EUROFINS SCIENTIFIC (ESF0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ESF0 - FR0014000MR3 - Common Stock
70.7 EUR
-0.3 (-0.42%)
Taking everything into account, ESF0 scores 5 out of 10 in our fundamental rating. ESF0 was compared to 22 industry peers in the Life Sciences Tools & Services industry. ESF0 has an average financial health and profitability rating. ESF0 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- ESF0 had positive earnings in the past year.
- In the past year ESF0 had a positive cash flow from operations.
- In the past 5 years ESF0 has always been profitable.
- ESF0 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.54%, ESF0 is in line with its industry, outperforming 50.00% of the companies in the same industry.
- ESF0 has a Return On Equity (8.09%) which is comparable to the rest of the industry.
- ESF0 has a better Return On Invested Capital (9.79%) than 77.27% of its industry peers.
- ESF0 had an Average Return On Invested Capital over the past 3 years of 8.70%. This is in line with the industry average of 9.34%.
- The 3 year average ROIC (8.70%) for ESF0 is below the current ROIC(9.79%), indicating increased profibility in the last year.
| 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
- The Profit Margin of ESF0 (5.44%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of ESF0 has grown nicely.
- Looking at the Operating Margin, with a value of 15.59%, ESF0 is in line with its industry, outperforming 59.09% of the companies in the same industry.
- In the last couple of years the Operating Margin of ESF0 has grown nicely.
- ESF0 has a worse Gross Margin (23.29%) than 81.82% of its industry peers.
- In the last couple of years the Gross Margin of ESF0 has grown nicely.
| 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 ESF0 is still creating some value.
- Compared to 1 year ago, ESF0 has less shares outstanding
- ESF0 has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for ESF0 has been reduced compared to a year ago.
2.2 Solvency
- ESF0 has an Altman-Z score of 2.86. This is not the best score and indicates that ESF0 is in the grey zone with still only limited risk for bankruptcy at the moment.
- ESF0 has a Altman-Z score (2.86) which is in line with its industry peers.
- The Debt to FCF ratio of ESF0 is 5.24, which is a neutral value as it means it would take ESF0, 5.24 years of fcf income to pay off all of its debts.
- ESF0 has a Debt to FCF ratio of 5.24. This is in the better half of the industry: ESF0 outperforms 68.18% of its industry peers.
- ESF0 has a Debt/Equity ratio of 0.77. This is a neutral value indicating ESF0 is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.77, ESF0 is in line with its industry, outperforming 40.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 2.86 |
ROIC/WACC1.11
WACC8.84%
2.3 Liquidity
- A Current Ratio of 1.26 indicates that ESF0 should not have too much problems paying its short term obligations.
- ESF0 has a Current ratio (1.26) which is comparable to the rest of the industry.
- ESF0 has a Quick Ratio of 1.19. This is a normal value and indicates that ESF0 is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Quick ratio value of 1.19, ESF0 is doing good in the industry, outperforming 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 16.50% over the past year.
- ESF0 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.34% yearly.
- The Revenue has been growing slightly by 2.53% in the past year.
- Measured over the past years, ESF0 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, ESF0 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- A Price/Earnings ratio of 19.64 indicates a rather expensive valuation of ESF0.
- 86.36% of the companies in the same industry are more expensive than ESF0, based on the Price/Earnings ratio.
- ESF0's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 17.50, which indicates a rather expensive current valuation of ESF0.
- 86.36% of the companies in the same industry are more expensive than ESF0, based on the Price/Forward Earnings ratio.
- ESF0 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.64 | ||
| Fwd PE | 17.5 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ESF0 is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ESF0 indicates a rather cheap valuation: ESF0 is cheaper than 95.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.41 | ||
| EV/EBITDA | 9.56 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of ESF0 may justify a higher PE ratio.
- ESF0's earnings are expected to grow with 14.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.09
PEG (5Y)1.07
EPS Next 2Y14.36%
EPS Next 3Y14.31%
5. Dividend
5.1 Amount
- ESF0 has a yearly dividend return of 0.84%, which is pretty low.
- ESF0's Dividend Yield is rather good when compared to the industry average which is at 0.48. ESF0 pays more dividend than 81.82% of the companies in the same industry.
- With a Dividend Yield of 0.84, ESF0 pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
- The dividend of ESF0 is nicely growing with an annual growth rate of 16.51%!
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 ESF0. This is a bit on the high side, but may be sustainable.
- ESF0's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP54.88%
EPS Next 2Y14.36%
EPS Next 3Y14.31%
EUROFINS SCIENTIFIC / ESF0.DE FAQ
What is the ChartMill fundamental rating of EUROFINS SCIENTIFIC (ESF0.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ESF0.DE.
What is the valuation status for ESF0 stock?
ChartMill assigns a valuation rating of 6 / 10 to EUROFINS SCIENTIFIC (ESF0.DE). This can be considered as Fairly Valued.
What is the profitability of ESF0 stock?
EUROFINS SCIENTIFIC (ESF0.DE) has a profitability rating of 6 / 10.
What are the PE and PB ratios of EUROFINS SCIENTIFIC (ESF0.DE) stock?
The Price/Earnings (PE) ratio for EUROFINS SCIENTIFIC (ESF0.DE) is 19.64 and the Price/Book (PB) ratio is 2.78.
How sustainable is the dividend of EUROFINS SCIENTIFIC (ESF0.DE) stock?
The dividend rating of EUROFINS SCIENTIFIC (ESF0.DE) is 3 / 10 and the dividend payout ratio is 54.88%.