| Symrise AG (DE000SYM9999) | |||
90,96 EURStand (close): 01.07.25 |
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| 21.04.25 08:38:47 | The past three years for Symrise (ETR:SY1) investors has not been profitable |  |
| As an investor its worth striving to ensure your overall portfolio beats the market average. But the risk of stock picking is that you will likely buy under-performing companies. Unfortunately, that's been the case for longer term Symrise AG (ETR:SY1) shareholders, since the share price is down 13% in the last three years, falling well short of the market return of around 15%. It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). During the unfortunate three years of share price decline, Symrise actually saw its earnings per share (EPS) improve by 7.6% per year. This is quite a puzzle, and suggests there might be something temporarily buoying the share price. Or else the company was over-hyped in the past, and so its growth has disappointed. It's strange to see such muted share price performance despite sustained growth. Perhaps a clue lies in other metrics. So we'll have to take a look at other metrics to try to understand the price action. The modest 1.3% dividend yield is unlikely to be guiding the market view of the stock. Revenue is actually up 7.7% over the three years, so the share price drop doesn't seem to hinge on revenue, either. It's probably worth investigating Symrise further; while we may be missing something on this analysis, there might also be an opportunity. The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).XTRA:SY1 Earnings and Revenue Growth April 21st 2025 It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This freereport showing analyst forecasts should help you form a view on Symrise What About Dividends? As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Symrise's TSR for the last 3 years was -10%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! Story Continues A Different Perspective Symrise shareholders are down 8.4% for the year (even including dividends), but the market itself is up 12%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 1.3% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Symrise better, we need to consider many other factors. Take risks, for example - Symrise has 1 warning sign we think you should be aware of. For those who like to find winning investments this freelist of undervalued companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 14.04.25 13:40:11 | Is Skeena Resources Limited (SKE) Outperforming Other Basic Materials Stocks This Year? | |
| Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Has Skeena Resources Limited (SKE) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out. Skeena Resources Limited is one of 232 individual stocks in the Basic Materials sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst. The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Skeena Resources Limited is currently sporting a Zacks Rank of #2 (Buy). Over the past three months, the Zacks Consensus Estimate for SKE's full-year earnings has moved 58.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving. According to our latest data, SKE has moved about 30.4% on a year-to-date basis. In comparison, Basic Materials companies have returned an average of 0.2%. This means that Skeena Resources Limited is outperforming the sector as a whole this year. One other Basic Materials stock that has outperformed the sector so far this year is Symrise AG Unsponsored ADR (SYIEY). The stock is up 2% year-to-date. In Symrise AG Unsponsored ADR's case, the consensus EPS estimate for the current year increased 3.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy). To break things down more, Skeena Resources Limited belongs to the Mining - Miscellaneous industry, a group that includes 58 individual companies and currently sits at #155 in the Zacks Industry Rank. Stocks in this group have lost about 3.2% so far this year, so SKE is performing better this group in terms of year-to-date returns. On the other hand, Symrise AG Unsponsored ADR belongs to the Chemical - Specialty industry. This 37-stock industry is currently ranked #167. The industry has moved -3.1% year to date. Skeena Resources Limited and Symrise AG Unsponsored ADR could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Story Continues Skeena Resources Limited (SKE) : Free Stock Analysis Report Symrise AG Unsponsored ADR (SYIEY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 04.04.25 12:48:41 | Symrise (ETR:SY1) Is Increasing Its Dividend To €1.20 | |
