INTL FLAVORS & FRAGRANCES (IFF) Stock Fundamental Analysis
USA - NYSE:IFF - US4595061015 - Common Stock
63.75 USD
+0.41 (+0.65%)
63.75 USD
0 (0%)
IFF gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. IFF scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. IFF has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year IFF was profitable.
In the past year IFF had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: IFF reported negative net income in multiple years.
Each year in the past 5 years IFF had a positive operating cash flow.
1.2 Ratios
IFF has a Return On Assets of -1.50%. This is in the lower half of the industry: IFF underperforms 63.86% of its industry peers.
With a Return On Equity value of -2.73%, IFF perfoms like the industry average, outperforming 40.96% of the companies in the same industry.
The Return On Invested Capital of IFF (3.43%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for IFF is below the industry average of 6.34%.
The last Return On Invested Capital (3.43%) for IFF is above the 3 year average (2.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.5% | ||
| ROE | -2.73% | ||
| ROIC | 3.43% |
ROA(3y)-4.23%
ROA(5y)-1.87%
ROE(3y)-8.79%
ROE(5y)-3.88%
ROIC(3y)2.64%
ROIC(5y)2.78%
1.3 Margins
In the last couple of years the Profit Margin of IFF has declined.
IFF has a Operating Margin (7.84%) which is in line with its industry peers.
In the last couple of years the Operating Margin of IFF has declined.
IFF has a better Gross Margin (36.25%) than 74.70% of its industry peers.
In the last couple of years the Gross Margin of IFF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.84% | ||
| PM (TTM) | N/A | ||
| GM | 36.25% |
OM growth 3Y11.26%
OM growth 5Y-11.45%
PM growth 3Y-2.73%
PM growth 5Y-24.82%
GM growth 3Y3.87%
GM growth 5Y-2.67%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IFF is destroying value.
IFF has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, IFF has more shares outstanding
IFF has a better debt/assets ratio than last year.
2.2 Solvency
IFF has an Altman-Z score of 1.33. This is a bad value and indicates that IFF is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of IFF (1.33) is worse than 72.29% of its industry peers.
The Debt to FCF ratio of IFF is 11.04, which is on the high side as it means it would take IFF, 11.04 years of fcf income to pay off all of its debts.
IFF has a Debt to FCF ratio of 11.04. This is in the better half of the industry: IFF outperforms 63.86% of its industry peers.
IFF has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
IFF has a better Debt to Equity ratio (0.39) than 72.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.41
WACC8.3%
2.3 Liquidity
IFF has a Current Ratio of 1.86. This is a normal value and indicates that IFF is financially healthy and should not expect problems in meeting its short term obligations.
IFF's Current ratio of 1.86 is in line compared to the rest of the industry. IFF outperforms 43.37% of its industry peers.
A Quick Ratio of 1.12 indicates that IFF should not have too much problems paying its short term obligations.
IFF's Quick ratio of 1.12 is on the low side compared to the rest of the industry. IFF is outperformed by 60.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
IFF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.79%, which is quite good.
IFF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.97% yearly.
The Revenue has decreased by -0.07% in the past year.
The Revenue has been growing by 17.44% on average over the past years. This is quite good.
EPS 1Y (TTM)11.79%
EPS 3Y-8.81%
EPS 5Y-6.97%
EPS Q2Q%-0.86%
Revenue 1Y (TTM)-0.07%
Revenue growth 3Y-0.49%
Revenue growth 5Y17.44%
Sales Q2Q%-4.33%
3.2 Future
The Earnings Per Share is expected to grow by 3.64% on average over the next years.
Based on estimates for the next years, IFF will show a decrease in Revenue. The Revenue will decrease by -0.45% on average per year.
EPS Next Y-0.33%
EPS Next 2Y2.78%
EPS Next 3Y5.38%
EPS Next 5Y3.64%
Revenue Next Year-5.05%
Revenue Next 2Y-3.02%
Revenue Next 3Y-0.66%
Revenue Next 5Y-0.45%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.62, the valuation of IFF can be described as correct.
72.29% of the companies in the same industry are more expensive than IFF, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.41. IFF is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.03 indicates a correct valuation of IFF.
IFF's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.88. IFF is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.62 | ||
| Fwd PE | 14.03 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as IFF.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IFF is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.18 | ||
| EV/EBITDA | 11.64 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.78%
EPS Next 3Y5.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.41%, IFF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.43, IFF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, IFF has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
The dividend of IFF decreases each year by -7.24%.
IFF has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-7.24%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of IFF are negative and hence is the payout ratio. IFF will probably not be able to sustain this dividend level.
