INTL FLAVORS & FRAGRANCES (IFF)
US4595061015 - Common Stock
We assign a fundamental rating of 3 out of 10 to IFF. IFF was compared to 84 industry peers in the Chemicals industry. IFF may be in some trouble as it scores bad on both profitability and health. IFF is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year IFF was profitable.
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.
IFF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IFF has a worse Return On Assets (-7.96%) than 82.14% of its industry peers.
Looking at the Return On Equity, with a value of -16.50%, IFF is doing worse than 80.95% of the companies in the same industry.
The Return On Invested Capital of IFF (2.10%) is worse than 64.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IFF is below the industry average of 6.35%.
The 3 year average ROIC (1.88%) for IFF is below the current ROIC(2.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.96% | ||
| ROE | -16.5% | ||
| ROIC | 2.1% |
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
Looking at the Operating Margin, with a value of 6.14%, IFF is in line with its industry, outperforming 41.67% of the companies in the same industry.
IFF's Operating Margin has declined in the last couple of years.
IFF's Gross Margin of 34.27% is fine compared to the rest of the industry. IFF outperforms 72.62% of its industry peers.
IFF's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.14% | ||
| PM (TTM) | N/A | ||
| GM | 34.27% |
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.
IFF has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, IFF has more shares outstanding
The debt/assets ratio for IFF is higher compared to a year ago.
2.2 Solvency
IFF has an Altman-Z score of 1.59. 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 1.59 is on the low side compared to the rest of the industry. IFF is outperformed by 65.48% of its industry peers.
IFF has a debt to FCF ratio of 9.50. This is a negative value and a sign of low solvency as IFF would need 9.50 years to pay back of all of its debts.
IFF has a Debt to FCF ratio of 9.50. This is comparable to the rest of the industry: IFF outperforms 53.57% of its industry peers.
IFF has a Debt/Equity ratio of 0.60. This is a neutral value indicating IFF is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.60, IFF is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 9.5 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.29
WACC7.19%
2.3 Liquidity
A Current Ratio of 2.38 indicates that IFF has no problem at all paying its short term obligations.
The Current ratio of IFF (2.38) is comparable to the rest of the industry.
A Quick Ratio of 1.75 indicates that IFF should not have too much problems paying its short term obligations.
The Quick ratio of IFF (1.75) is better than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
The earnings per share for IFF have decreased by -3.94% in the last year.
Measured over the past years, IFF shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.67% on average per year.
The Revenue has decreased by -4.65% 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)-3.94%
EPS 3Y-16.32%
EPS 5Y-11.67%
EPS Q2Q%34.88%
Revenue 1Y (TTM)-4.65%
Revenue growth 3Y31.19%
Revenue growth 5Y23.61%
Sales Q2Q%-1.37%
3.2 Future
IFF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.11% yearly.
IFF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.03% yearly.
EPS Next Y28.76%
EPS Next 2Y18.44%
EPS Next 3Y15.16%
EPS Next 5Y11.11%
Revenue Next Year-1.73%
Revenue Next 2Y-0.69%
Revenue Next 3Y0.31%
Revenue Next 5Y1.03%
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
The Price/Earnings ratio is 26.68, which means the current valuation is very expensive for IFF.
The rest of the industry has a similar Price/Earnings ratio as IFF.
When comparing the Price/Earnings ratio of IFF to the average of the S&P500 Index (31.71), we can say IFF is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 22.21, the valuation of IFF can be described as rather expensive.
IFF's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. IFF is more expensive than 60.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of IFF to the average of the S&P500 Index (22.81), we can say IFF is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.68 | ||
| Fwd PE | 22.21 |
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 67.86% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as IFF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.96 | ||
| EV/EBITDA | 19.71 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IFF's earnings are expected to grow with 15.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.93
PEG (5Y)N/A
EPS Next 2Y18.44%
EPS Next 3Y15.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.53%, IFF has a reasonable but not impressive dividend return.
IFF's Dividend Yield is comparable with the industry average which is at 2.74.
IFF's Dividend Yield is slightly below the S&P500 average, which is at 2.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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 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-30.7%
EPS Next 2Y18.44%
EPS Next 3Y15.16%
INTL FLAVORS & FRAGRANCES
NYSE:IFF (10/21/2024, 5:16:27 PM)
After market: 104.07 0 (0%)104.07
-0.43 (-0.41%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap26.61B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 26.68 | ||
| Fwd PE | 22.21 | ||
| 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)0.93
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.96% | ||
| ROE | -16.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.14% | ||
| PM (TTM) | N/A | ||
| GM | 34.27% | ||
| 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 Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.75 | ||
| 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)-3.94%
EPS 3Y-16.32%
EPS 5Y
EPS Q2Q%
EPS Next Y28.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.65%
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