INTL FLAVORS & FRAGRANCES (IFF)
US4595061015 - Common Stock
Overall IFF gets a fundamental rating of 3 out of 10. We evaluated IFF against 83 industry peers in the Chemicals industry. Both the profitability and financial health of IFF have multiple concerns. 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.
The reported net income has been mixed in the past 5 years: IFF reported negative net income in multiple years.
IFF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IFF has a worse Return On Assets (-8.15%) than 85.54% of its industry peers.
IFF's Return On Equity of -17.47% is on the low side compared to the rest of the industry. IFF is outperformed by 80.72% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.71%, IFF is doing worse than 66.27% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IFF is below the industry average of 6.66%.
| Industry Rank | Sector 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's Gross Margin of 32.96% is fine compared to the rest of the industry. IFF outperforms 69.88% of its industry peers.
In the last couple of years the Gross Margin of IFF has declined.
| Industry Rank | Sector 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. 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.
The number of shares outstanding for IFF remains at a similar level compared to 1 year ago.
IFF has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, IFF has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.33, we must say that IFF is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.33, IFF is not doing good in the industry: 69.88% of the companies in the same industry are doing better.
IFF has a debt to FCF ratio of 10.67. This is a negative value and a sign of low solvency as IFF would need 10.67 years to pay back of all of its debts.
IFF has a Debt to FCF ratio (10.67) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.70 indicates that IFF is somewhat dependend on debt financing.
IFF has a Debt to Equity ratio (0.70) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 10.67 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.24
WACC7.1%
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's Current ratio of 1.68 is on the low side compared to the rest of the industry. IFF is outperformed by 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.
IFF has a Quick ratio of 1.05. This is in the lower half of the industry: IFF underperforms 65.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The earnings per share for IFF have decreased strongly by -24.05% in the last year.
IFF shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.67% yearly.
IFF shows a decrease in Revenue. In the last year, the revenue decreased by -7.27%.
The Revenue has been growing by 23.61% on average over the past years. This is a very strong growth!
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
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
A Price/Earnings ratio of 27.46 indicates a quite expensive 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's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.41.
The Price/Forward Earnings ratio is 22.22, which indicates a rather expensive current valuation of IFF.
Based on the Price/Forward Earnings ratio, IFF is valued a bit more expensive than 65.06% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, IFF is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.46 | ||
| Fwd PE | 22.22 |
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 71.08% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.15 | ||
| EV/EBITDA | 19.23 |
4.3 Compensation for Growth
IFF's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as IFF's earnings are expected to grow with 14.16% in the coming years.
PEG (NY)1.29
PEG (5Y)N/A
EPS Next 2Y15.39%
EPS Next 3Y14.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.66%, IFF has a reasonable but not impressive dividend return.
IFF's Dividend Yield is comparable with the industry average which is at 3.07.
IFF's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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 (7/26/2024, 7:04:00 PM)
After market: 98.84 0 (0%)98.84
+1.68 (+1.73%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap25.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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)
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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)
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Revenue beat(8)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.46 | ||
| Fwd PE | 22.22 | ||
| 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)1.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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