Will International Flavors continue to eat your money?
 | By Ellen Johnson | Macroaxis Story |
In this story I am going to address all ongoing International Flavors shareholders. I will look into why despite ongoing dip, the longer-term fundamental drivers of the firm are still sound. This firm current daily volatility is 1.72 percent, with beta of 0.92 and alpha of -0.3 over S&P 500. What is International Flavors Target Price Odds to finish over Current Price? Pertaining to normal probability distribution, the odds of International Flavors to move above current price in 30 days from now is about 41.11%. The International Flavors Fragrances probability density function shows the probability of International Flavors Stock to fall within a particular range of prices over 30 days . Considering 30-days investment horizon, International Flavors has beta of 0.9235 . This indicates International Flavors Fragrances market returns are highly-sensitive to returns on the market. As the market goes up or down, International Flavors is expected to follow. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. International Flavors is significantly underperforming S&P 500.
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Reviewed by Michael Smolkin
The company has 4.55B in debt with debt to equity (D/E) ratio of 74.3 . This implies that International Flavors may be unable to create cash to meet all of its financial commitments. International Flavors dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $1.39 per share. Earning per share calculations of International Flavors is based on official Zacks consensus of 3 analysts regarding the entity future annual earnings. Given the historical accuracy of 98.56%, the future earnings per share of the company is estimated to be 5.4333 with lowest and highest values of 5.4 and 5.45 respectively. Please note that this consensus of annual earnings estimates for the stock is an estimate of EPS before non-recurring items and including employee stock options expenses. International Flavors financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of International Flavors, including all of International Flavors's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of International Flavors assets, the company is considered highly leveraged. Understanding the composition and structure of overall International Flavors debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding International Total Liabilities
International Flavors liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. International Flavors has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on International Flavors balance sheet include debt obligations and money owed to different International Flavors vendors, workers, and loan providers. Below is the chart of International short long-term liabilities accounts currently reported on its balance sheet. You can use International Flavors Fragrances financial leverage analysis tool to get a better grip on understanding its financial positionHow important is International Flavors's Liquidity
International Flavors financial leverage refers to using borrowed capital as a funding source to finance International Flavors Fragrances ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. International Flavors financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to International Flavors' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of International Flavors' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between International Flavors's total debt and its cash.
What is driving International Flavors Investor Appetite?
International Flavors price decrease over the last few months may raise some interest from investors. The Stock closed today at a share price of 130.29 on 914964.000 in trading volume. The company executives were not very successful in positioning the corporation components to exploit market volatility in March. However, diversifying your holdings with International Flavors or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.7201. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. International Flavors preserves 1.69b of gross profit. International Flavors is selling at 131.19. That is 0.58 percent down. Day high is 132.07. International Flavors Shareholders Equity USD is rather stable at the moment. International Flavors Revenues USD is increasing over the last 5 years. Additionally, International Flavors Income Tax Expense is increasing over the last 5 years. To summarize, our current buy vs. sell advice on the firm is Strong Hold. International Flavors is currently fairly valued with low chance of distress for the next two years.
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