Givaudan SA (GVDNY) AI Stock Analysis

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Givaudan SA

(OTC:GVDNY)

Rating:78Outperform

Price Target:

$118.00

▲(17.58%Upside)

Givaudan SA's strong financial performance and positive earnings call are the most significant factors contributing to the overall score. The technical analysis indicates potential overbought conditions, and the high P/E ratio suggests valuation concerns. However, the company's robust growth and strategic initiatives bolster its stock attractiveness.

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

Market Cap

$46.20B

Dividend Yield1.54%

Average Volume (3M)357.00

Price to Earnings (P/E)37.5

Beta (1Y)0.21

Revenue Growth9.38%

EPS Growth24.45%

CountryUS

Employees16,942

SectorBasic Materials

Sector Strength67

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)1.25

Shares Outstanding461,700,000

10 Day Avg. Volume0

30 Day Avg. Volume357

Financial Highlights & Ratios

PEG Ratio0.14

Price to Book (P/B)0.12

Price to Sales (P/S)0.00

P/FCF Ratio0.89

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$111.10

Price Target Upside10.70% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Givaudan SA Business Overview & Revenue Model

Company DescriptionGivaudan SA (GVDNY) is a leading global company in the flavors and fragrances industry. Headquartered in Switzerland, Givaudan operates in two main business segments: Taste & Wellbeing and Fragrance & Beauty. The company develops and manufactures innovative flavor and fragrance solutions for various consumer goods, including food and beverages, personal care, and household products. With a strong focus on sustainability and innovation, Givaudan collaborates closely with its clients to create products that enhance consumer experiences worldwide.

How the Company Makes MoneyGivaudan makes money primarily by creating and selling flavors and fragrances to manufacturers in the food and beverage, beauty, personal care, and household goods industries. The company's revenue streams are divided mainly between its two business segments: Taste & Wellbeing, which provides flavors and taste solutions for food and beverage products, and Fragrance & Beauty, which offers fragrance solutions for personal care and beauty products. Givaudan's earnings are significantly influenced by its strategic partnerships with major consumer goods companies, its investment in research and development to innovate new products, and its global supply chain capabilities that allow it to meet diverse client needs. Additionally, Givaudan focuses on sustainability initiatives, which can enhance its market position and drive customer loyalty.

Givaudan SA Earnings Call Summary

Earnings Call Date:Jan 24, 2025

(Q4-2024)

% Change Since: 17.02%|

Next Earnings Date:Jul 22, 2025

Earnings Call Sentiment Positive

The earnings call presented a strong financial performance for Givaudan in 2024, with significant sales growth, record free cash flow, and robust performance across both major divisions. The company also demonstrated progress in sustainability initiatives. Key challenges include the Kentucky plant accident and anticipated input cost increases. However, the highlights significantly outweigh the lowlights, indicating a positive sentiment overall.

Q4-2024 Updates

Positive Updates

Strong Sales Growth

Sales amounted to CHF 7.4 billion, with a strong increase of 12.3% on a like-for-like basis and 7.2% in Swiss francs. High growth markets achieved a 19.5% growth and mature markets grew by 6.4% on a like-for-like basis.

Record Free Cash Flow

Givaudan achieved a record free cash flow of CHF 1.158 billion, representing 15.6% of sales, compared to 13.3% in 2023.

Fragrance & Beauty Division Performance

Sales amounted to CHF 3.66 billion, up 14.1% on a like-for-like basis and 10.5% in Swiss francs. Fine Fragrances grew by 18.4%, and consumer products increased by 13.5%.

Taste & Wellbeing Division Performance

Sales amounted to CHF 3.752 billion, up 10.7% on a like-for-like basis and 4.1% in Swiss francs. Sequential improvement was noted in the second half of the year.

EBITDA and Margin Improvement

Reported EBITDA was CHF 1.765 billion, an increase of almost 20%. The comparable EBITDA margin improved to 24.5% from 22.4% in 2023.

