INTL FLAVORS & FRAGRANCES (IFF) Stock Fundamental Analysis
NYSE:IFF - New York Stock Exchange, Inc. - US4595061015 - Common Stock - Currency: USD
IFF gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 85 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.
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
With a Return On Assets value of -2.95%, IFF is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
IFF has a worse Return On Equity (-6.34%) than 68.24% of its industry peers.
The Return On Invested Capital of IFF (3.44%) is worse than 61.18% 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.
IFF's Operating Margin of 8.01% is in line compared to the rest of the industry. IFF outperforms 44.71% of its industry peers.
IFF's Operating Margin has declined in the last couple of years.
IFF has a Gross Margin of 36.18%. This is in the better half of the industry: IFF outperforms 74.12% of its industry peers.
In the last couple of years the Gross Margin of IFF has declined.
| 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
IFF has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, IFF has about the same amount of shares outstanding.
Compared to 5 years ago, IFF has more shares outstanding
The debt/assets ratio for IFF has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that IFF is in the distress zone and has some risk of bankruptcy.
IFF's Altman-Z score of 1.29 is on the low side compared to the rest of the industry. IFF is outperformed by 69.41% of its industry peers.
The Debt to FCF ratio of IFF is 16.33, which is on the high side as it means it would take IFF, 16.33 years of fcf income to pay off all of its debts.
IFF has a Debt to FCF ratio (16.33) which is in line with its industry peers.
IFF has a Debt/Equity ratio of 0.58. This is a neutral value indicating IFF is somewhat dependend on debt financing.
IFF's Debt to Equity ratio of 0.58 is in line compared 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 | 1.29 |
ROIC/WACC0.41
WACC8.3%
2.3 Liquidity
A Current Ratio of 1.87 indicates that IFF should not have too much problems paying its short term obligations.
IFF has a Current ratio (1.87) which is in line with its industry peers.
A Quick Ratio of 1.39 indicates that IFF should not have too much problems paying its short term obligations.
The Quick ratio of IFF (1.39) is better 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.
The Revenue has been growing slightly by 0.68% in the past year.
The Revenue has been growing by 17.44% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 11.81% on average over the next years. This is quite good.
Based on estimates for the next years, IFF will show a small growth in Revenue. The Revenue will grow by 5.74% on average per year.
EPS Next Y-0.59%
EPS Next 2Y3.35%
EPS Next 3Y5.55%
EPS Next 5Y11.81%
Revenue Next Year-5.52%
Revenue Next 2Y-2.83%
Revenue Next 3Y-0.46%
Revenue Next 5Y5.74%
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.
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
The Price/Earnings ratio is 17.82, which indicates a rather expensive current 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.
IFF is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.95, the valuation of IFF can be described as correct.
IFF's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.43. IFF is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.82 | ||
| Fwd PE | 16.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IFF is valued a bit more expensive than 63.53% of the companies in the same industry.
IFF's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35 | ||
| EV/EBITDA | 15.14 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.35%
EPS Next 3Y5.55%
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 3.70.
IFF's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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.
IFF has not decreased their dividend for at least 10 years, which is a reliable track record.
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 2Y3.35%
EPS Next 3Y5.55%
77.88
+0.54 (+0.7%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners96.6%
Inst Owner Change0.77%
Ins Owners0.04%
Ins Owner Change0.36%
Market Cap19.92B
Analysts78.4
Price Target92.11 (18.27%)
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)-5.61%
EPS NQ rev (3m)-8.13%
EPS NY rev (1m)0.45%
EPS NY rev (3m)-5.66%
Revenue NQ rev (1m)-5.42%
Revenue NQ rev (3m)-6.27%
Revenue NY rev (1m)-0.97%
Revenue NY rev (3m)-3.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.82 | ||
| Fwd PE | 16.95 | ||
| P/S | 1.74 | ||
| P/FCF | 35 | ||
| P/OCF | 18.14 | ||
| P/B | 1.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.14 |
EPS(TTM)4.37
EY5.61%
EPS(NY)4.59
Fwd EY5.9%
FCF(TTM)2.22
FCFY2.86%
OCF(TTM)4.29
OCFY5.51%
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 | 1.29 |
F-Score7
WACC8.3%
ROIC/WACC0.41
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-0.59%
EPS Next 2Y3.35%
EPS Next 3Y5.55%
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-5.52%
Revenue Next 2Y-2.83%
Revenue Next 3Y-0.46%
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%