Eurofins Scientific (ERF) AI Stock Analysis

• Market Cap: €12.36B
• Dividend Yield: 0.97%
• Average Volume (3M): 260.87K
• Price to Earnings (P/E): 25.7
• Beta (1Y): 0.87
• Revenue Growth: 6.25%
• EPS Growth: 18.93%
• Country: FR
• Employees: 62,696
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 1.26
• Shares Outstanding: 182,163,000
• 10 Day Avg. Volume: 311,523
• 30 Day Avg. Volume: 260,872
• PEG Ratio: 0.99
• Price to Book (P/B): 3.17
• Price to Sales (P/S): 1.54
• P/FCF Ratio: 20.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €73.43
• Price Target Upside: 8.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: €73.00 ▲(7.61% Upside)

Eurofins Scientific's overall stock score is driven primarily by its strong financial performance, supported by robust cash flow and stable profitability. However, technical indicators suggest bearish momentum, and the valuation indicates moderate pricing, which tempers the overall score.

Positive Factors

Robust cash generation

Material growth in operating cash flow and a 68.9% jump in free cash flow signal durable internal funding capacity. Strong cash generation supports recurring capex, R&D, bolt‑on M&A and debt service, enhancing long‑term financial flexibility and investment optionality.

Diversified fee‑for‑service model

A broad fee‑for‑service footprint across multiple regulated end markets and long‑term contracts creates recurring revenue, lowers cyclicality and enables cross‑sell. Diversification and contractual relationships support steady demand and pricing leverage over multiple years.

High gross margins

Consistently >60% gross margins reflect technical expertise, lab scale and specialized services that are hard to commoditize. High gross economics provide a durable buffer to fund SG&A, innovation and integration costs, supporting margin sustainability as volumes grow.

Negative Factors

Rising leverage

A rising debt‑to‑equity ratio to 0.68 indicates greater financial leverage and interest‑rate exposure. Higher leverage can constrain strategic flexibility, increase financing costs during rate cycles and limit the company's ability to fund opportunistic M&A or absorb shocks without deleveraging.

Relatively low net margin

A modest net margin versus very high gross margins suggests elevated operating, integration or SG&A costs. Persistent cost pressure can cap return on invested capital and reduce the durability of earnings improvements unless management sustainably reduces overhead or scales efficiencies.

Modest organic revenue growth

Mid‑single‑digit top‑line growth reflects modest organic expansion and a recent recovery from decline. Slower organic growth increases reliance on acquisitions to meet investor expectations and may limit long‑term market share gains if not paired with stronger core end‑market penetration.

Eurofins Scientific Business Overview & Revenue Model

Company Description

Eurofins Scientific SE, together with its subsidiaries, provides various analytical testing and laboratory services worldwide. The company offers a portfolio of approximately 200,000 analytical methods to evaluate the safety, identity, composition, authenticity, origin, traceability, and purity of various products. It provides services such as agro-science, including biological assessment, consumer and human, and environmental safety, product chemistry, regulatory consultancy, and seed services; agro testing; assurance, such as product inspection, auditing, certification, training and consultation of food, consumer products, and healthcare and cosmetics; biopharma, and clinical diagnostics. In addition, the company offers consumer product testing, which include product compliance and audit, testing, certifications and approvals, inspections, training courses, and digital media and cyber security for various industries; cosmetics and personal care; environment testing, including water, air, soil, waste, and other products testing; and food and feed testing that include allergen, GMO, grain, meat, nano material, pesticides, and residual DNA testing. Further, it offers audit and certification, authenticity, carbohydrates, consulting, dioxins and POPs, food irradiation, labelling, law, heavy metals, identity preservation, mealtime, molecular and microbiology, mycotoxins, nutritional analyses, organic containments, packaging/migration, radioactivity, rapidest, sensorsy and consumer research, trainings, veterinary drug residues, and vitamins services. Additionally, the company provides forensic, genomic, maritime, materials and engineering, REACH, and technologies services. It operates approximately 900 laboratories in 54 countries. The company was founded in 1987 and is headquartered in Luxembourg City, Luxembourg.

