International Flavors & Fragrances (IFF) AI Stock Analysis

• Market Cap: $20.25B
• Dividend Yield: 2.17%
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 83.4
• Beta (1Y): 0.68
• Revenue Growth: 0.68%
• EPS Growth: 66.69%
• Country: US
• Employees: 22,400
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): 1.20
• Shares Outstanding: 255,735,000
• 10 Day Avg. Volume: 1,356,940
• 30 Day Avg. Volume: 1,846,505
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.48
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $90.31
• Price Target Upside: 21.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

IFF's stock score reflects a mix of modest financial recovery, bearish technical indicators, and valuation challenges. The positive earnings call highlights segment growth and strategic divestitures, but concerns in the Food Ingredients segment and macroeconomic complexities weigh on the overall score.

Positive Factors

Debt Management

Net debt/EBITDA is estimated to decline to 2.7x by the end of the year, indicating improved financial health.

Financial Performance

New products will likely key sales growth, and productivity gains and mix improvements will expand margins.

Valuation

With the stock trading at just 12x pro forma 2025E EV/EBITDA, and a -15% discount to Specialty Ingredients peers, the valuation disconnect is seen as an opportunity.

Negative Factors

Biofuels Policy

Proposed elimination of credit for bio-based diesel and potential for reduced ethanol exports could reduce crop demand.

Demand Challenges

Demand for consumer goods could remain challenged but we are encouraged by a more muted discussion about price hikes by CPGs recently.

Foreign Exchange Impact

The guidance includes a 6% EBITDA headwind from foreign exchange, which is larger than expected.

International Flavors & Fragrances Business Overview & Revenue Model

Company Description

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. It operates through Nourish, Scent, Health & Biosciences, and Pharma Solutions segments. The Nourish segment offers natural and plant-based specialty food ingredients, such as flavor compounds, and savory solutions and inclusions. It also provides natural food protection ingredients consist of natural antioxidants and anti-microbials as well as beverages, sweets , and dairy products. The Scent segment provides fragrance compounds, which include fine fragrances comprising perfumes and colognes, as well as consumer fragrances; fragrance ingredients comprising synthetic and natural ingredients that could be combined with other materials to create fragrance and consumer compounds; and cosmetic active ingredients consisting of active and functional ingredients, botanicals, and delivery systems to support its customers' cosmetic and personal care product lines. The Health & Biosciences segment develops and produces enzymes, food cultures, probiotics, and specialty ingredients. The Pharma Solutions segment produces and sells cellulosics and seaweed-based pharma excipients. The company sells its products primarily to manufacturers of perfumes and cosmetics, hair and other personal care products, soaps and detergents, cleaning products, dairy, meat and other processed foods, beverages, snacks and savory foods, sweet and baked goods, dietary supplements, infant and elderly nutrition, functional food, and pharmaceutical excipients and oral care products. International Flavors & Fragrances Inc. was founded in 1833 and is headquartered in New York, New York.

How the Company Makes Money

IFF makes money through its diverse portfolio of flavors, fragrances, and specialty ingredients, which are sold to manufacturers of consumer products worldwide. Its revenue model is based on the sale of these compounds to industries such as food and beverage, where it provides flavor solutions, and the personal care and household products sectors, where it offers fragrance and cosmetic solutions. Key revenue streams include long-term contracts with major consumer goods companies, proprietary product formulations, and innovation in sustainable and natural ingredients. Additionally, strategic partnerships and acquisitions enhance its market presence and technological capabilities, contributing significantly to its earnings.

International Flavors & Fragrances Financial Statement Overview

Summary

IFF shows signs of recovery with improved profitability and debt management. However, revenue stagnation and cash flow challenges present potential risks. The company is stabilizing post losses, but growth remains a concern.

Income Statement

The income statement reveals mixed performance. Gross profit margin has improved from 32.06% in 2023 to 35.91% in 2024, indicating better cost management. However, with a net profit margin of 2.12% in 2024, the company still struggles with profitability, though this is an improvement from a significant net loss in 2023. Revenue has slightly increased from $11.48B in 2023 to $11.48B in 2024, showing stagnation. The EBIT margin improved to 6.67% in 2024 from 5.33% in 2023, indicating operational improvements.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.69 in 2024, reduced from 0.74 in 2023, indicating prudent debt management. Return on equity improved to 1.75% in 2024 from a negative in 2023, showing recovery potential. However, the equity ratio decreased to 48.39% in 2024 from 47.17% in 2023, suggesting a slight weakening in equity financing relative to assets.

