International Flavors & Fragrances (IFF) AI Stock Analysis

• Market Cap: $19.09B
• Dividend Yield: 2.14%
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 83.4
• Beta (1Y): 0.67
• Revenue Growth: 0.68%
• EPS Growth: 66.69%
• Country: US
• Employees: 22,400
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Chemicals - Specialty
• EPS (TTM): 1.20
• Shares Outstanding: 255,790,340
• 10 Day Avg. Volume: 1,274,678
• 30 Day Avg. Volume: 1,397,527
• PEG Ratio: 0.05
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.25
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 7.07
• Enterprise Value/Ebitda: 81.56
• 1Y Price Target: $91.64
• Price Target Upside: 24.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 54 Neutral
• Price Target: $76.00 ▲(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 Business Overview & Revenue Model

Company Description

International 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 Money

IFF 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 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

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

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

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.

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
EBITDA	1.60B	-996.00M	-110.00M	1.80B	897.67M
Net Income	243.00M	-2.56B	-1.84B	268.00M	365.00M
Balance Sheet
Total Assets	28.67B	30.98B	35.39B	39.68B	13.56B
Cash, Cash Equivalents and Short-Term Investments	469.00M	703.00M	493.00M	715.00M	656.84M
Total Debt	9.59B	10.80B	10.97B	11.40B	4.41B
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: 73.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SXT	73 Outperform	$4.65B	36.24	11.87%	1.50%	6.30%	41.01%
LYB	72 Outperform	$20.26B	19.50	7.19%	8.69%	-6.53%	-50.08%
RPM	71 Outperform	$14.48B	22.58	25.53%	1.81%	-0.61%	15.06%
EMN	69 Neutral	$9.11B	10.05	16.16%	4.21%	2.78%	1.50%
PPG	64 Neutral	$26.63B	19.87	18.47%	2.34%	-7.67%	-0.58%
Sector *	62 Neutral	$10.32B	9.99	0.09%	2.85%	2.25%	-33.42%
IFF	54 Neutral	$19.09B	83.39	-6.08%	2.14%	0.68%	66.69%

International Flavors & Fragrances Corporate Events

International Flavors & Fragrances Appoints Virginia Drosos to Board

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.

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.

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.