How the Company Makes Money

Eurofins Scientific generates revenue primarily through its extensive portfolio of laboratory testing services. The company operates on a fee-for-service model, where clients pay for specific tests and analyses conducted by Eurofins' laboratories. Major revenue streams include food safety testing, environmental testing, pharmaceutical testing, and clinical diagnostics. Additionally, Eurofins benefits from long-term contracts and partnerships with large corporations, government agencies, and research institutions, which provide a consistent flow of work and revenue. The company also invests in expanding its capabilities through acquisitions, enhancing its service offerings, and entering new markets, further contributing to its earnings.

Eurofins Scientific Financial Statement Overview

Summary

Eurofins Scientific shows strong financial performance with consistent revenue growth and profitability. The balance sheet is stable with a solid equity base, though leverage has increased slightly. Cash flow generation is robust, supporting future growth opportunities.

Income Statement

Eurofins Scientific exhibits strong profitability with a gross profit margin consistently above 60%. The company demonstrated a notable revenue growth rate of 6.7% in 2024, recovering from a slight decline in 2023. However, EBIT for 2024 was missing, limiting assessment in that area. Net profit margin increased to 5.8% in 2024, indicating improving efficiency.

Balance Sheet

The balance sheet shows a solid equity base with an equity ratio of 49.0% in 2024, reflecting financial stability. However, the debt-to-equity ratio increased slightly to 0.68, which suggests a moderate level of leverage. Return on equity improved to 7.6% in 2024, indicating efficient use of equity capital.

Cash Flow

Eurofins Scientific's cash flow statement reflects robust operating cash flows, with an increase to €1.32 billion in 2024. The free cash flow to net income ratio is healthy, demonstrating strong cash generation relative to net income. Free cash flow grew significantly by 68.9% in 2024, highlighting improved liquidity and potential for reinvestment.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.30B	6.95B	6.51B	6.71B	6.72B
Gross Profit	793.00M	4.71B	620.40M	4.49B	4.57B
EBITDA	1.45B	1.38B	1.22B	1.47B	1.75B
Net Income	475.00M	406.40M	310.30M	610.20M	782.60M
Balance Sheet
Total Assets	10.98B	10.89B	10.89B	10.08B	9.33B
Cash, Cash Equivalents and Short-Term Investments	791.00M	613.90M	1.22B	486.60M	515.30M
Total Debt	5.43B	3.61B	3.93B	3.33B	2.75B
Total Liabilities	7.40B	5.50B	5.75B	5.23B	4.66B
Stockholders Equity	3.54B	5.34B	5.08B	4.78B	4.65B
Cash Flow
Free Cash Flow	535.00M	790.50M	467.80M	476.10M	990.30M
Operating Cash Flow	1.29B	1.32B	1.02B	1.14B	1.51B
Investing Cash Flow	-1.09B	-846.50M	-681.10M	-855.90M	-1.03B
Financing Cash Flow	13.00M	-1.09B	413.60M	-311.30M	-910.30M

Eurofins Scientific Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 67.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ERF, the sentiment is Neutral. The current price of 67.84 is below the 20-day moving average (MA) of 70.22, above the 50-day MA of 64.39, and above the 200-day MA of 61.98, indicating a neutral trend. The MACD of 0.84 indicates Positive momentum. The RSI at 49.64 is Neutral, neither overbought nor oversold. The STOCH value of 35.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:ERF.

Eurofins Scientific Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPN	70 Outperform	€11.32B	25.13	10.82%	1.17%	9.57%	-34.30%
BIM	66 Neutral	€11.45B	30.39	9.69%	0.82%	8.28%	-8.08%
ERF	64 Neutral	€12.36B	25.72	11.27%	0.97%	6.25%	18.93%
DIM	61 Neutral	€17.62B	70.33	6.65%	0.31%	7.72%	53.84%
ALERS	55 Neutral	€236.63M	100.81	1.32%	―	12.47%	-65.87%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%