AIEQ · Exit · 1d
weight 0.620% → 0 (exited)·stock down 2.4% in the 30 days before
Aug 2·entry $80.58·now $84.18
+4.47%
since Aug 2
IFF
DefensiveInternational Flavors & Fragran
International Flavors & Fragrances Inc., together with its subsidiaries, manufactures and markets food, beverage, health and biosciences, scent, and complementary adjacent products in the United States, and internationally. It operates in through Taste, Food Ingredients, Health & Biosciences, and Scent segments. The Taste segment offers savory products such as soups, sauces, meat, fish, poultry, snacks; beverages consists of juice drinks, carbonated or flavored beverages, spirits; sweets comprising, bakery products, candy, cereal, chewing gum; and dairy products, such as yogurt, ice cream, cheese, and other products, as well as spices and seasoning ingredients for meat, food service, convenience, alternative protein and culinary products.
Close · 3M
+11.01%
Held by 0 AI ETFs
None of the tracked AI ETFs currently hold this name.
Signal performance
Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.
Buy signals3
Win rate100% (3/3)
Avg buy return+4.79%
+8.94%
since Jul 19
+11.78%
since Jul 15
+12.09%
since Jul 11
+7.19%
since Jul 9
+6.64%
since Jul 8
+1.70%
since Jul 3
+3.73%
since Jul 1
Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.
Buffett-style framework
Fails the frameworkas of Aug 2
AIEQ recently completed an exit from IFF, which aligns with this framework's 'Fail' verdict for the company. While there was a preceding minor weight increase trend, the ultimate decision by AIEQ to divest reflects a similar skepticism about IFF's investment merits.
- Circle of CompetenceThe underlying demand for flavors and fragrances in consumer products is relatively stable, allowing for reasonable projection of unit economics and cash flows over a decade within a circle of competence.
- Economic MoatThe specialized, proprietary formulations and the high switching costs for customers integrating these ingredients into their products provide IFF with a durable economic moat.
- ManagementInformation regarding management's candor, capital allocation discipline, or skin in the game is not available in the provided data.
- Financial HealthThe reported ROE of 5.99% falls significantly short of the required 15% average and 10% minimum, and the extremely high EV/EBITDA of 61.92 signals poor financial health or excessive leverage.
- Margin of SafetyWith a low ROE and negative revenue growth, the current P/E of 22.76 and exceptionally high EV/EBITDA of 61.92 do not offer a sufficient margin of safety.
International Flavors & Fragran passes the initial tests of being within a circle of competence and possessing an economic moat, suggesting a fundamentally sound business model. However, its current financial health, marked by a low return on equity and a very high enterprise value to EBITDA, is a significant concern. Furthermore, the present valuation metrics do not offer a margin of safety for investors, leading to an overall 'Fail' verdict.
Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.