INTL FLAVORS & FRAGRANCES (IFF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IFF - US4595061015 - Common Stock
73.23 USD
+1.07 (+1.48%)
73.23 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to IFF. IFF was compared to 82 industry peers in the Chemicals industry. There are concerns on the financial health of IFF while its profitability can be described as average. IFF has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year IFF was profitable.
- IFF had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: IFF reported negative net income in multiple years.
- In the past 5 years IFF always reported a positive cash flow from operatings.
1.2 Ratios
- IFF has a Return On Assets (-1.60%) which is comparable to the rest of the industry.
- IFF has a Return On Equity (-2.89%) which is comparable to the rest of the industry.
- With a Return On Invested Capital value of 3.60%, IFF perfoms like the industry average, outperforming 51.22% 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 6.11%.
- The last Return On Invested Capital (3.60%) for IFF is above the 3 year average (2.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.6% | ||
| ROE | -2.89% | ||
| ROIC | 3.6% |
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
- IFF's Profit Margin has declined in the last couple of years.
- IFF has a Operating Margin (7.94%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of IFF has declined.
- With a decent Gross Margin value of 36.38%, IFF is doing good in the industry, outperforming 73.17% of the companies in the same industry.
- IFF's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.94% | ||
| PM (TTM) | N/A | ||
| GM | 36.38% |
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
- 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
- Compared to 1 year ago, IFF has an improved debt to assets ratio.
2.2 Solvency
- IFF has an Altman-Z score of 1.41. This is a bad value and indicates that IFF is not financially healthy and even has some risk of bankruptcy.
- IFF's Altman-Z score of 1.41 is on the low side compared to the rest of the industry. IFF is outperformed by 68.29% of its industry peers.
- IFF has a debt to FCF ratio of 18.22. This is a negative value and a sign of low solvency as IFF would need 18.22 years to pay back of all of its debts.
- IFF has a Debt to FCF ratio (18.22) which is comparable to the rest of the industry.
- IFF has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.33, IFF is doing good in the industry, outperforming 71.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 18.22 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.31
WACC11.46%
2.3 Liquidity
- A Current Ratio of 1.44 indicates that IFF should not have too much problems paying its short term obligations.
- IFF has a worse Current ratio (1.44) than 73.17% of its industry peers.
- IFF has a Quick Ratio of 1.44. This is a bad value and indicates that IFF is not financially healthy enough and could expect problems in meeting its short term obligations.
- IFF has a Quick ratio of 0.87. This is in the lower half of the industry: IFF underperforms 74.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.90% over the past year.
- IFF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.97% yearly.
- Looking at the last year, IFF shows a decrease in Revenue. The Revenue has decreased by -3.01% in the last year.
- Measured over the past years, IFF shows a quite strong growth in Revenue. The Revenue has been growing by 17.44% on average per year.
EPS 1Y (TTM)7.9%
EPS 3Y-8.81%
EPS 5Y-6.97%
EPS Q2Q%0.96%
Revenue 1Y (TTM)-3.01%
Revenue growth 3Y-0.49%
Revenue growth 5Y17.44%
Sales Q2Q%-7.9%
3.2 Future
- Based on estimates for the next years, IFF will show a small growth in Earnings Per Share. The EPS will grow by 3.31% on average per year.
- Based on estimates for the next years, IFF will show a decrease in Revenue. The Revenue will decrease by -0.79% on average per year.
EPS Next Y-1.78%
EPS Next 2Y2.26%
EPS Next 3Y4.29%
EPS Next 5Y3.31%
Revenue Next Year-5.01%
Revenue Next 2Y-3.48%
Revenue Next 3Y-1.35%
Revenue Next 5Y-0.79%
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
- A Price/Earnings ratio of 16.76 indicates a correct valuation of IFF.
- Based on the Price/Earnings ratio, IFF is valued a bit cheaper than 67.07% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, IFF is valued a bit cheaper.
- IFF is valuated correctly with a Price/Forward Earnings ratio of 16.29.
- 60.98% of the companies in the same industry are more expensive than IFF, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of IFF to the average of the S&P500 Index (24.26), we can say IFF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 16.29 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as IFF.
- The rest of the industry has a similar Price/Free Cash Flow ratio as IFF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.49 | ||
| EV/EBITDA | 12.94 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.26%
EPS Next 3Y4.29%
5. Dividend
5.1 Amount
- IFF has a Yearly Dividend Yield of 2.22%.
- IFF's Dividend Yield is a higher than the industry average which is at 2.28.
- Compared to an average S&P500 Dividend Yield of 1.82, IFF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
5.2 History
- The dividend of IFF decreases each year by -7.24%.
- IFF has been paying a dividend for at least 10 years, so it has 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-99.27%
EPS Next 2Y2.26%
EPS Next 3Y4.29%
INTL FLAVORS & FRAGRANCES / IFF FAQ
What is the fundamental rating for IFF stock?
ChartMill assigns a fundamental rating of 3 / 10 to IFF.
Can you provide the valuation status for INTL FLAVORS & FRAGRANCES?
ChartMill assigns a valuation rating of 4 / 10 to INTL FLAVORS & FRAGRANCES (IFF). This can be considered as Fairly Valued.
Can you provide the profitability details for INTL FLAVORS & FRAGRANCES?
INTL FLAVORS & FRAGRANCES (IFF) has a profitability rating of 4 / 10.
What is the valuation of INTL FLAVORS & FRAGRANCES based on its PE and PB ratios?
The Price/Earnings (PE) ratio for INTL FLAVORS & FRAGRANCES (IFF) is 16.76 and the Price/Book (PB) ratio is 1.32.
What is the expected EPS growth for INTL FLAVORS & FRAGRANCES (IFF) stock?
The Earnings per Share (EPS) of INTL FLAVORS & FRAGRANCES (IFF) is expected to decline by -1.78% in the next year.