INTL FLAVORS & FRAGRANCES (IFF) Stock Fundamental Analysis
NYSE:IFF - New York Stock Exchange, Inc. - US4595061015 - Common Stock - Currency: USD
Taking everything into account, IFF scores 3 out of 10 in our fundamental rating. IFF was compared to 85 industry peers in the Chemicals industry. IFF has a bad profitability rating. Also its financial health evaluation is rather negative. IFF is quite expensive at the moment. It does show a decent growth rate.
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's Return On Assets of -2.95% is on the low side compared to the rest of the industry. IFF is outperformed by 70.59% of its industry peers.
Looking at the Return On Equity, with a value of -6.34%, IFF is doing worse than 68.24% of the companies in the same industry.
The Return On Invested Capital of IFF (3.44%) is worse than 60.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IFF is below the industry average of 6.84%.
The last Return On Invested Capital (3.44%) for IFF is above the 3 year average (2.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.95% | ||
| ROE | -6.34% | ||
| ROIC | 3.44% |
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 (8.01%) which is in line with its industry peers.
In the last couple of years the Operating Margin of IFF has declined.
Looking at the Gross Margin, with a value of 36.18%, IFF is in the better half of the industry, outperforming 74.12% of the companies in the same industry.
IFF's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.01% | ||
| PM (TTM) | N/A | ||
| GM | 36.18% |
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.
IFF has more shares outstanding than it did 5 years ago.
IFF has a better debt/assets ratio than last year.
2.2 Solvency
IFF has an Altman-Z score of 1.27. 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 (1.27) is worse than 70.59% of its industry peers.
The Debt to FCF ratio of IFF is 16.33, which is on the high side as it means it would take IFF, 16.33 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.33, IFF is in line with its industry, outperforming 55.29% of the companies in the same industry.
IFF has a Debt/Equity ratio of 0.58. This is a neutral value indicating IFF is somewhat dependend on debt financing.
IFF has a Debt to Equity ratio (0.58) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 16.33 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.41
WACC8.29%
2.3 Liquidity
A Current Ratio of 1.87 indicates that IFF should not have too much problems paying its short term obligations.
IFF has a Current ratio of 1.87. This is comparable to the rest of the industry: IFF outperforms 45.88% of its industry peers.
A Quick Ratio of 1.39 indicates that IFF should not have too much problems paying its short term obligations.
IFF has a Quick ratio of 1.39. This is in the better half of the industry: IFF outperforms 63.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.39% over the past year.
Measured over the past years, IFF shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.97% on average per year.
Looking at the last year, IFF shows a small growth in Revenue. The Revenue has grown by 0.68% in the last year.
The Revenue has been growing by 17.44% on average over the past years. This is quite good.
EPS 1Y (TTM)21.39%
EPS 3Y-8.81%
EPS 5Y-6.97%
EPS Q2Q%6.19%
Revenue 1Y (TTM)0.68%
Revenue growth 3Y-0.49%
Revenue growth 5Y17.44%
Sales Q2Q%-1.93%
3.2 Future
IFF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.00% yearly.
IFF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.28% yearly.
EPS Next Y-0.42%
EPS Next 2Y3.32%
EPS Next 3Y5.52%
EPS Next 5Y4%
Revenue Next Year-5.5%
Revenue Next 2Y-2.82%
Revenue Next 3Y-0.45%
Revenue Next 5Y0.28%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.43, the valuation of IFF can be described as rather expensive.
Based on the Price/Earnings ratio, IFF is valued a bit cheaper than the industry average as 62.35% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of IFF to the average of the S&P500 Index (27.30), we can say IFF is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.60, IFF is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as IFF.
When comparing the Price/Forward Earnings ratio of IFF to the average of the S&P500 Index (21.76), we can say IFF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.43 | ||
| Fwd PE | 16.6 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than IFF, based on the Enterprise Value to EBITDA ratio.
