ENXTPA:ERF

Stock Analysis Report

Executive Summary

Eurofins Scientific SE, through its subsidiaries, provides various analytical testing services worldwide.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Eurofins Scientific's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ERF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

ERF

3.8%

FR Life Sciences

-4.6%

FR Market


1 Year Return

14.4%

ERF

24.4%

FR Life Sciences

-23.1%

FR Market

Return vs Industry: ERF underperformed the French Life Sciences industry which returned 23.5% over the past year.

Return vs Market: ERF exceeded the French Market which returned -21.8% over the past year.


Shareholder returns

ERFIndustryMarket
7 Day-3.2%3.8%-4.6%
30 Day-13.1%-5.3%-23.2%
90 Day-17.0%4.3%-29.4%
1 Year15.2%14.4%25.5%24.4%-20.4%-23.1%
3 Year2.2%0.5%87.7%78.1%-4.9%-13.7%
5 Year59.6%55.6%193.6%174.0%1.3%-13.1%

Price Volatility Vs. Market

How volatile is Eurofins Scientific's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Eurofins Scientific undervalued compared to its fair value and its price relative to the market?

33.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ERF (€440) is trading below our estimate of fair value (€632.89)

Significantly Below Fair Value: ERF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ERF is poor value based on its PE Ratio (53.8x) compared to the Life Sciences industry average (49.9x).

PE vs Market: ERF is poor value based on its PE Ratio (53.8x) compared to the French market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: ERF is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: ERF is good value based on its PB Ratio (2.8x) compared to the XE Life Sciences industry average (4.1x).


Next Steps

Future Growth

How is Eurofins Scientific forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

26.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERF's forecast earnings growth (26.4% per year) is above the savings rate (-0.1%).

Earnings vs Market: ERF's earnings (26.4% per year) are forecast to grow faster than the French market (12% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ERF's revenue (5.9% per year) is forecast to grow faster than the French market (3.5% per year).

High Growth Revenue: ERF's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ERF's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Eurofins Scientific performed over the past 5 years?

17.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ERF has a large one-off loss of €90.8M impacting its December 31 2019 financial results.

Growing Profit Margin: ERF's current net profit margins (3.2%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: ERF's earnings have grown by 17.9% per year over the past 5 years.

Accelerating Growth: ERF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ERF had negative earnings growth (-17%) over the past year, making it difficult to compare to the Life Sciences industry average (6.3%).


Return on Equity

High ROE: ERF's Return on Equity (6.7%) is considered low.


Next Steps

Financial Health

How is Eurofins Scientific's financial position?


Financial Position Analysis

Short Term Liabilities: ERF's short term assets (€1.6B) exceed its short term liabilities (€1.6B).

Long Term Liabilities: ERF's short term assets (€1.6B) do not cover its long term liabilities (€3.3B).


Debt to Equity History and Analysis

Debt Level: ERF's debt to equity ratio (102.6%) is considered high.

Reducing Debt: ERF's debt to equity ratio has reduced from 107.3% to 102.6% over the past 5 years.

Debt Coverage: ERF's debt is well covered by operating cash flow (22.8%).

Interest Coverage: ERF's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

Inventory Level: ERF has a high level of physical assets or inventory.

Debt Coverage by Assets: ERF's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Eurofins Scientific's current dividend yield, its reliability and sustainability?

0.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ERF's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the French market (2.07%).

High Dividend: ERF's dividend (0.78%) is low compared to the top 25% of dividend payers in the French market (6.44%).


Stability and Growth of Payments

Stable Dividend: ERF is not paying a notable dividend for the French market, therefore no need to check if payments are stable.

Growing Dividend: ERF is not paying a notable dividend for the French market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ERF is not paying a notable dividend for the French market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ERF's dividend in 3 years as they are not forecast to pay a notable one for the French market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.3yrs

Average board tenure


CEO

Gilles Martin (56yo)

no data

Tenure

€1,189,214

Compensation

Dr. Gilles G. Martin, Ph.D., serves as the Chief Executive Officer at Eurofins Scientific, Inc. Dr. Martin serves as Chief Executive Officer of Eurofins Nihon Kankyo K.K. and Eurofins Scientific Group. He  ...


CEO Compensation Analysis

Compensation vs Market: Gilles's total compensation ($USD1.30M) is below average for companies of similar size in the French market ($USD2.79M).

Compensation vs Earnings: Gilles's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Gilles Martin
Chairman of the Board & CEOno data€1.19m0.000010% 746.0
Valerie Hanote
Executive Director30.25yrs€293.69k0.000010% 746.0
Yves-Loïc Martin
Executive Director28.25yrs€354.00k0.081% 6.1m
Patrizia Luchetta
Independent Non-Executive Director3yrs€78.02kno data
Stuart Anderson
Independent Non-Executive Director8.25yrs€78.02k0.00031% 23.1k
Fereshteh Pouchantchi
Independent Non-Executive Director6yrs€78.02kno data

8.3yrs

Average Tenure

55.5yo

Average Age

Experienced Board: ERF's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Eurofins Scientific SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eurofins Scientific SE
  • Ticker: ERF
  • Exchange: ENXTPA
  • Founded: 1987
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: €7.460b
  • Shares outstanding: 17.92m
  • Website: https://www.eurofins.com

Number of Employees


Location

  • Eurofins Scientific SE
  • Val Fleuri 23
  • Luxembourg City
  • 1526
  • Luxembourg

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ERFS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1997
ERFENXTPA (Euronext Paris)YesOrdinary SharesFREURNov 1997
ESFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1997
0MV5LSE (London Stock Exchange)YesOrdinary SharesGBEURNov 1997
ERFPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURNov 1997
ERFSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFNov 1997
ESFETLX (Eurotlx)YesOrdinary SharesITEURNov 1997
ERRF.YOTCPK (Pink Sheets LLC)UNSPONSORE ADRUSUSDMay 2017
ERFNVENXTPA (Euronext Paris)EUR0.1 (RFD 01/01/2020)FREURJan 2020

Biography

Eurofins Scientific SE, through its subsidiaries, provides various analytical testing services worldwide. The company offers a portfolio of approximately 200,000 analytical methods for evaluating the safety, identity, composition, authenticity, origin, traceability, and purity of biological substances and products, as well as for clinical diagnostic. It provides agro science, agro testing, biopharma, contract development and manufacturing organization, clinical diagnostics, consumer product testing, cosmetics testing, digital testing, electrical and electronics, environment testing, food and feed testing, forensic, genomic, industrial, materials and engineering, medical device, and REACH services. The company serves clients from a range of industries, including the pharmaceutical, food, environmental, and clinical diagnostics sectors. It operates approximately 800 laboratories in 47 countries. The company was founded in 1987 and is headquartered in Luxembourg City, Luxembourg. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 00:22
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.