Eurofins Scientific S.E. shares are trading close to a major technical resistance, which, if broken, could yield new upside potential and an increase in volatility. This scenario can be anticipated.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● Growth progress expectations are rather promising. Indeed, sales are expected to rise sharply in the coming years.
● The group's high margin levels account for strong profits.
● Historically, the company has been releasing figures that are above expectations.
● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
Weaknesses
● The stock is close to a major daily resistance at EUR 490.8, which should be gotten rid of so as to gain new appreciation potential.
● The group shows a rather high level of debt in proportion to its EBITDA.
● With an expected P/E ratio at 33.39 and 26.36 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
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Eurofins Scientific SE is one of the world's leading providers of bio-analytical services. The group's services are intended to validate the safety, authenticity, origin, identity, and purity of biological substances contained in the environment (water, air, soil, etc.) and in food, pharmaceutical, cosmetic, and hygiene products.
At the end of 2023, Eurofins Scientific SE owned a portfolio of over 200,000 analytical methods and had 900 laboratories located throughout the world.
Net sales are distributed geographically as follows: Europe (50.7%), North America (38.5%) and other (10.8%).