INTL FLAVORS & FRAGRANCES (IFF)
US4595061015 - Common Stock
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 is valied quite expensively at the moment, while it does show a decent growth rate.
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 -7.75%, IFF is doing worse than 79.76% of the companies in the same industry.
IFF has a worse Return On Equity (-15.69%) than 77.38% of its industry peers.
The Return On Invested Capital of IFF (2.34%) is worse than 67.86% of its industry peers.
IFF had an Average Return On Invested Capital over the past 3 years of 1.88%. This is below the industry average of 6.50%.
The 3 year average ROIC (1.88%) for IFF is below the current ROIC(2.34%), indicating increased profibility in the last year.
| 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
With a Operating Margin value of 6.92%, IFF perfoms like the industry average, outperforming 45.24% of the companies in the same industry.
In the last couple of years the Operating Margin of IFF has declined.
The Gross Margin of IFF (35.07%) is better than 72.62% of its industry peers.
In the last couple of years the Gross Margin of IFF has declined.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IFF is destroying value.
IFF has about the same amout of shares outstanding than it did 1 year ago.
IFF has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, IFF has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.46, we must say that IFF is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of IFF (1.46) is worse than 64.29% of its industry peers.
IFF has a debt to FCF ratio of 9.84. This is a negative value and a sign of low solvency as IFF would need 9.84 years to pay back of all of its debts.
IFF has a Debt to FCF ratio (9.84) which is comparable to the rest of the industry.
IFF has a Debt/Equity ratio of 0.58. This is a neutral value indicating IFF is somewhat dependend on debt financing.
IFF has a Debt to Equity ratio (0.58) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 9.84 | ||
| Altman-Z | 1.46 |
ROIC/WACC0.33
WACC7.14%
2.3 Liquidity
A Current Ratio of 2.62 indicates that IFF has no problem at all paying its short term obligations.
IFF has a Current ratio of 2.62. This is in the better half of the industry: IFF outperforms 69.05% of its industry peers.
IFF has a Quick Ratio of 1.93. 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 1.93, IFF is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
IFF shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.11%.
Measured over the past years, IFF shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.67% on average per year.
Looking at the last year, IFF shows a decrease in Revenue. The Revenue has decreased by -1.76% in the last year.
IFF shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.61% yearly.
EPS 1Y (TTM)1.11%
EPS 3Y-16.32%
EPS 5Y-11.67%
EPS Q2Q%-30.34%
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 11.11% on average per year.
Based on estimates for the next years, IFF will show a small growth in Revenue. The Revenue will grow by 1.03% on average per year.
EPS Next Y28.39%
EPS Next 2Y18.15%
EPS Next 3Y13.57%
EPS Next 5Y11.11%
Revenue Next Year-1%
Revenue Next 2Y-0.58%
Revenue Next 3Y0.34%
Revenue Next 5Y1.03%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 24.73 indicates a rather expensive valuation of IFF.
Compared to the rest of the industry, the Price/Earnings ratio of IFF is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.96, IFF is valued at the same level.
IFF is valuated rather expensively with a Price/Forward Earnings ratio of 19.26.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IFF is on the same level as its industry peers.
IFF's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.73 | ||
| Fwd PE | 19.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IFF is valued a bit more expensive than the industry average as 60.71% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as IFF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.82 | ||
| EV/EBITDA | 16.9 |
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.
IFF's earnings are expected to grow with 13.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)N/A
EPS Next 2Y18.15%
EPS Next 3Y13.57%
5. Dividend
5.1 Amount
IFF has a Yearly Dividend Yield of 1.79%.
IFF's Dividend Yield is a higher than the industry average which is at 2.95.
Compared to an average S&P500 Dividend Yield of 2.23, IFF has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
5.2 History
The dividend of IFF has a limited annual growth rate of 5.51%.
IFF has paid a dividend for at least 10 years, which is 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
The earnings of IFF are negative and hence is the payout ratio. IFF will probably not be able to sustain this dividend level.
The dividend of IFF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-26.66%
EPS Next 2Y18.15%
EPS Next 3Y13.57%
INTL FLAVORS & FRAGRANCES
NYSE:IFF (11/21/2024, 5:22:51 PM)
After market: 89.78 0 (0%)89.78
+0.94 (+1.06%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap22.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.73 | ||
| Fwd PE | 19.26 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.87
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.75% | ||
| ROE | -15.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.92% | ||
| PM (TTM) | N/A | ||
| GM | 35.07% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.93 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)1.11%
EPS 3Y-16.32%
EPS 5Y
EPS Q2Q%
EPS Next Y28.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.76%
Revenue growth 3Y31.19%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y