NYSE:IFF

Stock Analysis Report

International Flavors & Fragrances

Executive Summary

International Flavors & Fragrances Inc., together with its subsidiaries, manufactures flavors and fragrances for use in various consumer products.

Rewards

Trading at 16.5% below its fair value

Earnings are forecast to grow 15.79% per year

Earnings grew by 35.2% over the past year

Pays a high and reliable dividend of 2.14%

Risk Analysis

Debt is not well covered by operating cash flow

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer with acceptable track record.


Similar Companies

Sensient Technologies

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Share Price & News

How has International Flavors & Fragrances's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IFF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

IFF

-2.4%

US Chemicals

-1.4%

US Market


1 Year Return

1.3%

IFF

-3.3%

US Chemicals

14.5%

US Market

Return vs Industry: IFF exceeded the US Chemicals industry which returned -3.3% over the past year.

Return vs Market: IFF underperformed the US Market which returned 14.5% over the past year.


Shareholder returns

IFFIndustryMarket
7 Day-1.0%-2.4%-1.4%
30 Day12.9%-2.2%1.3%
90 Day22.3%3.5%4.6%
1 Year3.6%1.3%11.7%-3.3%17.1%14.5%
3 Year19.6%12.3%31.2%6.5%45.1%35.7%
5 Year52.8%38.4%46.7%14.8%67.1%48.6%

Price Volatility Vs. Market

How volatile is International Flavors & Fragrances's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is International Flavors & Fragrances undervalued compared to its fair value and its price relative to the market?

16.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IFF ($140.02) is trading below our estimate of fair value ($167.6)

Significantly Below Fair Value: IFF is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IFF is poor value based on its PE Ratio (40.8x) compared to the Chemicals industry average (20.1x).

PE vs Market: IFF is poor value based on its PE Ratio (40.8x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: IFF is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: IFF is overvalued based on its PB Ratio (2.5x) compared to the US Chemicals industry average (2.1x).


Next Steps

Future Growth

How is International Flavors & Fragrances forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IFF's forecast earnings growth (15.8% per year) is above the savings rate (1.7%).

Earnings vs Market: IFF's earnings (15.8% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: IFF's earnings are forecast to grow, but not significantly.

Revenue vs Market: IFF's revenue (5.2% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: IFF's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IFF's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

How has International Flavors & Fragrances performed over the past 5 years?

-6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IFF has high quality earnings.

Growing Profit Margin: IFF's current net profit margins (7.6%) are lower than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: IFF's earnings have declined by -6.1% per year over the past 5 years.

Accelerating Growth: IFF's earnings growth over the past year (35.2%) exceeds its 5-year average (-6.1% per year).

Earnings vs Industry: IFF earnings growth over the past year (35.2%) exceeded the Chemicals industry -17%.


Return on Equity

High ROE: IFF's Return on Equity (6.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is International Flavors & Fragrances's financial position?


Financial Position Analysis

Short Term Liabilities: IFF's short term assets ($2.9B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: IFF's short term assets ($2.9B) do not cover its long term liabilities ($5.4B).


Debt to Equity History and Analysis

Debt Level: IFF's debt to equity ratio (71.1%) is considered high.

Reducing Debt: IFF's debt to equity ratio has increased from 57.5% to 71.1% over the past 5 years.

Debt Coverage: IFF's debt is not well covered by operating cash flow (14.1%).

Interest Coverage: IFF's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet

Inventory Level: IFF has a high level of physical assets or inventory.

Debt Coverage by Assets: IFF's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is International Flavors & Fragrances's current dividend yield, its reliability and sustainability?

2.14%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years2.3%

Current dividend yield vs market & industry

Notable Dividend: IFF's dividend (2.14%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: IFF's dividend (2.14%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: IFF's dividends per share have been stable in the past 10 years.

Growing Dividend: IFF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (85.7%), IFF's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IFF's dividends in 3 years are forecast to be covered by earnings (63.4% payout ratio).


Next Steps

Management

What is the CEO of International Flavors & Fragrances's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Andreas Fibig (57yo)

5.3yrs

Tenure

US$8,521,940

Compensation

Mr. Andreas Fibig serves as Director of Novo Nordisk A/S since March 22, 2018. He has been the Chief Executive Officer of International Flavors & Fragrances Inc. (IFF) since September 1, 2014.. He has been ...


CEO Compensation Analysis

Compensation vs Market: Andreas's total compensation ($USD8.52M) is about average for companies of similar size in the US market ($USD11.01M).

Compensation vs Earnings: Andreas's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.3yrs

Average Tenure

55yo

Average Age

Experienced Management: IFF's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

68yo

Average Age

Experienced Board: IFF's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 40.3%.


Management Team

  • Nicolas Mirzayantz (56yo)

    Divisional Chief Executive Officer of Scent

    • Tenure: 15.2yrs
    • Compensation: US$2.09m
  • Anne Chwat (60yo)

    Executive VP

    • Tenure: 8.7yrs
    • Compensation: US$1.76m
  • Francisco Fortanet (50yo)

    Executive Vice President of Operations

    • Tenure: 4.3yrs
  • Rich O'Leary (59yo)

    Executive VP & CFO

    • Tenure: 3.2yrs
    • Compensation: US$2.06m
  • Andreas Fibig (57yo)

    Chairman & CEO

    • Tenure: 5.3yrs
    • Compensation: US$8.52m
  • Michael DeVeau

    Vice President of Corporate Strategy

    • Tenure: 0yrs
  • Matthias Haeni (53yo)

    Divisional Chief Executive Officer of Taste

    • Tenure: 5.7yrs
    • Compensation: US$4.29m
  • Gregory Yep (54yo)

    Executive VP and Chief Global Scientific & Sustainability Officer

    • Tenure: 3.5yrs
  • Susana Suarez-Gonzalez (49yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 3.1yrs
  • Vic Verma

    Senior VP & Chief Information Officer

    • Tenure: 0.6yrs

Board Members

  • Dale Morrison (70yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$262.60k
  • Katherine Hudson (72yo)

    Independent Director

    • Tenure: 11.2yrs
    • Compensation: US$242.60k
  • Marcello Bottoli (57yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$242.60k
  • Christina Gold (71yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$255.15k
  • Michael Ducker (65yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$232.60k
  • John Ferraro (63yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$260.10k
  • Linda Buck (72yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$232.60k
  • Roger Ferguson (68yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$247.60k
  • Andreas Fibig (57yo)

    Chairman & CEO

    • Tenure: 5.3yrs
    • Compensation: US$8.52m
  • Shekhar Mitra

    Member of Scientific Advisory Board

    • Tenure: 4.8yrs

Company Information

International Flavors & Fragrances Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: International Flavors & Fragrances Inc.
  • Ticker: IFF
  • Exchange: NYSE
  • Founded: 1833
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$15.077b
  • Shares outstanding: 106.78m
  • Website: https://www.iff.com

Number of Employees


Location

  • International Flavors & Fragrances Inc.
  • 521 West 57th Street
  • New York
  • New York
  • 10019
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IFFNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
IFFDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
IFFENXTPA (Euronext Paris)YesCommon StockFREURJan 1968
0RF3LSE (London Stock Exchange)YesCommon StockGBEURJan 1968
IFFTASE (The Tel-Aviv Stock Exchange)YesCommon StockILILSJan 1968

Biography

International Flavors & Fragrances Inc., together with its subsidiaries, manufactures flavors and fragrances for use in various consumer products. It operates through three segments: Taste, Scent, and Frut ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/04 23:41
End of Day Share Price2019/12/04 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.