Net Income Growth

Net income reached CHF 1.090 billion, an increase of 22% over 2023, leading to a net profit margin of 14.7%.

Dividend Increase

The Board of Directors proposed a dividend of CHF 70, marking the 24th consecutive dividend increase for shareholders.

Sustainability Achievements

Givaudan achieved a 48% reduction in Scope 1 and 2 emissions compared to the 2015 baseline and converted the entire electricity supply to fully renewable resources.

Negative Updates

Kentucky Plant Accident

A tragic accident at the Kentucky plant led to an impairment of CHF 10 million, with financial implications for 2025 still under investigation.

Input Cost Increases Expected

A firmer outlook for input costs is expected, with an increase of around 4% projected for 2025, particularly affecting natural ingredients in both divisions.

Company Guidance

During the Givaudan 2024 Full Year Results Conference Call, the company announced several impressive financial metrics. Givaudan reported sales amounting to CHF 7.4 billion, which represented a 12.3% increase on a like-for-like basis and 7.2% in Swiss francs. The company's EBITDA reached CHF 1.765 billion, marking an almost 20% increase, with a comparable EBITDA margin of 24.5%, improved from 22.4% in 2023. Net income rose to CHF 1.090 billion, a 22% increase over the previous year, leading to a net profit margin of 14.7%. The company also achieved a record free cash flow of CHF 1.158 billion, representing 15.6% of sales. Additionally, Givaudan's Board of Directors proposed a CHF 70 dividend at the AGM in March 2025, marking the 24th consecutive dividend increase. The strong sales growth was driven by a high level of volume growth and strategic pricing, notably with high growth markets achieving 19.5% growth.

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
1.39B	1.12B	1.09B	1.09B	1.00B
	EBITDA
1.79B	1.45B	1.38B	1.44B	1.34B
	Net Income Common Stockholders
1.09B	893.00M	856.00M	821.00M	743.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
762.00M	608.00M	488.00M	278.00M	415.00M
	Total Assets
12.10B	11.13B	11.51B	11.43B	10.66B
	Total Debt
4.75B	4.91B	5.00B	4.67B	4.45B
	Net Debt
4.00B	4.30B	4.53B	4.40B	4.04B
	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

Positive

Last Price100.36

Price Trends

50DMA

96.83

Positive

100DMA

92.14

Positive

200DMA

93.00

Positive

Market Momentum

MACD

1.23

Positive

RSI

52.74

Neutral

STOCH

-0.03

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GVDNY, the sentiment is Positive. The current price of 100.36 is below the 20-day moving average (MA) of 100.98, above the 50-day MA of 96.83, and above the 200-day MA of 93.00, indicating a neutral trend. The MACD of 1.23 indicates Positive momentum. The RSI at 52.74 is Neutral, neither overbought nor oversold. The STOCH value of -0.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GVDNY.

Givaudan SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GVDNY	78 Outperform	$46.20B	37.52	25.25%	1.54%	9.38%	24.45%
BCPC	75 Outperform	$5.21B	38.26	11.94%	0.54%	3.76%	18.06%
SXT	73 Outperform	$4.02B	31.31	11.87%	1.73%	6.30%	41.01%
RPM	64 Neutral	$13.79B	21.50	25.53%	1.90%	-0.61%	15.06%
PPG	58 Neutral	$24.41B	18.22	18.47%	2.51%	-7.67%	-0.58%
IFF	53 Neutral	$19.19B	83.39	-6.08%	2.13%	0.68%	66.69%
Sector *	51 Neutral	$2.01B	-1.26	-21.11%	4.38%	2.92%	-30.46%

* Basic Materials Sector Average

Performance Comparison

GVDNY

Givaudan SA

100.36

4.26

4.43%

BCPC

Balchem

159.77

10.12

6.76%

IFF

International Flavors & Fragrances

74.89

-19.59

-20.73%

PPG

PPG Industries

108.24

-17.28

-13.77%

RPM

RPM International

107.02

-2.03

-1.86%

SXT

Sensient Technologies

96.37

23.31

31.91%

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.