IFF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.25 | ||
| EV/EBITDA | 14.92 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.32%
EPS Next 3Y5.52%
5. Dividend
5.1 Amount
IFF has a Yearly Dividend Yield of 2.10%. Purely for dividend investing, there may be better candidates out there.
IFF's Dividend Yield is comparable with the industry average which is at 3.57.
Compared to an average S&P500 Dividend Yield of 2.37, IFF has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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
IFF has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-48.98%
EPS Next 2Y3.32%
EPS Next 3Y5.52%
76.18
+1.18 (+1.57%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners96.94%
Inst Owner Change0.01%
Ins Owners0.08%
Ins Owner Change0.42%
Market Cap19.49B
Analysts77.6
Price Target92.77 (21.78%)
Short Float %2.24%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend2.01
Dividend Growth(5Y)-7.24%
DP-48.98%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.05%
Min EPS beat(2)4.25%
Max EPS beat(2)17.85%
EPS beat(4)3
Avg EPS beat(4)7.74%
Min EPS beat(4)-4.48%
Max EPS beat(4)17.85%
EPS beat(8)5
Avg EPS beat(8)6.22%
EPS beat(12)8
Avg EPS beat(12)4.74%
EPS beat(16)11
Avg EPS beat(16)5.67%
Revenue beat(2)1
Avg Revenue beat(2)0.99%
Min Revenue beat(2)-0.49%
Max Revenue beat(2)2.48%
Revenue beat(4)3
Avg Revenue beat(4)1.36%
Min Revenue beat(4)-0.49%
Max Revenue beat(4)2.48%
Revenue beat(8)5
Avg Revenue beat(8)0.39%
Revenue beat(12)7
Avg Revenue beat(12)0.06%
Revenue beat(16)11
Avg Revenue beat(16)0.59%
PT rev (1m)0.72%
PT rev (3m)-7.45%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-6.81%
EPS NY rev (1m)0.17%
EPS NY rev (3m)1.23%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-5.43%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.43 | ||
| Fwd PE | 16.6 | ||
| P/S | 1.71 | ||
| P/FCF | 34.25 | ||
| P/OCF | 17.75 | ||
| P/B | 1.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.92 |
EPS(TTM)4.37
EY5.74%
EPS(NY)4.59
Fwd EY6.03%
FCF(TTM)2.22
FCFY2.92%
OCF(TTM)4.29
OCFY5.63%
SpS44.68
BVpS51.51
TBVpS-4.83
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.95% | ||
| ROE | -6.34% | ||
| ROCE | 3.87% | ||
| ROIC | 3.44% | ||
| ROICexc | 3.53% | ||
| ROICexgc | 9.41% | ||
| OM | 8.01% | ||
| PM (TTM) | N/A | ||
| GM | 36.18% | ||
| FCFM | 4.98% |
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-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 16.33 | ||
| Debt/EBITDA | 4.03 | ||
| Cap/Depr | 54.37% | ||
| Cap/Sales | 4.63% | ||
| Interest Coverage | 3.22 | ||
| Cash Conversion | 58.16% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 1.27 |
F-Score7
WACC8.29%
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)21.39%
EPS 3Y-8.81%
EPS 5Y-6.97%
EPS Q2Q%6.19%
EPS Next Y-0.42%
EPS Next 2Y3.32%
EPS Next 3Y5.52%
EPS Next 5Y4%
Revenue 1Y (TTM)0.68%
Revenue growth 3Y-0.49%
Revenue growth 5Y17.44%
Sales Q2Q%-1.93%
Revenue Next Year-5.5%
Revenue Next 2Y-2.82%
Revenue Next 3Y-0.45%
Revenue Next 5Y0.28%
EBIT growth 1Y52.5%
EBIT growth 3Y10.71%
EBIT growth 5Y4%
EBIT Next Year26.08%
EBIT Next 3Y11.6%
EBIT Next 5Y7.72%
FCF growth 1Y3094.74%
FCF growth 3Y-16.66%
FCF growth 5Y5.67%
OCF growth 1Y107.96%
OCF growth 3Y-9.36%
OCF growth 5Y8.89%