| Symrise AG (ETR:SY1) has announced that it will be increasing its dividend from last year's comparable payment on the 23rd of May to €1.20. Although the dividend is now higher, the yield is only 1.3%, which is below the industry average. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Symrise's Projected Earnings Seem Likely To Cover Future Distributions It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable. However, prior to this announcement, Symrise's dividend was comfortably covered by both cash flow and earnings. This means that most of its earnings are being retained to grow the business. The next year is set to see EPS grow by 45.6%. Assuming the dividend continues along recent trends, we think the payout ratio could be 25% by next year, which is in a pretty sustainable range.XTRA:SY1 Historic Dividend April 4th 2025 See our latest analysis for Symrise Symrise Has A Solid Track Record Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2015, the annual payment back then was €0.75, compared to the most recent full-year payment of €1.20. This implies that the company grew its distributions at a yearly rate of about 4.8% over that duration. While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is less attractive. We Could See Symrise's Dividend Growing The company's investors will be pleased to have been receiving dividend income for some time. It's encouraging to see that Symrise has been growing its earnings per share at 9.6% a year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting. Symrise Looks Like A Great Dividend Stock Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For example, we've picked out 1 warning sign for Symrise that investors should know about before committing capital to this stock. Is Symrise not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 30.03.25 06:06:02 | Symrise AG (ETR:SY1) Just Reported Full-Year Earnings: Have Analysts Changed Their Mind On The Stock? | |
| Investors in Symrise AG (ETR:SY1) had a good week, as its shares rose 3.5% to close at €94.84 following the release of its full-year results. Symrise reported €5.0b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €3.42 beat expectations, being 2.4% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Symrise after the latest results.XTRA:SY1 Earnings and Revenue Growth March 30th 2025 After the latest results, the 16 analysts covering Symrise are now predicting revenues of €5.28b in 2025. If met, this would reflect a credible 5.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 12% to €3.85. Yet prior to the latest earnings, the analysts had been anticipated revenues of €5.29b and earnings per share (EPS) of €3.85 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates. See our latest analysis for Symrise There were no changes to revenue or earnings estimates or the price target of €118, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Symrise analyst has a price target of €135 per share, while the most pessimistic values it at €100.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Symrise's revenue growth is expected to slow, with the forecast 5.7% annualised growth rate until the end of 2025 being well below the historical 8.9% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.0% annually. So it's pretty clear that, while Symrise's revenue growth is expected to slow, it's still expected to grow faster than the industry itself. Story Continues The Bottom Line The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Symrise going out to 2027, and you can see them free on our platform here. We don't want to rain on the parade too much, but we did also find 1 warning sign for Symrise that you need to be mindful of. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 26.03.25 12:13:58 | Are Symrise AG's (ETR:SY1) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness? | |
| With its stock down 11% over the past three months, it is easy to disregard Symrise (ETR:SY1). But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. Specifically, we decided to study Symrise's ROE in this article. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Put another way, it reveals the company's success at turning shareholder investments into profits. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. How Is ROE Calculated? The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Symrise is: 13% = €478m ÷ €3.8b (Based on the trailing twelve months to December 2024). The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each €1 of shareholders' capital it has, the company made €0.13 in profit. View our latest analysis for Symrise What Has ROE Got To Do With Earnings Growth? So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. Symrise's Earnings Growth And 13% ROE To begin with, Symrise seems to have a respectable ROE. Further, the company's ROE compares quite favorably to the industry average of 8.9%. Despite this, Symrise's five year net income growth was quite low averaging at only 4.9%. This is generally not the case as when a company has a high rate of return it should usually also have a high earnings growth rate. A few likely reasons why this could happen is that the company could have a high payout ratio or the business has allocated capital poorly, for instance. We then compared Symrise's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 8.3% in the same 5-year period, which is a bit concerning.XTRA:SY1 Past Earnings Growth March 26th 2025 Earnings growth is an important metric to consider when valuing a stock. