Givaudan SA (GVDNY) AI Stock Analysis

Compare

47 Followers

Top Page

Givaudan SA

(OTC:GVDNY)

Rating:69Neutral

Price Target:

$91.00

▲(7.88% Upside)

Givaudan SA's overall stock score is driven by strong financial performance and positive earnings call highlights, including robust sales growth and record EBITDA margins. However, technical analysis indicates bearish momentum, and the valuation suggests the stock may be overvalued, which tempers the overall score.

Givaudan SA (GVDNY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$38.21B

Dividend Yield1.84%

Average Volume (3M)3.36K

Price to Earnings (P/E)30.8

Beta (1Y)0.14

Revenue Growth8.46%

EPS Growth8.59%

CountryUS

Employees16,942

SectorBasic Materials

Sector Strength73

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)1.49

Shares Outstanding461,700,000

10 Day Avg. Volume2,939

30 Day Avg. Volume3,359

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.32

Enterprise Value/Revenue6.80

Enterprise Value/Gross Profit15.40

Enterprise Value/Ebitda28.09

Forecast

1Y Price Target

$116.30

Price Target Upside37.88% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Givaudan SA Business Overview & Revenue Model

Company DescriptionGivaudan 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 MoneyGivaudan generates revenue primarily through the sale of its flavor and fragrance products to a diverse range of clients, including major food and beverage manufacturers, cosmetic companies, and household product producers. The company's revenue model relies on both the creation of custom solutions tailored to specific customer needs and the sale of standardized products. Key revenue streams include long-term contracts with multinational corporations, which provide consistent income, as well as partnerships with smaller firms that seek innovative flavor and fragrance solutions. Additionally, Givaudan invests in research and development to stay ahead of market trends and consumer preferences, further enhancing its earning potential. The company also benefits from synergies across its global operations and its ability to leverage sustainable sourcing practices, which can attract environmentally conscious customers.

Givaudan SA Earnings Call Summary

Earnings Call Date:Jul 22, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Jan 23, 2026

Earnings Call Sentiment Positive

The earnings call reflects a strong overall performance with significant sales growth and record EBITDA margins across various segments and geographies. However, there are challenges such as negative free cash flow and volatility in certain regions. Innovations in product offerings and strategic growth initiatives continue to drive the company's success.

Q2-2025 Updates

Positive Updates

Strong Sales Growth

The group recorded sales of CHF 3.864 billion in the first half of 2025, an increase of 6.3% on a like-for-like basis, with strong growth across all business segments and geographies.

Record Comparable EBITDA Margin

The comparable EBITDA amounted to CHF 973 million, leading to a record comparable EBITDA margin of 25.2%, up from 24.8% in 2024.

Fragrance & Beauty Performance

Fragrance & Beauty sales were CHF 1.955 billion, an increase of 8.6% on a like-for-like basis, with Fine Fragrances continuing its strong growth momentum at an impressive 18%.

Taste & Wellbeing Division Growth

Sales for the Taste & Wellbeing division amounted to CHF 1.909 billion, up 4.1% on a like-for-like basis, with strong growth in SAMEA at 12.7%.

Geographical Sales Performance

High-growth markets outpaced mature markets, with LatAm growing by 9.4% and Europe, Africa, and Middle East sustaining a strong growth of 8.6%.

Innovation in Product Offerings

Innovations like Myromi for fragrance creation and Everzure Galdieria for natural color solutions, which received FDA approval, highlight the company's commitment to sustainability and advanced technology.

Negative Updates

Slightly Negative Free Cash Flow

The free cash flow in the first half was slightly negative, mainly due to timing effects of investments and tax payments.

Volatility in North America

North America showed volatility with a modest increase of 1.7% like-for-like in the first half, despite a sequential improvement in the second quarter.

Challenges in Fragrance Ingredients

The Fragrance Ingredients segment faced a softer performance, reflecting an overall softer demand from the market.

Impact of Exchange Rates

The Swiss franc strengthened against all major currencies, impacting the group results in Swiss francs, though the impact was mitigated by natural hedges.

Company Guidance

During the Givaudan 2025 Half Year Results Conference Call, the company reported robust financial performance amid challenging geopolitical and macroeconomic conditions. Sales for the first half of 2025 reached CHF 3.864 billion, representing a 6.3% increase on a like-for-like basis and a 3.4% increase in Swiss francs. The Fragrance & Beauty division saw sales climb to CHF 1.955 billion, an 8.6% rise on a like-for-like basis, while the Taste & Wellbeing division recorded sales of CHF 1.909 billion, up 4.1% on a like-for-like basis. The group's comparable EBITDA stood at CHF 973 million, marking a record margin of 25.2%, up from 24.8% the previous year. Net income increased slightly to CHF 592 million from CHF 588 million last year. Despite a slightly negative free cash flow due to timing effects in capital expenditures and tax payments, Givaudan remains confident in achieving its midterm target of a free cash flow greater than 12% for the strategic cycle ending in 2025. The company also noted strong growth in high-growth markets, such as India, Brazil, and China, and highlighted innovations in fragrance and beauty products that align with sustainability and consumer trends.

