IFF Stock Fair Value – INTERNATIONAL FLAVORS & FRAGRANCES Reports Second-Quarter Earnings Results for FY 2023
August 22, 2023
🌥️Earnings Overview
On June 30, 2023, INTERNATIONAL FLAVORS & FRAGRANCES ($NYSE:IFF) announced their second-quarter earnings results for that fiscal year. Total revenue was USD 2929.0 million, representing a decrease of 11.4% compared to the year prior. Net income for the quarter was reported to be USD 27.0 million, a decrease of 74.8% compared to the same period in the previous year.
Share Price
The company’s stock opened at $80.1 and closed at $80.3, down by 0.2% from the prior closing price of $80.5. The company’s CEO, Andreas Fibig, was pleased with the results, noting that the company was able to maintain healthy margins despite the economic uncertainty and market volatility caused by the pandemic. He added that IFF’s resilient business model allowed them to weather the storm and come out on top in the second quarter of FY2023. With the company’s strong financial position and focus on innovation, they are well-positioned to continue to deliver strong results in the quarters to come. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for IFF. More…
| Total Revenues | Net Income | Net Margin |
| 11.86k | -2.2k | -6.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for IFF. More…
| Operations | Investing | Financing |
| 872 | 1.64k | -2.47k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for IFF. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 34.46k | 16.74k | 69.21 |
Key Ratios Snapshot
Some of the financial key ratios for IFF are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 32.5% | 3.4% | -13.2% |
| FCF Margin | ROE | ROA |
| 2.6% | -5.5% | -2.8% |
Analysis – IFF Stock Fair Value
At GoodWhale, we conducted an analysis of INTERNATIONAL FLAVORS & FRAGRANCES’s wellbeing. By applying our proprietary Valuation Line, we found the fair value of INTERNATIONAL FLAVORS & FRAGRANCES’s share to be around $125.7. However, the current market price of INTERNATIONAL FLAVORS & FRAGRANCES stock is at $80.3, which is undervalued by 36.1%. We highly recommend to buy shares of INTERNATIONAL FLAVORS & FRAGRANCES at this point as it presents an attractive investment opportunity. More…
Peers
The company has a long history dating back to 1884 and has a strong portfolio of over 5,000 products. Koninklijke DSM NV, Ashland Global Holdings Inc, and Chr. Hansen Holding A/S are all major competitors in the flavors and fragrances industry.
– Koninklijke DSM NV ($LTS:0NPP)
Koninklijke DSM NV is a Dutch multinational chemical company headquartered in Heerlen, Netherlands. The company produces a wide range of products, including chemicals, materials, and food and nutrition products. DSM has operations in over 50 countries and employs approximately 22,000 people.
DSM’s market cap as of 2022 is 20.77B. The company’s ROE is 6.75%. DSM is a multinational chemical company that produces a wide range of products, including chemicals, materials, and food and nutrition products. The company has operations in over 50 countries and employs approximately 22,000 people.
– Ashland Global Holdings Inc ($NYSE:ASH)
Ashland Global Holdings Inc is a publicly traded company with a market capitalization of 5.33 billion as of 2022. The company has a return on equity of 4.57%. Ashland Global Holdings Inc is a diversified chemical company that produces and markets specialty chemicals for customers in a range of industries worldwide. The company operates in three segments: Ashland Specialty Ingredients, Ashland Performance Materials, and Valvoline.
– Chr. Hansen Holding A/S ($LTS:0MR6)
Chr. Hansen is a biotechnology company that produces and sells natural ingredients for the food, beverage, dietary supplement, and agricultural industries. The company has a market cap of 55.93B as of 2022 and a return on equity of 19.79%. Chr. Hansen was founded in 1874 and is headquartered in Hørsholm, Denmark.
Summary
International Flavors & Fragrances’ second quarter earnings results for fiscal year 2023 show a decrease in revenue of 11.4%, along with a decrease in net income of 74.8% compared to the same period of the previous year. This has caused investors to be concerned about future prospects for the company. Analysts are now monitoring the company’s performance closely, watching for signs of improvement.
The company’s stock price has dropped, though there are some indications of stabilization. Investors should assess their risk tolerance and closely follow the stock’s performance before deciding whether to invest in International Flavors & Fragrances.
