Savencia (SAVE) AI Stock Analysis

• Market Cap: €833.87M
• Dividend Yield: 2.73%
• Average Volume (3M): 1.01K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.37
• Revenue Growth: 5.30%
• EPS Growth: -14.66%
• Country: FR
• Employees: 22,751
• Sector: General
• Sector Strength: N/A
• Industry: Packaged Foods
• EPS (TTM): 2.43
• Shares Outstanding: 14,032,930
• 10 Day Avg. Volume: 636
• 30 Day Avg. Volume: 1,015
• PEG Ratio: -0.35
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 14.73
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 9.49
• Revenue Forecast (FY): €7.22B

• Rating: 56 Neutral
• Price Target: €61.00 ▼(-1.61% Downside)
• Action: Downgraded Date: 03/20/26
• Date: Action: Downgraded 03/20/26

Overall score is driven mainly by financial performance: 2025 showed weaker revenue, margin compression, and notably poorer free-cash-flow conversion, which limits flexibility. Technicals are slightly negative with weak momentum and price below the 200-day average, while valuation (moderate P/E and ~2.7% yield) offers some offsetting support.

Positive Factors

Market position & distribution

Savencia’s entrenched position as a global dairy leader and diversified distribution (retail, foodservice, industrial) creates durable revenue channels. Broad customer mix and partnerships with major retailers support resilience to single-channel shocks and enable long-term scale and shelf presence.

Manageable leverage

Debt-to-equity around 0.7 is moderate for packaged foods, giving Savencia financial flexibility compared with highly leveraged peers. Stable equity and modest leverage support capacity to fund operations, invest in product innovation, and weather cyclical pressure without forcing immediate asset sales or restructurings.

Stable gross margins and scale

Sustained gross margins near the low-30% range reflect durable product-level profitability and manufacturing or sourcing advantages. Combined with prior multi-year revenue growth and scale, this supports structural margin resilience even if operating expenses compress near-term results.

Negative Factors

2025 revenue decline

A YoY revenue drop in 2025 interrupts prior multi-year growth and signals potential demand softness or competitive pressure. Persistent or recurring revenue declines reduce operating leverage and complicate investment planning, making recovery reliant on execution or market rebound.

Margin compression & thin net margin

Compressed operating margins and a very thin net margin constrain retained earnings and reduce buffers against input cost inflation. Low profitability limits reinvestment capacity and makes returns sensitive to small adverse swings in commodity, energy, or logistics costs over the medium term.

Weakened cash conversion

Material weakening in operating cash flow and FCF covering ~19% of net income signals poorer cash conversion and less flexibility. Reduced free cash impairs ability to deleverage, sustain dividends, or fund capex and innovation without external financing, raising structural risk.

Savencia Business Overview & Revenue Model

Company Description

Savencia SA produces dairy products in France and internationally. It offers cheese; butters and creams for the retail market and catering professionals; and dairy ingredients for the food, nutrition, and healthcare industries. The company was formerly known as Bongrain SA and changed its name to Savencia SA in April 2015. Savencia SA was founded in 1956 and is based in Viroflay, France.

How the Company Makes Money

Savencia generates revenue primarily through the sale of its dairy products, which are distributed to various channels including supermarkets, restaurants, and food manufacturers. Key revenue streams include retail sales of branded and private label cheeses, as well as bulk sales to foodservice providers. The company also benefits from partnerships with major retailers and food distributors, enhancing its market reach. Additionally, Savencia invests in product innovation and marketing strategies to drive demand and increase its competitive edge in the dairy sector.

Savencia Financial Statement Overview

Summary

Results indicate stable scale but weakening near-term fundamentals: 2025 revenue declined (-2.8% YoY), EBIT/EBITDA margins compressed, and net margin remains very thin (~1.1%). Leverage is manageable (debt-to-equity ~0.74) but returns are modest (ROE ~4.4%), while cash conversion weakened materially with lower operating cash flow and sharply reduced free cash flow (FCF ~19% of net income).

Income Statement

Savencia shows steady scale with revenue rising from 2020 to 2024, but 2025 revenue declined (-2.8% YoY) and profitability weakened. Gross margin looks solid in 2023–2025 (~33–34%), but net margin remains thin (about 1.1% in 2025) and both EBIT and EBITDA margins compressed in 2025 versus 2024, pointing to cost pressure and limited pricing/operating leverage.

Balance Sheet

Leverage appears manageable for a packaged foods business, with debt-to-equity generally in the ~0.68–0.75 range (0.74 in 2025) and equity relatively stable over time. Returns on equity are modest (about 4.4% in 2025 vs ~6.2% in 2024), reflecting the company’s low margin profile; the key risk is that thinner earnings can reduce the cushion against shocks even if leverage is not excessive.

Cash Flow

Cash generation is positive but inconsistent: operating cash flow fell in 2025 versus 2024, and free cash flow dropped sharply (2025 down ~5.7% YoY and well below 2024 levels). Free cash flow covers only a small portion of net income in 2025 (roughly 19%), signaling weaker cash conversion and less flexibility for debt reduction, dividends, or reinvestment.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.16B	6.96B	7.14B	6.79B	6.55B	5.61B
Gross Profit	904.90M	2.36B	2.41B	2.21B	279.49M	291.00M
EBITDA	434.14M	405.54M	464.55M	412.74M	373.25M	372.31M
Net Income	87.68M	74.70M	106.97M	96.48M	68.05M	82.94M
Balance Sheet
Total Assets	5.00B	4.88B	4.95B	4.65B	4.58B	4.32B
Cash, Cash Equivalents and Short-Term Investments	861.65M	684.84M	753.34M	636.14M	572.63M	572.62M
Total Debt	1.46B	1.24B	1.21B	1.19B	1.08B	1.09B
Total Liabilities	3.08B	2.94B	2.96B	2.83B	2.76B	2.62B
Stockholders Equity	1.67B	1.68B	1.74B	1.58B	1.59B	1.48B
Cash Flow
Free Cash Flow	63.07M	59.45M	138.77M	81.70M	66.65M	72.36M
Operating Cash Flow	329.79M	313.85M	386.89M	260.61M	255.05M	301.79M
Investing Cash Flow	-274.51M	-427.70M	-243.88M	-236.29M	-196.95M	-230.59M
Financing Cash Flow	-97.65M	-108.28M	-10.74M	28.18M	-59.01M	-120.07M

Savencia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:SAVE, the sentiment is Positive. The current price of 62 is above the 20-day moving average (MA) of 59.87, above the 50-day MA of 59.97, and above the 200-day MA of 61.39, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 56.23 is Neutral, neither overbought nor oversold. The STOCH value of 79.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:SAVE.

Savencia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOUP	73 Outperform	€3.51B	5.69	11.24%	1.76%	514.19%	-7.82%
BN	64 Neutral	€44.19B	27.07	11.27%	2.80%	0.54%	83.09%
ALFLE	60 Neutral	€94.45M	4.64	―	5.18%	0.17%	-97.54%
SAVE	56 Neutral	€833.87M	11.72	5.22%	2.73%	5.30%	-14.66%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
BON	54 Neutral	€262.40M	1.52	3.16%	1.98%	-7.08%	90.42%