INTL FLAVORS & FRAGRANCES (IFF) Stock Fundamental Analysis
NYSE:IFF - New York Stock Exchange, Inc. - US4595061015 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to IFF. IFF was compared to 85 industry peers in the Chemicals industry. There are concerns on the financial health of IFF while its profitability can be described as average. While showing a medium growth rate, IFF is valued expensive at the moment.
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's Return On Assets of 0.85% is in line compared to the rest of the industry. IFF outperforms 42.17% of its industry peers.
Looking at the Return On Equity, with a value of 1.75%, IFF is in line with its industry, outperforming 42.17% of the companies in the same industry.
IFF has a Return On Invested Capital of 3.10%. This is in the lower half of the industry: IFF underperforms 65.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IFF is below the industry average of 6.80%.
The last Return On Invested Capital (3.10%) for IFF is above the 3 year average (2.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 1.75% | ||
| ROIC | 3.1% |
ROA(3y)-4.23%
ROA(5y)-1.87%
ROE(3y)-8.8%
ROE(5y)-3.88%
ROIC(3y)2.64%
ROIC(5y)2.78%
1.3 Margins
The Profit Margin of IFF (2.12%) is comparable to the rest of the industry.
IFF's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 7.38%, IFF perfoms like the industry average, outperforming 42.17% of the companies in the same industry.
In the last couple of years the Operating Margin of IFF has declined.
IFF has a better Gross Margin (35.91%) than 71.08% of its industry peers.
In the last couple of years the Gross Margin of IFF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.38% | ||
| PM (TTM) | 2.12% | ||
| GM | 35.91% |
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.
Compared to 1 year ago, IFF has about the same amount of shares outstanding.
Compared to 5 years ago, IFF has more shares outstanding
IFF has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of IFF is 14.91, which is on the high side as it means it would take IFF, 14.91 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.91, IFF is in line with its industry, outperforming 50.60% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that IFF is somewhat dependend on debt financing.
IFF has a Debt to Equity ratio (0.54) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 14.91 | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC8.73%
2.3 Liquidity
IFF has a Current Ratio of 1.84. This is a normal value and indicates that IFF is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.84, IFF is doing worse than 60.24% of the companies in the same industry.
IFF has a Quick Ratio of 1.35. This is a normal value and indicates that IFF is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.35, IFF is in line with its industry, outperforming 54.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
IFF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.74%, which is quite impressive.
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 0.04% 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)28.74%
EPS 3Y-8.81%
EPS 5Y-6.97%
EPS Q2Q%34.72%
Revenue 1Y (TTM)0.04%
Revenue growth 3Y-0.49%
Revenue growth 5Y17.44%
Sales Q2Q%2.52%
3.2 Future
The Earnings Per Share is expected to grow by 11.81% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.74% on average over the next years.
EPS Next Y5.13%
EPS Next 2Y5.79%
EPS Next 3Y8.98%
EPS Next 5Y11.81%
Revenue Next Year-2.08%
Revenue Next 2Y-0.41%
Revenue Next 3Y0.7%
Revenue Next 5Y5.74%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 19.03, IFF is valued on the expensive side.
IFF's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.43, IFF is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.10 indicates a rather expensive valuation of IFF.
IFF's Price/Forward Earnings ratio is in line with the industry average.
IFF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.03 | ||
| Fwd PE | 18.1 |
4.2 Price Multiples
IFF's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. IFF is more expensive than 67.47% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IFF is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.75 | ||
| EV/EBITDA | 15.79 |
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)3.71
PEG (5Y)N/A
EPS Next 2Y5.79%
EPS Next 3Y8.98%
5. Dividend
5.1 Amount
IFF has a Yearly Dividend Yield of 1.97%.
Compared to an average industry Dividend Yield of 3.37, IFF pays a bit more dividend than its industry peers.
IFF's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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.
IFF has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-7.24%
Div Incr Years21
Div Non Decr Years22
5.3 Sustainability
211.52% of the earnings are spent on dividend by IFF. This is not a sustainable payout ratio.
