INTL FLAVORS & FRAGRANCES (IFF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IFF - US4595061015 - Common Stock
66.49 USD
-0.63 (-0.94%)
66.49 USD
0 (0%)
IFF gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 81 industry peers in the Chemicals industry. While IFF is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
Each year in the past 5 years IFF had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.60%, IFF is in line with its industry, outperforming 40.74% of the companies in the same industry.
IFF has a Return On Equity (-2.89%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 3.60%, IFF is in line with its industry, outperforming 50.62% 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 6.15%.
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.
IFF has a Operating Margin (7.94%) which is in line with its industry peers.
IFF's Operating Margin has declined in the last couple of years.
The Gross Margin of IFF (36.38%) is better than 74.07% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IFF is destroying value.
Compared to 1 year ago, IFF has about the same amount of shares outstanding.
IFF has more shares outstanding than it did 5 years ago.
The debt/assets ratio for IFF has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.33, we must say that IFF is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of IFF (1.33) is worse than 70.37% 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.
The Debt to FCF ratio of IFF (18.22) 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.
IFF's Debt to Equity ratio of 0.33 is fine compared to the rest of the industry. IFF outperforms 75.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 18.22 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.45
WACC8.04%
2.3 Liquidity
A Current Ratio of 1.44 indicates that IFF should not have too much problems paying its short term obligations.
With a Current ratio value of 1.44, IFF is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
A Quick Ratio of 0.87 indicates that IFF may have some problems paying its short term obligations.
The Quick ratio of IFF (0.87) is worse than 74.07% 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%.
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
The Earnings Per Share is expected to grow by 3.31% on average over the next years.
The Revenue is expected to decrease by -0.79% on average over the next years.
EPS Next Y-0.27%
EPS Next 2Y2.81%
EPS Next 3Y5.23%
EPS Next 5Y3.31%
Revenue Next Year-5.07%
Revenue Next 2Y-3.13%
Revenue Next 3Y-0.84%
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
A Price/Earnings ratio of 15.22 indicates a correct valuation of IFF.
Based on the Price/Earnings ratio, IFF is valued a bit cheaper than the industry average as 64.20% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of IFF to the average of the S&P500 Index (26.41), we can say IFF is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.63 indicates a correct valuation of IFF.
The rest of the industry has a similar Price/Forward Earnings ratio as IFF.
IFF is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.22 | ||
| Fwd PE | 14.63 |
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 | 51.29 | ||
| EV/EBITDA | 12.16 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.81%
EPS Next 3Y5.23%
5. Dividend
5.1 Amount
IFF has a Yearly Dividend Yield of 2.29%.
IFF's Dividend Yield is comparable with the industry average which is at 3.88.
IFF's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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
IFF has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-99.27%
EPS Next 2Y2.81%
EPS Next 3Y5.23%
66.49
-0.63 (-0.94%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners97.28%
Inst Owner Change-7.25%
Ins Owners0.1%
Ins Owner Change0.37%
Market Cap17.03B
Revenue(TTM)11.07B
Net Income(TTM)-412.00M
Analysts78.4
Price Target83.61 (25.75%)
Short Float %2.51%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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)-2.53%
PT rev (3m)-2.75%
EPS NQ rev (1m)-1.71%
EPS NQ rev (3m)-1.13%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)-1.44%
Revenue NQ rev (3m)-1.47%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.22 | ||
| Fwd PE | 14.63 | ||
| P/S | 1.54 | ||
| P/FCF | 51.29 | ||
| P/OCF | 18.92 | ||
| P/B | 1.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.16 |
EPS(TTM)4.37
EY6.57%
EPS(NY)4.55
Fwd EY6.84%
FCF(TTM)1.3
FCFY1.95%
OCF(TTM)3.51
OCFY5.29%
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 | 1.33 |
F-Score6
WACC8.04%
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 Y-0.27%
EPS Next 2Y2.81%
EPS Next 3Y5.23%
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-5.07%
Revenue Next 2Y-3.13%
Revenue Next 3Y-0.84%
Revenue Next 5Y-0.79%
EBIT growth 1Y11.27%
EBIT growth 3Y10.71%
EBIT growth 5Y4%
EBIT Next Year25.12%
EBIT Next 3Y11.1%
EBIT Next 5Y6.78%
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 4 / 10 to INTL FLAVORS & FRAGRANCES (IFF). This can be considered as Fairly Valued.
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%.