Latest news with #InternationalFlavors&FragrancesInc
Yahoo
2 days ago
- Business
- Yahoo
UBS Maintains Neutral Rating on International Flavors & Fragrances Inc. (IFF), PT $83
International Flavors & Fragrances Inc. (NYSE:IFF) is one of the . On June 9, UBS analyst Joshua Spector reiterated a Neutral rating on IFF, with a consistent target price of $83. The analyst's evaluation refers to the company's latest Pharma divestment, which has successfully lowered its net debt-to-EBITDA ratio from about 4x last year to an estimated 2.8x this year. The analyst noted that the main challenge for International Flavors & Fragrances Inc. (NYSE:IFF) is now growth rather than leverage. Specter also observed the company's performance relative to industry peers, in terms of consumer spending and the effect of GLP-1s. Spector came to the conclusion that the company's present portfolio lacks the growth drivers to outperform peer performance for now, noting the Food Ingredients division is dragging margins and growth. Therefore, the analyst believes IFF deserves a lower valuation compared to peers, given its forecasted reduced growth. A lab technician analyzing natural food protection ingredients to ensure quality products. Although IFF has experienced improved growth lately in its Taste and Scent segments compared to industry rivals, its Health/Bio segment, which includes enzymes and probiotics, has not kept up. The analyst is staying neutral for now, needing clearer signs of how IFF stacks up and how the market will grow. International Flavors & Fragrances Inc. (NYSE:IFF) is a global player in the development and marketing of innovative ingredients across food, beverage, health, scent, and pharma sectors. While we acknowledge the potential of IFF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
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
28-03-2025
- Business
- Yahoo
Shareholders in International Flavors & Fragrances (NYSE:IFF) are in the red if they invested three years ago
As an investor its worth striving to ensure your overall portfolio beats the market average. But its virtually certain that sometimes you will buy stocks that fall short of the market average returns. Unfortunately, that's been the case for longer term International Flavors & Fragrances Inc. (NYSE:IFF) shareholders, since the share price is down 40% in the last three years, falling well short of the market return of around 27%. Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. International Flavors & Fragrances became profitable within the last five years. We would usually expect to see the share price rise as a result. So given the share price is down it's worth checking some other metrics too. We think that the revenue decline over three years, at a rate of 3.3% per year, probably had some shareholders looking to sell. After all, if revenue keeps shrinking, it may be difficult to find earnings growth in the future. The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers). It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. So we recommend checking out this free report showing consensus forecasts It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for International Flavors & Fragrances the TSR over the last 3 years was -35%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence! International Flavors & Fragrances shareholders are down 7.5% for the year (even including dividends), but the market itself is up 9.5%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 1.9% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand International Flavors & Fragrances better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with International Flavors & Fragrances (at least 1 which can't be ignored) , and understanding them should be part of your investment process. International Flavors & Fragrances is not the only stock that insiders are buying. For those who like to find lesser know companies this free list of growing companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. 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