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is SY1 fairly valued? This infographic on the company's intrinsic value has everything you need to know. Story Continues Is Symrise Making Efficient Use Of Its Profits? Despite having a moderate three-year median payout ratio of 42% (implying that the company retains the remaining 58% of its income), Symrise's earnings growth was quite low. Therefore, there might be some other reasons to explain the lack in that respect. For example, the business could be in decline. In addition, Symrise has been paying dividends over a period of at least ten years suggesting that keeping up dividend payments is way more important to the management even if it comes at the cost of business growth. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 39%. Therefore, the company's future ROE is also not expected to change by much with analysts predicting an ROE of 14%. Summary In total, it does look like Symrise has some positive aspects to its business. Yet, the low earnings growth is a bit concerning, especially given that the company has a high rate of return and is reinvesting ma huge portion of its profits. By the looks of it, there could be some other factors, not necessarily in control of the business, that's preventing growth. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 10.03.25 07:11:32 | With 58% institutional ownership, Symrise AG (ETR:SY1) is a favorite amongst the big guns | |
| Key Insights Given the large stake in the stock by institutions, Symrise's stock price might be vulnerable to their trading decisions The top 14 shareholders own 51% of the company Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock A look at the shareholders of Symrise AG (ETR:SY1) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 58% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait. In the chart below, we zoom in on the different ownership groups of Symrise. Check out our latest analysis for Symrise XTRA:SY1 Ownership Breakdown March 10th 2025 What Does The Institutional Ownership Tell Us About Symrise? Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. Symrise already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Symrise, (below). Of course, keep in mind that there are other factors to consider, too.XTRA:SY1 Earnings and Revenue Growth March 10th 2025 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Symrise. Massachusetts Financial Services Company is currently the largest shareholder, with 9.7% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.9% and 5.1% of the stock. A closer look at our ownership figures suggests that the top 14 shareholders have a combined ownership of 51% implying that no single shareholder has a majority. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. Story Continues Insider Ownership Of Symrise The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Shareholders would probably be interested to learn that insiders own shares in Symrise AG. It is a very large company, and board members collectively own €673m worth of shares (at current prices). Most would say this shows a good alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling. General Public Ownership The general public-- including retail investors -- own 31% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. Next Steps: It's always worth thinking about the different groups who own shares in a company. But to understand Symrise better, we need to consider many other factors. For example, we've discovered 1 warning sign for Symrise that you should be aware of before investing here. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 11.02.25 10:31:11 | Symrise (ETR:SY1) Has Some Way To Go To Become A Multi-Bagger | |
| If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. However, after investigating Symrise (ETR:SY1), we don't think it's current trends fit the mold of a multi-bagger. Return On Capital Employed (ROCE): What Is It? If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Symrise is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.089 = €620m ÷ (€7.9b - €927m) (Based on the trailing twelve months to June 2024). Therefore, Symrise has an ROCE of 8.9%. In absolute terms, that's a low return but it's around the Chemicals industry average of 8.4%. Check out our latest analysis for Symrise XTRA:SY1 Return on Capital Employed February 11th 2025 In the above chart we have measured Symrise's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our freeanalyst report for Symrise . The Trend Of ROCE There are better returns on capital out there than what we're seeing at Symrise. The company has consistently earned 8.9% for the last five years, and the capital employed within the business has risen 40% in that time. This poor ROCE doesn't inspire confidence right now, and with the increase in capital employed, it's evident that the business isn't deploying the funds into high return investments. Our Take On Symrise's ROCE Long story short, while Symrise has been reinvesting its capital, the returns that it's generating haven't increased. And investors may be recognizing these trends since the stock has only returned a total of 2.4% to shareholders over the last five years. So if you're looking for a multi-bagger, the underlying trends indicate you may have better chances elsewhere. One more thing, we've spotted 1 warning sign facing Symrise that you might find interesting. While Symrise may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this freelist here. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 31.01.25 07:28:23 | Symrise AG (SYIEF) Full Year 2024 Earnings Call Highlights: Record EBITDA and Strong Organic ... |  |
