Eurofins Scientific (ERF) AI Stock Analysis

• Market Cap: €10.90B
• Dividend Yield: 1.02%
• Average Volume (3M): 260.87K
• Price to Earnings (P/E): 25.5
• Beta (1Y): 0.93
• Revenue Growth: 6.25%
• EPS Growth: 18.93%
• Country: FR
• Employees: 62,696
• Sector: Services
• Sector Strength: N/A
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 1.64
• Shares Outstanding: 182,163,000
• 10 Day Avg. Volume: 311,523
• 30 Day Avg. Volume: 260,872
• PEG Ratio: 0.72
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 1.35
• P/FCF Ratio: 11.89
• 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: €66.50
• Price Target Upside: 13.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: €66.00 ▲(12.21% 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

Revenue Growth

Consistent revenue growth indicates a strong market position and demand for Eurofins' services, supporting long-term business sustainability.

Cash Flow Generation

Robust cash flow generation enhances Eurofins' ability to reinvest in growth opportunities and maintain financial flexibility.

Profitability

High profitability margins suggest efficient operations and pricing power, contributing to long-term financial health.

Negative Factors

Leverage

Increased leverage could limit financial flexibility and increase risk, particularly if interest rates rise or cash flows decline.

Missing EBIT Data

Lack of EBIT data hinders comprehensive analysis of operational efficiency, potentially obscuring cost management issues.

Leverage Increase

Rising leverage may strain future cash flows, affecting the company's ability to fund operations and growth initiatives.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.34B	6.95B	6.51B	6.71B	6.72B	5.44B
Gross Profit	756.80M	4.71B	620.40M	4.49B	4.57B	3.69B
EBITDA	1.09B	1.38B	1.22B	1.36B	1.71B	1.28B
Net Income	309.00M	406.40M	310.30M	610.20M	782.60M	539.40M
Balance Sheet
Total Assets	10.59B	10.89B	10.89B	10.08B	9.33B	8.58B
Cash, Cash Equivalents and Short-Term Investments	753.30M	613.90M	1.22B	486.60M	515.30M	912.40M
Total Debt	4.11B	3.61B	3.93B	3.33B	2.75B	3.15B
Total Liabilities	5.91B	5.50B	5.75B	5.23B	4.66B	4.86B
Stockholders Equity	4.64B	5.34B	5.08B	4.78B	4.65B	3.69B
Cash Flow
Free Cash Flow	626.00M	790.50M	467.80M	476.10M	990.30M	868.00M
Operating Cash Flow	972.75M	1.32B	1.02B	1.14B	1.51B	1.22B
Investing Cash Flow	-779.40M	-846.50M	-681.10M	-855.90M	-1.03B	-525.00M
Financing Cash Flow	-336.60M	-1.09B	495.80M	-311.30M	-910.30M	-48.60M

Eurofins Scientific Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 58.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Negative. The current price of 58.82 is above the 20-day moving average (MA) of 58.63, below the 50-day MA of 60.46, and above the 200-day MA of 58.67, indicating a neutral trend. The MACD of -0.40 indicates Negative momentum. The RSI at 46.15 is Neutral, neither overbought nor oversold. The STOCH value of 51.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	€10.27B	22.92	10.82%	1.15%	9.57%	-34.30%
DIM	67 Neutral	€19.50B	73.89	6.65%	0.30%	7.72%	53.84%
BIM	66 Neutral	€12.90B	34.12	9.69%	0.86%	8.28%	-8.08%
ERF	64 Neutral	€10.90B	25.53	11.27%	1.02%	6.25%	18.93%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ALERS	55 Neutral	€241.63M	102.94	1.32%	―	12.47%	-65.87%