EUROFINS SCIENTIFIC

Analysis of Eurofins Scientific share price

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If you want to use CFDs to start trading on the Eurofins Scientific share price or if you want to add it to your portfolio, we recommend that you take the time to read this article entirely dedicated to this stock and in which you you will find a lot of useful information about this share and its issuing company. Through stock market or economic data concerning the activities, history or even the strengths and weaknesses of this company as well as advice on fundamental analysis of this stock, you can indeed set up analyzes of this stock market value.

Elements that can influence the price of this asset:

Analysis N°1

Firstly, the activities of Eurofins Scientific are particularly seasonal with a highly positive beginning to each year and high sensitivity to rigorous climatic conditions. You should therefore take these elements into account in your analyses.

Analysis N°2

We would also keep an eye on the achievement of objectives of the 2020 plan implemented by the group which is generally conservative with notably a turnover that should attain 4 billion Euros and an operational margin of over 20%.

Analysis N°3

It is clear that all the acquisition operations of other companies or laboratories entering into the programme foreseen by Eurofins Scientific should be taken into account with an estimated budget of nearly 500 million Euros over the medium term.

Analysis N°4

Concerning the financial data of this group, we would closely follow the continuation of the group’s organic growth that started in 2017 as well as the achievement of annual objectives in terms of turnover or exceeding the gross operations which the company communicates readily.

Analysis N°5

Finally, we would of course follow carefully the competition in this activity sector and all the events that are susceptible to change the way the market parts are distributed.

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General presentation of Eurofins Scientific

To enable you to better complete a share analysis of the Eurofins Scientific Company and implement effective investment strategies on this asset you will of course need to have an in-depth understanding of this French Company and its diverse activities. This is what we offer you here, the opportunity to read some explanations on the activities exercised by this group as well as a general presentation.

The Eurofins Scientific Group is a French company that exercises its activities in the bio-analyses sector. More precisely, Eurofins Scientific is nowadays one of the leaders in this activity sector worldwide. Eurofins Scientific also offers services with the aim of validating the security, authenticity, origin, identity and even the purity of biological substances in the environment such as in the air, in water, or in the ground as well as food, pharmaceuticals, cosmetics and hygiene products.

Through its different domains of expertise Eurofins Scientific is currently at the head of a portfolio of over 150,000 analysis methods and possesses and manages over 400 laboratories around the world.

As you have surely understood, the Eurofins Scientific Group is an international group. Therefore, geographically speaking, we can divide the activities of the group according to the turnover generated in this way: The French market achieves 22.8% of the company’s turnover, 30.4% of its turnover is from North America and 11.5% from Germany. 7.2% of the company’s turnover is generated in the Benelux countries and 7.1% in Scandinavia with 5.5% in the United Kingdom and Ireland. The remaining 15.5% is generated from various other countries around the world.

Analysis of Eurofins Scientific share price
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The major competitors of Eurofins Scientific

Although Eurofins Scientific is currently among the largest biological analysis companies, this activity sector is known for being highly competitive. An analysis of the competition of Eurofins Scientific is primordial if you wish to invest in this asset on the stock markets. You should of course carefully follow the market parts of this sector and their distribution between the various players as well as all major publications and announcements from this company’s competitors. This notably concerns the financial reports of this company as well as the major announcements and publications that could indirectly influence the price of this asset. A number of large companies that we will present here represent a threat for the parts of the market currently held by Eurofins Scientific.

The Biomérieux Group

A French company specialised in in-vitro diagnostics is one of the most dangerous competitors of Eurofins Scientific. This company offers diagnostic system services, reagents and software that can determine the origin of an illness or contamination. Its products are therefore used in the diagnosis of infectious illnesses as well as the detection of micro-organisms in the food, pharmaceuticals and cosmetics industries.

Sartorius Stedim Biotech

This company is another serious competitor of Eurofins Scientific. This is one of the major suppliers of equipment and services for the development, quality control and production procedures in the biopharmaceutical industry. It offers integrated solutions in the areas of fermentation, filtration, treatment, fluid storage as well as laboratory technologies with the aim of assisting their clients to develop and manufacture medicines.

Mérieux Nutrisciences

Based in the United States this company is specialised in analytical and advisory services for the quality control and security of products that affect consumer health. This company exercises its activities in over 22 countries and boasts a network of around 100 laboratories.  

