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International Flavors & Fragrances (IFF)
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International Flavors & Fragrances (IFF) AI Stock Analysis

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International Flavors & Fragrances

(NYSE:IFF)

Rating:54Neutral
Price Target:
$76.00
â–²(3.19%Upside)
IFF's overall stock score reflects significant financial performance challenges, primarily due to profitability and high leverage concerns. Despite this, the company shows potential with solid earnings growth and strategic improvements, such as the successful divestiture of Pharma Solutions. Technical analysis indicates a bearish trend, and valuation metrics highlight ongoing risks. Positive developments from the earnings call and corporate events provide some optimism but are countered by macroeconomic uncertainties and valuation challenges.
Positive Factors
Financial Performance
IFF has delivered six sequential quarterly beats compared to consensus, indicating strong performance and consistency.
Growth Prospects
IFF is expected to grow at three times the US Consumer Staples LFL levels, supported by a diversified customer footprint, innovation, and regulatory reformulation tailwinds.
Negative Factors
Earnings Impact
Factors such as oil prices, FX volatility, and tariff changes could impact IFF's earnings and growth potential.
Market Challenges
IFF's share price tumbled following comments about potential pre-buying and risk of trading softening due to the mixed market/macro backdrop.

International Flavors & Fragrances (IFF) vs. SPDR S&P 500 ETF (SPY)

International Flavors & Fragrances Business Overview & Revenue Model

Company DescriptionInternational Flavors & Fragrances (IFF) is a leading innovator in the creation of flavors, fragrances, and specialty ingredients for a variety of consumer goods. Operating within the sectors of food, beverages, personal care, and household products, IFF serves a diverse global clientele. The company combines the latest in scientific research with consumer insights to deliver tailored solutions that enhance the sensory experiences of products.
How the Company Makes MoneyIFF generates revenue primarily through the sale of its flavors and fragrances, which are used in a wide range of consumer products, including food and beverages, beauty and personal care items, and household goods. The company offers these products to manufacturers looking to enhance taste, scent, and overall consumer appeal. Additionally, IFF's specialty ingredients division provides high-performance compounds used in health and wellness products. Key revenue streams include long-term contracts and partnerships with major global brands that rely on IFF for consistent and innovative flavor and fragrance solutions. The company's earnings are bolstered by its continuous investment in research and development, allowing it to stay at the forefront of industry trends and maintain a competitive edge.

International Flavors & Fragrances Key Performance Indicators (KPIs)

Any
Any
Adjusted Operating EBITDA by Segment
Adjusted Operating EBITDA by Segment
Shows the profitability of each segment after removing non-recurring items, offering a clearer view of operational efficiency and segment performance.
Chart InsightsIFF's Taste segment, which had been dormant since 2021, showed a resurgence in 2025 with a 7% year-over-year increase, driven by volume growth and favorable pricing. Meanwhile, the Nourish segment's recent volatility suggests strategic adjustments, while Health and Biosciences and Scent segments maintain steady growth. The successful divestiture of Pharma Solutions is expected to strengthen IFF's capital structure. Despite macroeconomic challenges, including tariff complexities, IFF remains optimistic about achieving 5% to 10% EBITDA growth for the full year, supported by broad-based segment performance.
Data provided by:Main Street Data

International Flavors & Fragrances Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: -6.51%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
IFF had a strong start to 2025 with solid growth in key segments and successful strategic divestitures. However, challenges remain in the Food Ingredients segment, and macroeconomic and tariff-related complexities could impact future performance.
Q1-2025 Updates
Positive Updates
Solid Start to Fiscal Year 2025
IFF reported a 3% comparable currency neutral sales growth to $2.8 billion for Q1 2025, driven by strong volume growth across most business segments including Taste, Pharma Solutions, Scent, and Health & Biosciences.
EBITDA and Margin Expansion
Adjusted operating EBITDA increased by 9% on a comparable currency neutral basis to $578 million, with the EBITDA margin rising over 120 basis points to 20.3%, marking the fourth consecutive quarter of margin expansion.
Successful Divestiture of Pharma Solutions
IFF completed the divestiture of its Pharma Solutions segment to Roquette two months ahead of schedule, achieving a net debt to EBITDA ratio below 3 times.
Taste Segment Performance
The Taste segment achieved a 7% year-over-year increase on a comparable currency neutral basis, with strong profitability driven by volume growth, favorable net pricing, and productivity gains.
Negative Updates
Volume Decline in Food Ingredients
Volume declined in the Food Ingredients segment, primarily due to weaker performance in protein solutions and planned lower pectin sales as the company shifted focus to higher-margin businesses.
Macroeconomic and Tariff Challenges
IFF faces challenges from global tariffs, particularly those impacting China, which could introduce complexity to supply chains and cost structures, with exposure of over $100 million for 2025.
Company Guidance
During the first quarter of 2025, IFF reported solid growth with a 3% increase in comparable currency-neutral sales, reaching approximately $2.8 billion. The company achieved a 9% increase in comparable currency-neutral adjusted operating EBITDA, totaling $578 million, and an expansion of the adjusted operating EBITDA margin by 120 basis points to 20.3%. This performance was driven by broad-based growth across key segments, including Taste, Pharma Solutions, Scent, and Health & Biosciences, while Food Ingredients experienced a decline due to strategic shifts and capacity limitations. Despite macroeconomic uncertainties, IFF maintains its guidance for the full year, expecting sales between $10.6 billion and $10.9 billion, representing 1% to 4% currency-neutral growth, and adjusted operating EBITDA ranging from $2 billion to $2.15 billion, signifying 5% to 10% growth on a currency-neutral basis. The company successfully completed the divestiture of Pharma Solutions, strengthening its capital structure by achieving a net debt to credit-adjusted EBITDA ratio below 3 times.

