DSM-Firmenich AG () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

DSM-Firmenich AG

Why is DSM-Firmenich AG ?

Poor Management Efficiency with a low ROE of 2.20%

The company has been able to generate a Return on Equity (avg) of 2.20% signifying low profitability per unit of shareholders funds

With ROE of 3.23%, it has a Very Expensive valuation with a 0.93 Price to Book Value

Over the past year, while the stock has generated a return of -35.10%, its profits have risen by 210.4% ; the PEG ratio of the company is 0.1

Below par performance in long term as well as near term

Along with generating -35.10% returns in the last 1 year, the stock has also underperformed Netherlands AEX in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is DSM-Firmenich AG for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

DSM-Firmenich AG

-33.87%

-1.39

22.05%

Netherlands AEX

5.05%

0.38

14.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

29.55%

EBIT Growth (5y)

13.75%

EBIT to Interest (avg)

7.05

Debt to EBITDA (avg)

0.84

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

0.37

Tax Ratio

34.43%

Dividend Payout Ratio

264.61%

Pledged Shares

Institutional Holding

0.26%

ROCE (avg)

3.39%

ROE (avg)

2.20%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.93

EV to EBIT

20.53

EV to EBITDA

10.25

EV to Capital Employed

0.94

EV to Sales

1.73

PEG Ratio

0.14

Dividend Yield

ROCE (Latest)

4.58%

ROE (Latest)

3.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

NET PROFIT(Q)

At EUR 403.93 MM has Grown at 321.32%

ROCE(HY)

Highest at 3.3%

NET SALES(Q)

Highest at EUR 6,510 MM

PRE-TAX PROFIT(Q)

Highest at EUR 584 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.6%

OPERATING PROFIT(Q)

Highest at EUR 1,259 MM

OPERATING PROFIT MARGIN(Q)

Highest at 19.34 %

EPS(Q)

Highest at EUR 1.94

-4What is not working for the Company

INTEREST(HY)

At EUR 74 MM has Grown at 60.87%

RAW MATERIAL COST(Y)

Grown by 7.21% (YoY

Here's what is working for DSM-Firmenich AG

Net Profit

At EUR 403.93 MM has Grown at 321.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (EUR MM)

Net Sales

Highest at EUR 6,510 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (EUR MM)

Pre-Tax Profit

Highest at EUR 584 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (EUR MM)

Pre-Tax Profit

At EUR 584 MM has Grown at 158.41%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (EUR MM)

Operating Profit

Highest at EUR 1,259 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (EUR MM)

Operating Profit Margin

Highest at 19.34 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at EUR 403.93 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (EUR MM)

EPS

Highest at EUR 1.94

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (EUR)

Inventory Turnover Ratio

Highest at 2.6%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

At EUR 601 MM has Grown at 20.93%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (EUR MM)

Here's what is not working for DSM-Firmenich AG

Interest

At EUR 74 MM has Grown at 60.87%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (EUR MM)

Raw Material Cost

Grown by 7.21% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales