INTL FLAVORS & FRAGRANCES (IFF) Stock Fundamental Analysis
NYSE:IFF - New York Stock Exchange, Inc. - US4595061015 - Common Stock - Currency: USD
Taking everything into account, IFF scores 3 out of 10 in our fundamental rating. IFF was compared to 85 industry peers in the Chemicals industry. Both the profitability and financial health of IFF have multiple concerns. 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.
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's Return On Assets of -2.95% is on the low side compared to the rest of the industry. IFF is outperformed by 71.76% of its industry peers.
IFF's Return On Equity of -6.34% is on the low side compared to the rest of the industry. IFF is outperformed by 69.41% of its industry peers.
IFF's Return On Invested Capital of 3.44% is on the low side compared to the rest of the industry. IFF is outperformed by 62.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IFF is below the industry average of 7.01%.
The last Return On Invested Capital (3.44%) for IFF is above the 3 year average (2.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.95% | ||
| ROE | -6.34% | ||
| ROIC | 3.44% |
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
IFF's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.01%, IFF is in line with its industry, outperforming 44.71% 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 (36.18%) is better than 74.12% of its industry peers.
IFF's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.01% | ||
| PM (TTM) | N/A | ||
| GM | 36.18% |
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.
The number of shares outstanding for IFF remains at a similar level compared to 1 year ago.
The number of shares outstanding for IFF has been increased compared to 5 years ago.
Compared to 1 year ago, IFF has an improved debt to assets ratio.
2.2 Solvency
IFF has an Altman-Z score of 1.28. This is a bad value and indicates that IFF is not financially healthy and even has some risk of bankruptcy.
IFF has a worse Altman-Z score (1.28) than 72.94% of its industry peers.
IFF has a debt to FCF ratio of 16.33. This is a negative value and a sign of low solvency as IFF would need 16.33 years to pay back of all of its debts.
The Debt to FCF ratio of IFF (16.33) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.58 indicates that IFF is somewhat dependend on debt financing.
IFF has a Debt to Equity ratio of 0.58. This is comparable to the rest of the industry: IFF outperforms 55.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 16.33 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.42
WACC8.22%
2.3 Liquidity
A Current Ratio of 1.87 indicates that IFF should not have too much problems paying its short term obligations.
With a Current ratio value of 1.87, IFF perfoms like the industry average, outperforming 45.88% of the companies in the same industry.
A Quick Ratio of 1.39 indicates that IFF should not have too much problems paying its short term obligations.
IFF has a better Quick ratio (1.39) than 63.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
IFF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.39%, which is quite impressive.
The Earnings Per Share has been decreasing by -6.97% on average over the past years.
IFF shows a small growth in Revenue. In the last year, the Revenue has grown by 0.68%.
IFF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.44% yearly.
EPS 1Y (TTM)21.39%
EPS 3Y-8.81%
EPS 5Y-6.97%
EPS Q2Q%6.19%
Revenue 1Y (TTM)0.68%
Revenue growth 3Y-0.49%
Revenue growth 5Y17.44%
Sales Q2Q%-1.93%
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 11.81% on average per year.
The Revenue is expected to grow by 5.74% on average over the next years.
EPS Next Y-1.04%
EPS Next 2Y2.17%
EPS Next 3Y4.75%
EPS Next 5Y11.81%
Revenue Next Year-5.27%
Revenue Next 2Y-2.98%
Revenue Next 3Y-0.55%
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 17.51, IFF is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of IFF is on the same level as its industry peers.
When comparing the Price/Earnings ratio of IFF to the average of the S&P500 Index (24.95), we can say IFF is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.04 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 similar valuation than the S&P500 average which is at 20.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 17.04 |
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 63.53% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as IFF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.38 | ||
| EV/EBITDA | 14.96 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.17%
EPS Next 3Y4.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.10%, IFF has a reasonable but not impressive dividend return.
IFF's Dividend Yield is comparable with the industry average which is at 3.79.
