DSM-Firmenich AG (DSFIR.AS) | Investment Case

1. Company Snapshot

1.a. Company Description

DSM-Firmenich AG, a science-based company, engages in beauty, health, and nutrition businesses in the Netherlands, Switzerland, rest of Europe, North America, Latin America, China, rest of Asia, and internationally.It operates through Perfumery & Beauty; Animal Nutrition & Health (ANH); Health, Nutrition & Care (HNC); and Food & Beverage segments.The Perfumery & Beauty offers perfumery and aroma ingredients.

The Animal Nutrition & Health segment offers essential products, including vitamins, premixes, and carotenoids; performance solutions, such as enzymes, microbes, and eubiotics; precision services comprising support with data analysis to measure animal health and environmental footprint on farm level and feed safety; and methane reducing feed additive for ruminants.The Health, Nutrition & Care segment provides solutions for the early life nutrition, dietary supplement, pharmaceutical, medical nutrition, personal care and aroma, and biomedical materials markets.It offers vitamins, nutritional lipids, minerals, carotenoids, nutraceuticals, digestive enzymes, probiotics and prebiotics, active pharmaceutical ingredients, and sunscreen filters, as well as a range of biomedical solutions; premix, market-ready solutions, and personalized nutrition solutions; and regulatory affairs and formulation expertise, and customized solutions.

The Food & Beverage segment provides ingredients and solutions for use in a range of food products, such as dairy; bakery, cereals, and bars; savory food; beverages and brewing; confectionery and fruit; plant-based meat and fish alternatives; and petfood.The company was founded in 1902 and is headquartered in Kaiseraugst, Switzerland.

Show Full description

1.b. Last Insights on DSFIR

DSM-Firmenich AG faces negative drivers, including cautious consumer behavior and margin pressures. Analysts have reduced their forecasts for the year, citing weak outlook. The company's recent earnings call highlighted steady growth, but also mentioned challenges. The divestment of Animal Nutrition & Health to CVC Capital Partners for €2.2 billion is a strategic move to focus on human nutrition, health, and beauty. A new €500 million share repurchase program is set to launch in Q1 2026, which could be viewed positively by shareholders.

1.c. Company Highlights

Last Price	57.96
Change Percentage	0.80%
Open	57.68
Previous Close	57.5
Market Cap ( Millions)	14626
Volume	55733
Year High	99.92
Year Low	56.58
M A 50	65.64
M A 200	76.78

FCF Yield	7.76%
Dividend Yield	4.32%
ROE	-4.68%
Debt / Equity	28.92%
Net Debt / EBIDTA	187.85%
Price To Book	0.83
Price Earnings Ratio	-15.45
Price To FCF	12.89
Price To sales	1.19
EV / EBITDA	9.73

2. Transcript Summary

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3. NewsRoom

dsm-firmenich cancels its shares following completion of its €1.08 billion share repurchase program

Feb -26

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dsm-firmenich publishes 2025 Integrated Annual Report

Feb -20

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dsm-firmenich issues €1.5 billion long-term bonds

Feb -17

Source:

DSM-Firmenich AG (AMS:DSFIR) Analysts Are Reducing Their Forecasts For This Year

Feb -15

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DSM-Firmenich AG (DSMFF) Full Year 2025 Earnings Call Highlights: Navigating Growth Amid Market ...

Feb -12

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dsm-firmenich reports full year 2025 results

Feb -12

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Assessing DSM Firmenich (ENXTAM:DSFIR) Valuation After Recent Share Price Rebound

Feb -10

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dsm-firmenich provides preliminary comparative figures following the announced divestment of Animal Nutrition & Health (ANH)

Feb -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.28%)

6. Segments

Perfumery & Beauty

Expected Growth: 5.2%

DSM-Firmenich AG, a leading perfume and flavour company, is poised for expansion driven by increasing consumer preference for sustainable and natural ingredients, growing demand for premium fragrances, and rising adoption of clean-label products.

Animal Nutrition & Health

Expected Growth: 5.3%

DSM-Firmenich's AG's growth is driven by increasing demand for natural ingredients, expanding presence in emerging markets and strategic partnerships boosting innovation, resulting in a forecasted CAGR of 5.3%.

