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 19 industry peers in the Life Sciences Tools & Services industry. ERF scores excellent on profitability, but there are some minor concerns on its financial health. ERF is not valued too expensively and it also shows a decent growth rate.
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.
ERF had positive earnings in each of the past 5 years.
In the past 5 years ERF always reported a positive cash flow from operatings.
1.2 Ratios
ERF has a better Return On Assets (3.24%) than 73.68% of its industry peers.
ERF's Return On Equity of 6.61% is fine compared to the rest of the industry. ERF outperforms 73.68% of its industry peers.
ERF has a Return On Invested Capital of 9.18%. This is in the better half of the industry: ERF outperforms 73.68% 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 7.38%.
The last Return On Invested Capital (9.18%) for ERF is above the 3 year average (8.70%), which is a sign of increasing profitability.
| 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's Profit Margin of 5.08% is in line compared to the rest of the industry. ERF outperforms 57.89% of its industry peers.
ERF's Profit Margin has improved in the last couple of years.
ERF has a Operating Margin of 14.97%. This is in the better half of the industry: ERF outperforms 63.16% of its industry peers.
In the last couple of years the Operating Margin of ERF has grown nicely.
ERF has a worse Gross Margin (22.33%) than 78.95% 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.
Compared to 1 year ago, ERF has less shares outstanding
The number of shares outstanding for ERF has been increased compared to 5 years ago.
The debt/assets ratio for ERF has been reduced compared to a year ago.
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 comparable to the rest of the industry.
The Debt to FCF ratio of ERF is 4.57, which is a neutral value as it means it would take ERF, 4.57 years of fcf income to pay off all of its debts.
ERF has a better Debt to FCF ratio (4.57) than 63.16% of its industry peers.
ERF has a Debt/Equity ratio of 0.59. This is a neutral value indicating ERF is somewhat dependend on debt financing.
ERF has a Debt to Equity ratio (0.59) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.57 | ||
| Altman-Z | 2.74 |
ROIC/WACC1.19
WACC7.72%
2.3 Liquidity
A Current Ratio of 1.16 indicates that ERF should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.16, ERF is doing worse than 78.95% of the companies in the same industry.
A Quick Ratio of 1.09 indicates that ERF should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.09, ERF is in line with its industry, outperforming 47.37% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 18.34% on average over the past years. This is quite good.
ERF shows a small growth in Revenue. In the last year, the Revenue has grown by 6.70%.
The Revenue has been growing by 8.78% on average over the past years. This is quite good.
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
ERF is valuated quite expensively with a Price/Earnings ratio of 33.67.
ERF's Price/Earnings is on the same level as the industry average.
ERF is valuated rather expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
ERF is valuated rather expensively with a Price/Forward Earnings ratio of 17.02.
84.21% of the companies in the same industry are more expensive than ERF, based on the Price/Forward Earnings ratio.
ERF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.67 | ||
| Fwd PE | 17.02 |
4.2 Price Multiples
ERF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ERF is cheaper than 89.47% 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 94.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.96 | ||
| EV/EBITDA | 8.1 |
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 has a very decent profitability rating, which 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)1.84
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 0.72. ERF pays more dividend than 89.47% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, ERF's dividend is way lower than the S&P500 average.
| 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.
ERF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.77%
EPS Next 2Y14.58%
EPS Next 3Y14%
EPA:ERF (7/11/2025, 7:00:00 PM)
60.6
-0.02 (-0.03%)
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 Cap11.04B
Analysts68.89
Price Target60.33 (-0.45%)
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)1.25%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)2.3%
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 | 33.67 | ||
| Fwd PE | 17.02 | ||
| P/S | 1.59 | ||
| P/FCF | 13.96 | ||
| P/OCF | 8.37 | ||
| P/B | 2.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.1 |
EPS(TTM)1.8
EY2.97%
EPS(NY)3.56
Fwd EY5.88%
FCF(TTM)4.34
FCFY7.16%
OCF(TTM)7.24
OCFY11.95%
SpS38.16
BVpS29.31
TBVpS-1.59
PEG (NY)2.2
PEG (5Y)1.84
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
WACC7.72%
ROIC/WACC1.19
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%