IFF's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
The dividend of IFF decreases each year by -7.24%.
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)-7.24%
Div Incr Years21
Div Non Decr Years22
5.3 Sustainability
IFF has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-48.98%
EPS Next 2Y2.17%
EPS Next 3Y4.75%
76.5
+0.15 (+0.2%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners96.6%
Inst Owner Change-0.25%
Ins Owners0.04%
Ins Owner Change0.34%
Market Cap19.56B
Analysts78.4
Price Target92.11 (20.41%)
Short Float %1.96%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend2.01
Dividend Growth(5Y)-7.24%
DP-48.98%
Div Incr Years21
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.05%
Min EPS beat(2)4.25%
Max EPS beat(2)17.85%
EPS beat(4)3
Avg EPS beat(4)7.74%
Min EPS beat(4)-4.48%
Max EPS beat(4)17.85%
EPS beat(8)5
Avg EPS beat(8)6.22%
EPS beat(12)8
Avg EPS beat(12)4.74%
EPS beat(16)11
Avg EPS beat(16)5.67%
Revenue beat(2)1
Avg Revenue beat(2)0.99%
Min Revenue beat(2)-0.49%
Max Revenue beat(2)2.48%
Revenue beat(4)3
Avg Revenue beat(4)1.36%
Min Revenue beat(4)-0.49%
Max Revenue beat(4)2.48%
Revenue beat(8)5
Avg Revenue beat(8)0.39%
Revenue beat(12)7
Avg Revenue beat(12)0.06%
Revenue beat(16)11
Avg Revenue beat(16)0.59%
PT rev (1m)-8.11%
PT rev (3m)-13.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.67%
EPS NY rev (1m)0.6%
EPS NY rev (3m)-7.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-3.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 17.04 | ||
| P/S | 1.71 | ||
| P/FCF | 34.38 | ||
| P/OCF | 17.82 | ||
| P/B | 1.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.96 |
EPS(TTM)4.37
EY5.71%
EPS(NY)4.49
Fwd EY5.87%
FCF(TTM)2.22
FCFY2.91%
OCF(TTM)4.29
OCFY5.61%
SpS44.69
BVpS51.52
TBVpS-4.83
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.95% | ||
| ROE | -6.34% | ||
| ROCE | 3.87% | ||
| ROIC | 3.44% | ||
| ROICexc | 3.53% | ||
| ROICexgc | 9.41% | ||
| OM | 8.01% | ||
| PM (TTM) | N/A | ||
| GM | 36.18% | ||
| FCFM | 4.98% |
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%
ROICexcg growth 3Y12.38%
ROICexcg 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-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 16.33 | ||
| Debt/EBITDA | 4.03 | ||
| Cap/Depr | 54.37% | ||
| Cap/Sales | 4.63% | ||
| Interest Coverage | 3.22 | ||
| Cash Conversion | 58.16% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 1.28 |
F-Score7
WACC8.22%
ROIC/WACC0.42
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)21.39%
EPS 3Y-8.81%
EPS 5Y-6.97%
EPS Q2Q%6.19%
EPS Next Y-1.04%
EPS Next 2Y2.17%
EPS Next 3Y4.75%
EPS Next 5Y11.81%
Revenue 1Y (TTM)0.68%
Revenue growth 3Y-0.49%
Revenue growth 5Y17.44%
Sales Q2Q%-1.93%
Revenue Next Year-5.27%
Revenue Next 2Y-2.98%
Revenue Next 3Y-0.55%
Revenue Next 5Y5.74%
EBIT growth 1Y52.5%
EBIT growth 3Y10.71%
EBIT growth 5Y4%
EBIT Next Year26.97%
EBIT Next 3Y11.31%
EBIT Next 5Y15.39%
FCF growth 1Y3094.74%
FCF growth 3Y-16.66%
FCF growth 5Y5.67%
OCF growth 1Y107.96%
OCF growth 3Y-9.36%
OCF growth 5Y8.89%