International Flavors & Fragrances (IFF) AI Stock Analysis

• Market Cap: $19.13B
• Dividend Yield: 2.25%
• Average Volume (3M): 1.62M
• 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: 55
• Industry: Chemicals - Specialty
• EPS (TTM): 1.20
• Shares Outstanding: 255,790,340
• 10 Day Avg. Volume: 1,879,943
• 30 Day Avg. Volume: 1,624,635
• 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: 29.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 56 Neutral
• Price Target: $77.00 ▲(8.40%Upside)

IFF's overall stock score is primarily impacted by its financial performance challenges, particularly profitability and leverage issues. The earnings call provided positive insights into growth and strategic improvements, contributing positively alongside the board appointment. Technical analysis and valuation present a neutral to slightly negative outlook.

Positive Factors

Financial Health

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.

Growth Potential

IFF has potential to grow at three times the US Consumer Staples levels, supported by a diversified customer footprint and innovation.

Valuation Opportunity

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

Negative Factors

Earnings Projections

The adjusted EPS projections for FY25/26/27 have been revised lower, leading to a decrease in the price target for IFF.

Market Challenges

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

Product Vulnerability

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

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

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: 71.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 71.03 is below the 20-day moving average (MA) of 75.31, below the 50-day MA of 75.57, and below the 200-day MA of 81.72, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 34.18 is Neutral, neither overbought nor oversold. The STOCH value of 11.88 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
RPM	76 Outperform	$15.07B	21.94	25.42%	1.74%	0.51%	17.21%
LYB	72 Outperform	$20.08B	19.32	7.19%	9.30%	-6.53%	-50.08%
EMN	69 Neutral	$8.75B	9.65	16.16%	4.54%	2.78%	1.50%
SXT	69 Neutral	$4.77B	35.41	12.18%	1.47%	4.95%	53.63%
Sector *	61 Neutral	$9.52B	9.43	-1.39%	3.00%	3.05%	-61.98%
IFF	56 Neutral	$19.13B	83.39	-6.08%	2.25%	0.68%	66.69%
PPG	55 Neutral	$25.48B	19.89	16.88%	2.58%	-10.59%	-7.79%

International Flavors & Fragrances Corporate Events

International Flavors & Fragrances Appoints New Board Members

On July 29, 2025, International Flavors & Fragrances Inc. announced the appointment of Jesus Mantas and Paul Fribourg to its board of directors. Mantas, with a strong background in business transformation and consulting, joins the Audit and Innovation Committees, while Fribourg, an experienced leader in agribusiness and investment, joins the Transaction Committee. Both are recognized as independent directors under NYSE regulations, with no material interest in transactions exceeding $120,000 involving the company.

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 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.