EUROFINS SCIENTIFIC (ERF.PA)
FR0014000MR3 - Common Stock
ERF gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 16 industry peers in the Life Sciences Tools & Services industry. Both the profitability and the financial health of ERF get a neutral evaluation. Nothing too spectacular is happening here. 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.
ERF had a positive operating cash flow in the past year.
In the past 5 years ERF has always 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 (2.36%) is better than 68.75% of its industry peers.
ERF's Return On Equity of 5.05% is fine compared to the rest of the industry. ERF outperforms 68.75% of its industry peers.
With a decent Return On Invested Capital value of 7.33%, ERF is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ERF is above the industry average of 6.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 5.05% | ||
| ROIC | 7.33% |
ROA(3y)5.38%
ROA(5y)4.78%
ROE(3y)11.1%
ROE(5y)10.42%
ROIC(3y)10.55%
ROIC(5y)9.93%
1.3 Margins
ERF has a Profit Margin (3.94%) which is comparable to the rest of the industry.
ERF's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.92%, ERF is in line with its industry, outperforming 56.25% of the companies in the same industry.
ERF's Operating Margin has been stable in the last couple of years.
ERF has a worse Gross Margin (20.93%) than 75.00% of its industry peers.
In the last couple of years the Gross Margin of ERF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.92% | ||
| PM (TTM) | 3.94% | ||
| GM | 20.93% |
OM growth 3Y-11.78%
OM growth 5Y-1.27%
PM growth 3Y-24.89%
PM growth 5Y-3.22%
GM growth 3Y-6.94%
GM growth 5Y1.92%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ERF 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 worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.39 indicates that ERF is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.39, ERF is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
The Debt to FCF ratio of ERF is 8.39, which is on the high side as it means it would take ERF, 8.39 years of fcf income to pay off all of its debts.
ERF has a better Debt to FCF ratio (8.39) than 62.50% of its industry peers.
ERF has a Debt/Equity ratio of 0.66. This is a neutral value indicating ERF is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, ERF perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 8.39 | ||
| Altman-Z | 2.39 |
ROIC/WACC1.03
WACC7.13%
2.3 Liquidity
A Current Ratio of 1.45 indicates that ERF should not have too much problems paying its short term obligations.
ERF has a Current ratio of 1.45. This is in the lower half of the industry: ERF underperforms 62.50% of its industry peers.
ERF has a Quick Ratio of 1.38. This is a normal value and indicates that ERF is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ERF (1.38) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
ERF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.67%.
Measured over the past 5 years, ERF shows a small growth in Earnings Per Share. The EPS has been growing by 6.31% on average per year.
Looking at the last year, ERF shows a small growth in Revenue. The Revenue has grown by 3.28% in the last year.
ERF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.49% yearly.
EPS 1Y (TTM)-20.67%
EPS 3Y-20.53%
EPS 5Y6.31%
EPS Q2Q%-13.74%
Revenue 1Y (TTM)3.28%
Revenue growth 3Y6.2%
Revenue growth 5Y11.49%
Sales Q2Q%6.54%
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 17.30% yearly.
ERF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.80% yearly.
EPS Next Y25.88%
EPS Next 2Y19.84%
EPS Next 3Y17.7%
EPS Next 5Y17.3%
Revenue Next Year7.6%
Revenue Next 2Y7.5%
Revenue Next 3Y7.38%
Revenue Next 5Y8.8%
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 accelerating.
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 27.21 indicates a quite expensive valuation of ERF.
Compared to the rest of the industry, the Price/Earnings ratio of ERF indicates a somewhat cheap valuation: ERF is cheaper than 75.00% of the companies listed in the same industry.
ERF is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 30.69, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.49, the valuation of ERF can be described as correct.
Based on the Price/Forward Earnings ratio, ERF is valued cheaper than 93.75% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ERF to the average of the S&P500 Index (22.55), we can say ERF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.21 | ||
| Fwd PE | 12.49 |
4.2 Price Multiples
ERF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ERF is 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.36 | ||
| EV/EBITDA | 8.19 |
4.3 Compensation for Growth
ERF's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 17.70% in the coming years.
PEG (NY)1.05
PEG (5Y)4.31
EPS Next 2Y19.84%
EPS Next 3Y17.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.07%, ERF has a reasonable but not impressive dividend return.
ERF's Dividend Yield is rather good when compared to the industry average which is at 0.70. ERF pays more dividend than 81.25% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.22, ERF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
5.2 History
On average, the dividend of ERF grows each year by 37.65%, which is quite nice.
Dividend Growth(5Y)37.65%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
ERF pays out 74.81% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ERF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP74.81%
EPS Next 2Y19.84%
EPS Next 3Y17.7%
EUROFINS SCIENTIFIC
EPA:ERF (10/30/2024, 7:00:00 PM)
44.9
-1.48 (-3.19%)
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 Cap8.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.21 | ||
| Fwd PE | 12.49 | ||
| 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)1.05
PEG (5Y)4.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 5.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.92% | ||
| PM (TTM) | 3.94% | ||
| GM | 20.93% | ||
| 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 Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.38 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-20.67%
EPS 3Y-20.53%
EPS 5Y
EPS Q2Q%
EPS Next Y25.88%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.28%
Revenue growth 3Y6.2%
Revenue growth 5Y
Sales 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