EUROFINS SCIENTIFIC (ERF.PA) Stock Fundamental Analysis
EPA:ERF - Euronext Paris - Matif - FR0014000MR3 - Common Stock - Currency: EUR
ERF gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 15 industry peers in the Life Sciences Tools & Services industry. While ERF belongs to the best of the industry regarding profitability, 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.
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
The Return On Assets of ERF (3.24%) is better than 66.67% of its industry peers.
ERF has a Return On Equity (6.61%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 9.18%, ERF is doing good in the industry, outperforming 73.33% of the companies in the same industry.
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 6.90%.
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 of 5.08%. This is comparable to the rest of the industry: ERF outperforms 53.33% of its industry peers.
In the last couple of years the Profit Margin of ERF has grown nicely.
The Operating Margin of ERF (14.97%) is better than 66.67% of its industry peers.
In the last couple of years the Operating Margin of ERF has grown nicely.
ERF's Gross Margin of 22.33% is on the low side compared to the rest of the industry. ERF is outperformed by 80.00% of its industry peers.
ERF's Gross Margin has improved in the last couple of years.
| 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.
ERF has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ERF has more shares outstanding
ERF has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.52 indicates that ERF is not a great score, but indicates only limited risk for bankruptcy at the moment.
ERF has a Altman-Z score of 2.52. This is comparable to the rest of the industry: ERF outperforms 46.67% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 4.57, ERF is in line with its industry, outperforming 60.00% of the companies in the same industry.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.57 | ||
| Altman-Z | 2.52 |
ROIC/WACC1.31
WACC7%
2.3 Liquidity
ERF has a Current Ratio of 1.16. 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 1.16, ERF is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 1.09, ERF perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
ERF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.63%, which is quite impressive.
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 6.70% 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)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 14.23% yearly.
The Revenue is expected to grow by 6.02% on average over the next years.
EPS Next Y15.29%
EPS Next 2Y14.58%
EPS Next 3Y14%
EPS Next 5Y14.23%
Revenue Next Year7.56%
Revenue Next 2Y7.24%
Revenue Next 3Y7.28%
Revenue Next 5Y6.02%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.77, ERF can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as ERF.
Compared to an average S&P500 Price/Earnings ratio of 28.33, ERF is valued at the same level.
A Price/Forward Earnings ratio of 15.05 indicates a correct valuation of ERF.
Based on the Price/Forward Earnings ratio, ERF is valued cheaper than 86.67% of the companies in the same industry.
ERF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.37, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.77 | ||
| Fwd PE | 15.05 |
4.2 Price Multiples
86.67% of the companies in the same industry are more expensive than ERF, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERF indicates a rather cheap valuation: ERF is cheaper than 93.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.35 | ||
| EV/EBITDA | 6.92 |
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.
ERF's earnings are expected to grow with 14.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.95
PEG (5Y)1.62
EPS Next 2Y14.58%
EPS Next 3Y14%
5. Dividend
5.1 Amount
ERF has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
ERF's Dividend Yield is rather good when compared to the industry average which is at 0.92. ERF pays more dividend than 86.67% of the companies in the same industry.
With a Dividend Yield of 1.21, ERF pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
The dividend of ERF is nicely growing with an annual growth rate of 16.51%!
Dividend Growth(5Y)16.51%
Div Incr Years0
Div Non Decr Years2
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 (4/23/2025, 11:15:05 AM)
53.58
+4.23 (+8.57%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners33.4%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap9.76B
Analysts68.42
Price Target59.58 (11.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend0.52
Dividend Growth(5Y)16.51%
DP27.77%
Div Incr Years0
Div Non Decr Years2
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)1.18%
PT rev (3m)-1.14%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.05%
EPS NY rev (3m)1.45%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.77 | ||
| Fwd PE | 15.05 | ||
| P/S | 1.4 | ||
| P/FCF | 12.35 | ||
| P/OCF | 7.4 | ||
| P/B | 1.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.92 |
EPS(TTM)1.8
EY3.36%
EPS(NY)3.56
Fwd EY6.65%
FCF(TTM)4.34
FCFY8.1%
OCF(TTM)7.24
OCFY13.51%
SpS38.16
BVpS29.31
TBVpS-1.59
PEG (NY)1.95
PEG (5Y)1.62
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 | 2.52 |
F-Score8
WACC7%
ROIC/WACC1.31
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 5Y14.23%
Revenue 1Y (TTM)6.7%
Revenue growth 3Y1.14%
Revenue growth 5Y8.78%
Sales Q2Q%6.87%
Revenue Next Year7.56%
Revenue Next 2Y7.24%
Revenue Next 3Y7.28%
Revenue Next 5Y6.02%
EBIT growth 1Y23.67%
EBIT growth 3Y-10.93%
EBIT growth 5Y12.66%
EBIT Next Year87.36%
EBIT Next 3Y30.94%
EBIT Next 5Y22.77%
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%