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1. Company Snapshot

1.a. Company Description

Symrise AG supplies fragrances, flavorings, cosmetic active ingredients and raw materials, and functional ingredients.It operates through two segments, Taste, Nutrition & Health, and Scent & Care.The Taste, Nutrition & Health segment provides functional ingredients and flavor solutions used in the production of food and beverages; savory flavors; natural and sustainable ingredients for food and beverage manufacturers, baby food, and dietary supplements; product solutions and services for pet food manufacturers; sustainable ingredients and services for aqua feed manufacturers to develop solutions for fish and shrimp farms; and probiotics for food supplements and functional foods.


The Scent & Care segment develops, produces, and sells fragrance ingredients and compositions, aroma molecules, cosmetic ingredients, and mint flavors, as well as specific application processes for such substances.This segment's products are used by manufacturers of perfumes, personal care and cosmetic products, cleaning products, detergents, air fresheners, and oral care products.It operates in Europe, Africa, the Middle East, North America, the Asia Pacific, and Latin America.


Symrise AG was founded in 1874 and is headquartered in Holzminden, Germany.

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1.b. Last Insights on SY1

Symrise AG faces challenges due to declining fundamentals. Aplantex partnership focuses on plant-based molecules, yet no immediate financial impact. The company’s intrinsic value is potentially 88% above its current share price of €72.32, with a fair value estimate of €136. Rising demand for functional foods and beverages drives growth in GCC Bitterness Suppressors and Flavor Carriers Market. Symrise's long-term prospects are intact, but short-term headwinds persist. (Source: 2 Stage Free Cash Flow to Equity)

1.c. Company Highlights

2. Symrise Reports Solid H1 2025 Results, Moderates Organic Growth Guidance

Symrise achieved sales of €2.554 billion in H1 2025, reflecting 3.1% organic growth, and EBITDA of €554 million, a 4.5% increase compared to H1 2024. The EBITDA margin improved to 21.7%, up 100 basis points year-on-year. Net income was €268 million, representing a 12% increase, and earnings per share reached €1.92, equating to double-digit growth. Business free cash flow totaled €226 million or 8.8% of sales. Notably, the company's EPS of €1.92 was slightly below analyst estimates of €1.93.

Publication Date: Aug -04

📋 Highlights
  • Solid Organic Sales Growth: Achieved €2.554 billion in sales with 3.1% organic growth.
  • Improved Profitability: EBITDA increased by 4.5% to €554 million, with a margin of 21.7%.
  • Enhanced Guidance: Raised EBITDA margin target to 21.5% and identified €40 million in cost savings.
  • Segment Performance: Taste, Nutrition & Health grew 3.3%, while Scent & Care grew 2.9%.
  • Strong Cash Flow: Business free cash flow reached €226 million, representing 8.8% of sales.

Segment Performance

The Taste, Nutrition & Health segment achieved organic sales growth of 3.3%, while the Scent & Care segment achieved 2.9% growth. Regionally, Latin America delivered 10.6% organic growth, Asia Pacific and EMEA generated good organic growth of more than 3%, while North America saw slightly negative organic growth of 1.4%. According to CEO Jean-Yves Parisot, "The company is executing its ONE SYM Transformation, a multiyear journey to enable profitable growth, enhance returns, and ensure long-term value creation."

Guidance Update

Symrise updated its guidance, moderating its organic growth range to 2% to 5% from 5% to 7% previously, while increasing its EBITDA margin expectation to approximately 21.5%. This is driven by identified annual cost savings and efficiency improvements amounting to €40 million. The company targets organic growth in the range of 3% to 5% for 2025, outpacing the overall market, which is projected to grow at a moderated pace of 2% to 3% globally.

Valuation and Financials

At current prices, Symrise trades at a P/E ratio of 23.5, a P/B ratio of 2.82, and a P/S ratio of 2.25. The EV/EBITDA multiple is 12.72, and the dividend yield is 1.49%. The free cash flow yield is 2.12%, and the ROE is 12.35%. With a net debt to EBITDA ratio of 1.79, the company's leverage appears manageable. Analysts estimate next year's revenue growth at 4.9%, indicating potential for further upside.