DP211.52%
EPS Next 2Y5.79%
EPS Next 3Y8.98%
81.81
+0.77 (+0.95%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners96.6%
Inst Owner Change15.06%
Ins Owners0.04%
Ins Owner Change0.07%
Market Cap20.92B
Analysts79.23
Price Target104.61 (27.87%)
Short Float %1.59%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Yearly Dividend2.01
Dividend Growth(5Y)-7.24%
DP211.52%
Div Incr Years21
Div Non Decr Years22
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.68%
Min EPS beat(2)-4.48%
Max EPS beat(2)17.85%
EPS beat(4)3
Avg EPS beat(4)14.01%
Min EPS beat(4)-4.48%
Max EPS beat(4)29.33%
EPS beat(8)4
Avg EPS beat(8)5.55%
EPS beat(12)8
Avg EPS beat(12)6.35%
EPS beat(16)11
Avg EPS beat(16)5.63%
Revenue beat(2)2
Avg Revenue beat(2)2.38%
Min Revenue beat(2)2.27%
Max Revenue beat(2)2.48%
Revenue beat(4)4
Avg Revenue beat(4)2.3%
Min Revenue beat(4)1.19%
Max Revenue beat(4)3.24%
Revenue beat(8)6
Avg Revenue beat(8)0.5%
Revenue beat(12)8
Avg Revenue beat(12)0.35%
Revenue beat(16)11
Avg Revenue beat(16)0.61%
PT rev (1m)-1.2%
PT rev (3m)-1.21%
EPS NQ rev (1m)-5.83%
EPS NQ rev (3m)-7.44%
EPS NY rev (1m)-1.38%
EPS NY rev (3m)-3.24%
Revenue NQ rev (1m)-1.65%
Revenue NQ rev (3m)-1.58%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.03 | ||
| Fwd PE | 18.1 | ||
| P/S | 1.82 | ||
| P/FCF | 34.75 | ||
| P/OCF | 19.55 | ||
| P/B | 1.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.79 |
EPS(TTM)4.3
EY5.26%
EPS(NY)4.52
Fwd EY5.53%
FCF(TTM)2.35
FCFY2.88%
OCF(TTM)4.18
OCFY5.12%
SpS44.92
BVpS54.41
TBVpS-6.31
PEG (NY)3.71
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 1.75% | ||
| ROCE | 3.48% | ||
| ROIC | 3.1% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 9.03% | ||
| OM | 7.38% | ||
| PM (TTM) | 2.12% | ||
| GM | 35.91% | ||
| FCFM | 5.24% |
ROA(3y)-4.23%
ROA(5y)-1.87%
ROE(3y)-8.8%
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 3Y26.55%
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-Score8
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 14.91 | ||
| Debt/EBITDA | 4.06 | ||
| Cap/Depr | 46.11% | ||
| Cap/Sales | 4.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.43% | ||
| Profit Quality | 247.74% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | N/A |
F-Score8
WACC8.73%
ROIC/WACC0.35
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)28.74%
EPS 3Y-8.81%
EPS 5Y-6.97%
EPS Q2Q%34.72%
EPS Next Y5.13%
EPS Next 2Y5.79%
EPS Next 3Y8.98%
EPS Next 5Y11.81%
Revenue 1Y (TTM)0.04%
Revenue growth 3Y-0.49%
Revenue growth 5Y17.44%
Sales Q2Q%2.52%
Revenue Next Year-2.08%
Revenue Next 2Y-0.41%
Revenue Next 3Y0.7%
Revenue Next 5Y5.74%
EBIT growth 1Y46.71%
EBIT growth 3Y10.71%
EBIT growth 5Y4%
EBIT Next Year33.87%
EBIT Next 3Y12.74%
EBIT Next 5Y15.37%
FCF growth 1Y-35.68%
FCF growth 3Y-16.66%
FCF growth 5Y5.67%
OCF growth 1Y-25.64%
OCF growth 3Y-9.36%
OCF growth 5Y8.89%