$90.81
arrow_drop_up1.13%Is IFF a Buy or Sell based on AI Analysis?
Fundamental Analysis
International Flavors & Fragrances Inc (IFF) is a company with a strong market presence, as evidenced by its high market ownership score of 41. With a solid industry ownership score of 97, IFF demonstrates significant support and trust from institutional investors. This high level of ownership suggests a favorable outlook for the company's future growth and stability. Additionally, IFF's dividend yield of 2.11% and annual dividends per share of $3.24 indicate a commitment to returning value to its shareholders. The company's stable financial performance is further reflected in its low debt-to-equity ratio of 0.74, suggesting a healthy balance sheet and financial stability. Furthermore, IFF's strong gross margin of 32.07% and return on assets of 1.13% highlight the company's efficient operations and profitability in the industry. These fundamental indicators collectively position IFF as a promising investment opportunity for investors seeking long-term growth and stability.
Positive Development
IFF has announced an unprecedented approval from the Argentine Secretary of Agriculture, Livestock, and Fisheries for the commercialization of genetically modified (GM) yeasts for grains-based bioethanol production in Argentina. This approval could potentially open up new revenue streams for the company. The company has promoted three women perfumers to vice-president perfumers, demonstrating its commitment to diversity and inclusion, which could boost its reputation and attract more customers. IFF's stock outperformed its competitors during certain trading sessions, indicating strong investor confidence in the company's performance.
Negative Development
Despite its strong sales performance in the fourth quarter of 2023, IFF's stock underperformed compared to its competitors. This could indicate a lack of confidence in the company's stock price among investors. The company's net margin is negative, indicating that it is not generating enough profit from its sales. IFF's quick ratio is 1.0154, which is below the ideal ratio of 1. This suggests that the company may have difficulties in meeting its short-term liabilities.
Technical Analysis
International Flavors & Fragrances Inc (IFF) currently has a technical rating of NEUTRAL based on various indicators such as ATR, RSI, MACD, CCI, ADX, WILLR, ROC, and STOCHRSI. The stock has a beta of 1.23, indicating moderate volatility compared to the market. The current price of the stock is $76.04, with a 52-week high of $97.49 and a 52-week low of $62.11. The stock's price has decreased by 4.93% in the last seven days and by 5.16% in the last month, reflecting a downward trend. Additionally, IFF has experienced a growth in its stock sector of Basic Materials by 28.55% in the last year, outperforming the stock market's growth of 69.96%. The company has a technical buy indicator count of 1 and a technical hold indicator count of 7 for the month, suggesting mixed signals for investors. With a cumulative multiple of 3.1 and a shares outstanding of 255.32M, IFF pays dividends and has a history of past stock splits, with the last split occurring in 1994 at a ratio of 3:1. Overall, the technical analysis of IFF indicates a neutral stance with potential opportunities for growth in the future.
Conclusion and recommendation
Based on the data provided, International Flavors & Fragrances Inc (IFF) currently has a neutral analyst recommendation. The company has a market cap of $19.41 billion and a trailing annual dividend yield of 2.11%. It has a strong industry ownership score of 97 and a sector ownership score of 97, indicating high institutional ownership. With a beta of 1.23 and a PE ratio of -7.55, IFF appears to be a volatile stock with negative earnings. However, its forward annual dividend yield is only 0.02%, which may not be attractive for income investors. Additionally, the company's return on equity is -15.83%, reflecting poor performance in generating profits from shareholder equity. In conclusion, while International Flavors & Fragrances Inc may have strong industry and sector ownership support, the company's financial performance raises concerns with negative earnings and a low forward dividend yield. Investors may want to closely monitor the company's earnings growth forecast and overall financial stability before considering an investment. With a neutral analyst recommendation and mixed financial indicators, careful analysis and due diligence are recommended before making any investment decisions in IFF.