SGS

This is another major competitor of Eurofins Scientific. It offers services including inspection, quantity weight and quality verification of traded goods, product quality analyses and performance testing according to the standards that aim to protect the health and security of consumers as well as the environment.

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The factors in favour of a rise in the Eurofins Scientific share price:

Firstly it is clear that the position of this company in its activity sector is a true advantage. In fact, Eurofins Scientific is currently the international leader of bio-analysis in the food industry which generates around 40% of this group’s sales. But the group is also in third position in the sector of bio-technology tests that also generates 40% of this company’s sales as well as the environmental tests sector which generates 20% of this group’s sales.

Another strong point of this company in fact concerns the same activity sector in which it exercises its activities and which appears particularly promising. This is due to the fact that the current regulations and health environment is increasingly strict and therefore the requirements increase following recurrent food industry and pharmaceutical scandals over recent years.

Among the advantages of this group we can also cite its geographical position. In fact, Eurofins Scientific is currently present in over 40 countries worldwide including the United States, Germany, France, Scandinavia and the Benelux countries and possesses nearly 250 laboratories in its network. This strong expansion on an international level enables the group to protect itself effectively against risks linked to a single market.

Although Eurofins Scientific is basically a specialist in the food sector in which it is currently a major player it has succeeded in diversifying its activities in different niche markets.

Still relating to the advantages of this company, we can also add the fact that the group’s activities are considered as resilient activities for nearly 75% of the company’s revenue. Also, this activity sector has strong barriers to its entry. Eurofins Scientific can count on its significant data base created over numerous years to secure its position as leader.     

We can also underline the strength of the Eurofins Scientific group strategy which is based on three major fundamental pillars. First, the decentralisation of operational entities that function in a totally independent manner, plus the opening and acquisition of laboratories with nearly 50 acquisitions between 2014 and 2018 as well as around 20 companies in 2016. Through this strategy Eurofins Scientific has succeeded in strengthening its position in a number of markets.

Finally, stock market investors and shareholders also appreciate the healthy financial situation of this company. This strength has notably been recently strengthened by an increase in the capital reserved for the ‘Caisse des Dépôts du Québec’ which gave it the opportunity to achieve new acquisitions without calling on the market.

The factors in favour of a drop in the Eurofins Scientific share price:

Firstly, the activities exercised by Eurofins Scientific require major capital and the investments completed do not always bear fruit rapidly. Over the last few years we can also observe a rise in valuations in the security sector. This has had the result of also increasing the cost of the external growth of the company.

The profitability of the Eurofins Scientific group is also threatened by a significant drop in the British Pound given that the United Kingdom is one of the most targeted markets for the external growth of this group.

Finally, the fact that Eurofins Scientific company shares are currently at a high price, even beating historical records, could be a setback for a future rise in this asset. In fact, this over evaluation could rapidly be sanctioned in the case of a negative announcement or publication.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

Who are the shareholders of the Eurofins Scientific Group?

The capital of the Eurofins Scientific Group is divided among different private and institutional shareholders, the details of which are as follows: The Martin family owns a 36.3% shareholding, ‘La Caisse de Dépôt et de Placement du Québec’ (Quebec Deposit and Investment Fund) owns 4.09%, Oppenheimer Funds with 2.83% of the shares, The Vanguard Group owns 1.74%, T Rowe Price Associates owns 1.48%, Norges Bank Investment management owns 1.13%, Threadneedle Asset Management owns 1.11%, Natixis Investment Managers International owns a  1% shareholding, BlackRock Fund Advisors with 0.88%, and Invesco Canada owns 0.82% of the shares. 

What is the network owned and operated by Eurofins Scientific?

The Eurofins Scientific Company owns and operates a network of over 650 laboratories spread over 45 countries in Europe, Oceania, North America, South America and Asia Pacific. It currently employs around 34,650 people. The group also owns a historical site based at Nantes which is specialised in agricultural food bioanalyses with a surface area of 11,500 m2 and employs 450 people.

What were the last financial figures published by the Eurofins Scientific Company?

The Eurofins Scientific Company recently published its financial results for the 2019 financial year with a turnover of 4,563 million Euros. This company’s net result for this year was in fact 195 million Euros. The stock market capital of this company stood at 8,834 million Euros at the end of 2020.

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The content in question is provided for information purposes only and should not be considered as investment advice. Past performance is no guarantee of future results. The trading history is less than 5 years old and may not be sufficient to serve as a basis for an investment decision.

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