, ERF pays a better dividend. On top of this ERF pays more dividend than 87.50% of the companies listed in the same industry.
With a Dividend Yield of 1.03, ERF pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
5.2 History
The dividend of ERF is nicely growing with an annual growth rate of 37.65%!
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 2Y18.36%
EPS Next 3Y16.9%
EUROFINS SCIENTIFIC
EPA:ERF (7/26/2024, 7:00:00 PM)
53.64
+1.56 (+3%)
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 Cap10.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 41.91 | ||
| Fwd PE | 17.84 | ||
| 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)2.08
PEG (5Y)6.64
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)
High Growth Momentum
Growth
EPS 1Y (TTM)-56.01%
EPS 3Y-20.53%
EPS 5Y
EPS Q2Q%
EPS Next Y20.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.94%
Revenue growth 3Y6.2%
Revenue growth 5Y
Sales 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