Eurofins Scientific (ERF) AI Stock Analysis

• Market Cap: €11.13B
• Dividend Yield: 0.97%
• Average Volume (3M): 260.87K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.84
• Revenue Growth: 6.25%
• EPS Growth: 18.93%
• Country: FR
• Employees: 62,696
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 1.28
• 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: 20.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 3.83
• Revenue Forecast (FY): €7.64B

• Rating: 54 Neutral
• Price Target: €62.00 ▲(1.51% Upside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is primarily constrained by financial-quality concerns (higher leverage, weaker free-cash-flow conversion, and margin uncertainty despite strong 2025 revenue growth). Technicals are mixed with near-term softness but an intact longer-term trend, while valuation (P/E ~25 and low yield) offers limited downside support.

Positive Factors

Diversified, recurring fee-for-service model

Eurofins' business is built on fee-for-service laboratory testing across pharma, food, environment and clinical markets. Recurring regulatory-driven testing and a diversified end-market mix reduce demand cyclicality, while a large lab network spreads fixed costs and supports durable operating leverage.

Strong recent revenue expansion

A 36.7% revenue jump in 2025 materially increases scale, enhancing bargaining power, cross-selling and utilization of existing lab capacity. Sustained top-line expansion supports investment in specialized capabilities and strengthens long-term competitive position if growth persists beyond near-term spikes.

Material operating cash generation

Eurofins generates significant operating cash, with OCF near €1.3B in 2025, which funds capex, acquisitions and interest costs. While FCF fell, positive and sizable cash flow provides a durable source of internal funding and the ability to pursue strategic investments or service debt over the medium term.

Negative Factors

Higher leverage and refinancing risk

Debt-to-equity doubling to ~1.53 materially reduces balance-sheet flexibility. Elevated leverage increases vulnerability to rising rates or earnings weak spots, constrains ability to fund M&A or returns without new issuance, and raises refinancing and interest-burden risk if cash flow softens.

Margin deterioration and gross-margin anomaly

A steady slide in net margin to ~6.5% and an anomalous plunge in reported gross margin create lasting concerns about earnings quality. If these reflect structural cost pressures, pricing limits, or accounting one-offs, sustainable profitability and return on capital may be impaired over the medium term.

Weaker free-cash-flow conversion

FCF conversion declining to ~41% of net income signals reduced cash quality from higher capex or working-capital pressure. Persistently weaker conversion would limit debt paydown capacity, slow deleveraging, and reduce optionality for acquisitions or shareholder returns over the next several quarters.

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 primarily makes money by providing fee-for-service laboratory testing and related analytical services to business and public-sector customers. Revenue is generated when clients submit samples (or outsource ongoing testing programs) and pay per test, per sample, per project, or under longer-term service contracts. Key revenue streams include: (1) Pharma and biotech services: analytical testing, quality control, release testing, stability testing, method development/validation, and other laboratory services supporting drug development and manufacturing; (2) Food, feed, and agroscience testing: microbiological and chemical analysis for safety, authenticity, contaminants, residues, allergens, nutrition, and regulatory compliance; (3) Environmental services: testing of water, air, soil, and waste for pollutants and compliance monitoring, often for industrial clients and municipalities; (4) Clinical diagnostics and related laboratory services: diagnostic testing performed for healthcare stakeholders where applicable in its footprint; and (5) Consumer products and other industrial testing: safety, performance, and regulatory testing for products such as cosmetics, electronics, and materials. The company’s earnings are supported by scale (a broad laboratory network that spreads fixed costs across high sample volumes), recurring testing demand tied to regulation and quality programs, and a diversified end-market mix that reduces reliance on any single sector. Information on specific, named partnerships or their revenue contribution is null.

Eurofins Scientific Financial Statement Overview

Summary

Strong 2025 revenue growth (36.7%) is offset by weaker quality signals: net margin has trended down to ~6.5%, 2025 gross margin shows an unusual sharp drop versus prior years (creating uncertainty), leverage increased materially (debt-to-equity ~1.53), and free cash flow declined (~-14.5% YoY) with weaker cash conversion (~41% of net income).

Income Statement

Revenue expanded strongly in 2025 (annual revenue growth of 36.7%) after a flat-to-choppy 2022–2024. Profitability is mixed: EBITDA margins have been fairly steady near ~19–25% over the period, but net margin has trended down from ~11.6% (2021) to ~6.5% (2025). 2025 also shows an unusually low gross margin (~10.9%) versus prior years (~67–68%), which creates uncertainty around cost structure/one-off effects and reduces overall quality of earnings despite higher absolute profits.

Balance Sheet

Leverage stepped up materially in 2025: debt-to-equity rose to ~1.53 (from ~0.68 in 2024) as total debt increased and equity declined, reducing balance-sheet flexibility. Returns improved versus 2023–2024 (return on equity ~13.4% in 2025), but the higher debt load raises refinancing and interest-burden risk if operating performance softens.

Cash Flow

Cash generation remains positive, with operating cash flow of ~€1.30B in 2025, but free cash flow fell to ~€535M (down ~14.5% year over year). Cash conversion is moderate: free cash flow is ~41% of net income in 2025 (down from ~60% in 2024), suggesting higher capital spending or working-capital drag. Operating cash flow relative to net income is positive but not consistently strong across years, which keeps cash-flow quality from scoring higher.

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: Negative
• Last Price: 61.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 61.08 is below the 20-day moving average (MA) of 64.49, below the 50-day MA of 67.08, and below the 200-day MA of 63.38, indicating a bearish trend. The MACD of -1.46 indicates Positive momentum. The RSI at 32.83 is Neutral, neither overbought nor oversold. The STOCH value of 29.99 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
BIM	68 Neutral	€10.71B	32.73	9.69%	0.82%	8.28%	-8.08%
IPN	67 Neutral	€12.37B	22.37	10.82%	1.17%	9.57%	-34.30%
ALERS	55 Neutral	€214.12M	26.96	1.32%	―	12.47%	-65.87%
ERF	54 Neutral	€11.13B	23.65	11.27%	0.97%	6.25%	18.93%
DIM	52 Neutral	€16.00B	76.93	6.65%	0.31%	7.72%	53.84%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%