Latest news with #InternationalFlavors&Fragrances'
Yahoo
09-05-2025
- Business
- Yahoo
International Flavors & Fragrances' (NYSE:IFF) Dividend Will Be $0.40
The board of International Flavors & Fragrances Inc. (NYSE:IFF) has announced that it will pay a dividend on the 11th of July, with investors receiving $0.40 per share. Based on this payment, the dividend yield will be 2.2%, which is fairly typical for the industry. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible. While International Flavors & Fragrances is not profitable, it is paying out less than 75% of its free cash flow, which means that there is plenty left over for reinvestment into the business. This gives us some comfort about the level of the dividend payments. Looking forward, earnings per share is forecast to rise exponentially over the next year. Assuming the dividend continues along recent trends, we think the payout ratio will be 26%, which makes us pretty comfortable with the sustainability of the dividend. See our latest analysis for International Flavors & Fragrances The company has a long dividend track record, but it doesn't look great with cuts in the past. The annual payment during the last 10 years was $1.56 in 2015, and the most recent fiscal year payment was $1.60. Dividend payments have grown at less than 1% a year over this period. Modest growth in the dividend is good to see, but we think this is offset by historical cuts to the payments. It is hard to live on a dividend income if the company's earnings are not consistent. Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. Over the past five years, it looks as though International Flavors & Fragrances' EPS has declined at around 53% a year. Dividend payments are likely to come under some pressure unless EPS can pull out of the nosedive it is in. It's not all bad news though, as the earnings are predicted to rise over the next 12 months - we would just be a bit cautious until this becomes a long term trend. In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about International Flavors & Fragrances' payments, as there could be some issues with sustaining them into the future. The company is generating plenty of cash, which could maintain the dividend for a while, but the track record hasn't been great. Overall, we don't think this company has the makings of a good income stock. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For instance, we've picked out 1 warning sign for International Flavors & Fragrances that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
Yahoo
11-03-2025
- Business
- Yahoo
We Like International Flavors & Fragrances' (NYSE:IFF) Earnings For More Than Just Statutory Profit
Despite posting healthy earnings, International Flavors & Fragrances Inc.'s (NYSE:IFF ) stock has been quite weak. Along with the solid headline numbers, we think that investors have some reasons for optimism. See our latest analysis for International Flavors & Fragrances Importantly, our data indicates that International Flavors & Fragrances' profit was reduced by US$83m, due to unusual items, over the last year. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that's hardly a surprise given these line items are considered unusual. If International Flavors & Fragrances doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Because unusual items detracted from International Flavors & Fragrances' earnings over the last year, you could argue that we can expect an improved result in the current quarter. Because of this, we think International Flavors & Fragrances' earnings potential is at least as good as it seems, and maybe even better! And one can definitely find a positive in the fact that it made a profit this year, despite losing money last year. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. So while earnings quality is important, it's equally important to consider the risks facing International Flavors & Fragrances at this point in time. For example, International Flavors & Fragrances has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about. Today we've zoomed in on a single data point to better understand the nature of International Flavors & Fragrances' profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Sign in to access your portfolio
Yahoo
20-02-2025
- Business
- Yahoo
International Flavors & Fragrances (NYSE:IFF) Will Be Hoping To Turn Its Returns On Capital Around
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. Having said that, from a first glance at International Flavors & Fragrances (NYSE:IFF) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Analysts use this formula to calculate it for International Flavors & Fragrances: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.046 = US$1.1b ÷ (US$29b - US$4.3b) (Based on the trailing twelve months to December 2024). Thus, International Flavors & Fragrances has an ROCE of 4.6%. In absolute terms, that's a low return and it also under-performs the Chemicals industry average of 8.3%. See our latest analysis for International Flavors & Fragrances Above you can see how the current ROCE for International Flavors & Fragrances compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering International Flavors & Fragrances for free. In terms of International Flavors & Fragrances' historical ROCE movements, the trend isn't fantastic. Over the last five years, returns on capital have decreased to 4.6% from 6.1% five years ago. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line. Bringing it all together, while we're somewhat encouraged by International Flavors & Fragrances' reinvestment in its own business, we're aware that returns are shrinking. And in the last five years, the stock has given away 24% so the market doesn't look too hopeful on these trends strengthening any time soon. On the whole, we aren't too inspired by the underlying trends and we think there may be better chances of finding a multi-bagger elsewhere. On a final note, we found 3 warning signs for International Flavors & Fragrances (1 is significant) you should be aware of. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Sign in to access your portfolio
