International Flavors & Fragrances (IFF) AI Stock Analysis

• Market Cap: $17.78B
• Dividend Yield: 2.41%
• Average Volume (3M): 1.89M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: -3.01%
• EPS Growth: 82.30%
• Country: US
• Employees: 22,400
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.80
• Shares Outstanding: 255,477,500
• 10 Day Avg. Volume: 2,023,249
• 30 Day Avg. Volume: 1,892,582
• PEG Ratio: 0.18
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 1.58
• P/FCF Ratio: 67.39
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 2.20
• Enterprise Value/Gross Profit: 6.31
• Enterprise Value/Ebitda: 29.68
• 1Y Price Target: $91.83
• Price Target Upside: 31.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 4.44
• Revenue Forecast (FY): $10.71B

• Rating: 57 Neutral
• Price Target: $72.00 ▲(3.43% Upside)
• Action: Reiterated Date: 02/17/26
• Date: Action: Reiterated 02/17/26

The score is driven primarily by uneven financial performance (recent loss despite resilient cash flow and lower debt). Earnings-call commentary is moderately constructive with modest 2026 growth and execution plans, while valuation is constrained by loss-making results. Technicals are supportive but appear overbought, adding near-term risk.

Positive Factors

Improved leverage and balance sheet

Material deleveraging and a lower gross debt base bolster financial flexibility over the next 2–6 months. Lower leverage reduces refinancing risk, creates headroom for targeted buybacks or debt paydown from divestiture proceeds, and supports investments without overreliance on capital markets.

Resilient operating cash flow

Consistent positive operating cash flow indicates underlying cash conversion even amid earnings swings. This durable cash generation supports capex, R&D and dividend continuity, and cushions the company against earnings volatility while enabling execution of restructuring and portfolio actions.

Higher‑value mix and innovation focus

Investment in specialty technologies and higher-margin segments shifts revenue mix toward differentiated offerings. Over months this supports pricing power, customer switching costs and long-term margin resilience as the firm emphasizes naturals, biotech and enzyme capacity to win strategic customer programs.

Negative Factors

Profitability volatility and 2025 net loss

Recurring swings between modest profits and losses indicate earnings are sensitive to volume, pricing and commodity swings. This undermines retained-earnings rebuilding, increases reliance on non-operating fixes, and makes multi-period planning and sustained margin expansion more challenging.

Fragrance commodity exposure pressuring margins

Material exposure to commodity-driven fragrance ingredients creates structural margin pressure during cycles. The business must migrate volumes to specialty scents to restore margins, a multi-quarter process that leaves near-term margin upside limited and keeps profitability sensitive to raw-material swings.

Working capital/inventory build and FCF shortfall

Elevated inventory and receivable timing drove a meaningful FCF shortfall, highlighting execution risk in cash conversion. Persistent working-capital variability can constrain reinvestment or debt reduction plans and makes funding M&A/divestiture transitions more dependent on timely proceeds or external financing.

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 primarily by selling specialty ingredients and ingredient systems to business customers (B2B), typically large consumer packaged goods and food-and-beverage manufacturers. Its key revenue streams include: (1) Flavors: revenue from flavor compounds, flavor systems, and taste solutions sold for use in beverages, sweet goods, savory foods, snacks, and other food applications. Pricing is generally driven by volume shipped, the complexity/value of the formulation, and underlying input costs (e.g., natural extracts and aroma chemicals). (2) Fragrances: revenue from fragrance compounds and scent solutions supplied for fine fragrances, personal care, fabric care, and home care products; these are often customized formulations where IFF earns from product sales tied to customers’ production volumes, with higher value content in proprietary and performance-oriented scents. (3) Functional ingredients and related technologies: revenue from ingredient solutions that provide functional benefits (e.g., improving texture, stability, or other performance attributes) and from specialty ingredients used in food, beverage, and consumer applications; revenue is generated through the sale of these ingredients and systems at scale to manufacturers. Across these streams, IFF’s earnings are supported by a model built on long-term customer relationships, repeat purchasing tied to customers’ ongoing product production, and the ability to command premium pricing for proprietary formulations, application expertise, and regulatory/quality capabilities. Significant factors influencing how IFF earns include: (a) co-development and customization work with customers (new product launches and reformulations can lead to multi-year supply volumes), (b) a diverse global customer base and end-market mix that spreads demand across food, beverage, and consumer categories, and (c) intellectual property, formulation know-how, and specialized manufacturing that create switching costs and support sustained sales. Specific details on any individual customer partnerships, contract structures (e.g., exact durations or pricing clauses), or segment-by-segment revenue breakdowns are null.

