International Flavors & Fragrances Inc (NYSE:IFF) is predicted to grow its earnings per share by a robust double-digit 41.10% over the next three years. Presently, with an EPS of $4.972, we can expect an upcoming EPS of $7.016. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. View our latest analysis for International Flavors & Fragrances

What can we expect from International Flavors & Fragrances Inc (NYSE:IFF) in the future?

IFF is covered by 13 analysts who by consensus are expecting earnings to increase from today’s level of $4.972 to $7.016 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 41.10% over the next few years, which is an optimistic outlook in the near term. In the same period revenue is expected to increase from $3,211M to $3,727M and profit is predicted to escalate from $394M to $556M in the next couple of years, growing by 41.10%. Though, at the current levels of revenue and profit, margins are certainly underwhelming.

Is this similar growth to the past?

The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is excessive or whether the company continues to go from strength to strength. IFF’s earnings growth the past couple of years was 44.53% which indicates that the company’s past performance is supportive of a strong continuation. This means IFF has already proven its capacity to grow at an elevated rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.

Next Steps:

For IFF, I’ve put together three pertinent aspects you should look at:

1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

2. Valuation: What is IFF worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether IFF is currently mispriced by the market.

3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of IFF? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.