Symrise (SY1) AI Stock Analysis

• Market Cap: €9.97B
• Dividend Yield: 1.68%
• Average Volume (3M): 411.29K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.48
• Revenue Growth: 2.15%
• EPS Growth: 29.19%
• Country: DE
• Employees: 12,385
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Chemicals - Specialty
• EPS (TTM): 1.92
• Shares Outstanding: 139,772,050
• 10 Day Avg. Volume: 376,730
• 30 Day Avg. Volume: 411,288
• PEG Ratio: 0.75
• Price to Book (P/B): 3.61
• Price to Sales (P/S): 2.87
• P/FCF Ratio: 21.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €94.95
• Price Target Upside: 32.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: €76.00 ▲(6.12% Upside)

Symrise's overall stock score reflects strong financial performance with robust revenue growth and profitability improvements. However, technical analysis indicates bearish momentum, with the stock trading below key moving averages and oversold conditions. The valuation is fair, with a reasonable P/E ratio and moderate dividend yield. The absence of earnings call insights and corporate events limits additional context.

Positive Factors

Revenue Growth

The consistent revenue growth indicates expanding market reach and effective product strategies, supporting long-term business sustainability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for strategic investments and resilience against market fluctuations.

Profitability Improvements

Improved profitability margins indicate efficient cost management and operational effectiveness, supporting sustained financial health.

Negative Factors

EBITDA Margin Pressure

Pressure on EBITDA margins may indicate rising operational costs or pricing challenges, potentially impacting future earnings growth.

Equity Position

While the equity base is solid, further strengthening is needed to enhance financial resilience and support growth initiatives.

Stock Performance

Persistent bearish momentum in stock performance may reflect market concerns, potentially affecting investor confidence and capital access.

Symrise Business Overview & Revenue Model

Company Description

Symrise AG supplies fragrances, flavorings, cosmetic active ingredients and raw materials, and functional ingredients. It operates through two segments, Taste, Nutrition & Health, and Scent & Care. The Taste, Nutrition & Health segment provides functional ingredients and flavor solutions used in the production of food and beverages; savory flavors; natural and sustainable ingredients for food and beverage manufacturers, baby food, and dietary supplements; product solutions and services for pet food manufacturers; sustainable ingredients and services for aqua feed manufacturers to develop solutions for fish and shrimp farms; and probiotics for food supplements and functional foods. The Scent & Care segment develops, produces, and sells fragrance ingredients and compositions, aroma molecules, cosmetic ingredients, and mint flavors, as well as specific application processes for such substances. This segment's products are used by manufacturers of perfumes, personal care and cosmetic products, cleaning products, detergents, air fresheners, and oral care products. It operates in Europe, Africa, the Middle East, North America, the Asia Pacific, and Latin America. Symrise AG was founded in 1874 and is headquartered in Holzminden, Germany.

How the Company Makes Money

Symrise generates revenue primarily through the sale of its fragrances, flavors, and cosmetic ingredients across various industries. The company operates through several segments, with significant contributions from its Flavor and Nutrition segment, which focuses on food and beverage applications, and its Scent and Care segment, which supplies fragrances and cosmetic ingredients. Key revenue streams include long-term contracts with major brands, customized formulations, and innovation partnerships. Additionally, Symrise benefits from strong relationships with clients and a reputation for quality and sustainability, which enhances customer loyalty and drives repeat business. The company also invests in research and development to create new products that meet emerging consumer trends, further contributing to its revenue growth.

Symrise Financial Statement Overview

Summary

Symrise's financial performance in 2024 reflects a solid upward trajectory in revenue and profitability, supported by efficient cost management and operational improvements. The balance sheet remains stable with a balanced leverage profile and improved returns, while cash flow generation is robust, enhancing financial flexibility. Continued focus on enhancing equity and operating margins will be key to sustaining growth momentum.

Income Statement

Symrise has demonstrated strong revenue growth with a notable increase from €4.73 billion in 2023 to €4.99 billion in 2024, representing a growth rate of 5.67%. The gross profit margin improved to 39.27% in 2024 from 35.78% in 2023, indicating efficient cost management. The net profit margin also saw a rise to 9.56% in 2024 from 7.20% in 2023, reflecting better profitability. The EBIT margin improved from 11.83% in 2023 to 14.36% in 2024, indicating enhanced operational efficiency. However, the EBITDA margin slightly decreased to 19.52% from 17.79% in 2023, suggesting some pressure on operating earnings.

Balance Sheet

The debt-to-equity ratio remained stable at approximately 0.64, reflecting a balanced leverage profile. Return on equity improved to 12.01% in 2024 from 9.38% in 2023, indicating enhanced profitability. The equity ratio increased slightly to 47.82% in 2024, showing a solid equity base relative to total assets. Overall, the balance sheet demonstrates moderate financial health with stable leverage and improved returns, though there is room for strengthening the equity position further.

Cash Flow

Free cash flow saw significant growth, increasing by 45.10% from €449 million in 2023 to €652 million in 2024, highlighting strong cash generation. The operating cash flow to net income ratio improved to 1.87 in 2024, indicating efficient conversion of profits into cash flow. Additionally, the free cash flow to net income ratio increased to 1.36, reflecting strong cash flow relative to net income. These metrics underscore robust cash flow management and a strong liquidity position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.99B	5.00B	4.73B	4.62B	3.83B	3.52B
Gross Profit	2.01B	1.96B	1.69B	1.70B	1.48B	1.39B
EBITDA	1.04B	1.04B	841.49M	769.91M	806.40M	742.02M
Net Income	506.90M	478.20M	340.47M	280.01M	374.92M	306.87M
Balance Sheet
Total Assets	7.73B	8.32B	7.85B	7.78B	6.64B	5.94B
Cash, Cash Equivalents and Short-Term Investments	369.71M	709.49M	393.03M	314.86M	465.14M	740.31M
Total Debt	2.42B	2.55B	2.56B	2.55B	1.80B	2.07B
Total Liabilities	3.99B	4.31B	4.16B	4.17B	3.39B	3.58B
Stockholders Equity	3.71B	3.98B	3.63B	3.55B	3.19B	2.30B
Cash Flow
Free Cash Flow	528.95M	667.49M	449.31M	109.94M	347.40M	491.64M
Operating Cash Flow	749.51M	894.91M	719.51M	360.11M	521.56M	635.68M
Investing Cash Flow	-398.43M	-291.51M	-358.29M	-984.84M	-713.60M	-149.71M
Financing Cash Flow	-494.97M	-281.88M	-264.22M	481.52M	-92.15M	-188.75M

Symrise Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SY1, the sentiment is Negative. The current price of 71.62 is below the 20-day moving average (MA) of 76.47, below the 50-day MA of 77.38, and below the 200-day MA of 89.81, indicating a bearish trend. The MACD of -1.57 indicates Positive momentum. The RSI at 34.04 is Neutral, neither overbought nor oversold. The STOCH value of 7.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:SY1.

Symrise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FPE	74 Outperform	€4.48B	13.47	16.00%	3.78%	1.42%	-0.40%
EVK	70 Neutral	€6.67B	15.73	1.08%	8.25%	-5.92%	-58.33%
SY1	63 Neutral	€9.97B	19.66	13.57%	1.68%	2.15%	29.19%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BNR	60 Neutral	€6.80B	16.07	9.86%	4.54%	-1.30%	-28.95%
WCH	58 Neutral	$3.34B	13.86	―	3.66%	-10.63%	-23.15%
1COV	52 Neutral	€10.95B	-29.67	-5.90%	―	-1.98%	-16.31%