DSM-Firmenich AG (DSFIR) AI Stock Analysis

• Market Cap: €14.34B
• Dividend Yield: 3.61%
• Average Volume (3M): 727.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: 4.46%
• EPS Growth: N/A
• Country: NL
• Employees: 26,301
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Household & Personal Products
• EPS (TTM): 0.65
• Shares Outstanding: 253,626,950
• 10 Day Avg. Volume: 620,056
• 30 Day Avg. Volume: 727,238
• PEG Ratio: 0.03
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 1.97
• P/FCF Ratio: 28.57
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €82.13
• Price Target Upside: 37.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 3.57
• Revenue Forecast (FY): €10.48B

• Rating: 52 Neutral
• Price Target: €63.00 ▲(5.21% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by unstable financial performance (notably the 2025 revenue drop and net loss) and bearish technicals (below key moving averages with weak momentum). A relatively sound balance sheet and positive cash flow, along with an above-average dividend yield, provide partial support but do not offset the elevated near-term performance risk.

Positive Factors

Diversified B2B portfolio

DSM‑Firmenich's cross‑sector B2B product mix—fragrances, flavors, and functional ingredients—creates recurring demand from global consumer goods manufacturers. Diversification across end markets reduces revenue concentration risk and helps stabilize volumes versus single-segment players over the medium term.

Customer co‑development and manufacturing scale

The firm's co‑development capabilities and scale in ingredient manufacturing drive sticky customer relationships and create higher switching costs. This structural advantage supports margin sustainability, allows premium formulation pricing, and enables cost efficiencies that persist beyond short-term cycles.

Relatively solid balance sheet and positive FCF

Manageable leverage and positive operating/free cash flow provide financial flexibility to fund operations, R&D, and dividends. A sizable equity base and contained balance‑sheet risk give the company resilience to navigate near‑term volatility and invest for medium‑term growth.

Negative Factors

Volatile revenue trend

A pronounced revenue decline and erratic top‑line swings undermine predictability of cash flows and planning. Persistent volatility hampers capacity utilization, weakens pricing leverage, and raises the risk that investment and cost structures will be mismatched to demand for multiple quarters.

Deterioration in earnings quality

The shift from profit to a large net loss signals one‑off charges or rising non‑operating costs that erode shareholder return potential. Even with positive operating profit, bottom‑line volatility constrains retained earnings, dividend capacity, and long‑term reinvestment unless structural cost or revenue drivers are fixed.

Weakening cash generation

Declining free cash flow reduces the company's buffer to fund capex, working capital, and payout commitments. Choppy cash conversion increases dependency on balance‑sheet flexibility and could force tighter capital allocation, slowing strategic investments or product development over the medium term.

DSM-Firmenich AG Business Overview & Revenue Model

Company Description

DSM-Firmenich AG, a science-based company, engages in beauty, health, and nutrition businesses in the Netherlands, Switzerland, rest of Europe, North America, Latin America, China, rest of Asia, and internationally. It operates through Perfumery & Beauty; Animal Nutrition & Health (ANH); Health, Nutrition & Care (HNC); and Food & Beverage segments. The Perfumery & Beauty offers perfumery and aroma ingredients. The Animal Nutrition & Health segment offers essential products, including vitamins, premixes, and carotenoids; performance solutions, such as enzymes, microbes, and eubiotics; precision services comprising support with data analysis to measure animal health and environmental footprint on farm level and feed safety; and methane reducing feed additive for ruminants. The Health, Nutrition & Care segment provides solutions for the early life nutrition, dietary supplement, pharmaceutical, medical nutrition, personal care and aroma, and biomedical materials markets. It offers vitamins, nutritional lipids, minerals, carotenoids, nutraceuticals, digestive enzymes, probiotics and prebiotics, active pharmaceutical ingredients, and sunscreen filters, as well as a range of biomedical solutions; premix, market-ready solutions, and personalized nutrition solutions; and regulatory affairs and formulation expertise, and customized solutions. The Food & Beverage segment provides ingredients and solutions for use in a range of food products, such as dairy; bakery, cereals, and bars; savory food; beverages and brewing; confectionery and fruit; plant-based meat and fish alternatives; and petfood. The company was founded in 1902 and is headquartered in Kaiseraugst, Switzerland.

