Givaudan SA (GIVN) AI Stock Analysis

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Givaudan SA

(GIVN)

73Outperform

Givaudan SA shows robust financial health with strong growth in revenue, profits, and cash flow. Despite these strengths, the stock's technical indicators suggest bearish trends, and its high P/E ratio indicates potential overvaluation. The recent earnings call was positive, highlighting strong performance, though challenges such as increased raw material costs remain. Overall, Givaudan is a fundamentally solid company with some caution advised due to valuation and technical factors.

Positive Factors

Free Cash Flow

The company reported a robust free cash flow of €1.16 billion, driven by higher earnings and efficient capital expenditure management.

Organic Growth

Givaudan beat Q1 consensus organic growth expectations with +7.4% organic growth, mainly explained by Fragrance and Beauty, where Fine Fragrance showed ongoing high momentum.

Profitability

Givaudan's H2-24 adjusted EBITDA exceeded consensus expectations, showing strong performance in profitability.

Negative Factors

Earnings Impact

The full-year 2024 EPS was negatively affected by impairments and higher tax payments.

Regional Performance

Regionally, North America was weak with a -0.5% organic decline.

Givaudan SA (GIVN) vs. S&P 500 (SPY)

Market Cap

CHF35.44B

Dividend Yield1.82%

Average Volume (3M)21.91K

Price to Earnings (P/E)32.5

Beta (1Y)0.54

Revenue Growth7.19%

EPS Growth22.07%

CountryCH

Employees16,942

SectorConsumer Defensive

Sector Strength93

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)118.17

Shares Outstanding9,233,586

10 Day Avg. Volume16,162

30 Day Avg. Volume21,910

Financial Highlights & Ratios

PEG Ratio1.47

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

Price to Cash Flow (P/CF)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

CHF4,138.86

Price Target Upside9.64% Upside

Rating ConsensusHold

Number of Analyst Covering13

Givaudan SA Business Overview & Revenue Model

Company DescriptionGivaudan SA (GIVN) is a leading global company in the fragrance and flavor industry, headquartered in Vernier, Switzerland. It operates in two main sectors: Taste & Wellbeing and Fragrance & Beauty. The company creates and manufactures flavors, fragrances, and active beauty ingredients for food, beverage, consumer goods, and personal care products. Givaudan's innovative solutions aim to enhance consumer experiences and meet the evolving demands of the market.

How the Company Makes MoneyGivaudan makes money primarily through the development and sale of flavors and fragrances. In its Taste & Wellbeing segment, the company generates revenue by creating flavors used in food and beverages, offering solutions that enhance taste and nutritional quality. In the Fragrance & Beauty sector, Givaudan produces fragrances for consumer products such as perfumes, cosmetics, personal care, and household goods. The company's revenue streams are bolstered by significant partnerships with major global brands in the food, beverage, and consumer goods industries. Additionally, Givaudan invests in research and development to innovate and expand its product offerings, which helps to maintain its competitive edge and drive sales growth.

Givaudan SA Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
7.12B	7.41B	6.92B	7.12B	6.68B	6.32B
	Gross Profit
2.98B	3.27B	2.72B	2.63B	2.70B	2.50B
	EBIT
1.26B	1.39B	1.12B	1.09B	1.09B	1.00B
	EBITDA
1.61B	1.79B	1.45B	1.38B	1.44B	1.34B
	Net Income Common Stockholders
1.03B	1.09B	893.00M	856.00M	821.00M	743.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
456.00M	762.00M	608.00M	488.00M	278.00M	415.00M
	Total Assets
10.40B	12.10B	11.13B	11.51B	11.43B	10.66B
	Total Debt
4.13B	4.75B	4.91B	5.00B	4.67B	4.45B
	Net Debt
3.68B	4.00B	4.30B	4.53B	4.40B	4.04B
	Total Liabilities
6.74B	7.52B	7.13B	7.27B	7.49B	7.15B
	Stockholders Equity
3.64B	4.58B	3.99B	4.23B	3.93B	3.49B
Cash Flow		Free Cash Flow
1.34B	1.33B	1.10B	588.00M	969.00M	857.00M
	Operating Cash Flow
1.42B	1.63B	1.37B	892.00M	1.23B	1.08B
	Investing Cash Flow
-140.00M	-448.00M	-467.00M	-451.00M	-921.00M	-830.00M
	Financing Cash Flow
-838.00M	-1.03B	-699.00M	-229.00M	-440.00M	-286.00M

