INTL FLAVORS & FRAGRANCES (IFF)
US4595061015 - Common Stock
We assign a fundamental rating of 4 out of 10 to IFF. IFF was compared to 83 industry peers in the Chemicals industry. IFF may be in some trouble as it scores bad on both profitability and health. IFF is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
IFF had positive earnings in the past year.
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.
IFF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of IFF (-7.75%) is worse than 81.93% of its industry peers.
IFF's Return On Equity of -15.69% is on the low side compared to the rest of the industry. IFF is outperformed by 79.52% of its industry peers.
IFF's Return On Invested Capital of 2.34% is on the low side compared to the rest of the industry. IFF is outperformed by 72.29% of its industry peers.
IFF had an Average Return On Invested Capital over the past 3 years of 1.88%. This is significantly below the industry average of 7.24%.
The 3 year average ROIC (1.88%) for IFF is below the current ROIC(2.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.75% | ||
| ROE | -15.69% | ||
| ROIC | 2.34% |
ROA(3y)-4.29%
ROA(5y)-1.36%
ROE(3y)-8.95%
ROE(5y)-2.77%
ROIC(3y)1.88%
ROIC(5y)2.86%
1.3 Margins
With a Operating Margin value of 6.92%, IFF perfoms like the industry average, outperforming 43.37% of the companies in the same industry.
IFF's Operating Margin has declined in the last couple of years.
The Gross Margin of IFF (35.07%) is better than 69.88% of its industry peers.
In the last couple of years the Gross Margin of IFF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.92% | ||
| PM (TTM) | N/A | ||
| GM | 35.07% |
OM growth 3Y-24.17%
OM growth 5Y-19.38%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.89%
GM growth 5Y-5.39%
2. Health
2.1 Basic Checks
IFF has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for IFF remains at a similar level compared to 1 year ago.
The number of shares outstanding for IFF has been increased compared to 5 years ago.
The debt/assets ratio for IFF is higher compared to a year ago.
2.2 Solvency
IFF has an Altman-Z score of 1.43. 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 (1.43) is worse than 66.27% of its industry peers.
IFF has a debt to FCF ratio of 9.84. This is a negative value and a sign of low solvency as IFF would need 9.84 years to pay back of all of its debts.
The Debt to FCF ratio of IFF (9.84) is comparable to the rest of the 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 of 0.58. This is comparable to the rest of the industry: IFF outperforms 50.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 9.84 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.33
WACC7.12%
2.3 Liquidity
IFF has a Current Ratio of 2.62. This indicates that IFF is financially healthy and has no problem in meeting its short term obligations.
IFF has a better Current ratio (2.62) than 69.88% of its industry peers.
A Quick Ratio of 1.93 indicates that IFF should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.93, IFF is in the better half of the industry, outperforming 75.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
IFF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.81%, which is quite good.
Measured over the past years, IFF shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.67% on average per year.
The Revenue has decreased by -1.76% in the past year.
The Revenue has been growing by 23.61% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)12.81%
EPS 3Y-16.32%
EPS 5Y-11.67%
EPS Q2Q%16.85%
Revenue 1Y (TTM)-1.76%
Revenue growth 3Y31.19%
Revenue growth 5Y23.61%
Sales Q2Q%3.72%
3.2 Future
IFF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.97% yearly.
IFF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.05% yearly.
EPS Next Y28.12%
EPS Next 2Y18.27%
EPS Next 3Y14.67%
EPS Next 5Y11.97%
Revenue Next Year-0.6%
Revenue Next 2Y-0.48%
Revenue Next 3Y0.38%
Revenue Next 5Y1.05%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 21.17, the valuation of IFF can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as IFF.
IFF's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.73.
IFF is valuated rather expensively with a Price/Forward Earnings ratio of 18.35.
The rest of the industry has a similar Price/Forward Earnings ratio as IFF.
IFF is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.17 | ||
| Fwd PE | 18.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IFF is valued a bit more expensive than the industry average as 69.88% of the companies are valued more cheaply.
IFF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.7 | ||
| EV/EBITDA | 16.47 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IFF's earnings are expected to grow with 14.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)N/A
EPS Next 2Y18.27%
EPS Next 3Y14.67%
5. Dividend
5.1 Amount
IFF has a Yearly Dividend Yield of 1.86%.
Compared to an average industry Dividend Yield of 3.28, IFF has a dividend in line with its industry peers.
IFF's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of IFF has a limited annual growth rate of 5.51%.
IFF has paid a dividend for at least 10 years, which is a reliable track record.
IFF has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.51%
Div Incr Years21
Div Non Decr Years22
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.
