Givaudan SA (GVDNY) AI Stock Analysis

• Market Cap: $31.35B
• Dividend Yield: 1.96%
• Average Volume (3M): 7.72K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.21
• Revenue Growth: 8.46%
• EPS Growth: 8.59%
• Country: US
• Employees: 16,942
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.30
• Shares Outstanding: 461,700,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 7,723
• PEG Ratio: -11.93
• Price to Book (P/B): 6.41
• Price to Sales (P/S): 3.89
• P/FCF Ratio: 24.08
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 3.77
• Enterprise Value/Gross Profit: 8.67
• Enterprise Value/Ebitda: 15.78
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $74.00 ▼(-10.57% Downside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven primarily by strong underlying financial quality (steady profitability and robust free cash flow) and a constructive earnings call with clear long-term targets and improving leverage. These positives are tempered by mixed technical signals (negative MACD and price below longer-term averages) and a relatively high P/E, plus near-term risks highlighted on the call (margin/input-cost pressure, Taste & Wellbeing softness, FX, and one-off costs).

Positive Factors

Free Cash Flow Generation

Sustained, above-target free cash flow (14.1% of sales) creates durable internal funding to support R&D, capital expenditure, dividend growth and debt reduction. High FCF reduces reliance on external financing and gives management flexibility to execute 2030 targets despite cyclical headwinds.

R&D and Innovation Pipeline

Consistent investment (~8% of sales) in R&D and product innovation builds long-term differentiation and stickiness with multinational customers. A steady pipeline and digital platforms support reformulation and premium offerings, helping sustain margins and organic growth over the medium term.

Fragrance & Beauty Market Strength

Outperformance in Fragrance & Beauty, including strong fine-fragrance growth, signals structural exposure to higher-margin premium segments and brand-driven demand. This diversification toward premium categories supports durable margin resilience and upside if consumer premiumization continues.

Negative Factors

Uneven Revenue Trends

Revenue has been uneven with a notable reported decline in 2025, highlighting sensitivity to demand mix, comparables and currency translation. Persistent top-line volatility would constrain margin operating leverage and slow deleveraging, limiting capacity to fund growth and shareholder returns from internally generated cash.

Meaningful Leverage

Balance sheet leverage (debt near equity and net-debt/EBITDA ~2.1x) improved but remains material. Continued meaningful absolute debt raises refinancing and interest-rate sensitivity, reduces strategic headroom for large M&A, and makes sustained cash generation essential to preserve financial flexibility.

Margin Pressure & One-Off Costs

Input-costs, tariffs, FX and timing effects compressed gross and comparable EBITDA margins in 2025; management also flagged further one-off investigation and optimisation costs. Structural margin pressure combined with episodic charges can erode durable cash conversion and complicate delivery of medium-term margin targets.

Givaudan SA Business Overview & Revenue Model

Company Description

Givaudan SA, together with its subsidiaries, manufactures, supplies, and sells fragrance, beauty, taste, and wellbeing products to the consumer goods industry. The company operates through in divisions, Fragrance & Beauty, and Taste & Wellbeing. The Fragrance & Beauty division offers fine fragrances, consumer products, and fragrance ingredients and active beauty products. The Taste & Wellbeing division provides beverages, such as carbonated soft drinks, juices, bottled waters, ready-to-drink products, alcoholic beverages, hot drinks, and others; dairy and cheese products, including dairy drinks, yoghurt, ice cream, chilled desserts, cream cheese, and spreads; snacks comprising rice crackers and cassava chips; savory and nutraceutical products; and biscuits, crackers, and cereals, as well as confectionery products, such as chewing gums, chocolates, and sweets. It operates in Switzerland, Europe, Africa, the Middle East, North America, Latin America, and the Asia Pacific. The company was founded in 1796 and is headquartered in Vernier, Switzerland.

