Rankings Food, drinks & restaurants DSM-Firmenich
DSM-Firmenich
61
15070100
A view of the same findings, not a new score. How it works
A good business with a real question mark: the price, a crack, or both.
Biggest deductions
- ROIC−6
- Multiples vs own history−4
- Absolute price level−3
Strengths
- Guidance towards the high end+2
- Moat in fragrances (Perfumery & Beauty)+1
How the score is built
From 100 to 61, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 106.75 EUR
- Median analyst target
- 98.50 EUR
- Upside to median
- −7.7%
- Analysts
- 20
- Target range
- 68.00 – 117.00 EUR
- 52-week change
- +51%
- P/E (trailing)
- n/a
- Forward P/E
- 27.7
- PEG
- 2.35
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 3 findings−9 of −30
- −6ROICROIC 2.1% vs a WACC of 6.1%; the merger with Firmenich left so much goodwill that P/TBV is 9.3 vs P/B 1.35. Three years after the merger the return does not cover the cost of capital.
- −2Margin vs peersAdjusted EBITDA margin 19.3% in H1 vs 19.5% a year earlier – below Givaudan and Symrise; the 22–23% target is only for 2028, and a new savings programme (about 1,000 jobs) is needed to lift the margin.
- −1Quality of growthLike-for-like growth of 5% in H1, but full-year guidance is only 2–4%, and revenue is EUR 9.06bn TTM vs 10.63bn in 2023 after divestments; underlying growth is moderate for a share priced as a growth company.
Price
Today's multiples against the company's own history and its peers. · 3 findings−9 of −35
- −4Multiples vs own historyEV/EBITDA 21.6 vs 14.0–21.4 in 2024–25 (the top), forward P/E 25.4 vs 18.3 at the end of 2025 and P/FCF 25.2 vs 21.3–22.8 in 2024–25. The share price has risen about 42% in 2026, almost entirely through multiple expansion.
- −2PeersA forward P/E of 25.4 is in line with Givaudan (about 27) and Novonesis (25.0) despite a lower margin and ROIC; no discount for the weaker business.
- −3Absolute price levelEV/EBIT 52.6 and an FCF yield of about 4.0% at a market value of EUR 24.2bn and EUR 4.5bn of net debt; the Dutch press points out that the price requires 'rock-hard' cash flow from a slow-growing company.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings−6 of −35
- −3Divestment of ANH (write-down and residual risk)Animal Nutrition & Health is being sold to CVC for only about EUR 2.2bn in EV incl. an earn-out of up to 0.5bn and with a 20% retained stake; the divestment triggered a net loss of −EUR 1.41bn TTM, and the company remains exposed to the vitamin price cycle via the stake and the earn-out.
- −2Debt and payouts above FCFNet debt has risen from EUR 2.56bn (2024) to 4.46bn (June 2026), partly because dividends and buybacks of EUR 1.73bn in 2025 were more than double FCF of 0.82bn; net debt/EBITDA 3.4 on reported figures (about 1.9x adjusted).
- −1Execution (continued restructuring)Three years after the merger, another savings programme: about EUR 100m in savings, about EUR 100m in special costs and about 1,000 jobs over 18–24 months.
Plus
Only documented strengths. · 2 findings+3 of +15
- +2Guidance towards the high endLike-for-like growth of 6% in Q2 and core adjusted EPS +14% in H1; the company now expects the high end of the 2–4% guidance and confirms an EBITDA margin of about 20%.
- +1Moat in fragrances (Perfumery & Beauty)Perfumery & Beauty, the largest segment with EUR 1.95bn in H1, grew 7% like-for-like with a 21.8% EBITDA margin; one of four global players in a consolidated fragrance market.
Caveats
What the score does not capture, or where the data is weak.
Swiss AG with main listing in Amsterdam. Reported result is negative (EUR −1.41bn TTM) due to impairments on the sale of Animal Nutrition & Health, while core adjusted EPS (EUR 1.84 in H1, +14%) is what analysts use; forward P/E is adjusted. The multiple history covers only 2023–25 (merger with Firmenich in May 2023). The share price (about EUR 98) is above analysts' average price target (EUR 93.9) after a rise of about 42% in 2026; some price targets have hardly been updated. Buybacks give no plus because dividend + buybacks (EUR 1.73bn in 2025) exceeded FCF (0.82bn). The ANH sale to CVC is expected to close in H2 2026. Customer concentration (large FMCG customers), tariffs and currency are not examined. Fragrance/ingredients do not fit exactly in the industry list (placed under food like Novonesis, as Taste, Texture & Health and HNC are more than half of sales).
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