INTL FLAVORS & FRAGRANCES (IFF)

US4595061015 - Common Stock

76.765  -0.02 (-0.02%)

Fundamental Rating

3

Overall IFF gets a fundamental rating of 3 out of 10. We evaluated IFF against 85 industry peers in the Chemicals industry. IFF may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, IFF is valued expensive at the moment.



2

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 4 of the past 5 years.

1.2 Ratios

IFF has a Return On Assets of 0.05%. This is in the lower half of the industry: IFF underperforms 68.24% of its industry peers.
IFF's Return On Equity of 0.10% is on the low side compared to the rest of the industry. IFF is outperformed by 68.24% of its industry peers.
With a Return On Invested Capital value of 1.58%, IFF is not doing good in the industry: 69.41% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for IFF is below the industry average of 7.57%.
Industry RankSector Rank
ROA 0.05%
ROE 0.1%
ROIC 1.58%
ROA(3y)-0.64%
ROA(5y)0.81%
ROE(3y)-1.2%
ROE(5y)1.84%
ROIC(3y)2.64%
ROIC(5y)3.31%

1.3 Margins

IFF has a worse Profit Margin (0.15%) than 68.24% of its industry peers.
IFF has a Operating Margin of 5.14%. This is in the lower half of the industry: IFF underperforms 63.53% of its industry peers.
In the last couple of years the Operating Margin of IFF has declined.
IFF has a better Gross Margin (31.76%) than 67.06% of its industry peers.
IFF's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 5.14%
PM (TTM) 0.15%
GM 31.76%
OM growth 3Y-14.54%
OM growth 5Y-12.87%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.72%
GM growth 5Y-5.08%

2

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

IFF has an Altman-Z score of 1.24. This is a bad value and indicates that IFF is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.24, IFF is doing worse than 70.59% of the companies in the same industry.
IFF has a debt to FCF ratio of 22.74. This is a negative value and a sign of low solvency as IFF would need 22.74 years to pay back of all of its debts.
IFF has a Debt to FCF ratio (22.74) which is in line with its industry peers.
IFF has a Debt/Equity ratio of 0.54. This is a neutral value indicating IFF is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.54, IFF perfoms like the industry average, outperforming 55.29% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 22.74
Altman-Z 1.24
ROIC/WACC0.23
WACC6.81%

2.3 Liquidity

IFF has a Current Ratio of 1.74. This is a normal value and indicates that IFF is financially healthy and should not expect problems in meeting its short term obligations.
IFF's Current ratio of 1.74 is on the low side compared to the rest of the industry. IFF is outperformed by 64.71% of its industry peers.
A Quick Ratio of 1.04 indicates that IFF should not have too much problems paying its short term obligations.
IFF has a worse Quick ratio (1.04) than 67.06% of its industry peers.
Industry RankSector Rank
Current Ratio 1.74
Quick Ratio 1.04

4

3. Growth

3.1 Past

The earnings per share for IFF have decreased strongly by -36.91% in the last year.
The Earnings Per Share has been decreasing by -1.15% on average over the past years.
IFF shows a decrease in Revenue. In the last year, the revenue decreased by -7.97%.
Measured over the past years, IFF shows a very strong growth in Revenue. The Revenue has been growing by 29.63% on average per year.
EPS 1Y (TTM)-36.91%
EPS 3Y-3.41%
EPS 5Y-1.15%
EPS growth Q2Q-34.56%
Revenue 1Y (TTM)-7.97%
Revenue growth 3Y34.26%
Revenue growth 5Y29.63%
Revenue growth Q2Q-7.93%

3.2 Future

IFF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.86% yearly.
Based on estimates for the next years, IFF will show a small growth in Revenue. The Revenue will grow by 1.42% on average per year.
EPS Next Y-38.7%
EPS Next 2Y-14.17%
EPS Next 3Y-5.01%
EPS Next 5Y1.86%
Revenue Next Year-8.08%
Revenue Next 2Y-4.36%
Revenue Next 3Y-1.55%
Revenue Next 5Y1.42%

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.

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 21.38, which indicates a rather expensive current valuation of IFF.
The rest of the industry has a similar Price/Earnings ratio as IFF.
The average S&P500 Price/Earnings ratio is at 26.00. IFF is around the same levels.
The Price/Forward Earnings ratio is 18.74, which indicates a rather expensive current valuation of IFF.
IFF's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, IFF is valued at the same level.
Industry RankSector Rank
PE 21.38
Fwd PE 18.74

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, IFF is valued a bit more expensive than 62.35% of the companies in the same industry.
IFF's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 43.26
EV/EBITDA 16.88

4.3 Compensation for Growth

A cheap valuation may be justified as IFF's earnings are expected to decrease with -5.01% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.17%
EPS Next 3Y-5.01%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.95%, IFF has a reasonable but not impressive dividend return.
IFF's Dividend Yield is rather good when compared to the industry average which is at 3.84. IFF pays more dividend than 84.71% of the companies in the same industry.
IFF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.48.
Industry RankSector Rank
Dividend Yield 3.95%

5.2 History

The dividend of IFF has a limited annual growth rate of 4.02%.
IFF has been paying a dividend for at least 10 years, so it has 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)4.02%
Div Incr Years20
Div Non Decr Years20

5.3 Sustainability

IFF pays out 4852.94% of its income as dividend. This is not a sustainable payout ratio.
The dividend of IFF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP4852.94%
EPS Next 2Y-14.17%
EPS Next 3Y-5.01%

INTL FLAVORS & FRAGRANCES

NYSE:IFF (2/22/2024, 10:31:04 AM)

76.765

-0.02 (-0.02%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.60B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.95%
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)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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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 RankSector Rank
PE 21.38
Fwd PE 18.74
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)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.05%
ROE 0.1%
ROCE
ROIC
ROICexc
ROICexgc
OM 5.14%
PM (TTM) 0.15%
GM 31.76%
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 Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.74
Quick Ratio 1.04
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)
Growth
EPS 1Y (TTM)-36.91%
EPS 3Y-3.41%
EPS 5Y
EPS growth Q2Q
EPS Next Y-38.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.97%
Revenue growth 3Y34.26%
Revenue growth 5Y
Revenue growth 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