Eurofins Scientific SE
Eurofins Scientific SE Fundamental Analysis
Eurofins Scientific SE (ERF.PA) shows moderate financial fundamentals with a PE ratio of 23.74, profit margin of 6.51%, and ROE of 11.62%. The company generates $7.2B in annual revenue with moderate year-over-year growth of 6.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ERF.PA's fundamental strength across five key dimensions:
Efficiency Score
WeakERF.PA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentERF.PA trades at attractive valuation levels.
Growth Score
ExcellentERF.PA delivers strong and consistent growth momentum.
Financial Health Score
ModerateERF.PA shows balanced financial health with some risks.
Profitability Score
WeakERF.PA struggles to sustain strong margins.
Key Financial Metrics
Is ERF.PA Expensive or Cheap?
P/E Ratio
ERF.PA trades at 23.74 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ERF.PA's PEG of 1.79 indicates fair valuation.
Price to Book
The market values Eurofins Scientific SE at 3.18 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.84 times EBITDA. This is generally considered low.
How Well Does ERF.PA Make Money?
Net Profit Margin
For every $100 in sales, Eurofins Scientific SE keeps $6.51 as profit after all expenses.
Operating Margin
Core operations generate 15.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.62 in profit for every $100 of shareholder equity.
ROA
Eurofins Scientific SE generates $4.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Eurofins Scientific SE produces operating cash flow of $1.03B, showing steady but balanced cash generation.
Free Cash Flow
Eurofins Scientific SE produces free cash flow of $396.00M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.24 in free cash annually.
FCF Yield
ERF.PA converts 3.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How ERF.PA Stacks Against Its Sector Peers
| Metric | ERF.PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.74 | 27.91 | Better (Cheaper) |
| ROE | 11.62% | 687.00% | Weak |
| Net Margin | 6.51% | -45285.00% (disorted) | Weak |
| Debt/Equity | 1.53 | 0.33 | Weak (High Leverage) |
| Current Ratio | 1.09 | 2795.76 | Neutral |
| ROA | 4.32% | -13557.00% (disorted) | Weak |
ERF.PA outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Eurofins Scientific SE's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
42.27%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
94.43%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
81.70%
Industry Style: Defensive, Growth, Innovation
High Growth