IFF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-26.66%
EPS Next 2Y18.27%
EPS Next 3Y14.67%
INTL FLAVORS & FRAGRANCES
NYSE:IFF (12/20/2024, 8:18:01 PM)
After market: 85.74 0 (0%)85.74
-0.2 (-0.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners95.4%
Inst Owner Change-1.68%
Ins Owners0.04%
Ins Owner Change0.06%
Market Cap21.92B
Analysts76.92
Price Target105.88 (23.49%)
Short Float %1.69%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Dividend Growth(5Y)5.51%
DP-26.66%
Div Incr Years21
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.42%
Min EPS beat(2)-4.48%
Max EPS beat(2)13.33%
EPS beat(4)2
Avg EPS beat(4)8.18%
Min EPS beat(4)-5.45%
Max EPS beat(4)29.33%
EPS beat(8)4
Avg EPS beat(8)3.35%
EPS beat(12)8
Avg EPS beat(12)5.3%
EPS beat(16)11
Avg EPS beat(16)5.11%
Revenue beat(2)2
Avg Revenue beat(2)1.73%
Min Revenue beat(2)1.19%
Max Revenue beat(2)2.27%
Revenue beat(4)3
Avg Revenue beat(4)1.47%
Min Revenue beat(4)-0.84%
Max Revenue beat(4)3.24%
Revenue beat(8)5
Avg Revenue beat(8)-0.11%
Revenue beat(12)8
Avg Revenue beat(12)0.33%
Revenue beat(16)10
Avg Revenue beat(16)0.43%
PT rev (1m)-1.54%
PT rev (3m)1.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.75%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.17 | ||
| Fwd PE | 18.35 | ||
| P/S | 1.92 | ||
| P/FCF | 23.7 | ||
| P/OCF | 16.29 | ||
| P/B | 1.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.47 |
EPS(TTM)4.05
EY4.72%
EPS(NY)4.67
Fwd EY5.45%
FCF(TTM)3.62
FCFY4.22%
OCF(TTM)5.26
OCFY6.14%
SpS44.65
BVpS57.79
TBVpS-5.26
PEG (NY)0.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.75% | ||
| ROE | -15.69% | ||
| ROCE | 2.96% | ||
| ROIC | 2.34% | ||
| ROICexc | 2.39% | ||
| ROICexgc | 6.22% | ||
| OM | 6.92% | ||
| PM (TTM) | N/A | ||
| GM | 35.07% | ||
| FCFM | 8.1% |
ROA(3y)-4.29%
ROA(5y)-1.36%
ROE(3y)-8.95%
ROE(5y)-2.77%
ROIC(3y)1.88%
ROIC(5y)2.86%
ROICexc(3y)1.92%
ROICexc(5y)2.98%
ROICexgc(3y)6.97%
ROICexgc(5y)11.6%
ROCE(3y)2.39%
ROCE(5y)3.63%
ROICexcg growth 3Y-29.44%
ROICexcg growth 5Y-18.75%
ROICexc growth 3Y-25.79%
ROICexc growth 5Y-16.23%
OM growth 3Y-24.17%
OM growth 5Y-19.38%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.89%
GM growth 5Y-5.39%
F-Score5
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 9.84 | ||
| Debt/EBITDA | 4.67 | ||
| Cap/Depr | 39.75% | ||
| Cap/Sales | 3.69% | ||
| Interest Coverage | 2.43 | ||
| Cash Conversion | 72.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.93 | ||
| Altman-Z | 1.43 |
F-Score5
WACC7.12%
ROIC/WACC0.33
Cap/Depr(3y)40.44%
Cap/Depr(5y)51.02%
Cap/Sales(3y)3.95%
Cap/Sales(5y)4.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.81%
EPS 3Y-16.32%
EPS 5Y-11.67%
EPS Q2Q%16.85%
EPS Next Y28.12%
EPS Next 2Y18.27%
EPS Next 3Y14.67%
EPS Next 5Y11.97%
Revenue 1Y (TTM)-1.76%
Revenue growth 3Y31.19%
Revenue growth 5Y23.61%
Sales Q2Q%3.72%
Revenue Next Year-0.6%
Revenue Next 2Y-0.48%
Revenue Next 3Y0.38%
Revenue Next 5Y1.05%
EBIT growth 1Y32.33%
EBIT growth 3Y-0.51%
EBIT growth 5Y-0.34%
EBIT Next Year86.35%
EBIT Next 3Y26.36%
EBIT Next 5Y15.81%
FCF growth 1Y30733.3%
FCF growth 3Y21.47%
FCF growth 5Y28.79%
OCF growth 1Y169.2%
OCF growth 3Y26.31%
OCF growth 5Y26.88%