INTL FLAVORS & FRAGRANCES (IFF) Stock Fundamental Analysis
USA - NYSE:IFF - US4595061015 - Common Stock
62.6 USD
+0.67 (+1.08%)
62.6 USD
0 (0%)
Taking everything into account, IFF scores 3 out of 10 in our fundamental rating. IFF was compared to 83 industry peers in the Chemicals industry. The financial health of IFF is average, but there are quite some concerns on its profitability. IFF is valued correctly, but it does not seem to be growing.
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.
In the past 5 years IFF always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.50%, IFF is doing worse than 65.06% of the companies in the same industry.
The Return On Equity of IFF (-2.73%) is worse than 60.24% of its industry peers.
The Return On Invested Capital of IFF (3.43%) is comparable to the rest of the industry.
IFF had an Average Return On Invested Capital over the past 3 years of 2.64%. This is below the industry average of 6.30%.
The last Return On Invested Capital (3.43%) for IFF is above the 3 year average (2.64%), which is a sign of increasing profitability.
| 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
In the last couple of years the Profit Margin of IFF has declined.
IFF has a Operating Margin (7.84%) which is in line with its industry peers.
In the last couple of years the Operating Margin of IFF has declined.
IFF has a Gross Margin of 36.25%. This is in the better half of the industry: IFF outperforms 73.49% of its industry peers.
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.
Compared to 1 year ago, IFF has about the same amount of shares outstanding.
The number of shares outstanding for IFF has been increased compared to 5 years ago.
The debt/assets ratio for IFF has been reduced compared to a year ago.
2.2 Solvency
IFF has an Altman-Z score of 1.32. 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 1.32 is on the low side compared to the rest of the industry. IFF is outperformed by 72.29% 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 better Debt to FCF ratio (11.04) than 62.65% 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.
Looking at the Debt to Equity ratio, with a value of 0.39, IFF is in the better half of the industry, outperforming 72.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.43
WACC7.99%
2.3 Liquidity
A Current Ratio of 1.86 indicates that IFF should not have too much problems paying its short term obligations.
IFF has a Current ratio of 1.86. This is comparable to the rest of the industry: IFF outperforms 42.17% of its industry peers.
A Quick Ratio of 1.12 indicates that IFF should not have too much problems paying its short term obligations.
The Quick ratio of IFF (1.12) is worse than 60.24% 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.
Looking at the last year, IFF shows a decrease in Revenue. The Revenue has decreased by -0.07% in the last year.
IFF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.44% yearly.
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 2Y2.79%
EPS Next 3Y5.38%
EPS Next 5Y3.64%
Revenue Next Year-5.04%
Revenue Next 2Y-3.08%
Revenue Next 3Y-0.71%
Revenue Next 5Y-0.45%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.36, IFF is valued correctly.
Based on the Price/Earnings ratio, IFF is valued a bit cheaper than 71.08% of the companies in the same industry.
IFF's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.29.
With a Price/Forward Earnings ratio of 13.78, IFF is valued correctly.
IFF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IFF is cheaper than 61.45% of the companies in the same industry.
IFF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 13.78 |
4.2 Price Multiples
IFF's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 28.65 | ||
| EV/EBITDA | 11.54 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.79%
EPS Next 3Y5.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.66%, IFF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.69, IFF pays a bit more dividend than its industry peers.
IFF's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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.
Dividend Growth(5Y)-7.24%
Div Incr Years0
Div Non Decr Years0
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.
DP-104.07%
EPS Next 2Y2.79%
EPS Next 3Y5.38%
62.6
+0.67 (+1.08%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners97.28%
Inst Owner Change-0.01%
Ins Owners0.1%
Ins Owner Change0.44%
Market Cap16.04B
Analysts78.4
Price Target85.78 (37.03%)
Short Float %1.75%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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)-0.23%
PT rev (3m)-7.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 13.78 | ||
| P/S | 1.42 | ||
| P/FCF | 28.65 | ||
| P/OCF | 14.56 | ||
| P/B | 1.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.54 |
EPS(TTM)4.36
EY6.96%
EPS(NY)4.54
Fwd EY7.26%
FCF(TTM)2.19
FCFY3.49%
OCF(TTM)4.3
OCFY6.87%
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 | 1.32 |
F-Score6
WACC7.99%
ROIC/WACC0.43
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 2Y2.79%
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-5.04%
Revenue Next 2Y-3.08%
Revenue Next 3Y-0.71%
Revenue Next 5Y-0.45%
EBIT growth 1Y27.67%
EBIT growth 3Y10.71%
EBIT growth 5Y4%
EBIT Next Year25.12%
EBIT Next 3Y11.1%
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%