Stock of the Day

September 4, 2023

International Flavors & Fragrances (IFF)

$79.92
-$0.22 (-0.3%)
Market Cap: $20.49B

About International Flavors & Fragrances

International Flavors & Fragrances, Inc. engages in the manufacture and supply of flavors and fragrances used in the food, beverage, personal care, and household products industries. It operates through the following segments: Nourish, Health & Biosciences, Scent and Pharma Solutions. The Nourish segment consists of legacy Taste segment combined with N&B's Food & Beverage division and the food protection business of N&B's Health & Biosciences division. The Health & Biosciences business consists of a biotechnology-driven portfolio of enzymes, food cultures, probiotics and specialty ingredients for food, home and personal care, and health and wellness applications. The Scent business creates fragrance compounds, fragrance ingredients and cosmetic ingredients that are integral elements in the world’s finest perfumes and best-known household and personal care products. The Pharma Solutions business produces a vast portfolio including cellulosics and seaweed-based pharma excipients, used to improve the functionality and delivery of active pharmaceutical ingredients, including controlled or modified drug release formulations, and enabling. The company was founded in 1833 and is headquartered in New York, NY.

International Flavors & Fragrances Bull Case

Here are some ways that investors could benefit from investing in International Flavors & Fragrances Inc.:

  • International Flavors & Fragrances Inc. reported an earnings per share (EPS) of $0.97 for the latest quarter, surpassing analysts' expectations of $0.83, indicating strong financial performance and effective management.
  • The company achieved a revenue of $2.77 billion for the quarter, exceeding analyst estimates of $2.67 billion, which reflects robust demand for its products in the specialty chemicals sector.
  • With a return on equity of 7.64%, International Flavors & Fragrances Inc. demonstrates effective use of shareholders' equity to generate profits, which is a positive indicator for potential investors.
  • Institutional investors hold a significant 96.02% of the company's stock, suggesting strong confidence in the company's future prospects and stability.
  • The current stock price is around $106.77, which is close to its 12-month high, indicating positive market sentiment and potential for further growth.

International Flavors & Fragrances Bear Case

Investors should be bearish about investing in International Flavors & Fragrances Inc. for these reasons:

  • The company has a relatively low net margin of 2.12%, which may indicate challenges in controlling costs and maximizing profitability compared to competitors.
  • Despite recent upgrades in ratings, one analyst has issued a sell rating, suggesting that there may be concerns about the stock's future performance.
  • Analysts predict an EPS of 4.35 for the current fiscal year, which may not be sufficient to drive significant stock price appreciation if market conditions do not improve.
  • Recent price target reductions by analysts, such as from $113.00 to $105.00, may indicate a cautious outlook on the stock's short-term performance.
  • The company's stock has a 12-month low of $72.94, which highlights potential volatility and risk for investors considering entry points.

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