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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on ERF

Eurofins Scientific SE's recent performance has been driven by strategic acquisitions, fueling growth in the laboratory services sector. The company has made several acquisitions, expanding its capabilities and offerings. Additionally, Eurofins has been engaged in share buybacks, repurchasing shares from December 29 to January 5, which reduces outstanding shares and is relative for shareholders. Directors and Persons Discharging Managerial Responsibilities (PDMR) have also been buying shares, indicating confidence in the company. These factors contribute to a positive outlook.

1.c. Company Highlights

2. Eurofins' Strong 2025 Performance and Future Prospects

Eurofins reported a robust financial performance for 2025, with EPS growth reaching 24% and achieving EUR 1 billion in free cash flow before investments. The company's EPS came in at EUR 1.22, slightly below estimates of EUR 1.26. Revenue growth was driven by accelerating organic growth, reaching EUR 250 million in 2025. Margins have been improving across all regions, with the rest of the world catching up with US margins. The company's operating leverage has improved, resulting in year-over-year margin expansion.

Publication Date: Feb -08

📋 Highlights
  • Full-Year 2025 Performance:: Achieved/exceeded all objectives with EUR 250M organic growth and 24% EPS growth, driven by EUR 1B free cash flow before investments.
  • Margin Expansion:: Operating leverage improved year-over-year, with margins growing across all regions; mature scope already at 24% target margin for 2027.
  • Capital Allocation:: EUR 540M in share repurchases and EUR 150M remaining after related-party building purchases, supporting future M&A and self-funding growth.
  • Global Lab Network:: Hub-and-spoke model nearing completion in Europe/North America, with EUR 50M IT CapEx to digitalize labs and EUR 250M+ annual M&A target for 2026.
  • Strategic Goals:: Aims to reduce EBITDA-to-revenue ratio to <0.5% by 2027, owns majority of key sites, and plans full ownership by 2027 to avoid relocation costs.

Revenue Growth Drivers

The company's organic growth has been accelerating quarter-on-quarter and half-year-on-half-year. BioPharma growth has been impacted by certain factors, but the company is optimistic about the future, with a significant boost expected from Central Laboratory and Bioanalysis. The hub-and-spoke laboratory network is nearing completion in Europe and North America, with opportunities remaining in Southeast Asia, Asia, and Latin America.

Margin Expansion and Operating Leverage

Margins have been growing across all regions, with Europe's margin improvement being slower due to reimbursement cuts and dilution from the Synlab acquisition. The company aims to increase margins in Europe, reducing the FX impact on translational results. As Dr. Gilles Martin, CEO, noted, "the company has consistently achieved EBITDA margins above 30% for its best scopes, with no reason why 24% should be a cap."

Valuation and Outlook

Eurofins' current valuation metrics indicate a P/E Ratio of 30.43, P/B Ratio of 4.08, and EV/EBITDA of 15.19. Analysts estimate next year's revenue growth at 6.3%. The company's strong financial performance and future prospects suggest that it is well-positioned for continued growth. With a reasonable leverage ratio and improved net working capital management, Eurofins is well-funded for the next few years.

Capital Allocation and M&A

The company is self-financing investments, including M&A, with EUR 150 million left over after purchasing related party buildings. Eurofins spent EUR 540 million to buy back shares and plans to continue share repurchases and M&A. The company's capital allocation policy prioritizes buying back shares due to the undervaluation of the stock, aiming to achieve a return on investment above their hurdle rate.

Future Prospects and Growth

Eurofins is optimistic about its future prospects, with significant growth expected in the BioPharma sector. The company plans to continue its acquisition strategy, aiming to add around EUR 250 million in revenues next year from acquisitions at reasonable multiples. With a strong financial performance and a solid growth strategy, Eurofins is poised for continued success.

3. NewsRoom

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Eurofins Bioanalytical Expansion Raises Questions On Capacity Use And Valuation

Feb -19

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Eurofins Scientific : Director/PDMR Shareholding

Feb -16

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Eurofins: Weekly Report on Share Repurchases From 09th February to 13th February 2026

Feb -16

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Eurofins Scientific SE: Disclosure of Total Number of Voting Rights and Number of Shares in the Capital at 31 January 2026

Feb -11

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Eurofins Scientific: Director/PDMR Shareholding

Feb -10

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Eurofins Scientific SE: Weekly Report on Share Repurchases from 02nd February to 06th February 2026

Feb -09

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Eurofins Viracor BioPharma Expands Bioanalytical Capabilities

Feb -09

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Eurofins Scientific Expands U.S. Labs And AI Tools For Complex Testing

Feb -05

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.12%)

6. Segments

Sample-based

Expected Growth: 6%

Eurofins Scientific SE's 6% growth is driven by increasing demand for bioanalytical services, expansion in emerging markets, and strategic acquisitions. The company's leadership in genomic and precision medicine, as well as its commitment to innovation and R&D, also contribute to its growth momentum.

