International Flavors & Fragrances Inc
IFF
Industrial Organic Chemicals
Mkt Cap
$24.26BPE
-9.71Debt
$11.45BCash
$771MEV
$34.93BFCF
$965MP/E Ratio
-9.71Debt
$11.45BCash
$771MEV
$34.93BFCF
$965MCharts data: {"Earnings":[{"time":"2014-12-30","value":414543000},{"time":"2015-12-30","value":419247000},{"time":"2016-12-30","value":405031000},{"time":"2017-12-30","value":295665000},{"time":"2018-12-30","value":337302000},{"time":"2019-12-30","value":455873000},{"time":"2020-12-30","value":363228000},{"time":"2021-12-30","value":270000000},{"time":"2022-12-30","value":-1871000000},{"time":"2023-12-30","value":-2567000000}],"Sales":[{"time":"2014-12-30","value":3088533000},{"time":"2015-12-30","value":3023189000},{"time":"2016-12-30","value":3116350000},{"time":"2017-12-30","value":3398719000},{"time":"2018-12-30","value":3977539000},{"time":"2019-12-30","value":5140084000},{"time":"2020-12-30","value":5084239000},{"time":"2021-12-30","value":11656000000},{"time":"2022-12-30","value":12440000000},{"time":"2023-12-30","value":11479000000}],"Net Margins":[{"time":"2014-12-30","value":0.1342200326174271},{"time":"2015-12-30","value":0.13867707245560895},{"time":"2016-12-30","value":0.12996967606334334},{"time":"2017-12-30","value":0.08699307003609301},{"time":"2018-12-30","value":0.08480168264849194},{"time":"2019-12-30","value":0.08868979573096471},{"time":"2020-12-30","value":0.0714419601438878},{"time":"2021-12-30","value":0.02316403568977351},{"time":"2022-12-30","value":-0.15040192926045015},{"time":"2023-12-30","value":-0.22362575137207075}],"Assets":[{"time":"2014-12-30","value":3494621000},{"time":"2015-12-30","value":3721454000},{"time":"2016-12-30","value":4016984000},{"time":"2017-12-30","value":4598926000},{"time":"2018-12-30","value":12889395000},{"time":"2019-12-30","value":13287411000},{"time":"2020-12-30","value":13555671000},{"time":"2021-12-30","value":39658000000},{"time":"2022-12-30","value":35407000000},{"time":"2023-12-30","value":30978000000}],"Stockholders Equity":[{"time":"2014-12-30","value":1522689000},{"time":"2015-12-30","value":1594990000},{"time":"2016-12-30","value":1631134000},{"time":"2017-12-30","value":1689294000},{"time":"2018-12-30","value":6043374000},{"time":"2019-12-30","value":6229548000},{"time":"2020-12-30","value":6323035000},{"time":"2021-12-30","value":21117000000},{"time":"2022-12-30","value":17714000000},{"time":"2023-12-30","value":14642000000}],"ROE":[{"time":"2014-12-30","value":0.2722440367008627},{"time":"2015-12-30","value":0.26285243167668765},{"time":"2016-12-30","value":0.24831252367984483},{"time":"2017-12-30","value":0.1750228201840532},{"time":"2018-12-30","value":0.05581352403475277},{"time":"2019-12-30","value":0.07317914558166981},{"time":"2020-12-30","value":0.057445198389697354},{"time":"2021-12-30","value":0.012785907089075153},{"time":"2022-12-30","value":-0.10562267133340861},{"time":"2023-12-30","value":-0.1753175795656331}],"ROA":[{"time":"2014-12-30","value":0.1702982955805508},{"time":"2015-12-30","value":0.15809600226148166},{"time":"2016-12-30","value":0.14356691487942197},{"time":"2017-12-30","value":0.13098884391703627},{"time":"2018-12-30","value":0.04529941087227135},{"time":"2019-12-30","value":0.052355797528954286},{"time":"2020-12-30","value":0.04228289400059945},{"time":"2021-12-30","value":0.01475112209390287},{"time":"2022-12-30","value":-0.03745022170757195},{"time":"2023-12-30","value":-0.0681128542836852}]}
