Givaudan SA (GVDNY) AI Stock Analysis

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Givaudan SA

(OTC:GVDNY)

Rating:76Outperform

Price Target:

$107.00

▲(12.89%Upside)

Givaudan SA's strong financial performance and positive earnings call sentiment are the most significant factors, showcasing robust growth and profitability. Technical analysis reveals bearish momentum, and the valuation indicates a high growth expectation. Overall, the company's strengths in financial health and strategic prospects outweigh current technical weaknesses.

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

Market Cap

$43.23B

Dividend Yield1.65%

Average Volume (3M)1.70K

Price to Earnings (P/E)34.9

Beta (1Y)0.17

Revenue Growth9.38%

EPS Growth24.45%

CountryUS

Employees16,942

SectorBasic Materials

Sector Strength63

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)1.25

Shares Outstanding461,700,000

10 Day Avg. Volume1,077

30 Day Avg. Volume1,695

Financial Highlights & Ratios

PEG Ratio5.65

Price to Book (P/B)7.56

Price to Sales (P/S)0.00

P/FCF Ratio25.72

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$116.30

Price Target Upside22.71% 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:Jan 24, 2025

(Q4-2024)

% Change Since: 10.52%|

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.

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

Neutral

Last Price94.78

Price Trends

50DMA

98.32

Negative

100DMA

94.20

Positive

200DMA

92.13

Positive

Market Momentum

MACD

-1.28

Positive

RSI

39.90

Neutral

STOCH

14.54

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GVDNY, the sentiment is Neutral. The current price of 94.78 is below the 20-day moving average (MA) of 96.42, below the 50-day MA of 98.32, and above the 200-day MA of 92.13, indicating a neutral trend. The MACD of -1.28 indicates Positive momentum. The RSI at 39.90 is Neutral, neither overbought nor oversold. The STOCH value of 14.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
GVDNY	76 Outperform	$43.23B	34.92	25.25%	1.65%	9.38%	24.45%
BCPC	73 Outperform	$5.16B	37.93	11.94%	0.55%	3.76%	18.06%
SXT	73 Outperform	$4.65B	36.26	11.87%	1.50%	6.30%	41.01%
RPM	71 Outperform	$14.20B	22.35	25.53%	1.84%	-0.61%	15.06%
PPG	64 Neutral	$26.23B	19.65	18.47%	2.35%	-7.67%	-0.58%
IFF	54 Neutral	$18.98B	83.39	-6.08%	2.13%	0.68%	66.69%
Sector *	44 Neutral	C$967.00M	-6.65	-13.73%	2.47%	17.55%	-32.57%

* Basic Materials Sector Average

Performance Comparison

GVDNY

Givaudan SA

94.78

0.53

0.56%

BCPC

Balchem

158.37

-13.17

-7.68%

IFF

International Flavors & Fragrances

76.00

-17.88

-19.05%

PPG

PPG Industries

114.53

-10.58

-8.46%

RPM

RPM International

111.43

0.90

0.81%

SXT

Sensient Technologies

109.09

31.47

40.54%

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 12, 2025