Givaudan SA Financial Statement Overview

Summary

Givaudan SA demonstrates strong financial health with consistent revenue growth, robust profitability metrics, and efficient cash flow management. The company maintains a solid balance sheet, though there is potential to optimize its leverage further.

Income Statement

Very Positive

Givaudan SA's income statement reflects strong growth and profitability. The revenue has shown consistent annual growth, with a remarkable increase of 7.18% from 2023 to 2024. Gross profit margin stands at 44.13%, and the net profit margin is 14.7%, indicating efficient cost management and strong profitability. The EBIT margin is 18.81%, and the EBITDA margin is 24.18%, both of which are healthy and demonstrate strong operational performance.

Balance Sheet

Positive

The balance sheet shows a solid financial structure with a debt-to-equity ratio of 1.04, indicating moderate leverage. Return on Equity (ROE) is robust at 23.8%, showcasing effective use of equity to generate profits. The equity ratio is 37.83%, reflecting a stable capital structure, though there's room for improvement in reducing leverage.

Cash Flow

Very Positive

Givaudan SA's cash flow statement highlights strong cash generation capabilities. The free cash flow grew by 21.28% from 2023 to 2024, pointing to efficient cash management. The operating cash flow to net income ratio is 1.49, and the free cash flow to net income ratio is 1.22, both indicating healthy cash flow relative to earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.41B	6.92B	7.12B	6.68B	6.32B
Gross Profit	3.27B	2.72B	2.63B	2.70B	2.50B
EBITDA	1.79B	1.45B	1.38B	1.44B	1.34B
Net Income	1.09B	893.00M	856.00M	821.00M	743.00M
Balance Sheet
Total Assets	12.10B	11.13B	11.51B	11.43B	10.66B
Cash, Cash Equivalents and Short-Term Investments	762.00M	608.00M	488.00M	278.00M	415.00M
Total Debt	4.75B	4.91B	5.00B	4.67B	4.45B
Total Liabilities	7.52B	7.13B	7.27B	7.49B	7.15B
Stockholders Equity	4.58B	3.99B	4.23B	3.93B	3.49B
Cash Flow
Free Cash Flow	1.33B	1.10B	588.00M	969.00M	857.00M
Operating Cash Flow	1.63B	1.37B	892.00M	1.23B	1.08B
Investing Cash Flow	-448.00M	-467.00M	-451.00M	-921.00M	-830.00M
Financing Cash Flow	-1.03B	-699.00M	-229.00M	-440.00M	-286.00M

Givaudan SA Technical Analysis

Technical Analysis Sentiment

Negative

Last Price84.35

Price Trends

50DMA

89.94

Negative

100DMA

93.39

Negative

200DMA

90.21

Negative

Market Momentum

MACD

-1.39

Negative

RSI

41.54

Neutral

STOCH

37.68

Neutral

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 84.35 is above the 20-day moving average (MA) of 84.08, below the 50-day MA of 89.94, and below the 200-day MA of 90.21, indicating a neutral trend. The MACD of -1.39 indicates Negative momentum. The RSI at 41.54 is Neutral, neither overbought nor oversold. The STOCH value of 37.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GVDNY.

Givaudan SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCPC	80 Outperform	$5.26B	37.14	11.99%	0.54%	5.74%	21.54%
RPM	78 Outperform	$16.08B	23.42	25.42%	1.63%	0.51%	17.21%
SXT	75 Outperform	$4.82B	35.75	12.18%	1.45%	4.95%	53.63%
GVDNY	69 Neutral	$38.21B	30.82	25.35%	1.84%	8.46%	8.59%
PPG	63 Neutral	$25.10B	19.72	16.88%	2.47%	-10.59%	-7.79%
Sector *	61 Neutral	$10.26B	6.13	0.71%	2.93%	3.45%	-36.02%
IFF	50 Neutral	$17.30B	83.39	-2.74%	2.37%	-0.07%	83.36%

* Basic Materials Sector Average

Performance Comparison

GVDNY

Givaudan SA

84.35

-18.40

-17.91%

BCPC

Balchem

162.09

-8.81

-5.16%

IFF

International Flavors & Fragrances

67.51

-34.13

-33.58%

PPG

PPG Industries

111.23

-13.67

-10.94%

RPM

RPM International

125.31

11.81

10.41%

SXT

Sensient Technologies

113.46

39.32

53.03%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025