International Flavors & Fragrances Financial Statement Overview

Summary

Mixed fundamentals: profitability has been volatile with a return to a net loss in 2025 and negative EBITDA margin, but operating cash flow remained positive and debt has trended down materially, supporting financial flexibility despite elevated earnings risk.

Income Statement

Profitability has been volatile: after returning to modest profitability in 2024 (about a 2.1% net margin), results weakened again in 2025 with a net loss (about -3.4% net margin) and negative EBITDA margin. Revenue has also softened, with 2025 revenue down versus 2024 and multi-year growth choppy. A positive is that gross margin has held relatively steady in the mid-30% range recently, but the swing between profits and losses points to elevated earnings risk.

Balance Sheet

Leverage looks manageable but meaningful. Total debt has come down over the last few years (from roughly $12.2B in 2021 to about $6.0B in 2025), while equity remains sizable (about $14.2B in 2025), supporting the capital structure. However, the business has recently produced losses (2025 and 2023), which reduces the balance sheet’s ability to self-repair through retained earnings, and prior periods show debt-to-equity near the ~0.6–0.7 range (moderate leverage).

Cash Flow

Cash generation is a relative strength. Operating cash flow has remained positive across all periods shown, including 2025 (~$0.85B) despite a net loss, and free cash flow stayed positive in most years (though it declined in 2025 to ~$0.26B and was negative in 2022). The pattern suggests decent underlying cash conversion, but the step-down in 2025 free cash flow and prior variability indicate less consistency than top-tier cash compounders.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.89B	11.48B	11.48B	12.44B	11.66B
Gross Profit	3.37B	4.12B	3.68B	4.15B	3.73B
EBITDA	779.00M	1.60B	-996.00M	-110.00M	1.80B
Net Income	-374.00M	243.00M	-2.56B	-1.87B	268.00M
Balance Sheet
Total Assets	25.54B	28.67B	30.98B	35.52B	39.66B
Cash, Cash Equivalents and Short-Term Investments	590.00M	469.00M	703.00M	483.00M	711.00M
Total Debt	6.65B	9.62B	10.82B	11.74B	12.20B
Total Liabilities	11.35B	14.76B	16.34B	17.78B	18.44B
Stockholders Equity	14.15B	13.88B	14.61B	17.66B	21.08B
Cash Flow
Free Cash Flow	256.00M	602.00M	936.00M	-109.00M	1.04B
Operating Cash Flow	850.00M	1.07B	1.44B	397.00M	1.44B
Investing Cash Flow	2.27B	326.00M	574.00M	745.00M	-18.00M
Financing Cash Flow	-3.09B	-1.61B	-1.85B	-1.23B	-1.30B

International Flavors & Fragrances Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 69.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 69.61 is below the 20-day moving average (MA) of 78.04, below the 50-day MA of 74.15, and above the 200-day MA of 69.10, indicating a neutral trend. The MACD of -1.32 indicates Positive momentum. The RSI at 33.29 is Neutral, neither overbought nor oversold. The STOCH value of 7.75 is Positive, 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
EMN	68 Neutral	$7.90B	15.45	8.09%	5.33%	-3.33%	-19.59%
PPG	68 Neutral	$22.77B	14.71	33.60%	2.71%	-12.98%	-11.34%
SXT	65 Neutral	$3.79B	29.50	11.63%	1.70%	4.25%	56.51%
RPM	63 Neutral	$12.78B	21.09	22.70%	1.96%	3.09%	12.25%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IFF	57 Neutral	$17.78B	-46.13	-2.49%	2.41%	-3.01%	82.30%
ALB	54 Neutral	$18.65B	-32.60	-5.13%	1.10%	-23.92%	90.47%