Symrise (SY1) AI Stock Analysis

• Market Cap: €11.11B
• Dividend Yield: 1.51%
• Average Volume (3M): 380.53K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.45
• Revenue Growth: 2.15%
• EPS Growth: 29.19%
• Country: DE
• Employees: 12,385
• Sector: Consumer Defensive
• Sector Strength: 68
• Industry: Chemicals - Specialty
• EPS (TTM): 1.92
• Shares Outstanding: 139,772,050
• 10 Day Avg. Volume: 457,945
• 30 Day Avg. Volume: 380,533
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €103.62
• Price Target Upside: 30.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 63 Neutral
• Price Target: €83.00 ▲(4.46% Upside)

Symrise's overall stock score reflects strong financial performance and robust cash flow, which are significant strengths. However, bearish technical indicators and a potentially high P/E ratio present concerns. The lack of notable earnings call guidance or corporate events means these factors weigh more heavily on 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 is a global supplier of fragrances, flavorings, cosmetic ingredients, and functional ingredients. Based in Holzminden, Germany, Symrise operates in various sectors including food and beverages, cosmetics, and personal care. The company is known for its innovative solutions that enhance the sensory experience of products, catering to a diverse clientele ranging from small manufacturers to large multinational corporations. Its product portfolio includes natural and synthetic fragrances, flavors for food and beverages, and specialty ingredients for cosmetics and personal care products.

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. 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	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: 79.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 79.46 is below the 20-day moving average (MA) of 84.83, below the 50-day MA of 92.22, and below the 200-day MA of 97.53, indicating a bearish trend. The MACD of -3.68 indicates Positive momentum. The RSI at 30.04 is Neutral, neither overbought nor oversold. The STOCH value of 20.75 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	66 Neutral	€4.73B	14.12	16.29%	3.71%	2.35%	-0.09%
BNR	65 Neutral	€7.96B	15.04	11.49%	3.75%	0.10%	-15.09%
EVK	64 Neutral	€7.96B	18.78	4.87%	6.96%	-2.62%	―
WCH	64 Neutral	$3.34B	13.84	5.37%	3.72%	-10.63%	-23.15%
SY1	63 Neutral	€11.11B	21.91	13.57%	1.51%	2.15%	29.19%
Sector *	63 Neutral	$20.96B	13.61	-6.39%	3.13%	3.51%	-6.37%
1COV	48 Neutral	€11.13B	―	-5.90%	―	-1.98%	―