INTL FLAVORS & FRAGRANCES (IFF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IFF - US4595061015 - Common Stock
64.54 USD
-0.82 (-1.25%)
64.54 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. IFF has a medium profitability rating, but doesn't score so well on its financial health evaluation. IFF has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
IFF had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of -1.60%, IFF is in line with its industry, outperforming 41.46% of the companies in the same industry.
The Return On Equity of IFF (-2.89%) is comparable to the rest of the industry.
The Return On Invested Capital of IFF (3.60%) is comparable to the rest of the industry.
IFF had an Average Return On Invested Capital over the past 3 years of 2.64%. This is below the industry average of 6.05%.
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.
With a Operating Margin value of 7.94%, IFF perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
In the last couple of years the Operating Margin of IFF has declined.
Looking at the Gross Margin, with a value of 36.38%, IFF is in the better half of 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
IFF has a better debt/assets ratio than last year.
2.2 Solvency
IFF has an Altman-Z score of 1.31. This is a bad value and indicates that IFF is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.31, IFF is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
The Debt to FCF ratio of IFF is 18.22, which is on the high side as it means it would take IFF, 18.22 years of fcf income to pay off all of its debts.
IFF's Debt to FCF ratio of 18.22 is in line compared to the rest of the industry. IFF outperforms 52.44% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that IFF is not too dependend on debt financing.
The Debt to Equity ratio of IFF (0.33) is better than 74.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 18.22 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.45
WACC8.02%
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.
Looking at the Quick ratio, with a value of 0.87, IFF is doing worse than 74.39% of the companies in the same industry.
| 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.
The Earnings Per Share has been decreasing by -6.97% on average over the past years.
The Revenue has decreased by -3.01% in the past year.
IFF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.44% yearly.
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
The Earnings Per Share is expected to grow by 3.31% 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 -0.79% on average per year.
EPS Next Y0.14%
EPS Next 2Y2.62%
EPS Next 3Y4.62%
EPS Next 5Y3.31%
Revenue Next Year-5.01%
Revenue Next 2Y-3.39%
Revenue Next 3Y-1.25%
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.
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 14.77, the valuation of IFF can be described as correct.
64.63% of the companies in the same industry are more expensive than IFF, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.28, IFF is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.25 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 23.52. IFF is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.77 | ||
| Fwd PE | 14.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IFF is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as IFF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.79 | ||
| EV/EBITDA | 11.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)106.86
PEG (5Y)N/A
EPS Next 2Y2.62%
EPS Next 3Y4.62%
5. Dividend
5.1 Amount
IFF has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.98, IFF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, 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 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
IFF has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-99.27%
EPS Next 2Y2.62%
EPS Next 3Y4.62%
64.54
-0.82 (-1.25%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners96.7%
Inst Owner Change-7.23%
Ins Owners0.11%
Ins Owner Change0.39%
Market Cap16.53B
Revenue(TTM)11.07B
Net Income(TTM)-412.00M
Analysts78.4
Price Target83.98 (30.12%)
Short Float %2.51%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend2.01
Dividend Growth(5Y)-7.24%
DP-99.27%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.11%
Min EPS beat(2)1.65%
Max EPS beat(2)2.57%
EPS beat(4)4
Avg EPS beat(4)6.58%
Min EPS beat(4)1.65%
Max EPS beat(4)17.85%
EPS beat(8)6
Avg EPS beat(8)7.38%
EPS beat(12)8
Avg EPS beat(12)4.43%
EPS beat(16)12
Avg EPS beat(16)5.62%
Revenue beat(2)2
Avg Revenue beat(2)1.26%
Min Revenue beat(2)1.25%
Max Revenue beat(2)1.28%
Revenue beat(4)3
Avg Revenue beat(4)1.13%
Min Revenue beat(4)-0.49%
Max Revenue beat(4)2.48%
Revenue beat(8)6
Avg Revenue beat(8)1.3%
Revenue beat(12)8
Avg Revenue beat(12)0.3%
Revenue beat(16)11
Avg Revenue beat(16)0.53%
PT rev (1m)0.6%
PT rev (3m)-2.32%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-1.13%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-1.47%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.77 | ||
| Fwd PE | 14.25 | ||
| P/S | 1.49 | ||
| P/FCF | 49.79 | ||
| P/OCF | 18.37 | ||
| P/B | 1.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.89 |
EPS(TTM)4.37
EY6.77%
EPS(NY)4.53
Fwd EY7.02%
FCF(TTM)1.3
FCFY2.01%
OCF(TTM)3.51
OCFY5.45%
SpS43.23
BVpS55.61
TBVpS-0.8
PEG (NY)106.86
PEG (5Y)N/A
Graham Number73.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.6% | ||
| ROE | -2.89% | ||
| ROCE | 4.05% | ||
| ROIC | 3.6% | ||
| ROICexc | 3.7% | ||
| ROICexgc | 11.77% | ||
| OM | 7.94% | ||
| PM (TTM) | N/A | ||
| GM | 36.38% | ||
| FCFM | 3% |
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%
ROICexgc growth 3Y12.38%
ROICexgc 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 | 0.33 | ||
| Debt/FCF | 18.22 | ||
| Debt/EBITDA | 2.57 | ||
| Cap/Depr | 58.68% | ||
| Cap/Sales | 5.13% | ||
| Interest Coverage | 3.29 | ||
| Cash Conversion | 48.73% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.31 |
F-Score6
WACC8.02%
ROIC/WACC0.45
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)7.9%
EPS 3Y-8.81%
EPS 5Y-6.97%
EPS Q2Q%0.96%
EPS Next Y0.14%
EPS Next 2Y2.62%
EPS Next 3Y4.62%
EPS Next 5Y3.31%
Revenue 1Y (TTM)-3.01%
Revenue growth 3Y-0.49%
Revenue growth 5Y17.44%
Sales Q2Q%-7.9%
Revenue Next Year-5.01%
Revenue Next 2Y-3.39%
Revenue Next 3Y-1.25%
Revenue Next 5Y-0.79%
EBIT growth 1Y11.27%
EBIT growth 3Y10.71%
EBIT growth 5Y4%
EBIT Next Year21.95%
EBIT Next 3Y9.56%
EBIT Next 5Y6.09%
FCF growth 1Y-26.71%
FCF growth 3Y-16.66%
FCF growth 5Y5.67%
OCF growth 1Y-10.27%
OCF growth 3Y-9.36%
OCF growth 5Y8.89%
INTL FLAVORS & FRAGRANCES / IFF FAQ
What is the fundamental rating for IFF stock?
ChartMill assigns a fundamental rating of 3 / 10 to IFF.
What is the valuation status of INTL FLAVORS & FRAGRANCES (IFF) stock?
ChartMill assigns a valuation rating of 3 / 10 to INTL FLAVORS & FRAGRANCES (IFF). This can be considered as Overvalued.
What is the profitability of IFF stock?
INTL FLAVORS & FRAGRANCES (IFF) has a profitability rating of 4 / 10.
Can you provide the financial health for IFF stock?
The financial health rating of INTL FLAVORS & FRAGRANCES (IFF) is 3 / 10.
Can you provide the dividend sustainability for IFF stock?
The dividend rating of INTL FLAVORS & FRAGRANCES (IFF) is 3 / 10 and the dividend payout ratio is -99.27%.