International Flavors & Fragrances Financial Statement Overview

Summary
International Flavors & Fragrances faces significant profitability challenges, evidenced by negative net income and declining margins. While the company maintains a balanced asset structure, its high leverage presents potential risks. Cash flow generation remains a positive aspect but needs improvement to support growth and reduce debt.
Income Statement
40
Negative
IFF's revenue has been stagnant with no significant growth observed, resulting in a lack of revenue growth. The gross profit margin remains moderate, but the net profit margin is negative due to substantial losses in the TTM (Trailing-Twelve-Months) period, indicating profitability challenges. The negative EBIT margin highlights issues with operational profitability, and the EBITDA margin has declined, reflecting inefficiencies.
Balance Sheet
55
Neutral
IFF maintains a moderate equity ratio, suggesting a balanced asset financing structure. However, the debt-to-equity ratio is relatively high, indicating significant leverage which poses a risk if not managed properly. The ROE is negative, reflecting the company's struggle to generate profit from shareholders' equity.
Cash Flow
50
Neutral
The cash flow situation is mixed; while operating cash flow remains positive, the free cash flow growth rate has seen a decline. The operating cash flow to net income ratio is robust, indicating good cash generation relative to net income losses. However, free cash flow to net income ratio shows the impact of capital expenditures on cash availability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.48B11.48B12.44B11.66B5.08B
Gross Profit4.12B3.68B4.15B3.73B2.09B
EBITDA1.60B-996.00M-110.00M1.80B897.67M
Net Income243.00M-2.56B-1.84B268.00M365.00M
Balance Sheet
Total Assets28.67B30.98B35.39B39.68B13.56B
Cash, Cash Equivalents and Short-Term Investments469.00M703.00M493.00M715.00M656.84M
Total Debt9.59B10.80B10.97B11.40B4.41B
Total Liabilities14.76B16.34B17.60B18.45B7.14B
Stockholders Equity13.88B14.61B17.73B21.12B6.32B
Cash Flow
Free Cash Flow607.00M936.00M-161.00M1.04B522.30M
Operating Cash Flow1.07B1.44B345.00M1.44B714.10M
Investing Cash Flow326.00M574.00M745.00M-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 Price73.65
Price Trends
50DMA
75.79
Negative
100DMA
76.31
Negative
200DMA
83.29
Negative
Market Momentum
MACD
-0.16
Positive
RSI
42.14
Neutral
STOCH
33.18
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 73.65 is below the 20-day moving average (MA) of 75.02, below the 50-day MA of 75.79, and below the 200-day MA of 83.29, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 42.14 is Neutral, neither overbought nor oversold. The STOCH value of 33.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IFF.

International Flavors & Fragrances Risk Analysis

International Flavors & Fragrances disclosed 30 risk factors in its most recent earnings report. International Flavors & Fragrances reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

International Flavors & Fragrances Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
SXSXT
73
Outperform
$4.65B36.2411.87%1.50%6.30%41.01%
LYLYB
72
Outperform
$20.26B19.507.19%8.69%-6.53%-50.08%
RPRPM
71
Outperform
$14.48B22.5825.53%1.81%-0.61%15.06%
EMEMN
69
Neutral
$9.11B10.0516.16%4.21%2.78%1.50%
PPPPG
64
Neutral
$26.63B19.8718.47%2.34%-7.67%-0.58%
62
Neutral
$10.32B9.990.09%2.85%2.25%-33.42%
IFIFF
54
Neutral
$19.09B83.39-6.08%2.14%0.68%66.69%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IFF
International Flavors & Fragrances
73.65
-21.29
-22.42%
EMN
Eastman Chemical
77.13
-19.74
-20.38%
LYB
LyondellBasell
62.44
-29.45
-32.05%
PPG
PPG Industries
114.29
-16.41
-12.56%
RPM
RPM International
110.07
-2.33
-2.07%
SXT
Sensient Technologies
108.28
29.69
37.78%

International Flavors & Fragrances Corporate Events

Executive/Board Changes
International Flavors & Fragrances Appoints Virginia Drosos to Board
Positive
Jun 9, 2025

On June 9, 2025, International Flavors & Fragrances Inc. announced the appointment of Ms. Virginia Drosos to its board of directors, effective June 16, 2025. Ms. Drosos, with a strong background in leadership roles at Signet Jewelers Ltd., Assurex Health, Inc., and Procter & Gamble, brings extensive experience in digital transformation, revenue growth, and innovation to the company. Her appointment is expected to strengthen the board’s capabilities in audit, human capital, compensation, and innovation, potentially impacting the company’s strategic direction and stakeholder interests positively.

The most recent analyst rating on (IFF) stock is a Hold with a $96.00 price target. To see the full list of analyst forecasts on International Flavors & Fragrances stock, see the IFF Stock Forecast page.

Executive/Board ChangesShareholder Meetings
International Flavors & Fragrances Holds Annual Shareholder Meeting
Neutral
May 7, 2025

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.

Business Operations and StrategyFinancial Disclosures
International Flavors & Fragrances Reorganizes Business Segments
Neutral
May 6, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 15, 2025