EUROFINS SCIENTIFIC (ERF.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:ERF • FR0014000MR3
68.14 EUR
+1.94 (+2.93%)
Last: Jan 30, 2026, 07:00 PM
ERF gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 18 industry peers in the Life Sciences Tools & Services industry. ERF has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on ERF. These ratings would make ERF suitable for value investing!
1. Profitability
1.1 Basic Checks
- ERF had positive earnings in the past year.
- 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
- ERF has a Return On Assets (3.54%) which is in line with its industry peers.
- With a Return On Equity value of 8.09%, ERF perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
- ERF has a better Return On Invested Capital (9.79%) than 72.73% 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 9.98%.
- The last Return On Invested Capital (9.79%) for ERF is above the 3 year average (8.70%), which is a sign of increasing profitability.
| 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
- ERF has a Profit Margin of 5.44%. This is in the lower half of the industry: ERF underperforms 63.64% of its industry peers.
- ERF's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 15.59%, ERF perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
- In the last couple of years the Operating Margin of ERF has grown nicely.
- Looking at the Gross Margin, with a value of 23.29%, ERF is doing worse than 86.36% of the companies in the same industry.
- ERF'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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ERF is still creating some value.
- The number of shares outstanding for ERF has been reduced compared to 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
- ERF has an Altman-Z score of 2.81. 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 (2.81) which is in line with its industry peers.
- The Debt to FCF ratio of ERF is 5.24, which is a neutral value as it means it would take ERF, 5.24 years of fcf income to pay off all of its debts.
- ERF has a Debt to FCF ratio of 5.24. This is in the better half of the industry: ERF outperforms 63.64% of its industry peers.
- A Debt/Equity ratio of 0.77 indicates that ERF is somewhat dependend on debt financing.
- The Debt to Equity ratio of ERF (0.77) is worse than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 2.81 |
ROIC/WACC1.09
WACC8.95%
2.3 Liquidity
- A Current Ratio of 1.26 indicates that ERF should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.26, ERF perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
- ERF has a Quick Ratio of 1.19. 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 decent Quick ratio value of 1.19, ERF is doing good in the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
- ERF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.50%, which is quite good.
- Measured over the past years, ERF shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.34% on average per year.
- The Revenue has been growing slightly by 2.53% in the past year.
- Measured over the past years, ERF shows a quite strong growth in Revenue. The Revenue has been growing by 8.78% on average per year.
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, ERF will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.68% on average per year.
- The Revenue is expected to grow by 7.25% on average over the next years.
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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 18.93, the valuation of ERF can be described as rather expensive.
- ERF's Price/Earnings ratio is rather cheap when compared to the industry. ERF is cheaper than 81.82% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.32. ERF is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 16.87, which indicates a correct valuation of ERF.
- ERF's Price/Forward Earnings ratio is rather cheap when compared to the industry. ERF is cheaper than 81.82% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, ERF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.93 | ||
| Fwd PE | 16.87 |
4.2 Price Multiples
- ERF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ERF is cheaper than 81.82% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ERF is valued cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.82 | ||
| EV/EBITDA | 9.28 |
4.3 Compensation for Growth
- ERF's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of ERF may justify a higher PE ratio.
- ERF's earnings are expected to grow with 14.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)1.03
EPS Next 2Y14.36%
EPS Next 3Y14.31%
5. Dividend
5.1 Amount
- ERF has a Yearly Dividend Yield of 1.09%. 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 0.43. ERF pays more dividend than 86.36% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, ERF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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
- 54.88% of the earnings are spent on dividend by ERF. This is a bit on the high side, but may be sustainable.
- The dividend of ERF 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 / ERF.PA FAQ
What is the ChartMill fundamental rating of EUROFINS SCIENTIFIC (ERF.PA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ERF.PA.
What is the valuation status for ERF stock?
ChartMill assigns a valuation rating of 7 / 10 to EUROFINS SCIENTIFIC (ERF.PA). This can be considered as Undervalued.
Can you provide the profitability details for EUROFINS SCIENTIFIC?
EUROFINS SCIENTIFIC (ERF.PA) has a profitability rating of 6 / 10.
What is the earnings growth outlook for EUROFINS SCIENTIFIC?
The Earnings per Share (EPS) of EUROFINS SCIENTIFIC (ERF.PA) is expected to grow by 18.01% in the next year.
Can you provide the dividend sustainability for ERF stock?
The dividend rating of EUROFINS SCIENTIFIC (ERF.PA) is 4 / 10 and the dividend payout ratio is 54.88%.