Givaudan SA (GVDNY) AI Stock Analysis

• Market Cap: $34.29B
• Dividend Yield: 1.96%
• Average Volume (3M): 7.89K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.12
• 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: 3,023
• 30 Day Avg. Volume: 7,891
• 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: 0.89
• Enterprise Value/Revenue: 4.07
• Enterprise Value/Gross Profit: 9.36
• Enterprise Value/Ebitda: 17.04
• 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: $87.00 ▲(5.14% Upside)
• 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

Strong free cash flow & conversion

Consistent, high free cash flow (CHF1.05bn; 14.1% of sales) and strong cash conversion underpin durable financial flexibility. This funds R&D, dividends and debt reduction, supports the company’s >12% FCF target and provides resilience to cyclicality or temporary sales weakness over the medium term.

Sustained R&D & innovation pipeline

High, sustained R&D spending (~8% of sales) and a deep innovation pipeline drive product differentiation and premium pricing. Over 2–6 months and beyond, this strengthens competitive moats in flavors and fragrances, supports new-win momentum, and reduces commoditization risk versus low-cost competitors.

Diversified geography & high-growth exposure

Nearly half revenue from higher-growth markets and broad regional exposure (EAME, APAC, LatAm, NA) lowers concentration risk and ties growth to structurally expanding consumer markets. This diversification supports more stable topline expansion and reduces dependence on any single macro cycle.

Negative Factors

Input-cost & tariff margin pressure

Sustained input-cost inflation and tariff exposure compressed gross margin in 2025. If input cost pressures or trade barriers persist, margin erosion could be structural rather than transitory, weakening operating leverage and making it harder to sustain targeted EBITDA 'sweet spot' margins without pricing power or cost offsets.

Taste & Wellbeing segment softness

A notable slowdown and Q4 decline in a major division signals demand and mix risks in a large revenue stream. Prolonged underperformance in Taste & Wellbeing would pressure group revenue growth, margin mix and could delay deleveraging or reinvestment plans even if other divisions perform well.

One-off costs & ongoing investigations

Recurring or escalating one-off charges and regulatory investigations create earnings volatility and potential additional cash outflows. Over the medium term, these can divert cash from debt reduction or R&D, raise compliance costs, and pose latent legal or remediation liabilities that impair durable earnings quality.

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 generates revenue primarily through the sale of its flavor and fragrance products. The Flavors division accounts for a significant portion of its earnings by providing custom flavors for food and beverage manufacturers, while the Fragrances division generates income through the development of scent formulations for personal care and home products. The company employs a value-added approach, often engaging in long-term partnerships with clients to develop tailored solutions, which leads to stable and recurring revenue streams. Additionally, Givaudan invests in research and development to innovate and stay ahead in a competitive market, allowing it to charge premium prices for its specialized products. Strategic acquisitions also play a role in expanding its product offerings and market reach, further enhancing its revenue potential.

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: Neutral
• 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 78.87, above the 50-day MA of 79.12, and below the 200-day MA of 86.05, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 37.74 is Neutral, neither overbought nor oversold. The STOCH value of 13.98 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	$5.63B	32.29	12.86%	0.61%	7.55%	22.43%
GVDNY	70 Outperform	$34.29B	27.14	23.85%	1.96%	8.46%	8.59%
PPG	68 Neutral	$25.00B	14.71	21.34%	2.71%	-12.98%	-11.34%
SXT	65 Neutral	$3.97B	29.50	12.31%	1.70%	4.25%	56.51%
RPM	63 Neutral	$13.44B	21.09	22.72%	1.96%	3.09%	12.25%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IFF	57 Neutral	$19.26B	-46.13	-2.48%	2.41%	-3.01%	82.30%