EUROFINS SCIENTIFIC (ERF.PA) Stock Fundamental Analysis
EPA:ERF - Euronext Paris - Matif - FR0014000MR3 - Common Stock - Currency: EUR
Taking everything into account, ERF scores 6 out of 10 in our fundamental rating. ERF was compared to 17 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. ERF has a decent growth rate and is not valued too expensively.
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.
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
ERF's Return On Assets of 3.24% is fine compared to the rest of the industry. ERF outperforms 76.47% of its industry peers.
Looking at the Return On Equity, with a value of 6.61%, ERF is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
The Return On Invested Capital of ERF (9.18%) is better than 82.35% 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 6.91%.
The 3 year average ROIC (8.70%) for ERF is below the current ROIC(9.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.24% | ||
| ROE | 6.61% | ||
| ROIC | 9.18% |
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 (5.08%) which is comparable to the rest of the industry.
ERF's Profit Margin has improved in the last couple of years.
ERF has a better Operating Margin (14.97%) than 70.59% of its industry peers.
ERF's Operating Margin has improved in the last couple of years.
ERF's Gross Margin of 22.33% is on the low side compared to the rest of the industry. ERF is outperformed by 76.47% of its industry peers.
In the last couple of years the Gross Margin of ERF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.97% | ||
| PM (TTM) | 5.08% | ||
| GM | 22.33% |
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
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.
The number of shares outstanding for ERF has been increased compared to 5 years ago.
Compared to 1 year ago, ERF has an improved debt to assets ratio.
2.2 Solvency
ERF has an Altman-Z score of 2.74. 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 has a Altman-Z score (2.74) which is in line with its industry peers.
ERF has a debt to FCF ratio of 4.57. This is a neutral value as ERF would need 4.57 years to pay back of all of its debts.
ERF has a better Debt to FCF ratio (4.57) than 70.59% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that ERF is somewhat dependend on debt financing.
ERF has a Debt to Equity ratio (0.59) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.57 | ||
| Altman-Z | 2.74 |
ROIC/WACC1.2
WACC7.66%
2.3 Liquidity
A Current Ratio of 1.16 indicates that ERF should not have too much problems paying its short term obligations.
ERF has a Current ratio of 1.16. This is in the lower half of the industry: ERF underperforms 76.47% of its industry peers.
ERF has a Quick Ratio of 1.09. 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 of 1.09. This is comparable to the rest of the industry: ERF outperforms 52.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.63% 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 6.70%.
Measured over the past years, ERF shows a quite strong growth in Revenue. The Revenue has been growing by 8.78% on average per year.
EPS 1Y (TTM)40.63%
EPS 3Y-21.42%
EPS 5Y18.34%
EPS Q2Q%13.46%
Revenue 1Y (TTM)6.7%
Revenue growth 3Y1.14%
Revenue growth 5Y8.78%
Sales Q2Q%6.87%
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 13.47% yearly.
Based on estimates for the next years, ERF will show a small growth in Revenue. The Revenue will grow by 6.47% on average per year.
EPS Next Y15.29%
EPS Next 2Y14.58%
EPS Next 3Y14%
EPS Next 5Y13.47%
Revenue Next Year6.31%
Revenue Next 2Y6.36%
Revenue Next 3Y6.54%
Revenue Next 5Y6.47%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 33.61 indicates a quite expensive valuation of ERF.
Compared to the rest of the industry, the Price/Earnings ratio of ERF is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.34. ERF is valued slightly more expensive when compared to this.
ERF is valuated correctly with a Price/Forward Earnings ratio of 16.99.
Based on the Price/Forward Earnings ratio, ERF is valued cheaper than 82.35% of the companies in the same industry.
ERF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.61 | ||
| Fwd PE | 16.99 |
4.2 Price Multiples
ERF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ERF is cheaper than 94.12% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERF indicates a rather cheap valuation: ERF is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.94 | ||
| EV/EBITDA | 8.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ERF may justify a higher PE ratio.
A more expensive valuation may be justified as ERF's earnings are expected to grow with 14.00% in the coming years.
PEG (NY)2.2
PEG (5Y)1.83
EPS Next 2Y14.58%
EPS Next 3Y14%
5. Dividend
5.1 Amount
ERF has a yearly dividend return of 0.99%, which is pretty low.
ERF's Dividend Yield is rather good when compared to the industry average which is at 0.73. ERF pays more dividend than 82.35% of the companies in the same industry.
With a Dividend Yield of 0.99, ERF pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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
27.77% of the earnings are spent on dividend by ERF. This is a low number and sustainable payout ratio.
The dividend of ERF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.77%
EPS Next 2Y14.58%
EPS Next 3Y14%
EPA:ERF (6/18/2025, 7:00:00 PM)
60.5
-0.14 (-0.23%)
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 Cap11.02B
Analysts68.89
Price Target60.33 (-0.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend0.52
Dividend Growth(5Y)16.51%
DP27.77%
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)1.61%
PT rev (3m)2.44%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.61 | ||
| Fwd PE | 16.99 | ||
| P/S | 1.59 | ||
| P/FCF | 13.94 | ||
| P/OCF | 8.36 | ||
| P/B | 2.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.11 |
EPS(TTM)1.8
EY2.98%
EPS(NY)3.56
Fwd EY5.89%
FCF(TTM)4.34
FCFY7.17%
OCF(TTM)7.24
OCFY11.97%
SpS38.16
BVpS29.31
TBVpS-1.59
PEG (NY)2.2
PEG (5Y)1.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.24% | ||
| ROE | 6.61% | ||
| ROCE | 11.86% | ||
| ROIC | 9.18% | ||
| ROICexc | 9.87% | ||
| ROICexgc | 31.79% | ||
| OM | 14.97% | ||
| PM (TTM) | 5.08% | ||
| GM | 22.33% | ||
| 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-Score8
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.57 | ||
| Debt/EBITDA | 1.81 | ||
| Cap/Depr | 76.4% | ||
| Cap/Sales | 7.6% | ||
| Interest Coverage | 9.11 | ||
| Cash Conversion | 76.13% | ||
| Profit Quality | 224% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 2.74 |
F-Score8
WACC7.66%
ROIC/WACC1.2
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)40.63%
EPS 3Y-21.42%
EPS 5Y18.34%
EPS Q2Q%13.46%
EPS Next Y15.29%
EPS Next 2Y14.58%
EPS Next 3Y14%
EPS Next 5Y13.47%
Revenue 1Y (TTM)6.7%
Revenue growth 3Y1.14%
Revenue growth 5Y8.78%
Sales Q2Q%6.87%
Revenue Next Year6.31%
Revenue Next 2Y6.36%
Revenue Next 3Y6.54%
Revenue Next 5Y6.47%
EBIT growth 1Y23.67%
EBIT growth 3Y-10.93%
EBIT growth 5Y12.66%
EBIT Next Year87.7%
EBIT Next 3Y30.85%
EBIT Next 5Y22.29%
FCF growth 1Y68.95%
FCF growth 3Y-7.69%
FCF growth 5Y25.62%
OCF growth 1Y29.56%
OCF growth 3Y-4.44%
OCF growth 5Y14.24%