Givaudan SA (GVDNY) AI Stock Analysis

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Givaudan SA

(OTC:GVDNY)

Rating:65Neutral

Price Target:

$98.00

▲(16.51% Upside)

Givaudan SA's overall stock score is driven by its strong financial performance and positive earnings call sentiment, offset by technical weaknesses and an overvalued valuation. The technical analysis suggests bearish momentum, while valuation metrics indicate limited upside potential.

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

Market Cap

$38.77B

Dividend Yield1.84%

Average Volume (3M)2.26K

Price to Earnings (P/E)30.7

Beta (1Y)0.16

Revenue Growth8.46%

EPS Growth8.59%

CountryUS

Employees16,942

SectorBasic Materials

Sector Strength57

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)1.49

Shares Outstanding461,700,000

10 Day Avg. Volume0

30 Day Avg. Volume2,259

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.30

Enterprise Value/Revenue6.80

Enterprise Value/Gross Profit15.40

Enterprise Value/Ebitda28.09

Forecast

1Y Price Target

$116.30

Price Target Upside38.27% 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 makes money primarily through the development, production, and sale of flavors and fragrances, which are critical ingredients in a variety of consumer products. The company's revenue streams are largely derived from its two business segments: Fragrance & Beauty and Taste & Wellbeing. In the Fragrance & Beauty segment, Givaudan offers fragrances for personal care and household products, as well as fine fragrances for luxury brands. In the Taste & Wellbeing segment, the company provides natural and synthetic flavors for the food and beverage industry. Givaudan collaborates closely with its clients to create customized and innovative solutions that cater to specific market demands. Strategic partnerships, a focus on sustainability, and investment in research and development are key factors contributing to the company's earnings. Additionally, Givaudan's global presence allows it to capitalize on emerging market opportunities and diverse consumer preferences.

Givaudan SA Earnings Call Summary

Earnings Call Date:Jul 22, 2025

(Q2-2025)

% Change Since: -12.58%|

Next Earnings Date:Jan 23, 2026

Earnings Call Sentiment Positive

The earnings call presented a generally positive outlook with strong sales growth across segments, particularly in Fragrance & Beauty and high-growth markets. Record EBITDA margins and significant innovations were key highlights. However, there were challenges with slightly negative free cash flow, volatility in North America, and softer demand in Fragrance Ingredients. Overall, the sentiment was positive, but tempered by some financial challenges.

Q2-2025 Updates

Positive Updates

Strong Sales Growth

The group recorded sales of CHF 3.864 billion, an increase of 6.3% on a like-for-like basis, mainly volume driven with a slight contribution from pricing.

Fragrance & Beauty Segment Performance

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

Taste & Wellbeing Segment Growth

Sales in the Taste & Wellbeing division increased by 4.1% on a like-for-like basis, with strong growth in regions like SAMEA at 12.7%.

Record EBITDA Margin

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

Strong Performance in High-Growth Markets

High-growth markets like India, Brazil, the Middle East, and China contributed significantly, outpacing mature markets by a factor of 3x.

Innovation and R&D

Introduction of innovative tools like Myromi and Everzure Galdieria, enhancing fragrance creation and offering sustainable color solutions.

Negative Updates

Slightly Negative Free Cash Flow

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

Volatile North American Market

North America continued to be volatile, with only a 1.7% increase on a like-for-like basis for the first half.

Softer Performance in Fragrance Ingredients

Fragrance Ingredients experienced softer demand, reflecting an overall market softness.

Increased Net Investments

Net investments were CHF 169 million in the first 6 months, notably higher than the prior period.

Company Guidance

During the Givaudan 2025 Half Year Results Conference Call, the company reported strong financial performance despite ongoing geopolitical and macroeconomic challenges. The group achieved sales of CHF 3.864 billion, marking a 6.3% increase on a like-for-like basis and a 3.4% increase in Swiss francs. The comparable EBITDA reached CHF 973 million, resulting in a record margin of 25.2%, up from 24.8% in 2024. Net income rose to CHF 592 million, marginally up from CHF 588 million last year. However, free cash flow was slightly negative due to timing effects related to capital expenditures and tax payments. The Fragrance & Beauty division recorded sales of CHF 1.955 billion, growing 8.6% on a like-for-like basis, while the Taste & Wellbeing division saw sales of CHF 1.909 billion, up 4.1%. The company highlighted its strong growth in high-growth markets, particularly in India, Brazil, and China, with LatAm achieving 9.4% growth on a like-for-like basis. Despite challenges, Givaudan remains confident in achieving its midterm target of an average free cash flow greater than 12% for the 5-year strategic cycle ending this year.

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 Price84.11

Price Trends

50DMA

95.20

Negative

100DMA

93.88

Negative

200DMA

90.96

Negative

Market Momentum

MACD

-3.29

Positive

RSI

24.03

Positive

STOCH

9.01

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 84.11 is below the 20-day moving average (MA) of 89.02, below the 50-day MA of 95.20, and below the 200-day MA of 90.96, indicating a bearish trend. The MACD of -3.29 indicates Positive momentum. The RSI at 24.03 is Positive, neither overbought nor oversold. The STOCH value of 9.01 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

Overall Rating

UnderperformOutperform

Sector (44)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCPC	78 Outperform	$5.19B	36.66	11.99%	0.55%	5.74%	21.54%
RPM	76 Outperform	$15.37B	22.38	25.42%	1.71%	0.51%	17.21%
SXT	69 Neutral	$4.88B	36.24	12.18%	1.41%	4.95%	53.63%
GVDNY	65 Neutral	$38.77B	30.73	25.35%	1.84%	8.46%	8.59%
IFF	55 Neutral	$16.96B	83.39	-2.74%	2.52%	-0.07%	83.36%
PPG	55 Neutral	$23.85B	18.74	16.88%	2.56%	-10.59%	-7.79%
Sector *	44 Neutral	C$873.73M	-6.74	-14.91%	2.76%	16.72%	-26.63%

* Basic Materials Sector Average

Performance Comparison

GVDNY

Givaudan SA

84.11

-11.60

-12.12%

BCPC

Balchem

159.34

-3.47

-2.13%

IFF

International Flavors & Fragrances

63.56

-30.84

-32.67%

PPG

PPG Industries

106.95

-9.56

-8.21%

RPM

RPM International

119.65

7.22

6.42%

SXT

Sensient Technologies

116.62

46.33

65.91%

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.Date of analysis: Jul 23, 2025