Management's Outlook

Management remains optimistic about delivering results within the guided range, despite a cautious consumer environment and slowing end markets. The company is proactive in addressing these changes, focusing on reformulation and innovation. According to CFO Olaf Klinger, "The company is comfortable with its leverage, but it will depend on the environment and opportunities for further acquisitions."

3. NewsRoom

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Symrise AG's (ETR:SY1) Intrinsic Value Is Potentially 88% Above Its Share Price

Nov -10

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SYIEY vs. HWKN: Which Stock Is the Better Value Option?

Nov -07

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Symrise (XTRA:SY1): Evaluating Valuation Following Recent Share Price Rebound

Oct -25

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Can Sustained Strength in Water Drive ECL Stock Before Q3 Earnings?

Oct -23

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GCC Bitterness Suppressors and Flavor Carriers Market Forecast and Growth Trends Report 2025-2033 Featuring Cargill, Koninklijke DSM, Givaudan, Takasago, IFF, Kerry, Symrise, Tate & Lyle

Oct -23

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SYIEY vs. LIN: Which Stock Should Value Investors Buy Now?

Oct -22

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Symrise and Aplantex Confirm an Agreement to Establish a Partnership

Oct -14

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SYIEY or RPM: Which Is the Better Value Stock Right Now?

Oct -06

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.70%)

6. Segments

Taste, Nutrition & Health

Expected Growth: 7.0%

The growing demand for healthy and sustainable food options, coupled with the increasing need for natural ingredients, is driving the growth of this segment.

Scent & Care

Expected Growth: 5.8%

This segment is expected to grow in line with the global personal care and home care market, driven by consumer preferences for premium and sustainable products, with a slight premium to the global average growth rate.

7. Detailed Products

Flavorings

Symrise AG offers a wide range of flavorings for the food and beverage industry, including natural and artificial flavorings, extracts, and essences.

Fragrances

Symrise AG provides fragrances for the perfume, cosmetics, and household industries, including fine fragrances, aroma compounds, and fragrance ingredients.

Cosmetic Ingredients

Symrise AG offers a range of cosmetic ingredients, including actives, emollients, and moisturizers, for the personal care industry.

Food Ingredients

Symrise AG provides food ingredients, including seasonings, spices, and functional ingredients, for the food industry.

Beverage Ingredients

Symrise AG offers beverage ingredients, including natural sweeteners, flavor enhancers, and functional ingredients, for the beverage industry.

Nutrition Ingredients

Symrise AG provides nutrition ingredients, including vitamins, minerals, and plant-based ingredients, for the food and supplement industries.

8. Symrise AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Symrise AG is medium due to the availability of alternative fragrances and flavorings from other companies.

Bargaining Power Of Customers

The bargaining power of customers is low due to the fragmented nature of the industry, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of a few large suppliers of raw materials, giving them some negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including the need for significant capital investment and expertise in the industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several large players in the industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.71%
Debt Cost 5.26%
Equity Weight 60.29%
Equity Cost 6.30%
WACC 5.89%
Leverage 65.87%

11. Quality Control: Symrise AG passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Johnson Matthey

A-Score: 5.4/10

Value: 5.9

Growth: 3.9

Quality: 4.1

Yield: 6.9

Momentum: 8.5

Volatility: 3.0

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Akzo Nobel

A-Score: 5.1/10

Value: 4.6

Growth: 4.8

Quality: 3.8

Yield: 5.6

Momentum: 4.0

Volatility: 7.7

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Arkema

A-Score: 4.7/10

Value: 7.3

Growth: 3.4

Quality: 3.2

Yield: 7.5

Momentum: 0.5

Volatility: 6.0

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Clariant

A-Score: 4.3/10

Value: 6.3

Growth: 3.7

Quality: 3.1

Yield: 6.9

Momentum: 0.0

Volatility: 6.0

1-Year Total Return ->

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IMCD

A-Score: 4.2/10

Value: 4.2

Growth: 6.6

Quality: 5.0

Yield: 3.1

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Symrise

A-Score: 4.1/10

Value: 4.0

Growth: 6.1

Quality: 5.1

Yield: 1.9

Momentum: 0.0

Volatility: 7.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

69.24$

Current Price

69.24$

Potential

-0.00%

Expected Cash-Flows