International Flavors & Fragrances Inc

Industrials
Major Chemicals
www.iff.com

Earnings Score
Moat Score
Safety Score

Market Cap $22.67B
PE -10
Debt $9.57B
Cash $567.00M
EV $31.67B
FCF $930.00M

Earnings

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Sales & Net Margins

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Earnings	-$2.32B
EBIT	-$1.90B
ROE	-16%
ROA	-6%
FCF	$930.00M
Equity	$14.81B
Growth Stability	-515%
PE	-9.77
PEG	1.54
PB	1.53
P/FCF	24.38
P/S	1.99
Price/Cash	0.03
Debt/Equity	0.65
Debt/FCF	10.29
Net Margins	3%
Gross Margins	35%
Op. Margins	-17%
Earnings CAGR	-2%
Sales Growth YoY	4%
Sales Growth QoQ	1%
Sales CAGR	22%
FCF CAGR	6%
Equity CAGR	39%
Earnings Stability	0.04
Earnings Growth YoY	136%
Earnings Growth QoQ	-65%
Earnings CAGR 5Y	-6%

Sales CAGR 5Y	24%
FCF CAGR 5Y	2%
Equity CAGR 5Y	21%
Earnings CAGR 3Y	-3%
Sales CAGR 3Y	-3%
FCF CAGR 3Y	69%
Equity CAGR 3Y	-14%
Market Cap	$22.67B
Revenue	$11.42B
Dividend Yield	3%
Payout Ratio	-27%
Assets	$29.93B
Total Debt	$9.57B
Cash	$567.00M
Shares Outstanding	255M
EV	31.67B
Earnings Score	6%
Moat Score	26%
Safety Score	45%
Final Score	26%
Working Capital	5.21B
Current Ratio	2.62
Gross Profit	$4.00B
Shares Growth 3y	1%
Equity Growth QoQ	4%
Equity Growth YoY	-13%

Assets & ROA

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Stockholders Equity & ROE

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International Flavors & Fragrances is the largest specialty ingredients producer globally. The company sells ingredients for the food, beverage, health, household goods, personal care, and pharmaceutical industries. The company makes proprietary formulations, partnering with customers to deliver custom solutions. The nourish segment, which generates roughly half of revenue, is a leading flavor producer and also sell texturants, plant-based proteins, and other ingredients. The health and biosciences business, which generates around one fourth of revenue, is a global leader in probiotics and enzymes. IFF is also one of the leading fragrance producers in the world. The firm also sells pharmaceutical ingredients such as excipients and time-release polymers.

SEC Filings

Direct access to International Flavors & Fragrances Inc (IFF) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does International Flavors & Fragrances Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of International Flavors & Fragrances Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -2%

Stability 4%

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International Flavors & Fragrances Inc Discounted Cash Flow

Fully customizable DCF calculator online for International Flavors & Fragrances Inc.

Years

Calculation mode

= $14B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$930M	$984M	$1B	$1.1B	$1.2B	$1.2B	$1.3B	$1.4B	$1.5B	$1.6B	$1.6B	$16B
DCF		$895M	$861M	$829M	$797M	$767M	$738M	$711M	$684M	$658M	$633M	$6.3B
Value	$14B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	13%	14%	13%	9%	8%	9%	7%	2%	-15%	-22%	3%
ROA	-	16%	14%	13%	5%	5%	4%	1%	-4%	-7%	-6%
ROE	-	26%	25%	18%	6%	7%	6%	1%	-11%	-18%	-16%

Bad Net Margins (3.32%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	3.62	3.87	6.31	17.36	10.37	9.72	11.52	-108.1	11.71	10.29
Debt over Equity	0.62	0.75	0.97	0.98	0.77	0.77	0.8	0.57	0.65	0.75	0.65
Growth Stability	-	-	-	72%	90%	100%	100%	70%	-515%	-	-515%

Bad Debt/FCF ratio (10.29)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.65)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-515%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-2%	3%	9%	17%	29%	-1%	129%	7%	-8%	24%
Earnings YoY growth	-	1%	-3%	-27%	14%	35%	-20%	-26%	-793%	37%	-6%
Equity YoY growth	-	5%	2%	4%	258%	3%	2%	234%	-16%	-17%	21%
FCF YoY growth	-	-11%	23%	-36%	2%	73%	13%	100%	-110%	-975%	2%