INTL FLAVORS & FRAGRANCES (IFF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IFF - US4595061015 - Common Stock
69.61 USD
+0.65 (+0.94%)
69.61 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
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.
IFF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IFF has a Return On Assets of -1.60%. This is comparable to the rest of the industry: IFF outperforms 40.24% of its industry peers.
IFF has a Return On Equity of -2.89%. This is comparable to the rest of the industry: IFF outperforms 43.90% of its industry peers.
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 6.10%.
The 3 year average ROIC (2.64%) for IFF is below the current ROIC(3.60%), indicating increased profibility in the last year.
| 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
In the last couple of years the Profit Margin of IFF has declined.
Looking at the Operating Margin, with a value of 7.94%, IFF is in line with its industry, 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.
In the last couple of years the Gross Margin of IFF has declined.
| 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.
IFF has about the same amout of shares outstanding than it did 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 1.36. This is a bad value and indicates that IFF is not financially healthy and even has some risk of bankruptcy.
IFF has a Altman-Z score of 1.36. This is in the lower half of the industry: IFF underperforms 70.73% of its industry peers.
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.
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 | 1.36 |
ROIC/WACC0.32
WACC11.25%
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 Current ratio of 1.44. This is in the lower half of the industry: IFF underperforms 73.17% of its industry peers.
A Quick Ratio of 0.87 indicates that IFF may have some problems paying its short term obligations.
IFF has a worse Quick ratio (0.87) than 74.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
IFF shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.90%.
The Earnings Per Share has been decreasing by -6.97% on average over the past years.
IFF shows a decrease in Revenue. In the last year, the revenue decreased by -3.01%.
The Revenue has been growing by 17.44% on average over the past years. This is quite good.
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
IFF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.31% yearly.
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-3.5%
Revenue Next 3Y-1.35%
Revenue Next 5Y-0.79%
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
Based on the Price/Earnings ratio of 15.93, the valuation of IFF can be described as correct.
65.85% of the companies in the same industry are more expensive than IFF, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.25. IFF is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.48, which indicates a correct valuation of IFF.
62.20% of the companies in the same industry are more expensive than IFF, based on the Price/Forward Earnings ratio.
IFF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.93 | ||
| Fwd PE | 15.48 |
4.2 Price Multiples
IFF's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as IFF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.7 | ||
| EV/EBITDA | 12.5 |
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 2.33%. Purely for dividend investing, there may be better candidates out there.
IFF's Dividend Yield is a higher than the industry average which is at 2.34.
Compared to an average S&P500 Dividend Yield of 1.92, IFF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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.
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%
69.61
+0.65 (+0.94%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners97.41%
Inst Owner Change-0.07%
Ins Owners0.11%
Ins Owner Change0.41%
Market Cap17.83B
Revenue(TTM)11.07B
Net Income(TTM)-412.00M
Analysts78.4
Price Target83.98 (20.64%)
Short Float %3.24%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Yearly Dividend2.01
Dividend Growth(5Y)-7.24%
DP-99.27%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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%
PT rev (3m)-2.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.13%
EPS NY rev (1m)-1.92%
EPS NY rev (3m)-1.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.51%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.93 | ||
| Fwd PE | 15.48 | ||
| P/S | 1.61 | ||
| P/FCF | 53.7 | ||
| P/OCF | 19.81 | ||
| P/B | 1.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.5 |
EPS(TTM)4.37
EY6.28%
EPS(NY)4.5
Fwd EY6.46%
FCF(TTM)1.3
FCFY1.86%
OCF(TTM)3.51
OCFY5.05%
SpS43.23
BVpS55.61
TBVpS-0.8
PEG (NY)N/A
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 | 1.36 |
F-Score6
WACC11.25%
ROIC/WACC0.32
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 Y-1.78%
EPS Next 2Y2.26%
EPS Next 3Y4.29%
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-3.5%
Revenue Next 3Y-1.35%
Revenue Next 5Y-0.79%
EBIT growth 1Y11.27%
EBIT growth 3Y10.71%
EBIT growth 5Y4%
EBIT Next Year21.95%
EBIT Next 3Y9.32%
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.
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 15.93 and the Price/Book (PB) ratio is 1.25.
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.