EUROFINS SCIENTIFIC (ERF.PA) Stock Fundamental Analysis
EPA:ERF - Euronext Paris - Matif - FR0014000MR3 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to ERF. ERF was compared to 15 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 has a decent growth rate and is not valued too expensively.
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 of 3.24%. This is in the better half of the industry: ERF outperforms 64.71% of its industry peers.
Looking at the Return On Equity, with a value of 6.61%, ERF is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
ERF has a Return On Invested Capital of 9.18%. This is amongst the best in the industry. ERF outperforms 82.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ERF is in line with the industry average of 6.82%.
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
The Profit Margin of ERF (5.08%) is comparable to the rest of the industry.
ERF's Profit Margin has improved in the last couple of years.
ERF's Operating Margin of 14.97% is fine compared to the rest of the industry. ERF outperforms 64.71% of its industry peers.
In the last couple of years the Operating Margin of ERF has grown nicely.
Looking at the Gross Margin, with a value of 22.33%, ERF is doing worse than 76.47% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ERF is still creating some value.
Compared to 1 year ago, ERF has less shares outstanding
ERF has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ERF has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.62 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 2.62, ERF is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
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 58.82% of the companies in the same industry.
ERF has a Debt/Equity ratio of 0.59. This is a neutral value indicating ERF is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.59, ERF perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.57 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.32
WACC6.95%
2.3 Liquidity
A Current Ratio of 1.16 indicates that ERF should not have too much problems paying its short term obligations.
ERF has a worse Current ratio (1.16) than 76.47% of its industry peers.
A Quick Ratio of 1.09 indicates that ERF should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.09, ERF perfoms like the industry average, outperforming 47.06% 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.
ERF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.34% yearly.
Looking at the last year, ERF shows a small growth in Revenue. The Revenue has grown by 6.70% in the last 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%16.67%
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 14.54% yearly.
The Revenue is expected to grow by 7.76% on average over the next years.
EPS Next Y14.09%
EPS Next 2Y14.24%
EPS Next 3Y14.39%
EPS Next 5Y14.54%
Revenue Next Year7.56%
Revenue Next 2Y7.24%
Revenue Next 3Y7.28%
Revenue Next 5Y7.76%
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.
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
ERF is valuated quite expensively with a Price/Earnings ratio of 28.53.
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 29.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.57, which indicates a correct valuation of ERF.
Based on the Price/Forward Earnings ratio, ERF is valued cheaper than 88.24% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. ERF is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.53 | ||
| Fwd PE | 14.57 |
4.2 Price Multiples
94.12% of the companies in the same industry are more expensive than ERF, based on the Enterprise Value to EBITDA ratio.
100.00% 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 | 12.54 | ||
| EV/EBITDA | 7.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ERF does not grow enough to justify the current Price/Earnings ratio.
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 14.39% in the coming years.
PEG (NY)2.03
PEG (5Y)1.56
EPS Next 2Y14.24%
EPS Next 3Y14.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.16%, 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 0.79. ERF pays more dividend than 82.35% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, ERF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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 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.
ERF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.77%
EPS Next 2Y14.24%
EPS Next 3Y14.39%
EPA:ERF (3/7/2025, 7:00:00 PM)
51.36
-0.36 (-0.7%)
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 Cap9.91B
Analysts67
Price Target58.89 (14.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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)1.97%
PT rev (3m)-2.4%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.53 | ||
| Fwd PE | 14.57 | ||
| P/S | 1.43 | ||
| P/FCF | 12.54 | ||
| P/OCF | 7.51 | ||
| P/B | 1.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.45 |
EPS(TTM)1.8
EY3.5%
EPS(NY)3.52
Fwd EY6.86%
FCF(TTM)4.1
FCFY7.98%
OCF(TTM)6.83
OCFY13.31%
SpS36.02
BVpS27.67
TBVpS-1.5
PEG (NY)2.03
PEG (5Y)1.56
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 | 2.62 |
F-Score8
WACC6.95%
ROIC/WACC1.32
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%16.67%
EPS Next Y14.09%
EPS Next 2Y14.24%
EPS Next 3Y14.39%
EPS Next 5Y14.54%
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 5Y7.76%
EBIT growth 1Y23.67%
EBIT growth 3Y-10.93%
EBIT growth 5Y12.66%
EBIT Next Year90.65%
EBIT Next 3Y34.15%
EBIT Next 5Y26.93%
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%