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International Flavors & Fragrances Inc IFF

Morningstar Rating
$99.69 +1.86 (1.90%)
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Company Report

International Flavors & Fragrances Earnings: Volume Growth Spurs Profit Recovery

International Flavors & Fragrances generated solid first-quarter results. Adjusted operating EBITDA was up 20% versus the prior-year quarter, driven by volume growth and reduced unit production costs in the flavors, health and biosciences, and scent businesses, IFF's three specialty businesses. The results were in line with our thesis that IFF would see a recovery in demand in 2024 that would generate solid profit growth. Having updated our model to incorporate IFF's first-quarter results, we maintain our $130 fair value estimate and wide-moat rating.

Price vs Fair Value

IFF is trading at a 22% premium.
Price
$99.69
Fair Value
$218.00
Uncertainty
High
1-Star Price
$854.20
5-Star Price
$74.00
Economic Moat
Qhzg
Capital Allocation
Lrjylvzfv

Bulls Say, Bears Say

Bulls

As the largest specialty ingredients producer globally, IFF holds an enviable portfolio of market-leading products spanning multiple industries.

Bears

IFF overpaid for the Frutarom and DuPont nutrition and biosciences acquisitions, leading to shareholder value destruction.

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News

Trading Information

Previous Close Price
$97.83
Day Range
$97.6399.83
52-Week Range
$62.1199.83
Bid/Ask
$99.07 / $100.00
Market Cap
$25.46 Bil
Volume/Avg
1.8 Mil / 2.2 Mil

Key Statistics

Price/Earnings (Normalized)
38.50
Price/Sales
2.24
Dividend Yield (Trailing)
2.84%
Dividend Yield (Forward)
1.60%
Total Yield
2.84%

Company Profile

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.
Sector
Basic Materials
Industry
Specialty Chemicals
Stock Style Box
Mid Value
Total Number of Employees
21,500

Competitors

Valuation

Metric
IFF
NSIS B
SY1
Price/Earnings (Normalized)
38.5034.8240.17
Price/Book Value
1.788.643.94
Price/Sales
2.246.763.03
Price/Cash Flow
24.4928.0221.53
Price/Earnings
IFF
NSIS B
SY1

Financial Strength

Metric
IFF
NSIS B
SY1
Quick Ratio
0.750.761.54
Current Ratio
1.681.302.89
Interest Coverage
−5.8723.085.75
Quick Ratio
IFF
NSIS B
SY1

Profitability

Metric
IFF
NSIS B
SY1
Return on Assets (Normalized)
1.21%11.42%4.34%
Return on Equity (Normalized)
2.46%23.56%9.53%
Return on Invested Capital (Normalized)
2.46%19.08%6.39%
Return on Assets
IFF
NSIS B
SY1
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