DSM-Firmenich AG (DSFIR) AI Stock Analysis

• Market Cap: €18.02B
• Dividend Yield: 3.61%
• Average Volume (3M): 727.24K
• Price to Earnings (P/E): 25.1
• Beta (1Y): 0.64
• 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): 0.89
• Shares Outstanding: 265,676,400
• 10 Day Avg. Volume: 620,056
• 30 Day Avg. Volume: 727,238
• PEG Ratio: -0.78
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 2.02
• P/FCF Ratio: 25.50
• 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: €89.29
• Price Target Upside: 30.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: €76.00 ▲(11.31% Upside)

DSM-Firmenich AG's overall stock score is primarily influenced by its strong financial performance, characterized by robust revenue growth and a solid balance sheet. However, bearish technical indicators and a relatively high P/E ratio suggest caution. The lack of recent earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

The impressive revenue growth rate of 82.1% TTM suggests strong market demand and effective business strategies, supporting long-term expansion.

Balance Sheet Health

A low debt-to-equity ratio of 0.25 highlights prudent financial management, providing stability and flexibility for future investments.

Profitability Improvement

Improved net profit margin to 5.5% indicates better cost management and operational efficiency, enhancing long-term profitability.

Negative Factors

Free Cash Flow Decline

A 12.5% decline in free cash flow growth may impact the company's ability to invest in growth opportunities and manage debt.

Operational Efficiency

An EBIT margin of 8.7% indicates potential inefficiencies, suggesting the need for cost optimization to enhance profitability.

Return on Equity

A modest ROE of 3.3% indicates limited profitability from shareholder equity, highlighting the need for improved capital efficiency.

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

DSM-Firmenich AG shows strong revenue growth and a solid balance sheet with low leverage. Profitability metrics are improving, but there is room for enhancing operational efficiency. Cash flow management is stable, though recent declines in free cash flow growth warrant attention.

Income Statement

DSM-Firmenich AG shows a strong revenue growth trajectory with a TTM revenue growth rate of 82.1%, indicating robust expansion. The gross profit margin is healthy at 34.1%, and the net profit margin has improved to 5.5% in the TTM, reflecting enhanced profitability. However, the EBIT margin of 8.7% suggests room for operational efficiency improvements.

Balance Sheet

The company's balance sheet is stable with a low debt-to-equity ratio of 0.25, indicating prudent financial leverage. The return on equity is modest at 3.3%, suggesting moderate profitability relative to equity. The equity ratio stands at 66.1%, reflecting a strong equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 12.5% in the TTM, which could be a concern. The operating cash flow to net income ratio is 0.47, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is 0.55, showing a reasonable conversion of earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.01B	12.80B	10.63B	8.39B	11.44B	8.11B
Gross Profit	4.44B	4.25B	2.61B	2.78B	4.19B	2.78B
EBITDA	2.21B	561.00M	822.00M	1.31B	1.45B	1.21B
Net Income	718.00M	250.00M	2.14B	460.00M	872.00M	448.00M
Balance Sheet
Total Assets	32.32B	33.75B	34.27B	17.40B	16.02B	14.35B
Cash, Cash Equivalents and Short-Term Investments	2.86B	2.72B	2.56B	2.88B	2.05B	914.00M
Total Debt	5.43B	5.37B	4.83B	3.06B	3.10B	3.59B
Total Liabilities	10.81B	11.05B	11.20B	6.56B	6.62B	6.86B
Stockholders Equity	21.35B	22.51B	22.91B	10.74B	9.32B	7.40B
Cash Flow
Free Cash Flow	881.00M	1.01B	710.00M	279.00M	994.00M	1.04B
Operating Cash Flow	1.59B	1.78B	1.26B	923.00M	1.43B	1.49B
Investing Cash Flow	1.13B	-252.00M	-726.00M	871.00M	208.00M	-1.48B
Financing Cash Flow	-796.00M	-1.33B	-820.00M	-598.00M	-984.00M	83.00M

DSM-Firmenich AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 68.28
• 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 68.28 is below the 20-day moving average (MA) of 68.38, below the 50-day MA of 69.28, and below the 200-day MA of 81.53, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 39.44 is Neutral, neither overbought nor oversold. The STOCH value of 37.90 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
MT	73 Outperform	€31.34B	14.11	4.81%	1.24%	-5.35%	―
APAM	65 Neutral	€2.59B	-321.81	-0.24%	5.41%	-2.24%	-102.76%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
DSFIR	58 Neutral	€18.02B	25.08	―	3.61%	4.46%	―
AKZA	55 Neutral	€10.21B	175.60	1.39%	3.38%	-2.03%	-89.67%
AMG	53 Neutral	€1.15B	37.62	6.84%	1.46%	9.94%	―
OCI	41 Neutral	€647.99M	―	―	229.25%	―	―