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 the Eurofins Scientific Group:

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.


Know the competition to Eurofins Scientific shares:

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.


Economic and financial history

Another very sensible way to analyse the Eurofins Scientific share price is to look at the history of the company. Indeed, the various events that have marked the group's past have played a role in the evolution of its share price. By detecting the changes caused by each event, you will be able to anticipate future changes by using the company's news.

Eurofins Scientific was founded in Nantes in 1987 to produce and sell the SNIF-NMR technology, a patented analytical method for determining the origin and purity of food and beverages when traditional methods fail to provide a concrete and indisputable result.

The year 2014 will be an important turning point for Eurofins Scientific with a number of acquisitions in order to consolidate its leading position in various markets or to expand into new analytical segments within the Group's core competencies. Eurofins Scientific has acquired the Dutch company KBBL specialising in food and water analysis, the Dutch company Omegam specialising in environmental analysis, the Spanish company Applus Agrofood Testing specialising in agro-environmental and pesticide analysis and the Finnish company Maintpartner Group specialising in agrochemical and food analysis, the American company Underwriters Laboratories specialising in water analyses, the American company Calscience specialising in environmental analyses, the American company Vira-Cor IBT specialising in specialty diagnostics and the Brazilian company Anatch specialising in environmental analyses.

In 2015, Eurofins Scientific will also acquire BioDiagnostics, one of the leading seed and plant testing companies in the US and BostonHeart Diagnostics, a clinical diagnostics company specialising in cardio-vascular diseases. In the same year, it will also acquire the French group Biomnis, one of the leading independent laboratories for specialized clinical diagnostic services.

In 2016, Eurofins Scientific acquires Exova's food analysis, hydrology and pharmaceutical laboratories in England and Ireland, which comprise 10 laboratories and 300 employees. In the same year, the company will also acquire the Agro-Analyses Group, a food safety specialist with a turnover of more than €10 million. Finally, it will also sign the takeover of Villapharma Research, which has a laboratory in Murcia and employs 86 people.

In 2017, Eurofins Scientific will acquire VBM Laboratorie, a laboratory specialising in testing for the building materials and environmental sectors. Also in 2017, the group will acquire four other French diagnostic laboratories and announces a turnover increase of more than € 10 million. At the same time, it is also acquiring the Italian company Genomin and the Amatsigroup company for 130 million euros, which specialises in development and treatment. Eurofins Scientific will also acquire the Indian company Advinus and two Japanese laboratories, Japan Analytical Chemistry Consultant and Ecopro Research. Also in 2017, the Group will acquire EAG Laboratories, a renowned American company.

In 2018, the group also announces its intention to take over Astellas, an analytical laboratory belonging to a Japanese pharmaceutical group as a subcontractor. With this transaction, Eurofins Scientific has been able to enter the Japanese market.


The advantages and strong points of Eurofins Scientific shares as stock market assets:

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 disadvantages and weak points of Eurofins Scientific shares as stock market assets:

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.

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