Eurofins Scientific SE ERF

Morningstar Rating
€74.54 −0.46 (0.61%)
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Company Report

Eurofins: Hub-and-Spoke Network Expected To Drive Long-Term Efficiency Gains

Eurofins Scientific operates a global network of laboratories, making it one of the world’s largest testing, inspection, and certification companies, while also offering (bio)pharmaceutical research services and product testing, and clinical diagnostic testing. Eurofins has global leadership positions in food and feed, environmental, and pharmaceutical testing. By investing in organic expansion as well as external acquisitions, it has built decentralized “hub-and-spoke” lab networks that offer comprehensive testing solutions and short turnaround times. Customer relationships are often long-lasting, especially with large multinational customers who require a lab partner with a strong reputation and track record, broad testing capabilities that are accredited across many territories, and innovative testing solutions.

Price vs Fair Value

ERF is trading at a LOCK|cCly!!l premium.
Price
€75.00
Fair Value
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Uncertainty
LOCK|qzq#J
1-Star Price
LOCK|y.sg%
5-Star Price
LOCK|.F
Economic Moat
LOCK|t&C$
Capital Allocation
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Bulls Say, Bears Say

Bulls

There are still sufficient acquisition targets left for Eurofins in its growth markets, allowing it to have continuous high growth while fortifying its competitive positioning through its hub-and-spoke network.

Bears

Eurofins has achieved leading positions in key markets primarily through acquisitions. In the future, Eurofins may overpay on acquisitions to meet top-line targets.

Trading Information

Previous Close Price
€75.00
Day Range
€73.56–75.56
52-Week Range
€54.86–79.22
Bid/Ask
€72.66 / €75.24
Shares Outstanding
171.11M
Market Cap
€12.75B
Volume/Avg
496,921 / 275,412

Key Statistics

Price/Earnings (Normalized)
20.39
Price/Sales
1.86
Dividend Yield (Trailing)
0.96%
Dividend Yield (Forward)
0.96%
Dividend Payment Schedule
Apr
Total Yield
3.21%

Company Profile

Eurofins, headquartered in Luxembourg, is a decentralized network of life sciences companies that provide various analytical tests and laboratory services. These include tests to evaluate the safety, identity, composition, authenticity, purity, origin, and traceability of various biological substances and products. Eurofins operates over 950 laboratories in 61 countries. Its revenue from Europe, North America, and the rest of the world contributes approximately 50%, 40%, and 10% of total revenue, respectively. It is active in food, feed, and environmental testing ("life"), biopharmaceutical services, diagnostic services and products, and consumer and technology products testing, which contribute approximately 40%, 30%, 20%, and 10% respectively.
Sector
Healthcare
Industry
Diagnostics & Research
Stock Style Box
Mid Growth
Total Number of Employees
65,000

Competitors

Valuation

Metric
ERF
BVI
SGSN
Price/Earnings (Normalized)
20.3920.5425.55
Price/Book Value
3.577.1218.44
Price/Sales
1.861.822.55
Price/Cash Flow
10.4512.2415.45
Price/Earnings
ERF
BVI
SGSN

Financial Strength

Metric
ERF
BVI
SGSN
Quick Ratio
0.871.100.93
Current Ratio
1.131.290.95
Interest Coverage
5.158.1911.63
Quick Ratio
ERF
BVI
SGSN

Profitability

Metric
ERF
BVI
SGSN
Return on Assets (Normalized)
6.96%9.35%9.61%
Return on Equity (Normalized)
21.47%40.08%88.73%
Return on Invested Capital (Normalized)
9.71%15.36%13.55%
Return on Assets
ERF
BVI
SGSN

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