International Flavors & Fragrances Inc., together with its subsidiaries, manufactures and sells cosmetic active and natural health ingredients for use in various consumer products in Europe, Africa, the Middle East, Greater Asia, North America, and Latin America. It operates through four segments: Nourish, Scent, Health & Biosciences, and Pharma Solutions. The Nourish segment offers natural and plant-based specialty food ingredients, such as flavor compounds; savory products that includes soups, sauces, meat, fish, poultry, snacks, etc.; beverages, such as juice drinks, carbonated or flavored beverages, spirits, etc.; sweets that includes bakery products, candy, cereal, chewing gum, etc.; and dairy products, such as yogurt, ice cream, cheese, etc. It also provides natural food protection ingredients consist of natural antioxidants and anti-microbials. Its Scent segment provides fragrance compounds, which include fine fragrances comprising perfumes and colognes, as well as consumer fragrances; fragrance ingredients comprising synthetic and natural ingredients that could be combined with other materials to create fragrance and consumer compounds; and cosmetic active ingredients consisting of active and functional ingredients, and delivery systems to support its customers' cosmetic and personal care product lines. The Health & Biosciences segment develops and produces enzymes, food cultures, probiotics, and specialty ingredients for food and non-food applications. Its Pharma Solutions segment produces and sells cellulosics and seaweed-based pharma excipients. The company sells its products primarily to manufacturers of perfumes and cosmetics, hair and other personal care products, soaps and detergents, cleaning products, dairy, meat and other processed foods, beverages, snacks and savory foods, sweet and baked goods, dietary supplements, infant and elderly nutrition, functional food, and pharmaceutical excipients and oral care products. International Flavors & Fragrances Inc. was founded in 1833 and is headquartered in New York, New York.
DCF
Discounted Cash Flow Valuation of International Flavors & Fragrances Inc
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $965M | $998.4M | $1.033B | $1.069B | $1.106B | $1.144B | $1.183B | $1.224B | $1.267B | $1.31B | $1.356B | $13.56B |
| DCF | $868.1M | $781M | $702.6M | $632.1M | $568.7M | $511.6M | $460.2M | $414M | $372.5M | $335.1M | $3.351B | |
| Value | $8.997B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth -11%
Earnings Stability 3.5%
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 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 14% | 13% | 8.7% | 8.5% | 8.9% | 7.1% | 2.3% | -15% | -22% | -22% |
| ROA | 16% | 14% | 13% | 4.5% | 5.2% | 4.2% | 1.5% | -3.7% | -6.8% | -6.7% |
| ROE | 26% | 25% | 18% | 5.6% | 7.3% | 5.7% | 1.3% | -11% | -18% | -17% |
What is the average Net Margin?
The average Net Margin over the past 5 years is -1.77%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -6.59%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +0.82%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -2.47%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is -1.36%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -4.96%.
Safety & Stabiliy
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 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 3.62 | 3.87 | 6.31 | 17.36 | 10.37 | 9.72 | 11.52 | -108.10 | 11.71 | 11.86 |
| Debt Equity | 0.75 | 0.97 | 0.98 | 0.77 | 0.77 | 0.80 | 0.57 | 0.65 | 0.75 | 0.80 |
| MIN | ||||||||||
| Graham Stability | - | - | 72% | 90% | 100% | 100% | 70% | -520% | - | -520% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 11.86.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -10.91.
What is the Graham’s Stability?
Graham’s Stability measure stands at -5.15.
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 | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 20% | 24% | 31% | -7.7% | 3.5% |
| Net Income | - | - | - | - | -1.9% |
| Stockholders Equity | 37% | 19% | 32% | -17% | 1% |
| FCF | 13% | 28% | 21% | - | 15% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +23.61%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +3.51%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -1.86%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +19.36%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +1.02%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +28.47%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +15.09%.