EUROFINS SCIENTIFIC (ERF.PA)
FR0014000MR3 - Common Stock
Taking everything into account, ERF scores 4 out of 10 in our fundamental rating. ERF was compared to 17 industry peers in the Life Sciences Tools & Services industry. ERF has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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 Return On Assets of 2.36%. This is comparable to the rest of the industry: ERF outperforms 58.82% of its industry peers.
With a Return On Equity value of 5.05%, ERF perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
The Return On Invested Capital of ERF (7.33%) is better than 76.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ERF is above the industry average of 6.49%.
| 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
The Profit Margin of ERF (3.94%) is comparable to the rest of the industry.
ERF's Profit Margin has declined in the last couple of years.
ERF has a Operating Margin (12.92%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ERF has remained more or less at the same level.
ERF has a worse Gross Margin (20.93%) than 82.35% 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.
The number of shares outstanding for ERF has been increased compared to 5 years ago.
The debt/assets ratio for ERF is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.46 indicates that ERF is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ERF (2.46) is worse than 64.71% of its industry peers.
ERF has a debt to FCF ratio of 8.39. This is a slightly negative value and a sign of low solvency as ERF would need 8.39 years to pay back of all of its debts.
ERF's Debt to FCF ratio of 8.39 is in line compared to the rest of the industry. ERF outperforms 52.94% 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.
ERF has a worse Debt to Equity ratio (0.66) than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 8.39 | ||
| Altman-Z | 2.46 |
ROIC/WACC1.13
WACC6.51%
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 worse Current ratio (1.45) than 76.47% 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.
Looking at the Quick ratio, with a value of 1.38, ERF is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The earnings per share for ERF have decreased strongly by -20.67% in the last year.
The Earnings Per Share has been growing slightly by 6.31% on average over the past years.
The Revenue has been growing slightly by 3.28% in the past 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
The Earnings Per Share is expected to grow by 16.59% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.88% on average over the next years.
EPS Next Y23.98%
EPS Next 2Y18.43%
EPS Next 3Y16.5%
EPS Next 5Y16.59%
Revenue Next Year6.97%
Revenue Next 2Y7.06%
Revenue Next 3Y7.11%
Revenue Next 5Y7.88%
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
ERF is valuated quite expensively with a Price/Earnings ratio of 29.99.
Compared to the rest of the industry, the Price/Earnings ratio of ERF is on the same level as its industry peers.
ERF is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.10, ERF is valued correctly.
82.35% of the companies in the same industry are more expensive than ERF, based on the Price/Forward Earnings ratio.
ERF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.99 | ||
| Fwd PE | 14.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ERF indicates a rather cheap valuation: ERF is cheaper than 88.24% of the companies listed in the same industry.
88.24% of the companies in the same industry are more expensive than ERF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.41 | ||
| EV/EBITDA | 8.63 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ERF's earnings are expected to grow with 16.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.25
PEG (5Y)4.75
EPS Next 2Y18.43%
EPS Next 3Y16.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.05%, 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 0.73. ERF pays more dividend than 88.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ERF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
The dividend of ERF is nicely growing with an annual growth rate of 37.65%!
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 2Y18.43%
EPS Next 3Y16.5%
EUROFINS SCIENTIFIC
EPA:ERF (12/24/2024, 7:00:00 PM)
49.48
+0.9 (+1.85%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners37.01%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap9.55B
Analysts67
Price Target60.34 (21.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Dividend Growth(5Y)37.65%
DP74.81%
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)-2%
PT rev (3m)-0.73%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.51%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.99 | ||
| Fwd PE | 14.1 | ||
| P/S | 1.47 | ||
| P/FCF | 20.41 | ||
| P/OCF | 9.38 | ||
| P/B | 1.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.63 |
EPS(TTM)1.65
EY3.33%
EPS(NY)3.51
Fwd EY7.09%
FCF(TTM)2.42
FCFY4.9%
OCF(TTM)5.28
OCFY10.66%
SpS33.76
BVpS26.31
TBVpS-1.4
PEG (NY)1.25
PEG (5Y)4.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 5.05% | ||
| ROCE | 9.6% | ||
| ROIC | 7.33% | ||
| ROICexc | 7.75% | ||
| ROICexgc | 21.8% | ||
| OM | 12.92% | ||
| PM (TTM) | 3.94% | ||
| GM | 20.93% | ||
| FCFM | 7.18% |
ROA(3y)5.38%
ROA(5y)4.78%
ROE(3y)11.1%
ROE(5y)10.42%
ROIC(3y)10.55%
ROIC(5y)9.93%
ROICexc(3y)11.5%
ROICexc(5y)10.91%
ROICexgc(3y)38.93%
ROICexgc(5y)37.96%
ROCE(3y)13.93%
ROCE(5y)13.17%
ROICexcg growth 3Y-15.13%
ROICexcg growth 5Y-1.59%
ROICexc growth 3Y-13.29%
ROICexc growth 5Y3.78%
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%
F-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 8.39 | ||
| Debt/EBITDA | 2.21 | ||
| Cap/Depr | 82.81% | ||
| Cap/Sales | 8.44% | ||
| Interest Coverage | 10.24 | ||
| Cash Conversion | 67.6% | ||
| Profit Quality | 182.42% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 2.46 |
F-Score6
WACC6.51%
ROIC/WACC1.13
Cap/Depr(3y)94.85%
Cap/Depr(5y)87.5%
Cap/Sales(3y)8.61%
Cap/Sales(5y)8.33%
Profit Quality(3y)132.88%
Profit Quality(5y)148.82%
High Growth Momentum
Growth
EPS 1Y (TTM)-20.67%
EPS 3Y-20.53%
EPS 5Y6.31%
EPS Q2Q%-13.74%
EPS Next Y23.98%
EPS Next 2Y18.43%
EPS Next 3Y16.5%
EPS Next 5Y16.59%
Revenue 1Y (TTM)3.28%
Revenue growth 3Y6.2%
Revenue growth 5Y11.49%
Sales Q2Q%6.54%
Revenue Next Year6.97%
Revenue Next 2Y7.06%
Revenue Next 3Y7.11%
Revenue Next 5Y7.88%
EBIT growth 1Y-18.83%
EBIT growth 3Y-6.31%
EBIT growth 5Y10.08%
EBIT Next Year101.86%
EBIT Next 3Y34.61%
EBIT Next 5Y25.11%
FCF growth 1Y-1.7%
FCF growth 3Y-18.61%
FCF growth 5Y21.13%
OCF growth 1Y-10.4%
OCF growth 3Y-5.95%
OCF growth 5Y13.36%