Last year, it seemed as if the share was finally coming back to life, which was logical in view of a 40% jump in profits. In the end, however, the share failed to reach the old highs and has been under pressure ever since.
If you look for a reason for this, you will certainly find one, such as the weak organic growth in the final quarter of 2024 or an ongoing lawsuit in the US due to possible price fixing.
Outlook and valuation
However, the fact that profits rose by 40 % in 2024 is a fact. As is the fact that the share is now trading at the same level as in 2020, although profits are now more than one and a half times higher.
In the first quarter of the current financial year, sales increased organically by 4 % and the forecast was confirmed.
For 2025, Symrise continues to forecast organic growth of 5 - 7 %, an EBITDA margin of 21 % and a free cash flow of 14 %.
Symrise therefore expects solid growth and a slight increase in profitability.
This is in line with the consensus estimates, which predict an 11 % jump in earnings to EUR 3.82 per share for the current fiscal year.
Accordingly, Symrise has a P/E ratio of 23.7, which is reasonable in view of the double-digit growth rates. The long-term average P/E ratio is 30.
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