Symrise (SY1) AI Stock Analysis

• Market Cap: €13.35B
• Dividend Yield: 1.1%
• Average Volume (3M): 285.04K
• Price to Earnings (P/E): 27.9
• Beta (1Y): 0.45
• Revenue Growth: 5.67%
• EPS Growth: 40.46%
• Country: DE
• Employees: 12,385
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Chemicals - Specialty
• EPS (TTM): 1.71
• Shares Outstanding: 139,772,050
• 10 Day Avg. Volume: 325,482
• 30 Day Avg. Volume: 285,038
• PEG Ratio: -1.88
• Price to Book (P/B): 4.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 129.23
• 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: €114.00
• Price Target Upside: 19.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 77 Outperform
• Price Target: €117.00 ▲(22.49%Upside)

Symrise demonstrates strong financial performance with robust revenue and cash flow growth, supporting a solid stock score. While technical indicators show a neutral trend, valuation metrics suggest potential overvaluation. The absence of significant earnings call insights or corporate events leaves these aspects unaccounted for in the score.

Positive Factors

Growth Strategy

Symrise announced a public offer to acquire outstanding Probi shares, aiming to increase efficiency and promote top-line synergies between the two companies.

Guidance

Symrise has slightly upgraded its FY 2024 guidance, expecting organic sales growth of more than 7% and an EBITDA margin above 20%.

Profitability

Symrise is committed to +200bps EBITDA margin expansion by 2028.

Negative Factors

Market Performance

Relative performance against the DAX shows a decline of 6.3% year to date and 14.4% over the trailing 12 months.

Sales Growth

Q1-25 organic sales growth should be slow, mainly due to a tough comparable.

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 development, production, and sale of fragrances and flavors, which are used in a wide range of consumer goods, including food, beverages, personal care, and household products. The company's key revenue streams are divided between its two main segments: Flavor & Nutrition, which includes flavorings and functional ingredients for the food and beverage industry, and Scent & Care, which comprises fragrances and cosmetic ingredients. Symrise's earnings are bolstered by strategic partnerships and collaborations with leading consumer goods companies, as well as its focus on sustainable and innovative product offerings that meet evolving consumer preferences. This approach helps the company maintain a competitive edge and drive growth in its core markets.

Symrise Financial Statement Overview

Summary

Symrise has shown strong revenue growth and improved profitability with efficient cost management. The balance sheet is stable with improved returns, and cash flow generation is robust, indicating a strong liquidity position. However, there is room for enhancing the equity position and operating margins.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.00B	4.73B	4.62B	3.83B	3.52B
Gross Profit	1.96B	1.69B	1.70B	1.48B	1.39B
EBITDA	1.04B	841.49M	769.91M	806.40M	742.02M
Net Income	478.20M	340.47M	280.01M	374.92M	306.87M
Balance Sheet
Total Assets	8.32B	7.85B	7.78B	6.64B	5.94B
Cash, Cash Equivalents and Short-Term Investments	709.49M	393.03M	314.86M	465.14M	740.31M
Total Debt	2.55B	2.56B	2.55B	1.80B	2.07B
Total Liabilities	4.31B	4.16B	4.17B	3.39B	3.58B
Stockholders Equity	3.98B	3.63B	3.55B	3.19B	2.30B
Cash Flow
Free Cash Flow	652.07M	449.31M	109.94M	347.40M	491.64M
Operating Cash Flow	894.91M	719.51M	360.11M	521.56M	635.68M
Investing Cash Flow	-291.51M	-358.29M	-984.84M	-713.60M	-149.71M
Financing Cash Flow	-281.88M	-264.22M	481.52M	-92.15M	-188.75M

Symrise Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 95.52
• 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 95.52 is below the 20-day moving average (MA) of 100.32, below the 50-day MA of 100.74, and below the 200-day MA of 102.32, indicating a bearish trend. The MACD of -1.97 indicates Positive momentum. The RSI at 34.79 is Neutral, neither overbought nor oversold. The STOCH value of 10.44 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
SY1	77 Outperform	€13.35B	27.92	12.56%	1.10%	5.67%	40.46%
Sector *	53 Neutral	C$4.43B	3.69	-22.83%	4.45%	8.13%	2.00%
0MPT		€8.37B	15.86	11.49%	3.14%	―	―
0RBE		€11.11B	―	-6.00%	―	―	―
0QDS		€8.54B	28.58	3.25%	5.54%	―	―
FPE	74 Outperform	€5.46B	15.52	15.87%	2.83%	2.58%	8.02%
WKCMF		$3.73B	14.22	5.37%	3.77%	―	―