Symrise (SY1) AI Stock Analysis

• Market Cap: €9.61B
• Dividend Yield: 1.75%
• Average Volume (3M): 411.29K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.45
• 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: €90.51
• Price Target Upside: 31.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: €76.00 ▲(10.59% 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 is a global leader in the fragrance and flavor industry, headquartered in Holzminden, Germany. The company operates through various segments, including Flavor, Fragrance, Nutrition, and Cosmetic Ingredients, delivering innovative solutions to a diverse range of customers in sectors such as food and beverages, personal care, and household products. Symrise's core products include flavorings for food applications, fragrances for cosmetics and household products, and nutritional additives, all aimed at enhancing sensory experiences and product appeal.

How the Company Makes Money

Symrise generates revenue primarily through the sale of its flavor and fragrance products across various markets. The company operates a multi-segment revenue model, with key revenue streams derived from its Flavor, Fragrance, Nutrition, and Cosmetic Ingredients divisions. The Flavor segment includes revenue from food manufacturers and beverage producers, while the Fragrance segment serves cosmetic and household product manufacturers. Additionally, Symrise has a strong emphasis on innovation, which drives product development and helps maintain competitiveness. Partnerships with key clients and brands in various industries also contribute significantly to its earnings, allowing Symrise to expand its market presence and leverage collaborative innovation. The company's commitment to sustainability and natural ingredients further enhances its appeal, aligning with consumer trends and increasing demand for eco-friendly products.

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. While the company demonstrates strong fundamentals, 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	780.50M	806.40M	735.96M
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: 68.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 68.72 is below the 20-day moving average (MA) of 68.94, below the 50-day MA of 72.45, and below the 200-day MA of 85.77, indicating a bearish trend. The MACD of -1.29 indicates Negative momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 75.61 is Neutral, 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	70 Outperform	€4.40B	13.09	16.00%	3.94%	1.42%	-0.40%
BNR	64 Neutral	€7.19B	17.20	9.62%	4.22%	-3.35%	-23.06%
SY1	63 Neutral	€9.61B	18.95	13.57%	1.75%	2.15%	29.19%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
WCH	62 Neutral	$3.36B	13.96	―	3.67%	-10.63%	-23.15%
EVK	54 Neutral	€6.20B	65.28	1.08%	8.79%	-5.92%	-58.33%
1COV	52 Neutral	€12.46B	-24.60	-7.19%	―	-5.27%	-75.47%