International Flavors & Fragrances (IFF) AI Stock Analysis

• Market Cap: $19.46B
• Dividend Yield: 2.1%
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): 83.4
• Beta (1Y): 0.71
• Revenue Growth: 0.68%
• EPS Growth: 66.69%
• Country: US
• Employees: 22,400
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 1.20
• Shares Outstanding: 255,790,340
• 10 Day Avg. Volume: 1,242,724
• 30 Day Avg. Volume: 1,566,324
• PEG Ratio: 0.02
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -166.05
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 4.59
• Enterprise Value/Ebitda: 52.93
• 1Y Price Target: $91.58
• Price Target Upside: 20.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 53 Neutral
• Price Target: $77.00 ▲(1.20%Upside)

IFF's overall stock score is 53, primarily influenced by significant profitability challenges and high leverage, offset by positive cash flow generation and solid growth in key segments as discussed in the earnings call. Mixed technical signals and a negative P/E ratio further reflect the company's current challenges.

Positive Factors

Debt Management

The completion of the Pharma Solutions divestment and debt tender offer has strengthened IFF's balance sheet, reducing net debt/EBITDA and net interest burden.

Financial Performance

IFF has delivered six sequential quarterly beats compared to consensus, indicating strong performance and consistency.

Valuation

IFF is trading at a significant discount of more than 25% to 2025 PER, presenting an opportunity to re-enter the shares.

Negative Factors

Demand Risk

IFF estimates that 80% of its products are in core products and 20% are discretionary and more vulnerable to a cyclical shock.

Earnings Projection

Despite growth prospects, the analyst has lowered the price target for IFF reflecting adjusted earnings projections and higher market multiples.

Market Conditions

Factors such as oil prices, FX volatility, and tariff changes could impact IFF's earnings and growth potential.

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 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

IFF faces substantial profitability challenges with negative net income and declining margins. The high leverage is a risk factor, though cash flow generation remains a positive aspect.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.43B	11.48B	11.48B	12.44B	11.66B	5.08B
	Gross Profit
3.98B	4.12B	3.68B	4.15B	3.73B	2.09B
	EBIT
-188.00M	766.00M	612.00M	1.09B	585.00M	566.48M
	EBITDA
479.00M	1.60B	-996.00M	-110.00M	1.80B	897.67M
	Net Income Common Stockholders
-835.00M	243.00M	-2.56B	-1.84B	268.00M	365.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
613.00M	469.00M	703.00M	493.00M	715.00M	656.84M
	Total Assets
28.27B	28.67B	30.98B	35.39B	39.68B	13.56B
	Total Debt
9.91B	9.59B	10.80B	10.97B	11.40B	4.41B
	Net Debt
9.30B	9.12B	10.10B	10.48B	10.69B	3.76B
	Total Liabilities
15.05B	14.76B	16.34B	17.60B	18.45B	7.14B
	Stockholders Equity
13.18B	13.88B	14.61B	17.73B	21.12B	6.32B
Cash Flow		Free Cash Flow
569.00M	607.00M	936.00M	-161.00M	1.04B	522.30M
	Operating Cash Flow
1.10B	1.07B	1.44B	345.00M	1.44B	714.10M
	Investing Cash Flow
247.00M	326.00M	574.00M	745.00M	-18.00M	-187.46M
	Financing Cash Flow
-1.48B	-1.61B	-1.85B	-1.18B	-1.30B	-511.57M

International Flavors & Fragrances Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 76.09
• 50DMA: Positive
• 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 76.09 is below the 20-day moving average (MA) of 76.96, above the 50-day MA of 75.64, and below the 200-day MA of 86.38, indicating a neutral trend. The MACD of 0.40 indicates Negative momentum. The RSI at 47.33 is Neutral, neither overbought nor oversold. The STOCH value of 50.96 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	31.37	11.87%	1.73%	6.30%	41.01%
LYB	69 Neutral	$19.33B	18.59	7.19%	9.12%	-6.53%	-50.08%
EMN	68 Neutral	$8.80B	9.70	16.16%	4.36%	2.78%	1.50%
RPM	64 Neutral	$13.88B	21.65	25.53%	1.89%	-0.61%	15.06%
PPG	58 Neutral	$24.13B	18.01	18.47%	2.56%	-7.67%	-0.58%
IFF	53 Neutral	$19.46B	83.39	-6.08%	2.10%	0.68%	66.69%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%

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.