INTL FLAVORS & FRAGRANCES (IFF) Stock Fundamental Analysis
NYSE:IFF - New York Stock Exchange, Inc. - US4595061015 - Common Stock - Currency: USD
IFF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. IFF has a bad profitability rating. Also its financial health evaluation is rather negative. IFF has a decent growth rate and is not valued too expensively.
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.
In multiple years IFF reported negative net income over the last 5 years.
Each year in the past 5 years IFF had a positive operating cash flow.
1.2 Ratios
The Return On Assets of IFF (-7.75%) is worse than 80.49% of its industry peers.
With a Return On Equity value of -15.69%, IFF is not doing good in the industry: 79.27% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 2.34%, IFF is doing worse than 71.95% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IFF is below the industry average of 6.57%.
The last Return On Invested Capital (2.34%) for IFF is above the 3 year average (1.88%), which is a sign of increasing profitability.
| 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
The Operating Margin of IFF (6.92%) is comparable to the rest of the industry.
IFF's Operating Margin has declined in the last couple of years.
The Gross Margin of IFF (35.07%) is better than 70.73% of its industry peers.
IFF's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IFF is destroying value.
The number of shares outstanding for IFF remains at a similar level compared to 1 year ago.
Compared to 5 years ago, IFF has more shares outstanding
The debt/assets ratio for IFF is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.43, we must say that IFF is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of IFF (1.43) is worse than 70.73% of its industry peers.
The Debt to FCF ratio of IFF is 9.84, which is on the high side as it means it would take IFF, 9.84 years of fcf income to pay off all of its debts.
IFF has a Debt to FCF ratio of 9.84. This is comparable to the rest of the industry: IFF outperforms 51.22% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that IFF is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.58, IFF perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 9.84 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.29
WACC7.94%
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 70.73% of its industry peers.
A Quick Ratio of 1.93 indicates that IFF should not have too much problems paying its short term obligations.
IFF has a better Quick ratio (1.93) than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.81% over the past year.
IFF shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.67% yearly.
IFF shows a decrease in Revenue. In the last year, the revenue decreased by -1.76%.
Measured over the past years, IFF shows a very strong growth in Revenue. The Revenue has been growing by 23.61% on average per year.
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
Based on estimates for the next years, IFF will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.97% on average per year.
Based on estimates for the next years, IFF will show a small growth in Revenue. The Revenue will grow by 1.05% on average per year.
EPS Next Y28.12%
EPS Next 2Y18.27%
EPS Next 3Y14.67%
EPS Next 5Y11.97%
Revenue Next Year-0.66%
Revenue Next 2Y-0.99%
Revenue Next 3Y0.05%
Revenue Next 5Y1.05%
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
The Price/Earnings ratio is 21.23, which indicates a rather expensive current valuation of IFF.
IFF's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.28, IFF is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.40, which indicates a rather expensive current valuation of IFF.
The rest of the industry has a similar Price/Forward Earnings ratio as IFF.
Compared to an average S&P500 Price/Forward Earnings ratio of 91.29, IFF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 18.4 |
4.2 Price Multiples
69.51% 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 | 23.77 | ||
| EV/EBITDA | 16.51 |
4.3 Compensation for Growth
IFF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as IFF's earnings are expected to grow with 14.67% in the coming years.
PEG (NY)0.76
PEG (5Y)N/A
EPS Next 2Y18.27%
EPS Next 3Y14.67%
5. Dividend
5.1 Amount
IFF has a Yearly Dividend Yield of 1.85%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.21, IFF has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, IFF has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
5.2 History
The dividend of IFF has a limited annual growth rate of 5.51%.
IFF has been paying a dividend for at least 10 years, so it has a reliable track record.
IFF has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.51%
Div Incr Years21
Div Non Decr Years22
5.3 Sustainability
IFF has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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 (1/30/2025, 12:13:54 PM)
85.985
-0.02 (-0.02%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners95.4%
Inst Owner Change0.61%
Ins Owners0.04%
Ins Owner Change0.07%
Market Cap21.98B
Analysts77.69
Price Target105.48 (22.67%)
Short Float %1.91%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
Yearly Dividend3.24
Dividend Growth(5Y)5.51%
DP-26.66%
Div Incr Years21
Div Non Decr Years22
Ex-DateN/A
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)-0.39%
PT rev (3m)-1.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 18.4 | ||
| P/S | 1.93 | ||
| P/FCF | 23.77 | ||
| P/OCF | 16.33 | ||
| P/B | 1.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.51 |
EPS(TTM)4.05
EY4.71%
EPS(NY)4.67
Fwd EY5.43%
FCF(TTM)3.62
FCFY4.21%
OCF(TTM)5.26
OCFY6.12%
SpS44.65
BVpS57.79
TBVpS-5.26
PEG (NY)0.76
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
WACC7.94%
ROIC/WACC0.29
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-0.66%
Revenue Next 2Y-0.99%
Revenue Next 3Y0.05%
Revenue Next 5Y1.05%
EBIT growth 1Y32.33%
EBIT growth 3Y-0.51%
EBIT growth 5Y-0.34%
EBIT Next Year86.44%
EBIT Next 3Y25.87%
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%