Why International Flavors & Fragrances Inc. (NYSE:IFF) Could Be Worth Watching

Today we're going to take a look at the well-established International Flavors & Fragrances Inc. (NYSE:IFF). The company's stock saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. The company is now trading at yearly-high levels following the recent surge in its share price. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at International Flavors & Fragrances’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for International Flavors & Fragrances

Is International Flavors & Fragrances Still Cheap?

According to our valuation model, International Flavors & Fragrances seems to be fairly priced at around 8.47% above our intrinsic value, which means if you buy International Flavors & Fragrances today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $88.75, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that International Flavors & Fragrances’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from International Flavors & Fragrances?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of International Flavors & Fragrances, it is expected to deliver a relatively unexciting top-line growth of 2.7% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? IFF’s future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on IFF, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into International Flavors & Fragrances, you'd also look into what risks it is currently facing. For instance, we've identified 2 warning signs for International Flavors & Fragrances (1 is a bit concerning) you should be familiar with.

If you are no longer interested in International Flavors & Fragrances, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com