Givaudan SA Technical Analysis

Technical Analysis Sentiment

Positive

Last Price3775.00

Price Trends

50DMA

3850.43

Positive

100DMA

3858.20

Positive

200DMA

4010.41

Negative

Market Momentum

MACD

-7.75

Negative

RSI

57.01

Neutral

STOCH

80.61

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:GIVN, the sentiment is Positive. The current price of 3775 is above the 20-day moving average (MA) of 3755.05, below the 50-day MA of 3850.43, and below the 200-day MA of 4010.41, indicating a neutral trend. The MACD of -7.75 indicates Negative momentum. The RSI at 57.01 is Neutral, neither overbought nor oversold. The STOCH value of 80.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:GIVN.

Givaudan SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIKA	75 Outperform	CHF30.98B	24.87		1.78%	4.67%	―
GIVN	73 Outperform	CHF35.44B	32.50		1.82%	7.19%	22.07%
NESN	72 Outperform	$218.47B	20.27	30.10%	3.27%	-1.77%	-0.85%
CLN	67 Neutral	$2.68B	10.95	11.11%	4.54%	-5.14%	82.31%
Sector *	64 Neutral	$9.28B	14.55	4.62%	186.42%	3.98%	5.64%
EMSN	59 Neutral	CHF13.36B	28.98	25.54%	2.77%	-5.40%	0.70%
BARN	55 Neutral	CHF4.17B	28.95		3.78%	45.87%	-49.83%

* Consumer Defensive Sector Average

Performance Comparison

CH:GIVN

Givaudan SA

3,841.00

-50.12

-1.29%

CH:NESN

Nestlé SA

85.74

-3.75

-4.19%

CH:SIKA

Sika AG

205.50

-54.51

-20.96%

CH:BARN

Barry Callebaut AG

765.00

-578.64

-43.07%

CH:EMSN

EMS-CHEMIE HOLDING AG

591.00

-122.98

-17.22%

CH:CLN

Clariant AG

9.09

-3.80

-29.47%

Givaudan SA Earnings Call Summary

Earnings Call Date: Jan 24, 2025 | % Change Since: -2.47% | Next Earnings Date: Jul 22, 2025

Earnings Call Sentiment Positive

The earnings call for Givaudan's 2024 full year results highlighted strong sales, EBITDA, and free cash flow performance, driven by growth in high markets and segments like Fine Fragrance. Sustainability achievements were notable. However, challenges remain with anticipated raw material cost increases and the impact of an accident in Kentucky. Overall, the company's performance and outlook are positive.

Highlights

Record Sales and Growth

Givaudan reported sales of CHF 7.4 billion, marking a 12.3% increase on a like-for-like basis and 7.2% in Swiss francs. High growth markets achieved a 19.5% increase, and mature markets grew by 6.4%.

Strong EBITDA and Net Income Growth

The reported EBITDA increased by almost 20% to CHF 1.765 billion, with a comparable EBITDA margin improving to 24.5%. Net income rose by 22% to CHF 1.090 billion, with a net profit margin of 14.7%.

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.

Fine Fragrance Segment Performance

Sales in the Fine Fragrance segment increased by 18.4%, making the business 50% larger in Swiss francs and 80% larger on a like-for-like basis compared to 2019.

Sustainability Achievements

Givaudan reduced Scope 1 and 2 emissions by 48% compared to 2015 and achieved 100% renewable electricity. Responsible sourcing of natural ingredients increased to 85%.

Lowlights

Challenges with Increased Input Costs

Givaudan expects a 4% increase in raw material costs in 2025, particularly impacting natural ingredients like patchouli and citrus.

Kentucky Incident and Financial Impact

A tragic accident in Kentucky resulted in a CHF 10 million financial impact for 2024, including asset impairments and inventory losses.

Company Guidance

During the Givaudan 2024 full year results call, the company reported impressive metrics, highlighting a 12.3% increase in sales on a like-for-like basis, reaching CHF 7.4 billion. High growth markets saw a 19.5% increase, while mature markets grew by 6.4%. The company's EBITDA rose to CHF 1.765 billion, marking a nearly 20% increase, with an EBITDA margin improvement to 24.5%. Net income was CHF 1.090 billion, an increase of 22%, resulting in a net profit margin of 14.7%. Givaudan also achieved a record free cash flow of CHF 1.158 billion, representing 15.6% of sales. The Board of Directors proposed a 24th consecutive dividend increase to CHF 70 per share, reflecting strong financial health and commitment to shareholder returns.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.