How the Company Makes Money

Givaudan primarily makes money by selling flavors and fragrance compounds, specialty ingredients, and related services to business customers (B2B). Its revenue model is largely based on long-term supply relationships in which Givaudan develops customized formulations (e.g., a fragrance for a shampoo or a flavor system for a beverage) that are then manufactured and sold at scale for customers’ finished products; revenue is earned as customers purchase these formulations and ingredients over time. Key revenue streams include (1) Fragrance sales: delivery of fragrance compounds for fine fragrances and for consumer products such as personal care and home care, often supported by creative and technical services (scent design, performance testing, and reformulation to meet regulatory or cost requirements); and (2) Flavor sales: supply of flavorings and taste solutions for food and beverage applications, including flavor systems and functional taste components that help achieve specific sensory profiles in end products. Additional earnings typically come from higher-value specialty ingredients and technologies embedded in these solutions (where applicable), and from ongoing reformulation work driven by changes in customer preferences, raw material availability, or regulatory standards. Significant partnerships or customer relationships: null.

Givaudan SA Financial Statement Overview

Summary

High-quality profitability and cash generation (strong, steady margins; free cash flow consistently positive with solid conversion) support a strong score. Balance sheet leverage has improved but remains meaningful, and the provided statements flag uneven revenue—especially a sharp reported 2025 decline—as the key risk.

Income Statement

Profitability is consistently strong for a specialty chemicals business, with gross margin holding in the high-30s to mid-40s and net margin in the low-to-mid teens across 2020–2025. Operating profitability also improved versus 2022–2023, supporting solid earnings quality. The main weakness is growth: revenue growth has been uneven and 2025 shows a sharp reported decline, which raises questions around near-term demand/mix or reporting effects despite resilient margins.

Balance Sheet

Leverage is moderate: debt sits around equity (debt-to-equity roughly ~1.0 in 2024–2025), improving from more leveraged levels in 2020–2023. Returns on equity are strong and steady (low-to-mid 20% range), indicating efficient use of shareholder capital. Offsetting this, the company still carries meaningful absolute debt and leverage remains a key sensitivity if growth slows or rates stay elevated.

Cash Flow

Cash generation is a clear strength: free cash flow is consistently positive and has rebounded strongly since 2022, with solid growth reported in 2023–2025. Free cash flow runs at roughly ~0.66–0.82x net income, suggesting earnings are largely converting to cash. A watch item is that operating cash flow covers a modest share of debt (roughly mid-single-digit-to-high-single-digit percentage), implying debt reduction capacity is steady but not rapid without sustained cash flow strength.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.47B	7.41B	6.92B	7.12B	6.68B
Gross Profit	3.25B	3.27B	2.72B	2.63B	2.70B
EBITDA	1.79B	1.79B	1.47B	1.37B	1.44B
Net Income	1.07B	1.09B	893.00M	856.00M	821.00M
Balance Sheet
Total Assets	11.86B	12.10B	11.13B	11.51B	11.43B
Cash, Cash Equivalents and Short-Term Investments	742.00M	762.00M	608.00M	488.00M	278.00M
Total Debt	4.42B	4.75B	4.91B	5.00B	4.67B
Total Liabilities	7.30B	7.52B	7.13B	7.27B	7.49B
Stockholders Equity	4.54B	4.58B	3.99B	4.23B	3.93B
Cash Flow
Free Cash Flow	1.21B	1.33B	1.10B	588.00M	969.00M
Operating Cash Flow	1.51B	1.63B	1.37B	892.00M	1.23B
Investing Cash Flow	-380.00M	-448.00M	-467.00M	-451.00M	-921.00M
Financing Cash Flow	-1.11B	-1.03B	-699.00M	-229.00M	-440.00M

Givaudan SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 82.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GVDNY, the sentiment is Negative. The current price of 82.75 is above the 20-day moving average (MA) of 74.11, above the 50-day MA of 77.25, and below the 200-day MA of 84.35, indicating a bearish trend. The MACD of -2.57 indicates Positive momentum. The RSI at 25.20 is Positive, neither overbought nor oversold. The STOCH value of 0.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GVDNY.

Givaudan SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCPC	81 Outperform	$5.19B	32.29	12.31%	0.61%	7.55%	22.43%
GVDNY	70 Outperform	$31.35B	27.14	24.78%	1.96%	8.46%	8.59%
PPG	68 Neutral	$21.73B	14.71	33.60%	2.71%	-12.98%	-11.34%
SXT	65 Neutral	$3.53B	29.50	11.63%	1.70%	4.25%	56.51%
RPM	63 Neutral	$11.94B	21.09	22.70%	1.96%	3.09%	12.25%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IFF	57 Neutral	$17.02B	-46.13	-2.49%	2.41%	-3.01%	82.30%