INTL FLAVORS & FRAGRANCES (IFF)

US4595061015 - Common Stock

96.9752  -1.13 (-1.16%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to IFF. IFF was compared to 83 industry peers in the Chemicals industry. IFF may be in some trouble as it scores bad on both profitability and health. IFF is quite expensive at the moment. It does show a decent growth rate.



2

1. Profitability

1.1 Basic Checks

In the past year IFF was profitable.
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.
Each year in the past 5 years IFF had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of -8.15%, IFF is not doing good in the industry: 85.54% of the companies in the same industry are doing better.
With a Return On Equity value of -17.47%, IFF is not doing good in the industry: 80.72% of the companies in the same industry are doing better.
IFF has a Return On Invested Capital of 1.71%. This is in the lower half of the industry: IFF underperforms 66.27% 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 6.66%.
Industry RankSector Rank
ROA -8.15%
ROE -17.47%
ROIC 1.71%
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

IFF's Operating Margin of 5.29% is on the low side compared to the rest of the industry. IFF is outperformed by 61.45% of its industry peers.
In the last couple of years the Operating Margin of IFF has declined.
IFF has a better Gross Margin (32.96%) than 69.88% of its industry peers.
In the last couple of years the Gross Margin of IFF has declined.
Industry RankSector Rank
OM 5.29%
PM (TTM) N/A
GM 32.96%
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

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IFF is destroying value.
The number of shares outstanding for IFF remains at a similar level compared to 1 year ago.
Compared to 5 years ago, IFF has more shares outstanding
IFF has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 1.34, we must say that IFF is in the distress zone and has some risk of bankruptcy.
IFF has a worse Altman-Z score (1.34) than 72.29% of its industry peers.
The Debt to FCF ratio of IFF is 10.67, which is on the high side as it means it would take IFF, 10.67 years of fcf income to pay off all of its debts.
IFF has a Debt to FCF ratio (10.67) which is in line with its industry peers.
A Debt/Equity ratio of 0.70 indicates that IFF is somewhat dependend on debt financing.
IFF has a Debt to Equity ratio of 0.70. This is comparable to the rest of the industry: IFF outperforms 46.99% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 10.67
Altman-Z 1.34
ROIC/WACC0.24
WACC7.07%

2.3 Liquidity

IFF has a Current Ratio of 1.68. This is a normal value and indicates that IFF is financially healthy and should not expect problems in meeting its short term obligations.
IFF has a Current ratio of 1.68. This is in the lower half of the industry: IFF underperforms 65.06% of its industry peers.
A Quick Ratio of 1.05 indicates that IFF should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.05, IFF is doing worse than 65.06% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.68
Quick Ratio 1.05

4

3. Growth

3.1 Past

IFF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.05%.
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.
The Revenue has decreased by -7.27% in the past 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)-24.05%
EPS 3Y-16.32%
EPS 5Y-11.67%
EPS Q2Q%29.89%
Revenue 1Y (TTM)-7.27%
Revenue growth 3Y31.19%
Revenue growth 5Y23.61%
Sales Q2Q%-4.23%

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.
IFF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.03% yearly.
EPS Next Y21.23%
EPS Next 2Y15.39%
EPS Next 3Y14.16%
EPS Next 5Y11.11%
Revenue Next Year-2.68%
Revenue Next 2Y-0.68%
Revenue Next 3Y0.44%
Revenue Next 5Y1.03%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

2

4. Valuation

4.1 Price/Earnings Ratio

IFF is valuated quite expensively with a Price/Earnings ratio of 26.94.
Compared to the rest of the industry, the Price/Earnings ratio of IFF is on the same level as its industry peers.
IFF's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.53.
A Price/Forward Earnings ratio of 21.80 indicates a rather expensive valuation of IFF.
65.06% of the companies in the same industry are cheaper than IFF, based on the Price/Forward Earnings ratio.
IFF's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.94.
Industry RankSector Rank
PE 26.94
Fwd PE 21.8

4.2 Price Multiples

71.08% of the companies in the same industry are cheaper than IFF, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IFF is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 25.66
EV/EBITDA 19.37

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
IFF's earnings are expected to grow with 14.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)N/A
EPS Next 2Y15.39%
EPS Next 3Y14.16%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.64%, IFF has a reasonable but not impressive dividend return.
IFF's Dividend Yield is comparable with the industry average which is at 3.20.
IFF's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
Industry RankSector Rank
Dividend Yield 1.64%

5.2 History

The dividend of IFF has a limited annual growth rate of 5.51%.
IFF has been paying a dividend for at least 10 years, so it has a reliable track record.
IFF has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.51%
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.
IFF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-33.13%
EPS Next 2Y15.39%
EPS Next 3Y14.16%

INTL FLAVORS & FRAGRANCES

NYSE:IFF (7/17/2024, 2:28:00 PM)

96.9752

-1.13 (-1.16%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.76B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.64%
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
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 RankSector Rank
PE 26.94
Fwd PE 21.8
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)1.27
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -8.15%
ROE -17.47%
ROCE
ROIC
ROICexc
ROICexgc
OM 5.29%
PM (TTM) N/A
GM 32.96%
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 Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.68
Quick Ratio 1.05
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)-24.05%
EPS 3Y-16.32%
EPS 5Y
EPS Q2Q%
EPS Next Y21.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.27%
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