| Organic Growth: 8.7% for 2024. Revenue: Approximately EUR5 billion, with a 5.7% growth in reporting currency. EBITDA: EUR1,033 million, a 14.4% increase, marking the first time surpassing EUR1 billion. EBITDA Margin: 20.7%. Net Income: EUR478 million, over 40% increase from the previous year. Earnings Per Share (EPS): EUR3.42. Gross Margin: Improved by 250 basis points to 39.3%. EBIT: EUR718 million, a 17.4% increase. EBIT Margin: 14.4%. Business Free Cash Flow: EUR680 million, representing 13.6% of sales. Net Debt to EBITDA Ratio: Reduced to 2.3 times. Taste, Nutrition, and Health Segment Sales: Over EUR3 billion, with 7.8% organic growth. Scent and Care Segment Sales: Above EUR1.9 billion, with 10.2% organic growth. Regional Growth: Latin America and EAME over 15% and 10% organic growth respectively; Asia-Pacific over 9%; North America 1.5% growth. Warning! GuruFocus has detected 5 Warning Signs with SYIEF. Release Date: January 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Symrise AG (SYIEF) achieved strong organic growth of 8.7% in 2024, driven by an 8.9% increase in volume. The company reached a milestone with EBITDA surpassing EUR 1 billion for the first time, reflecting a 14.4% increase. The EBITDA margin improved to 20.7%, supported by an improved product mix and strict cost management. Net income increased by more than 40% to EUR 478 million, showcasing a significant turnaround from the previous year. The scent and care segment experienced double-digit organic growth of 10.2%, with strong performance in fragrances and cosmetic ingredients. Negative Points The company faced a negative ForEx impact of EUR 104 million, representing a headwind of 2.2%. Hyperinflation-related pricing in Argentina negatively influenced organic growth in Q4 by 5%. The pet nutrition segment experienced price-driven negative growth due to challenging market conditions in EAME and North America. The scent and care segment's EBITDA margin, although improved, remains below the 20% target, indicating room for further enhancement. The company anticipates a slow start to 2025 due to high comparables from the previous year, potentially impacting early-year growth. Q & A Highlights Q: Did I hear you, Jean-Yves, say that you had a light start to the year due to comparables? Could you give more color on what you're seeing across divisions and regions? A: Yes, last year we had a strong start, and while this year is also good, the comparables are tough. However, we are committed to delivering 5% to 7% growth. The phasing will differ from last year, but we are confident in achieving our targets. Regarding margins, we aim for around 21%, focusing on profitability while investing in restructuring and innovation. Story Continues Q: Can you share your expectations for pricing trends this year, especially for aroma and pet nutrition? Also, which parts of the portfolio are lagging in profitability? A: Our growth will be driven by two-thirds volume and one-third price increase. We have strong pricing power and expect a light increase in raw material costs, which we will manage through pricing, reformulation, or sourcing changes. In pet nutrition, egg prices have decreased, leading to price adjustments without affecting gross profit. In terms of portfolio, taste, nutrition, and health are above 20% EBITDA margin, while scent and care are below. We continuously assess our portfolio, especially in scent and care, to maximize value. Q: What gives you confidence in achieving 5% to 7% organic sales growth for 2025, given tough comparables in the first half? Also, can you explain the slowdown in pet food growth in Q4? A: We expect continued strong growth, with a shift towards more price elements and ongoing volume growth. Our innovation and regional expansion support this. For pet food, the slowdown in Q4 was due to FX and pricing effects, but underlying volume growth remains strong. We continue to gain market share in a resilient market. Q: Can you provide more details on the organic growth for pet in Q4 and the split between palatability and nutrition? Also, where does the EBITDA margin for pet stand today? A: The split between palatability and nutrition is around three-quarters to one-quarter. In Q4, both segments had similar pricing and volume dynamics, with slight negative pricing and strong volume growth. We prefer to stay at the segment level for detailed data, but pet margins are slightly above the 22% reported for taste, nutrition, and health. Q: What is the status of the leadership team in scent and care after Andreas' departure, and how does it affect the Elevate 27 strategy? Also, what are your targets for improving working capital in 2025? A: I am currently overseeing scent and care during the transition, and we have a strong leadership team committed to the Elevate 27 strategy, which focuses on growth and profitability. We are on track to deliver on this strategy. For working capital, we aim to reduce the ratio to 30%-32% in the mid to long term, focusing on inventory efficiency and procurement improvements. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