Study-based

Expected Growth: 5%

Eurofins Scientific SE's 5% growth is driven by increasing demand for bioanalytical services, expansion in emerging markets, and strategic acquisitions. The company's leadership in genomics and proteomics, as well as its investment in digitalization and automation, also contribute to its growth. Furthermore, the rising need for quality control and assurance in the food and pharmaceutical industries supports Eurofins' growth momentum.

Full Time Equivalent-based

Expected Growth: 8%

Eurofins Scientific SE's 8% growth in Full Time Equivalent (FTE) is driven by increasing demand for biopharmaceutical and genomics services, expansion into emerging markets, strategic acquisitions, and investments in digitalization and automation, leading to improved operational efficiency and enhanced customer experience.

Product-based

Expected Growth: 9%

Eurofins Scientific SE's 9% growth is driven by increasing demand for bioanalytical testing, expansion in emerging markets, and strategic acquisitions. The company's diversified product portfolio, including genomic services and food safety testing, also contributes to growth. Additionally, investments in digitalization and automation enhance operational efficiency, further supporting revenue expansion.

Other

Expected Growth: 4%

Eurofins Scientific SE's 4% growth is driven by increasing demand for biopharmaceutical and genomics services, expansion into emerging markets, and strategic acquisitions. Additionally, growing regulatory requirements and outsourcing trends in the pharmaceutical industry contribute to the company's growth.

7. Detailed Products

Pharmaceutical Products Testing

Eurofins Scientific SE provides testing services for pharmaceutical products, including raw materials, intermediates, and finished products, to ensure compliance with regulatory requirements and quality standards.

Food Safety Testing

Eurofins Scientific SE offers testing services for food and beverages, including microbiological, chemical, and physical testing, to ensure compliance with food safety regulations and standards.

Environmental Testing

Eurofins Scientific SE provides testing services for environmental samples, including air, water, and soil, to monitor and assess environmental pollution and contamination.

Genomics and Proteomics Services

Eurofins Scientific SE offers genomics and proteomics services, including DNA sequencing, gene expression analysis, and protein analysis, for research and development, and diagnostic applications.

Agroscience Services

Eurofins Scientific SE provides testing services for the agroscience industry, including crop protection, seed testing, and agricultural product testing, to ensure compliance with regulatory requirements and quality standards.

Cosmetics and Personal Care Testing

Eurofins Scientific SE offers testing services for cosmetics and personal care products, including safety and efficacy testing, to ensure compliance with regulatory requirements and quality standards.

8. Eurofins Scientific SE's Porter Forces

Forces Ranking

Threat Of Substitutes

Eurofins Scientific SE operates in a highly specialized industry, and the threat of substitutes is moderate. While there are some alternative testing and analytical services available, they are not easily substitutable, and Eurofins' strong reputation and expertise provide a competitive advantage.

Bargaining Power Of Customers

Eurofins Scientific SE has a diverse customer base, and no single customer accounts for a significant portion of its revenue. This reduces the bargaining power of customers, and Eurofins is able to maintain a strong negotiating position.

Bargaining Power Of Suppliers

Eurofins Scientific SE relies on a network of suppliers for equipment, reagents, and other inputs. While there are some alternative suppliers available, the company's scale and reputation provide some bargaining power, but suppliers still have some negotiating leverage.

Threat Of New Entrants

The laboratory testing and analytical services industry has high barriers to entry, including significant capital expenditures, regulatory hurdles, and the need for specialized expertise. This limits the threat of new entrants and provides a competitive advantage to established players like Eurofins Scientific SE.

Intensity Of Rivalry

The laboratory testing and analytical services industry is highly competitive, with several established players competing for market share. Eurofins Scientific SE faces intense competition from rivals, which can lead to pricing pressure and the need for continuous innovation and investment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 52.41%
Debt Cost 3.95%
Equity Weight 47.59%
Equity Cost 6.94%
WACC 5.37%
Leverage 110.13%

11. Quality Control: Eurofins Scientific SE passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Ipsen

A-Score: 6.0/10

Value: 4.8

Growth: 6.0

Quality: 7.9

Yield: 1.2

Momentum: 8.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
bioMérieux

A-Score: 5.0/10

Value: 2.1

Growth: 5.3

Quality: 6.6

Yield: 1.2

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Qiagen

A-Score: 5.0/10

Value: 2.7

Growth: 4.6

Quality: 7.0

Yield: 4.4

Momentum: 2.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Eurofins Scientific

A-Score: 4.8/10

Value: 3.0

Growth: 6.1

Quality: 4.1

Yield: 1.9

Momentum: 7.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Synlab

A-Score: 4.2/10

Value: 5.7

Growth: 8.0

Quality: 3.8

Yield: 1.9

Momentum: 4.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
DiaSorin

A-Score: 4.1/10

Value: 4.6

Growth: 5.0

Quality: 7.6

Yield: 2.5

Momentum: 0.0

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

67.12$

Current Price

67.12$

Potential

-0.00%

Expected Cash-Flows