International Flavors Price To Book vs. Return On Asset

IFF Stock  EUR 86.62  0.04  0.05%   
Based on International Flavors' profitability indicators, International Flavors Fragrances may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in December. Profitability indicators assess International Flavors' ability to earn profits and add value for shareholders.
For International Flavors profitability analysis, we use financial ratios and fundamental drivers that measure the ability of International Flavors to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well International Flavors Fragrances utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between International Flavors's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of International Flavors Fragrances over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
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.

International Flavors Return On Asset vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining International Flavors's current stock value. Our valuation model uses many indicators to compare International Flavors value to that of its competitors to determine the firm's financial worth.
International Flavors Fragrances is rated second overall in price to book category among its peers. It is currently regarded as number one stock in return on asset category among its peers reporting about  0.01  of Return On Asset per Price To Book. The ratio of Price To Book to Return On Asset for International Flavors Fragrances is roughly  90.45 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the International Flavors' earnings, one of the primary drivers of an investment's value.

International Return On Asset vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

International Flavors

P/B

 = 

MV Per Share

BV Per Share

 = 
1.60 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

International Flavors

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0177
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

International Return On Asset Comparison

International Flavors is currently under evaluation in return on asset category among its peers.

International Flavors Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in International Flavors, profitability is also one of the essential criteria for including it into their portfolios because, without profit, International Flavors will eventually generate negative long term returns. The profitability progress is the general direction of International Flavors' change in net profit over the period of time. It can combine multiple indicators of International Flavors, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
International Flavors Fragrances Inc., together with its subsidiaries, manufactures and sells cosmetic active and natural health ingredients for use in various consumer products in Europe, Africa, the Middle East, Greater Asia, North America, and Latin America. International Flavors Fragrances Inc. was founded in 1833 and is headquartered in New York, New York. INTL FLAVORSFRAG operates under Specialty Chemicals classification in Germany and is traded on Frankfurt Stock Exchange. It employs 13700 people.

International Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on International Flavors. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of International Flavors position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the International Flavors' important profitability drivers and their relationship over time.

Use International Flavors in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if International Flavors position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in International Flavors will appreciate offsetting losses from the drop in the long position's value.

International Flavors Pair Trading

International Flavors Fragrances Pair Trading Analysis

The ability to find closely correlated positions to International Flavors could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace International Flavors when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back International Flavors - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling International Flavors Fragrances to buy it.
The correlation of International Flavors is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as International Flavors moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if International Flavors moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for International Flavors can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your International Flavors position

In addition to having International Flavors in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Housewares Thematic Idea Now

Housewares
Housewares Theme
Companies making housewares accessories and providing houseware services. The Housewares theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Housewares Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in International Stock

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 Risk vs Return Analysis.
You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
To fully project International Flavors' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of International Flavors at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include International Flavors' income statement, its balance sheet, and the statement of cash flows.
Potential International Flavors investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although International Flavors investors may work on each financial statement separately, they are all related. The changes in International Flavors's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on International Flavors's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.