How the Company Makes Money

DSM-Firmenich AG generates revenue through multiple key streams, primarily focusing on the sales of its wide range of flavor, fragrance, and nutritional products. The company leverages its extensive research and development capabilities to create innovative solutions tailored to customer needs, which often results in long-term contracts and partnerships with major global brands in the food and beverage, personal care, and pharmaceutical industries. Additionally, DSFIR benefits from economies of scale, allowing it to optimize production and reduce costs. Strategic collaborations and acquisitions further bolster its market presence and enhance its product offerings, contributing to sustained revenue growth.

DSM-Firmenich AG Financial Statement Overview

Summary

Balance sheet is relatively solid (moderate leverage, sizable equity base), and operating/free cash flow remain positive. However, financial performance is pressured by volatile revenue and a sharp deterioration in earnings quality, including a swing to a large net loss in 2025, with weakening recent cash generation.

Income Statement

Revenue has been volatile: strong growth in 2021 and 2023, followed by a sharp decline in 2025. Profitability is inconsistent—gross margin improved meaningfully in 2025, but net results swung from solid profit in 2023 to a large net loss in 2025, despite still-positive operating profitability. Overall, the trend shows unstable earnings quality and elevated one-off/expense pressure at the bottom line.

Balance Sheet

Leverage looks manageable with debt-to-equity consistently in a moderate range, and equity remains sizable relative to total assets. However, equity has stepped down from 2023–2024 into 2025 alongside weaker results, which reduces the balance-sheet cushion. Overall balance-sheet risk appears contained, but recent profitability deterioration is a watch item for future capital strength.

Cash Flow

Operating cash flow and free cash flow remain positive across the period, which supports underlying business resilience. That said, cash generation has weakened recently (free cash flow down in 2025 versus 2024) and cash conversion versus reported earnings is choppy, especially in the loss-making 2025 year. Overall cash flow is adequate but trending less supportive than prior years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.03B	12.80B	10.63B	8.39B	11.44B
Gross Profit	3.53B	4.25B	2.61B	2.78B	4.19B
EBITDA	3.85B	561.00M	822.00M	1.31B	1.45B
Net Income	-1.08B	250.00M	2.14B	460.00M	872.00M
Balance Sheet
Total Assets	29.34B	33.75B	34.27B	17.40B	16.02B
Cash, Cash Equivalents and Short-Term Investments	1.90B	2.72B	2.56B	2.88B	2.05B
Total Debt	5.66B	5.37B	4.83B	3.06B	3.10B
Total Liabilities	10.92B	11.05B	11.20B	6.56B	6.62B
Stockholders Equity	18.24B	22.51B	22.91B	10.74B	9.32B
Cash Flow
Free Cash Flow	624.00M	1.01B	710.00M	279.00M	994.00M
Operating Cash Flow	1.39B	1.78B	1.26B	923.00M	1.43B
Investing Cash Flow	392.00M	-252.00M	-726.00M	871.00M	208.00M
Financing Cash Flow	-2.58B	-1.33B	-820.00M	-598.00M	-984.00M

DSM-Firmenich AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 59.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:DSFIR, the sentiment is Negative. The current price of 59.88 is below the 20-day moving average (MA) of 63.65, below the 50-day MA of 65.90, and below the 200-day MA of 77.42, indicating a bearish trend. The MACD of -1.96 indicates Positive momentum. The RSI at 36.48 is Neutral, neither overbought nor oversold. The STOCH value of 39.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:DSFIR.

DSM-Firmenich AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKZA	63 Neutral	€9.78B	16.05	1.39%	3.38%	-2.03%	-89.67%
MT	63 Neutral	€40.57B	15.16	4.81%	1.24%	-5.35%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
APAM	53 Neutral	€3.07B	357.07	-0.24%	5.41%	-2.24%	-102.76%
DSFIR	52 Neutral	€14.34B	-13.64	―	3.61%	4.46%	―
AMG	49 Neutral	€1.02B	-72.88	6.84%	1.46%	9.94%	―
OCI	47 Neutral	€748.33M	―	―	229.25%	―	―