EUROFINS SCIENTIFIC (ESF0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ESF0 - FR0014000MR3 - Common Stock
70.7 EUR
-0.3 (-0.42%)
Taking everything into account, ESF0 scores 5 out of 10 in our fundamental rating. ESF0 was compared to 20 industry peers in the Life Sciences Tools & Services industry. ESF0 has an average financial health and profitability rating. ESF0 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- ESF0 had positive earnings in the past year.
- In the past year ESF0 had a positive cash flow from operations.
- ESF0 had positive earnings in each of the past 5 years.
- ESF0 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ESF0 has a Return On Assets (3.54%) which is in line with its industry peers.
- With a Return On Equity value of 8.09%, ESF0 perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- ESF0 has a Return On Invested Capital of 9.79%. This is in the better half of the industry: ESF0 outperforms 80.00% of its industry peers.
- ESF0 had an Average Return On Invested Capital over the past 3 years of 8.70%. This is in line with the industry average of 9.00%.
- The 3 year average ROIC (8.70%) for ESF0 is below the current ROIC(9.79%), indicating increased profibility in the last year.
| 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
- Looking at the Profit Margin, with a value of 5.44%, ESF0 is doing worse than 65.00% of the companies in the same industry.
- ESF0's Profit Margin has improved in the last couple of years.
- The Operating Margin of ESF0 (15.59%) is comparable to the rest of the industry.
- ESF0's Operating Margin has improved in the last couple of years.
- ESF0 has a Gross Margin of 23.29%. This is amonst the worse of the industry: ESF0 underperforms 85.00% of its industry peers.
- ESF0's Gross Margin has improved in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ESF0 is creating some value.
- The number of shares outstanding for ESF0 has been reduced compared to 1 year ago.
- Compared to 5 years ago, ESF0 has more shares outstanding
- ESF0 has a better debt/assets ratio than last year.
2.2 Solvency
- ESF0 has an Altman-Z score of 2.86. This is not the best score and indicates that ESF0 is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.86, ESF0 perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
- ESF0 has a debt to FCF ratio of 5.24. This is a neutral value as ESF0 would need 5.24 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 5.24, ESF0 is doing good in the industry, outperforming 65.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.77 indicates that ESF0 is somewhat dependend on debt financing.
- The Debt to Equity ratio of ESF0 (0.77) is worse than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 2.86 |
ROIC/WACC1.15
WACC8.5%
2.3 Liquidity
- ESF0 has a Current Ratio of 1.26. This is a normal value and indicates that ESF0 is financially healthy and should not expect problems in meeting its short term obligations.
- ESF0 has a Current ratio (1.26) which is comparable to the rest of the industry.
- A Quick Ratio of 1.19 indicates that ESF0 should not have too much problems paying its short term obligations.
- ESF0 has a Quick ratio of 1.19. This is amongst the best in the industry. ESF0 outperforms 90.00% 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.
- The Earnings Per Share has been growing by 18.34% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 2.53% in the past year.
- 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
- Based on estimates for the next years, ESF0 will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.68% on average per year.
- ESF0 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.25% yearly.
EPS Next Y18.01%
EPS Next 2Y14.36%
EPS Next 3Y14.31%
EPS Next 5Y15.68%
Revenue Next Year5.1%
Revenue Next 2Y5.44%
Revenue Next 3Y5.93%
Revenue Next 5Y7.25%
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 stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- ESF0 is valuated rather expensively with a Price/Earnings ratio of 19.64.
- Based on the Price/Earnings ratio, ESF0 is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
- ESF0's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- ESF0 is valuated rather expensively with a Price/Forward Earnings ratio of 17.50.
- Based on the Price/Forward Earnings ratio, ESF0 is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of ESF0 to the average of the S&P500 Index (24.26), we can say ESF0 is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.64 | ||
| Fwd PE | 17.5 |
4.2 Price Multiples
- 85.00% of the companies in the same industry are more expensive than ESF0, based on the Enterprise Value to EBITDA ratio.
- ESF0's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ESF0 is cheaper than 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.41 | ||
| EV/EBITDA | 9.59 |
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 ESF0 may justify a higher PE ratio.
- ESF0's earnings are expected to grow with 14.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.09
PEG (5Y)1.07
EPS Next 2Y14.36%
EPS Next 3Y14.31%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.83%, ESF0 is not a good candidate for dividend investing.
- ESF0's Dividend Yield is a higher than the industry average which is at 0.54.
- With a Dividend Yield of 0.83, ESF0 pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
- The dividend of ESF0 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
- 54.88% of the earnings are spent on dividend by ESF0. This is a bit on the high side, but may be sustainable.
- The dividend of ESF0 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP54.88%
EPS Next 2Y14.36%
EPS Next 3Y14.31%
EUROFINS SCIENTIFIC / ESF0.DE FAQ
What is the ChartMill fundamental rating of EUROFINS SCIENTIFIC (ESF0.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ESF0.DE.
What is the valuation status for ESF0 stock?
ChartMill assigns a valuation rating of 6 / 10 to EUROFINS SCIENTIFIC (ESF0.DE). This can be considered as Fairly Valued.
What is the profitability of ESF0 stock?
EUROFINS SCIENTIFIC (ESF0.DE) has a profitability rating of 6 / 10.
What are the PE and PB ratios of EUROFINS SCIENTIFIC (ESF0.DE) stock?
The Price/Earnings (PE) ratio for EUROFINS SCIENTIFIC (ESF0.DE) is 19.64 and the Price/Book (PB) ratio is 2.78.
How sustainable is the dividend of EUROFINS SCIENTIFIC (ESF0.DE) stock?
The dividend rating of EUROFINS SCIENTIFIC (ESF0.DE) is 3 / 10 and the dividend payout ratio is 54.88%.