Trade the DSM share!
DSM

Analysis before buying or selling DSM shares

Trade the DSM share!
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If, like many other stock market investors, you are interested in the DSM Group share, we offer you our help in order to carry out your analysis of this share in the best conditions. On this page, we have decided to bring together the various information you may need to implement your trading strategy, including stock market data on the current quotation of this stock. We will also present you in more detail this company with its major activities and its main sources of income. We will then move on to a presentation of its biggest competitors on the market and its recent strategic partnerships. We will also make it a point to walk you through the fundamental analysis of this stock with the data and publications you need to remember and interpret.

Elements to consider before selling or buying DSM shares

Analysis N°1

Firstly, and in view of the very specific activities of the Royal DSM Group, which are primarily based on innovation, the company's expenditure on research and development will be followed with interest. The introduction of a new, unique and innovative product on the market promises additional future benefits.

Analysis N°2

The partnerships and strategic alliances that the DSM Group will set up in the coming years will also be very interesting entry points for this stock and may enable it to gain profitability fairly quickly.

Analysis N°3

Of course, we will also keep an eye on the competition in this sector, with publications, news and new products from the company's major rivals, which may change the distribution of market shares and thus influence or promote DSM's growth.

Analysis N°4

All official communications from DSM's management concerning its development strategies, planned acquisitions or divestments, or the publication of annual or interim results will be closely monitored and studied.

Analysis N°5

Finally, we will of course keep a close eye on possible regulatory changes in the sectors in which DSM is active, which may also become obstacles to its growth.

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General presentation of DSM

Now let's find out a little more about who DSM is and what its main activities are. You need to be fully aware of the various sources of income of this group in order to understand the future challenges and thus be able to anticipate its growth or recession in the years to come. Here is some information on this subject:

The Royal DSM Group is a Dutch chemical company specialising in the development, manufacture and sale of performance materials and nutritional and pharmaceutical ingredients for the pharmaceutical, cosmetics, transport, real estate, nutrition, health, electrical and electronics industries.

To better understand the activities of this group, it is possible to divide them into different categories according to the share of turnover they generate and in this way:

  • Nutritional products represent the major part of the group's revenues with 66.9% of the turnover. They include vitamins, enzymes, carotenoids, food ingredients and benzoates.
  • Performance materials come in second place with 30.5% of sales and concern elastomers, resins and plastics.
  • Biomedical and biotechnology products generated 2.1% of sales.
  • Finally, the remaining 0.5% of the group's turnover comes from ancillary and minor activities.

With regard to the geographical distribution of DSM's activities, 24.1% of its turnover is generated in the Netherlands, 31.8% in the rest of Europe, 25.4% in America, 10.8% in China, 1.5% in Japan, 1.1% in India, 4.1% in Asia and 1.2% in the rest of the world.

Analysis before buying or selling DSM shares
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The major competitors of DSM

Let's now discover the competitive environment of the DSM Group with a detailed presentation of its main competitors. This knowledge of the two major groups most likely to take market share from this company is indeed essential for a good understanding of the challenges facing this company.

3M Company 

This company, formerly known as Minnesota Mining and Manufacturing Company, is an American conglomerate known by the general public for some of its emblematic brands such as Scotch or Post-It. This company is specialized in performance materials.

BASF SE

Finally, the German chemical group BASF is one of the leaders in this sector worldwide. Its production site, located in Germany, covers more than 10 km2 and employs more than 34,000 people. Its activities include the development, testing, production and sale of several thousand different products.


The major partners of DSM

Of course, the DSM Group also has a number of allies who help it to become more competitive, more profitable or more well-known through strategic partnerships. We would like to take a look at some of the most recent examples of these strategic partnerships.

SABIC

The DSM Group has entered into a strategic partnership with the chemical company SABIC and UPM Biofuels, a producer of sustainable raw materials, in a project to reduce the environmental impact of Dyneema, the world's strongest fibre. This collaboration will result in Duneema's transition to biobased raw materials that take advantage of SABIC's revolutionary TRUCIRCLE solutions for certified renewable products. DSM is therefore committed to improving the ecological footprint of this material by moving towards a bio-based circular economy.

Suez 

Another important partnership has been set up with the Suez group, another leader in the circular economy, as part of the transition to a more sustainable economy through collaboration across the value chain. To this end, Suez will take over the treatment and recovery of solvents used in the manufacturing process of premium Dyneema polyethylene fibres which are used by various industries including shipping, aviation, clothing or ballistics. This alliance was set up in 2007 and consisted of recycling the solvents used in the manufacturing process of these fibres. The waste treatment plant was built by Suez in the Netherlands to grind and dechip the fibres before regenerating the solvents, which are then reused with a high yield.

Metex

DSM has also established a partnership with Metex Noovista, the subsidiary of Metabolis Explorer or Metex, for the marketing of 1.3 propanediol or PDO cosmetic grade. This strategic collaboration on an international scale will allow the sale of the first 100% biobased cosmetic grade PDO manufactured in Europe with non-GMO raw materials. It is therefore an important step in DSM's long-term technical and performance ingredient development strategy and the extension of the group's natural product offering.

Avril

Finally, the latest partnership is with the company Avril for the production of a non-GMO rapeseed protein for human consumption. This protein is an alternative to meat and dairy products and will be produced in association by the two companies, in a production unit on the Saipol site built for this purpose near Dieppe.

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Frequently Asked Questions

What is the shareholder structure of the DSM Group?

DSM Group has several major shareholders that are worth knowing about. Indeed, 9.2% of the shares of this company belong to Capital Group Cos Inc, 3.7% to Europacific Growth Fund, 3.1% to The Vanguard Group, 3.1% to BlackRock Inc, 2% to Partisan Partners Limited Partnership and 1.9% to NN Group NV. It should also be noted that almost 4.98% of DSM Group's capital is held in treasury.

How to perform a technical analysis of the DSM share?

A good technical analysis of the DSM share price is also a prerequisite to anticipate its future variations in the stock market. Also, you can use several methods and graphical indicators such as moving averages, different volatility indicators or reversal points such as pivot points, resistances and major supports to set up your investment strategy on this stock.

Trade the DSM share!

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