DP-104.07%
EPS Next 2Y2.78%
EPS Next 3Y5.38%
63.75
+0.41 (+0.65%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners95.04%
Inst Owner Change1.21%
Ins Owners0.08%
Ins Owner Change0.46%
Market Cap16.34B
Analysts76
Price Target86.69 (35.98%)
Short Float %1.8%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend2.01
Dividend Growth(5Y)-7.24%
DP-104.07%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.95%
Min EPS beat(2)1.65%
Max EPS beat(2)4.25%
EPS beat(4)3
Avg EPS beat(4)4.82%
Min EPS beat(4)-4.48%
Max EPS beat(4)17.85%
EPS beat(8)6
Avg EPS beat(8)9.23%
EPS beat(12)8
Avg EPS beat(12)4.4%
EPS beat(16)12
Avg EPS beat(16)5.82%
Revenue beat(2)1
Avg Revenue beat(2)0.38%
Min Revenue beat(2)-0.49%
Max Revenue beat(2)1.25%
Revenue beat(4)3
Avg Revenue beat(4)1.38%
Min Revenue beat(4)-0.49%
Max Revenue beat(4)2.48%
Revenue beat(8)6
Avg Revenue beat(8)1.24%
Revenue beat(12)7
Avg Revenue beat(12)0.08%
Revenue beat(16)11
Avg Revenue beat(16)0.5%
PT rev (1m)-6.66%
PT rev (3m)-6.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.99%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.62 | ||
| Fwd PE | 14.03 | ||
| P/S | 1.45 | ||
| P/FCF | 29.18 | ||
| P/OCF | 14.83 | ||
| P/B | 1.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.64 |
EPS(TTM)4.36
EY6.84%
EPS(NY)4.54
Fwd EY7.13%
FCF(TTM)2.19
FCFY3.43%
OCF(TTM)4.3
OCFY6.74%
SpS44.1
BVpS56.2
TBVpS-1.21
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.5% | ||
| ROE | -2.73% | ||
| ROCE | 3.86% | ||
| ROIC | 3.43% | ||
| ROICexc | 3.56% | ||
| ROICexgc | 10.62% | ||
| OM | 7.84% | ||
| PM (TTM) | N/A | ||
| GM | 36.25% | ||
| FCFM | 4.95% |
ROA(3y)-4.23%
ROA(5y)-1.87%
ROE(3y)-8.79%
ROE(5y)-3.88%
ROIC(3y)2.64%
ROIC(5y)2.78%
ROICexc(3y)2.69%
ROICexc(5y)2.87%
ROICexgc(3y)8.73%
ROICexgc(5y)10.4%
ROCE(3y)2.97%
ROCE(5y)3.14%
ROICexcg growth 3Y12.38%
ROICexcg growth 5Y-16.53%
ROICexc growth 3Y26.54%
ROICexc growth 5Y-10.72%
OM growth 3Y11.26%
OM growth 5Y-11.45%
PM growth 3Y-2.73%
PM growth 5Y-24.82%
GM growth 3Y3.87%
GM growth 5Y-2.67%
F-Score6
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 11.04 | ||
| Debt/EBITDA | 3.07 | ||
| Cap/Depr | 55.93% | ||
| Cap/Sales | 4.8% | ||
| Interest Coverage | 3.16 | ||
| Cash Conversion | 59.41% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 1.33 |
F-Score6
WACC8.3%
ROIC/WACC0.41
Cap/Depr(3y)44.36%
Cap/Depr(5y)45.27%
Cap/Sales(3y)4.17%
Cap/Sales(5y)3.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.79%
EPS 3Y-8.81%
EPS 5Y-6.97%
EPS Q2Q%-0.86%
EPS Next Y-0.33%
EPS Next 2Y2.78%
EPS Next 3Y5.38%
EPS Next 5Y3.64%
Revenue 1Y (TTM)-0.07%
Revenue growth 3Y-0.49%
Revenue growth 5Y17.44%
Sales Q2Q%-4.33%
Revenue Next Year-5.05%
Revenue Next 2Y-3.02%
Revenue Next 3Y-0.66%
Revenue Next 5Y-0.45%
EBIT growth 1Y27.67%
EBIT growth 3Y10.71%
EBIT growth 5Y4%
EBIT Next Year26.44%
EBIT Next 3Y11.89%
EBIT Next 5Y7.11%
FCF growth 1Y111.32%
FCF growth 3Y-16.66%
FCF growth 5Y5.67%
OCF growth 1Y33.9%
OCF growth 3Y-9.36%
OCF growth 5Y8.89%