INTL FLAVORS & FRAGRANCES (IFF)
US4595061015 - Common Stock
We assign a fundamental rating of 3 out of 10 to IFF. 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.
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.
In the past 5 years IFF always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -8.28%, IFF is not doing good in the industry: 83.53% of the companies in the same industry are doing better.
The Return On Equity of IFF (-17.56%) is worse than 82.35% of its industry peers.
IFF has a worse Return On Invested Capital (1.68%) than 68.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IFF is significantly below the industry average of 7.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.28% | ||
| ROE | -17.56% | ||
| ROIC | 1.68% |
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 5.04% is on the low side compared to the rest of the industry. IFF is outperformed by 62.35% of its industry peers.
IFF's Operating Margin has declined in the last couple of years.
IFF has a Gross Margin of 32.07%. This is in the better half of the industry: IFF outperforms 68.24% of its industry peers.
IFF's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.04% | ||
| PM (TTM) | N/A | ||
| GM | 32.07% |
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. 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.
Compared to 5 years ago, IFF has more shares outstanding
IFF has a worse debt/assets ratio than last year.
2.2 Solvency
IFF has an Altman-Z score of 1.21. This is a bad value and indicates that IFF is not financially healthy and even has some risk of bankruptcy.
IFF's Altman-Z score of 1.21 is on the low side compared to the rest of the industry. IFF is outperformed by 70.59% of its industry peers.
The Debt to FCF ratio of IFF is 10.76, which is on the high side as it means it would take IFF, 10.76 years of fcf income to pay off all of its debts.
IFF has a Debt to FCF ratio (10.76) which is in line with its industry peers.
A Debt/Equity ratio of 0.63 indicates that IFF is somewhat dependend on debt financing.
The Debt to Equity ratio of IFF (0.63) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 10.76 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.22
WACC7.46%
2.3 Liquidity
IFF has a Current Ratio of 1.67. 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 1.67 is on the low side compared to the rest of the industry. IFF is outperformed by 65.88% of its industry peers.
IFF has a Quick Ratio of 1.02. 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 Quick ratio of 1.02 is on the low side compared to the rest of the industry. IFF is outperformed by 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The earnings per share for IFF have decreased strongly by -39.93% in the last year.
The earnings per share for IFF have been decreasing by -11.67% on average. This is quite bad
The Revenue has decreased by -7.73% in the past year.
The Revenue has been growing by 23.61% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-39.93%
EPS 3Y-16.32%
EPS 5Y-11.67%
EPS growth Q2Q-25.77%
Revenue 1Y (TTM)-7.73%
Revenue growth 3Y31.19%
Revenue growth 5Y23.61%
Revenue growth Q2Q-4.96%
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 16.21% on average per year.
The Revenue is expected to grow by 4.50% on average over the next years.
EPS Next Y9.35%
EPS Next 2Y12.95%
EPS Next 3Y13.55%
EPS Next 5Y16.21%
Revenue Next Year-4%
Revenue Next 2Y-0.52%
Revenue Next 3Y0.79%
Revenue Next 5Y4.5%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.33 indicates a quite expensive valuation of IFF.
IFF's Price/Earnings ratio is in line with the industry average.
IFF's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.92.
With a Price/Forward Earnings ratio of 23.17, IFF is valued on the expensive side.
IFF's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, IFF is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.33 | ||
| Fwd PE | 23.17 |
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 | 23.08 | ||
| EV/EBITDA | 17.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IFF does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as IFF's earnings are expected to grow with 13.55% in the coming years.
PEG (NY)2.71
PEG (5Y)N/A
EPS Next 2Y12.95%
EPS Next 3Y13.55%
5. Dividend
5.1 Amount
IFF has a Yearly Dividend Yield of 1.91%. Purely for dividend investing, there may be better candidates out there.
IFF's Dividend Yield is a higher than the industry average which is at 3.34.
Compared to the average S&P500 Dividend Yield of 2.43, IFF is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
The dividend of IFF has a limited annual growth rate of 5.51%.
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)5.51%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
The earnings of IFF are negative and hence is the payout ratio. IFF will probably not be able to sustain this dividend level.
The dividend of IFF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-32.2%
EPS Next 2Y12.95%
EPS Next 3Y13.55%
INTL FLAVORS & FRAGRANCES
NYSE:IFF (4/26/2024, 7:04:00 PM)
After market: 84.61 0 (0%)84.61
+0.27 (+0.32%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.33 | ||
| Fwd PE | 23.17 | ||
| 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)2.71
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.28% | ||
| ROE | -17.56% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.04% | ||
| PM (TTM) | N/A | ||
| GM | 32.07% | ||
| 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.02 | ||
| 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)-39.93%
EPS 3Y-16.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.73%
Revenue growth 3Y31.19%
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