EUROFINS SCIENTIFIC (ERF.PA)

FR0014000MR3 - Common Stock

54.56  -4.08 (-6.96%)

Fundamental Rating

5

Overall ERF gets a fundamental rating of 5 out of 10. We evaluated ERF against 16 industry peers in the Life Sciences Tools & Services industry. ERF has an average financial health and profitability rating. ERF has a decent growth rate and is not valued too expensively.



6

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.
ERF had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

ERF has a Return On Assets of 4.01%. This is comparable to the rest of the industry: ERF outperforms 56.25% of its industry peers.
With a Return On Equity value of 8.28%, ERF is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
ERF has a Return On Invested Capital of 7.41%. This is in the better half of the industry: ERF outperforms 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ERF is above the industry average of 9.31%.
The 3 year average ROIC (11.81%) for ERF is well above the current ROIC(7.41%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 4.01%
ROE 8.28%
ROIC 7.41%
ROA(3y)6.56%
ROA(5y)4.79%
ROE(3y)13.98%
ROE(5y)10.73%
ROIC(3y)11.81%
ROIC(5y)9.71%

1.3 Margins

ERF has a Profit Margin (6.36%) which is comparable to the rest of the industry.
ERF's Profit Margin has improved in the last couple of years.
The Operating Margin of ERF (12.77%) is worse than 62.50% of its industry peers.
In the last couple of years the Operating Margin of ERF has grown nicely.
ERF has a Gross Margin of 20.33%. This is in the lower half of the industry: ERF underperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of ERF has grown nicely.
Industry RankSector Rank
OM 12.77%
PM (TTM) 6.36%
GM 20.33%
OM growth 3Y7.12%
OM growth 5Y2.81%
PM growth 3Y39.49%
PM growth 5Y7.46%
GM growth 3Y3.39%
GM growth 5Y3.77%

4

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 about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ERF has been increased compared to 5 years ago.
The debt/assets ratio for ERF is higher compared to a year ago.

2.2 Solvency

ERF has an Altman-Z score of 2.78. 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.
ERF's Altman-Z score of 2.78 is in line compared to the rest of the industry. ERF outperforms 43.75% of its industry peers.
ERF has a debt to FCF ratio of 8.90. This is a slightly negative value and a sign of low solvency as ERF would need 8.90 years to pay back of all of its debts.
The Debt to FCF ratio of ERF (8.90) is better than 62.50% of its industry peers.
ERF has a Debt/Equity ratio of 0.63. This is a neutral value indicating ERF is somewhat dependend on debt financing.
ERF has a Debt to Equity ratio of 0.63. This is comparable to the rest of the industry: ERF outperforms 43.75% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 8.9
Altman-Z 2.78
ROIC/WACC0.95
WACC7.78%

2.3 Liquidity

A Current Ratio of 1.43 indicates that ERF should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.43, ERF is doing worse than 81.25% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that ERF should not have too much problems paying its short term obligations.
ERF's Quick ratio of 1.35 is in line compared to the rest of the industry. ERF outperforms 56.25% of its industry peers.
Industry RankSector Rank
Current Ratio 1.43
Quick Ratio 1.35

4

3. Growth

3.1 Past

ERF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.00%.
The Earnings Per Share has been growing by 24.07% on average over the past years. This is a very strong growth
ERF shows a decrease in Revenue. In the last year, the revenue decreased by -5.06%.
The Revenue has been growing by 17.70% on average over the past years. This is quite good.
EPS 1Y (TTM)-35%
EPS 3Y55.1%
EPS 5Y24.07%
EPS growth Q2Q-57.24%
Revenue 1Y (TTM)-5.06%
Revenue growth 3Y13.73%
Revenue growth 5Y17.7%
Revenue growth Q2Q-5.92%

3.2 Future

Based on estimates for the next years, ERF will show a small growth in Earnings Per Share. The EPS will grow by 3.24% on average per year.
Based on estimates for the next years, ERF will show a small growth in Revenue. The Revenue will grow by 5.31% on average per year.
EPS Next Y-30.89%
EPS Next 2Y-9.31%
EPS Next 3Y-1.57%
EPS Next 5Y3.24%
Revenue Next Year-3.64%
Revenue Next 2Y1.6%
Revenue Next 3Y3.42%
Revenue Next 5Y5.31%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 26.23, ERF can be considered very expensive at the moment.
75.00% 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 similar valuation than the S&P500 average which is at 25.81.
Based on the Price/Forward Earnings ratio of 18.44, the valuation of ERF can be described as rather expensive.
ERF's Price/Forward Earnings ratio is rather cheap when compared to the industry. ERF is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, ERF is valued at the same level.
Industry RankSector Rank
PE 26.23
Fwd PE 18.44

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ERF is valued cheaper than 93.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ERF is valued cheaper than 93.75% of the companies in the same industry.
Industry RankSector Rank
P/FCF 28.5
EV/EBITDA 10.21

4.3 Compensation for Growth

ERF has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.09
EPS Next 2Y-9.31%
EPS Next 3Y-1.57%

4

5. Dividend

5.1 Amount

ERF has a Yearly Dividend Yield of 1.74%.
ERF's Dividend Yield is rather good when compared to the industry average which is at 0.69. ERF pays more dividend than 100.00% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.45, ERF is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.74%

5.2 History

The dividend of ERF is nicely growing with an annual growth rate of 48.35%!
Dividend Growth(5Y)48.35%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

ERF pays out 46.58% of its income as dividend. This is a bit on the high side, but may be sustainable.
ERF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP46.58%
EPS Next 2Y-9.31%
EPS Next 3Y-1.57%

EUROFINS SCIENTIFIC

EPA:ERF (2/27/2024, 5:29:48 PM)

54.56

-4.08 (-6.96%)

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 Cap10.49B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.74%
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)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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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 RankSector Rank
PE 26.23
Fwd PE 18.44
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)N/A
PEG (5Y)1.09
Profitability
Industry RankSector Rank
ROA 4.01%
ROE 8.28%
ROCE
ROIC
ROICexc
ROICexgc
OM 12.77%
PM (TTM) 6.36%
GM 20.33%
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 Turnover0.63
Health
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.43
Quick Ratio 1.35
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)-35%
EPS 3Y55.1%
EPS 5Y
EPS growth Q2Q
EPS Next Y-30.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.06%
Revenue growth 3Y13.73%
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