Taste, Texture & Health

Expected Growth: 8.5%

Growing demand for healthy and sustainable food options, increasing popularity of plant-based diets, and rising need for functional ingredients drive growth in specialty ingredients for food, beverages, and dietary supplements at DSM-Firmenich AG.

Health Nutrition & Care

Expected Growth: 6.5%

DSM-Firmenich’s focus on sustainable and innovative solutions drives growth in the flavor and fragrance industry, with increasing demand for natural ingredients and clean labels.

Corporate Activities

Expected Growth: 4.5%

DSM-Firmenich's Corporate Activities segment is expected to grow driven by increasing investments in R&D, expansion of headquarters, and rising overhead costs, aligning with the company's long-term strategy

7. Detailed Products

Flavours

DSM-Firmenich AG offers a wide range of flavours for the food and beverage industry, including natural and artificial flavourings, extracts, and essences.

Fragrances

The company provides a variety of fragrances for the perfume, cosmetics, and personal care industries, including fine fragrances, aroma compounds, and essential oils.

Taste Modulation

DSM-Firmenich AG offers taste modulation solutions that enhance or mask flavours, and provide sweetness or saltiness reduction.

Nutrition and Health

The company provides a range of nutritional ingredients, including vitamins, minerals, and other nutritional supplements.

Materials

DSM-Firmenich AG offers a range of materials, including biodegradable plastics, and high-performance materials for industrial applications.

8. DSM-Firmenich AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for DSM-Firmenich AG is moderate, as there are some alternatives available in the market, but they are not very close substitutes.

Bargaining Power Of Customers

The bargaining power of customers is low, as DSM-Firmenich AG has a diverse customer base and no single customer has a significant impact on the company's revenue.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as DSM-Firmenich AG has a diverse supplier base, but some suppliers may have some bargaining power due to their size and importance.

Threat Of New Entrants

The threat of new entrants is low, as the industry has high barriers to entry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high, as the industry is highly competitive, with many players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	16.42%
Debt Cost	3.95%
Equity Weight	83.58%
Equity Cost	7.52%
WACC	6.94%
Leverage	19.64%

11. Quality Control: DSM-Firmenich AG passed 2 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Reckitt Benckiser

A-Score: 6.0/10

Value: 1.3

Growth: 5.4

Quality: 5.4

Yield: 6.2

Momentum: 8.5

Volatility: 9.0

1-Year Total Return ->

Unilever

A-Score: 5.6/10

Value: 1.7

Growth: 4.4

Quality: 4.9

Yield: 7.5

Momentum: 6.5

Volatility: 8.3

1-Year Total Return ->

Essity

A-Score: 5.5/10

Value: 4.8

Growth: 5.6

Quality: 5.7

Yield: 5.6

Momentum: 1.0

Volatility: 10.0

1-Year Total Return ->

L'Oréal

A-Score: 5.3/10

Value: 1.7

Growth: 5.8

Quality: 8.0

Yield: 3.1

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

Beiersdorf

A-Score: 4.1/10

Value: 1.9

Growth: 5.4

Quality: 6.4

Yield: 1.2

Momentum: 0.5

Volatility: 9.0

1-Year Total Return ->

DSM-Firmenich

A-Score: 4.0/10

Value: 4.7

Growth: 2.1

Quality: 5.1

Yield: 5.0

Momentum: 1.0

Volatility: 6.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

0.73%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.94%

DSM-Firmenich AG - CH1216478797

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on DSFIR

1.c. Company Highlights

Lower Growth

Lower Quality

Medium Volatility

Earnings Miss

Earnings Beats

More Volatile

Strong Momentum

Revenues Miss

Stable Momentum

Fairly Valued

Revenues Beats

Average Quality

Expensive

Weak Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.28%)

6. Segments

Perfumery & Beauty

Expected Growth: 5.2%

Animal Nutrition & Health

Expected Growth: 5.3%

Taste, Texture & Health

Expected Growth: 8.5%

Health Nutrition & Care

Expected Growth: 6.5%

Corporate Activities

Expected Growth: 4.5%

7. Detailed Products

Flavours

Fragrances

Taste Modulation

Nutrition and Health

Materials

8. DSM-Firmenich AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: DSM-Firmenich AG passed 2 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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

57.96$

Current Price

57.96$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA