International Flavors Fragrances Stock Beneish M Score

IFF Stock  USD 90.82  0.11  0.12%   
This module uses fundamental data of International Flavors to approximate the value of its Beneish M Score. International Flavors M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out International Flavors Piotroski F Score and International Flavors Altman Z Score analysis.
  
At this time, International Flavors' Short Term Debt is most likely to increase significantly in the upcoming years. The International Flavors' current Long Term Debt is estimated to increase to about 9.6 B, while Debt To Equity is projected to decrease to 0.54. At this time, International Flavors' Book Value Per Share is most likely to increase significantly in the upcoming years. The International Flavors' current Operating Cash Flow Per Share is estimated to increase to 5.93, while PTB Ratio is projected to decrease to 1.34.
At this time, International Flavors' M Score is unavailable. The earnings manipulation may begin if International Flavors' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by International Flavors executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of International Flavors' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.66
Beneish M Score - Unavailable
Elasticity of Receivables

1.0

Focus
Asset Quality

1.0

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

1.56

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.0

Focus

International Flavors Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if International Flavors' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables2.2 B2.1 B
Sufficiently Up
Slightly volatile
Total Revenue12.1 B11.5 B
Sufficiently Up
Slightly volatile
Total Assets32.5 B31 B
Sufficiently Up
Slightly volatile
Total Current Assets6.6 B6.3 B
Sufficiently Up
Slightly volatile
Non Current Assets Total25.9 B24.7 B
Sufficiently Up
Slightly volatile
Property Plant Equipment5.9 B5.6 B
Sufficiently Up
Slightly volatile
Depreciation And Amortization1.2 B1.1 B
Sufficiently Up
Slightly volatile
Selling General Administrative1.9 B1.8 B
Sufficiently Up
Slightly volatile
Total Current Liabilities3.9 B3.8 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total13.2 B12.6 B
Sufficiently Up
Slightly volatile
Short Term DebtB970 M
Sufficiently Up
Slightly volatile
Long Term Debt9.6 B9.2 B
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities1.5 B1.4 B
Sufficiently Up
Slightly volatile
Long Term Investments10.4 M11 M
Notably Down
Pretty Stable
Gross Profit Margin0.50.3207
Way Up
Slightly volatile

International Flavors Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between International Flavors' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards International Flavors in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find International Flavors' degree of accounting gimmicks and manipulations.

About International Flavors Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

14.3 Billion

At this time, International Flavors' Other Operating Expenses is most likely to increase significantly in the upcoming years.

International Flavors Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as International Flavors. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables1.0B1.1B2.2B1.8B2.1B2.2B
Total Revenue5.1B5.1B11.7B12.4B11.5B12.1B
Total Assets13.3B13.6B39.7B35.4B31.0B32.5B
Total Current Assets2.9B3.1B7.0B7.4B6.3B6.6B
Net Debt3.8B3.8B10.7B10.5B10.1B10.6B
Short Term Debt424.6M678M741M597M970M1.0B
Long Term Debt4.0B3.8B10.8B10.4B9.2B9.6B
Operating Income665.3M566.5M585M1.1B(2.1B)(2.0B)
Investments25.9M(14.6M)(18M)745M496M520.8M

International Flavors ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, International Flavors' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to International Flavors' managers, analysts, and investors.
Environmental
Governance
Social

About International Flavors Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze International Flavors Fragrances's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of International Flavors using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of International Flavors Fragrances based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Currently Active Assets on Macroaxis

When determining whether International Flavors is a strong investment it is important to analyze International Flavors' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact International Flavors' future performance. For an informed investment choice regarding International Stock, refer to the following important reports:
Check out International Flavors Piotroski F Score and International Flavors Altman Z Score analysis.
You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Is Specialty Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of International Flavors. If investors know International will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about International Flavors listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.346
Dividend Share
2.01
Earnings Share
(9.07)
Revenue Per Share
44.769
Quarterly Revenue Growth
0.037
The market value of International Flavors is measured differently than its book value, which is the value of International that is recorded on the company's balance sheet. Investors also form their own opinion of International Flavors' value that differs from its market value or its book value, called intrinsic value, which is International Flavors' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because International Flavors' market value can be influenced by many factors that don't directly affect International Flavors' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between International Flavors' value and its price as these two are different measures arrived at by different means. Investors typically determine if International Flavors is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, International Flavors' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.