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: 12.79% 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 ▲(11.94% 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.

Eurofins Scientific Business Overview & Revenue Model

Company Description

Eurofins Scientific (ERF) is a global leader in laboratory services, specializing in bioanalytical testing, food, environmental, and pharmaceutical analysis. The company operates through various sectors, including food testing, environment testing, pharmaceutical services, and clinical diagnostics. Eurofins provides a wide range of services, such as testing for contaminants in food products, environmental assessments, and drug development support, catering to clients across multiple industries worldwide.

How the Company Makes Money

Eurofins Scientific generates revenue primarily through its extensive portfolio of laboratory services, charging clients for testing and analysis across its various sectors. Key revenue streams include food testing services, which account for a significant portion of their income, as well as environmental testing and pharmaceutical research services. The company benefits from long-term contracts with clients in regulated industries, ensuring a steady flow of income. Additionally, Eurofins invests in strategic acquisitions to expand its service offerings and market reach, which further enhances its revenue potential. Partnerships with pharmaceutical companies and regulatory bodies also play a crucial role in securing contracts for testing and compliance services, driving sustained earnings growth.

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: 58.96
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 58.96 is below the 20-day moving average (MA) of 60.53, below the 50-day MA of 61.73, and above the 200-day MA of 57.99, indicating a neutral trend. The MACD of -0.97 indicates Positive momentum. The RSI at 38.99 is Neutral, neither overbought nor oversold. The STOCH value of 51.64 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%	1.06%	9.57%	-34.30%
DIM	67 Neutral	€19.50B	73.89	6.65%	0.36%	7.72%	53.84%
BIM	66 Neutral	€12.90B	34.12	9.69%	0.84%	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%