Cash Flow

Cash flow analysis shows a decrease in free cash flow from $936M in 2023 to $607M in 2024, indicating challenges in cash generation. The operating cash flow to net income ratio improved, reflecting efficient cash generation relative to profit, but free cash flow to net income remains pressured by capital expenditures.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.48B	11.48B	12.44B	11.66B	5.08B
	Gross Profit
4.12B	3.68B	4.15B	3.73B	2.09B
	EBIT
766.00M	612.00M	1.09B	585.00M	566.48M
	EBITDA
1.60B	-996.00M	-110.00M	1.80B	897.67M
	Net Income Common Stockholders
243.00M	-2.56B	-1.84B	268.00M	365.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
469.00M	703.00M	493.00M	715.00M	656.84M
	Total Assets
28.67B	30.98B	35.39B	39.68B	13.56B
	Total Debt
9.51B	10.80B	10.97B	11.40B	4.41B
	Net Debt
9.04B	10.10B	10.48B	10.69B	3.76B
	Total Liabilities
14.76B	16.34B	17.60B	18.45B	7.14B
	Stockholders Equity
13.88B	14.61B	17.73B	21.12B	6.32B
Cash Flow		Free Cash Flow
607.00M	936.00M	-161.00M	1.04B	522.30M
	Operating Cash Flow
1.07B	1.44B	345.00M	1.44B	714.10M
	Investing Cash Flow
326.00M	574.00M	745.00M	-18.00M	-187.46M
	Financing Cash Flow
-1.61B	-1.85B	-1.18B	-1.30B	-511.57M

International Flavors & Fragrances Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 74.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IFF, the sentiment is Negative. The current price of 74.08 is below the 20-day moving average (MA) of 75.27, below the 50-day MA of 76.97, and below the 200-day MA of 88.88, indicating a bearish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 43.78 is Neutral, neither overbought nor oversold. The STOCH value of 34.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IFF.

International Flavors & Fragrances Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SXT	74 Outperform	$4.02B	31.01	11.87%	1.74%	6.30%	41.01%
RPM	69 Neutral	$13.97B	22.02	25.53%	1.82%	-0.61%	15.06%
EMN	68 Neutral	$8.79B	9.71	16.16%	4.36%	2.78%	1.50%
LYB	63 Neutral	$18.76B	18.05	7.19%	9.64%	-6.53%	-50.08%
PPG	63 Neutral	$24.64B	18.67	18.47%	2.52%	-7.67%	-0.58%
IFF	55 Neutral	$20.25B	83.39	-6.08%	2.17%	0.68%	66.69%
Sector *	49 Neutral	$1.94B	-1.23	-21.28%	3.73%	1.19%	-29.73%

International Flavors & Fragrances Corporate Events

International Flavors & Fragrances Holds Annual Shareholder Meeting

On May 1, 2025, International Flavors & Fragrances Inc. held its Annual Meeting of Shareholders where ten directors were elected, PricewaterhouseCoopers LLP was ratified as the independent auditor for 2025, and executive compensation was approved. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

Spark’s Take on IFF Stock

According to Spark, TipRanks’ AI Analyst, IFF is a Neutral.

IFF’s overall stock score reflects its recovery trajectory, with improved profitability and debt management. However, the stock is currently experiencing bearish technical signals and appears overvalued, leading to a tempered outlook despite positive elements from recent earnings.

To see Spark’s full report on IFF stock, click here.

International Flavors & Fragrances Reorganizes Business Segments

In 2025, International Flavors & Fragrances Inc. reorganized its internal structure, affecting how resources are allocated and financial performance is assessed. This led to the separation of its former Nourish segment into two new segments: Taste and Food Ingredients. The reorganization aims to align with the company’s updated operating model and improve investor transparency by recasting 2024 financial data to reflect these changes. The new reportable segments as of Q1 2025 are Taste, Food Ingredients, Health & Biosciences, Scent, and Pharma Solutions.

Spark’s Take on IFF Stock

According to Spark, TipRanks’ AI Analyst, IFF is a Neutral.

IFF’s overall stock score reflects its recovery trajectory, with improved profitability and debt management. However, the stock is currently experiencing bearish technical signals and appears overvalued, leading to a tempered outlook despite positive elements from recent earnings.

To see Spark’s full report on IFF stock, click here.

IFF Executive Vice President Jennifer Johnson Resigns

On March 12, 2025, Jennifer Johnson, the Executive Vice President, General Counsel, and Corporate Secretary of IFF, announced her resignation. She will remain with the company until July 1, 2025, to facilitate a smooth transition, and her departure is considered a qualifying event under IFF’s executive severance policy.

International Flavors & Fragrances Announces Leadership Change

On February 20, 2025, International Flavors & Fragrances Inc. announced the upcoming departure of Simon Herriott, President of Health & Biosciences, effective March 31, 2025. Leticia Goncalves Lourenço will succeed him as President of the Health & Biosciences division starting March 1, 2025, marking a significant leadership change within the company.