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| 30.01.25 10:30:31 | Symrise's organic growth slows down to 1% in fourth quarter | |
| By Patricia Weiss and Anastasiia Kozlova FRANKFURT (Reuters) - German flavour and fragrance maker Symrise on Thursday reported a clear slowdown in its fourth quarter organic growth, missing market expectations, in a sign of sales normalisation after a period of strong growth especially in its scents unit. Symrise, whose fragrances go into the perfumes of French luxury giants LVMH and Kering, said organic sales grew only 1% in the final quarter of 2024, compared with 9.5% growth a year earlier. Analysts on average were expecting 4.8% growth for the quarter, a Vara consensus poll showed. Morgan Stanley analysts said in a note that the notable slowdown, especially compared to the high bar set by Swiss peer Givaudan last week, would likely weigh on Symrise's shares. The shares were trading 0.6% lower by 1022 GMT, after rising 4% in early Frankfurt trade on the back of a slight consensus beat in annual sales and core profit margin. Givaudan's and Symrise's shares have fallen more than 14% and 18% respectively in the past four months, reflecting market uncertainty as growth rates began to normalize against a tougher comparison base that will also affect the companies in the coming quarters. However, analysts at Vontobel said after Givaudan's earnings release on Friday that they did not expect an abrupt slowdown in business growth after the "stellar" development seen last year. Symrise posted revenue of 4.99 billion euros ($5.20 billion) and a core profit margin of 20.7% for the full year 2024. It also narrowed its 2025 margin guidance to around 21% from the previously announced 20-23% range and reiterated its organic growth target of between 5% and 7%. ($1 = 0.9602 euros) (Reporting by Patricia Weiss in Frankfurt and Anastasiia Kozlova in Gdansk; editing by Milla Nissi) |
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| 17.10.24 05:14:03 | Is Symrise AG's (ETR:SY1) Recent Stock Performance Influenced By Its Financials In Any Way? | |
| Most readers would already know that Symrise's (ETR:SY1) stock increased by 6.5% over the past three months. We wonder if and what role the company's financials play in that price change as a company's long-term fundamentals usually dictate market outcomes. In this article, we decided to focus on Symrise's ROE. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. See our latest analysis for Symrise How To Calculate Return On Equity? ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Symrise is: 10% = €396m ÷ €3.8b (Based on the trailing twelve months to June 2024). The 'return' is the profit over the last twelve months. Another way to think of that is that for every €1 worth of equity, the company was able to earn €0.10 in profit. What Has ROE Got To Do With Earnings Growth? So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes. Symrise's Earnings Growth And 10% ROE At first glance, Symrise seems to have a decent ROE. Even when compared to the industry average of 8.8% the company's ROE looks quite decent. Despite the moderate return on equity, Symrise has posted a net income growth of 2.6% over the past five years. So, there could be some other factors at play that could be impacting the company's growth. For instance, the company pays out a huge portion of its earnings as dividends, or is faced with competitive pressures. As a next step, we compared Symrise's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 20% in the same period. past-earnings-growth The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. Is SY1 fairly valued? This infographic on the company's intrinsic value has everything you need to know. Story continues Is Symrise Efficiently Re-investing Its Profits? While Symrise has a decent three-year median payout ratio of 41% (or a retention ratio of 59%), it has seen very little growth in earnings. So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds. Additionally, Symrise has paid dividends over a period of at least ten years, which means that the company's management is determined to pay dividends even if it means little to no earnings growth. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 35%. However, Symrise's ROE is predicted to rise to 13% despite there being no anticipated change in its payout ratio. Conclusion On the whole, we do feel that Symrise has some positive attributes. Although, we are disappointed to see a lack of growth in earnings even in spite of a high ROE and and a high reinvestment rate. We believe that there might be some outside factors that could be having a negative impact on the business. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View comments |
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