INTL FLAVORS & FRAGRANCES (IFF) Stock Fundamental Analysis
NYSE:IFF - US4595061015 - Common Stock
66.72 USD
-0.42 (-0.63%)
66.72 USD
0 (0%)
IFF gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. IFF scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. IFF has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
IFF had positive earnings in the past year.
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
The Return On Assets of IFF (-1.50%) is worse than 63.10% of its industry peers.
The Return On Equity of IFF (-2.73%) is comparable to the rest of the industry.
IFF's Return On Invested Capital of 3.43% is in line compared to the rest of the industry. IFF outperforms 45.24% of its industry peers.
IFF had an Average Return On Invested Capital over the past 3 years of 2.64%. This is below the industry average of 6.43%.
The 3 year average ROIC (2.64%) for IFF is below the current ROIC(3.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.5% | ||
| ROE | -2.73% | ||
| ROIC | 3.43% |
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.
With a Operating Margin value of 7.84%, IFF perfoms like the industry average, outperforming 48.81% of the companies in the same industry.
In the last couple of years the Operating Margin of IFF has declined.
Looking at the Gross Margin, with a value of 36.25%, IFF is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
In the last couple of years the Gross Margin of IFF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.84% | ||
| PM (TTM) | N/A | ||
| GM | 36.25% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IFF is destroying value.
IFF has about the same amout of shares outstanding than it did 1 year ago.
IFF has more shares outstanding than it did 5 years ago.
The debt/assets ratio for IFF has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.37, we must say that IFF is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of IFF (1.37) is worse than 71.43% of its industry peers.
The Debt to FCF ratio of IFF is 11.04, which is on the high side as it means it would take IFF, 11.04 years of fcf income to pay off all of its debts.
IFF has a Debt to FCF ratio of 11.04. This is in the better half of the industry: IFF outperforms 64.29% of its industry peers.
IFF has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.39, IFF is doing good in the industry, outperforming 70.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.42
WACC8.22%
2.3 Liquidity
IFF has a Current Ratio of 1.86. 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 1.86. This is comparable to the rest of the industry: IFF outperforms 42.86% of its industry peers.
A Quick Ratio of 1.12 indicates that IFF should not have too much problems paying its short term obligations.
IFF has a Quick ratio of 1.12. This is in the lower half of the industry: IFF underperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
IFF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.79%, which is quite good.
IFF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.97% yearly.
The Revenue has decreased by -0.07% 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)11.79%
EPS 3Y-8.81%
EPS 5Y-6.97%
EPS Q2Q%-0.86%
Revenue 1Y (TTM)-0.07%
Revenue growth 3Y-0.49%
Revenue growth 5Y17.44%
Sales Q2Q%-4.33%
3.2 Future
IFF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.64% yearly.
IFF is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.45% yearly.
EPS Next Y-0.33%
EPS Next 2Y2.78%
EPS Next 3Y5.38%
EPS Next 5Y3.64%
Revenue Next Year-5.05%
Revenue Next 2Y-2.96%
Revenue Next 3Y-0.6%
Revenue Next 5Y-0.45%
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
Based on the Price/Earnings ratio of 15.30, the valuation of IFF can be described as correct.
73.81% of the companies in the same industry are more expensive than IFF, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.08, IFF is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.69, IFF is valued correctly.
IFF's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, IFF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.3 | ||
| Fwd PE | 14.69 |
4.2 Price Multiples
IFF's Enterprise Value to EBITDA is on the same level as the industry average.
IFF's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.54 | ||
| EV/EBITDA | 12.11 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.78%
EPS Next 3Y5.38%
5. Dividend
5.1 Amount
IFF has a Yearly Dividend Yield of 2.42%.
IFF's Dividend Yield is a higher than the industry average which is at 3.54.
IFF's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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.
Dividend Growth(5Y)-7.24%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
IFF has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-104.07%
EPS Next 2Y2.78%
EPS Next 3Y5.38%
66.72
-0.42 (-0.63%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners95.04%
Inst Owner Change1.2%
Ins Owners0.08%
Ins Owner Change0.55%
Market Cap17.10B
Analysts77.6
Price Target85.97 (28.85%)
Short Float %2.08%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend2.01
Dividend Growth(5Y)-7.24%
DP-104.07%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.95%
Min EPS beat(2)1.65%
Max EPS beat(2)4.25%
EPS beat(4)3
Avg EPS beat(4)4.82%
Min EPS beat(4)-4.48%
Max EPS beat(4)17.85%
EPS beat(8)6
Avg EPS beat(8)9.23%
EPS beat(12)8
Avg EPS beat(12)4.4%
EPS beat(16)12
Avg EPS beat(16)5.82%
Revenue beat(2)1
Avg Revenue beat(2)0.38%
Min Revenue beat(2)-0.49%
Max Revenue beat(2)1.25%
Revenue beat(4)3
Avg Revenue beat(4)1.38%
Min Revenue beat(4)-0.49%
Max Revenue beat(4)2.48%
Revenue beat(8)6
Avg Revenue beat(8)1.24%
Revenue beat(12)7
Avg Revenue beat(12)0.08%
Revenue beat(16)11
Avg Revenue beat(16)0.5%
PT rev (1m)-7.38%
PT rev (3m)-6.66%
EPS NQ rev (1m)-3%
EPS NQ rev (3m)-0.73%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)-1.33%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.3 | ||
| Fwd PE | 14.69 | ||
| P/S | 1.51 | ||
| P/FCF | 30.54 | ||
| P/OCF | 15.52 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.11 |
EPS(TTM)4.36
EY6.53%
EPS(NY)4.54
Fwd EY6.81%
FCF(TTM)2.19
FCFY3.27%
OCF(TTM)4.3
OCFY6.44%
SpS44.1
BVpS56.2
TBVpS-1.21
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.5% | ||
| ROE | -2.73% | ||
| ROCE | 3.86% | ||
| ROIC | 3.43% | ||
| ROICexc | 3.56% | ||
| ROICexgc | 10.62% | ||
| OM | 7.84% | ||
| PM (TTM) | N/A | ||
| GM | 36.25% | ||
| FCFM | 4.95% |
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-Score6
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 11.04 | ||
| Debt/EBITDA | 3.07 | ||
| Cap/Depr | 55.93% | ||
| Cap/Sales | 4.8% | ||
| Interest Coverage | 3.16 | ||
| Cash Conversion | 59.41% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 1.37 |
F-Score6
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)11.79%
EPS 3Y-8.81%
EPS 5Y-6.97%
EPS Q2Q%-0.86%
EPS Next Y-0.33%
EPS Next 2Y2.78%
EPS Next 3Y5.38%
EPS Next 5Y3.64%
Revenue 1Y (TTM)-0.07%
Revenue growth 3Y-0.49%
Revenue growth 5Y17.44%
Sales Q2Q%-4.33%
Revenue Next Year-5.05%
Revenue Next 2Y-2.96%
Revenue Next 3Y-0.6%
Revenue Next 5Y-0.45%
EBIT growth 1Y27.67%
EBIT growth 3Y10.71%
EBIT growth 5Y4%
EBIT Next Year26.44%
EBIT Next 3Y11.89%
EBIT Next 5Y7.11%
FCF growth 1Y111.32%
FCF growth 3Y-16.66%
FCF growth 5Y5.67%
OCF growth 1Y33.9%
OCF growth 3Y-9.36%
OCF growth 5Y8.89%