Givaudan (GIVN.SW)

Materials · SIX · Europe

CHF3,403.00+6.81% today

Fundamentals

Market capCHF31.68B
P/E ratio29.8
Dividend yield2.10%
Revenue growth (YoY)-1.8%
Profit margin14.3%
Return on equity23.4%
52-week rangeCHF2,566.00 to CHF3,842.00

Valuation and ratings

DCF fair valueCHF1,373.20
Upside to fair value-59.6%
Analyst target (mean)CHF3,481.08
Analyst rangeCHF2,800.00 to CHF4,500.00
Analysts covering19
Consensus viewbuy
Moat score60/100
Overall rating41/100, Reduce

Givaudan trades at CHF3,403.00, which is 60% above the CHF1,373.20 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.

Our moat model scores it 60 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.

It changes hands at 29.8 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.

About Givaudan

Givaudan SA engages in the manufacture, supply, and sale of fragrance, beauty, taste, and wellbeing products to the consumer goods industry. It operates in two divisions, Fragrance & Beauty, and Taste & Wellbeing. The Fragrance & Beauty division offers fine fragrances; consumer products, such as personal, home, fabric, and oral care; fragrance ingredients; and active beauty products. The Taste & Wellbeing division provides beverages, such as fizzy drinks, bottled waters, ready-to-drink juices, and alcoholic drinks; dairy and cheese products, including dairy drinks, yoghurt, ice cream, chilled desserts, cream cheese, and spreads; snacks; givaudan flavour ingredients; savory, and supplements 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. Givaudan SA was founded in 1796 and is headquartered in Vernier, Switzerland.

Industry: Specialty ChemicalsEmployees: 17,580HQ: Switzerland

GIVN.SW passes 2 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Common questions

Is Givaudan (GIVN.SW) undervalued?

Against our discounted cash flow estimate of CHF1,373.20, GIVN.SW at CHF3,403.00 is 60% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.

What is GIVN.SW's P/E ratio?

GIVN.SW trades at 29.8 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.

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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.