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International Flavors & Fragrances
(NYSE:IFF)
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Rating:66Neutral
Price Target:
$87.00
▲(14.56% Upside)
Action:Reiterated
Date:08/05/26
IFF scores in the mid-range primarily because fundamentals are improving (positive earnings, stronger cash generation, and reduced leverage), but are tempered by declining revenue and still-low profitability/returns. Technical signals are supportive with price above key moving averages and positive momentum. Valuation is neither compelling nor severely stretched (P/E ~24 with a ~2% yield). The latest earnings call adds upside from growth guidance, a value-creating divestiture, and planned deleveraging/buybacks, partially offset by near-term stranded-cost and working-capital headwinds.
Positive Factors
Improving Cash Generation
Material improvement in operating and free cash flow creates durable funding for debt reduction, R&D and capex, and the planned buyback program. Strong FCF reduces refinancing risk and gives management flexibility to execute strategic priorities through cycles.
Negative Factors
Divestiture Separation Costs & Working‑Capital Risk
The Food Ingredients carve‑out leaves ~ $100M of stranded costs and a sizable working‑capital unwind that can impair near‑term cash conversion. Timing and magnitude of these separation impacts could delay deleveraging, reduce available buyback capacity, and create persistent margin noise.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Cash Generation
Material improvement in operating and free cash flow creates durable funding for debt reduction, R&D and capex, and the planned buyback program. Strong FCF reduces refinancing risk and gives management flexibility to execute strategic priorities through cycles.
Read all positive factors
International Flavors & Fragrances Key Performance Indicators (KPIs)
Any
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.
Shows the profitability of each segment after removing non-recurring items, offering a clearer view of operational efficiency and segment performance.
Data provided by:
The Fly
The FlyInternational Flavors & Fragrances (IFF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.71B
Dividend Yield1.88%
Average Volume (3M)1.89M
Price to Earnings (P/E)78.0
Beta (1Y)0.74
Revenue Growth-11.72%
EPS GrowthN/A
CountryUS
Employees21,500
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.09
Shares Outstanding255,149,960
10 Day Avg. Volume1,730,000
30 Day Avg. Volume1,889,129
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)1.22
Price to Sales (P/S)1.58
P/FCF Ratio67.39
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$97.38Price Target Upside28.24% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)3.72
Revenue Forecast (FY)$8.68B
International Flavors & Fragrances Business Overview & Revenue Model
Company Description
International Flavors & Fragrances Inc. (IFF), through its various subsidiaries, operates as a global developer and purveyor of active cosmetic and natural health ingredients. These vital components are incorporated into a wide array of consumer g...
How the Company Makes Money
IFF primarily makes money by selling ingredient products and formulation solutions to business customers (B2B) that manufacture consumer goods. Its core revenue model is the sale of flavors (taste systems and flavor compounds for foods and beverag...
International Flavors & Fragrances Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum and strategic progress: broad-based volume-driven growth across the remaining core segments (Taste, Scent, Health & Biosciences), meaningful free cash flow improvement, a major value-creating divestiture (Food Ingredients) at ~10x EV/EBITDA, and a clear plan to deleverage and return capital to shareholders. Offsetting these positives are near-term headwinds tied to the divestiture (roughly $100M of stranded costs and a working capital unwind that could be a couple hundred million), modest input-cost inflation with some pricing lag, and geopolitical/commodity-related volatility that widens guidance ranges. Management provided remediation plans and credible targets for cost elimination and deleveraging, and reiterated R&D and reinvestment commitments for the Remainco portfolio, supporting confidence in medium-term margin and cash-flow improvement.Positive Updates
Continuing Operations Top-Line and EBITDA Growth (H1 2026)
Continuing operations delivered 4% sales growth and an 8% increase in EBITDA in the first half of 2026, driven by volume growth and productivity improvements.
Negative Updates
Stranded Costs from Food Ingredients Divestiture
Approximately $100 million of corporate and functional costs previously allocated to Food Ingredients are expected to remain with IFF post-close and will temporarily pressure business unit margins; remediation plan targets elimination of ~2/3 within 12 months and the remainder in the second full year post-close.
Read all updates
Q2-2026 Updates
Positive
Negative
Continuing Operations Top-Line and EBITDA Growth (H1 2026)
Continuing operations delivered 4% sales growth and an 8% increase in EBITDA in the first half of 2026, driven by volume growth and productivity improvements.
Read all positive updates
Company Guidance
IFF introduced full‑year 2026 continuing‑operations guidance of $7.4–$7.6B in sales (2%–4% growth vs. a pro‑forma 2025 base of ≈$7.2B) and adjusted EBITDA of $1.53–$1.60B (4%–8% growth vs. a pro‑forma ≈$1.44B), with FX expected to add ~+1 ppt to sales and ~+2% to EBITDA; the company ended H1 with trailing 12‑month credit‑adjusted EBITDA just over $2.0B, net debt/credit‑adjusted EBITDA of 2.5x, cash of $569M, H1 free cash flow of $378M (up $284M YoY) and operating cash flow of $679M. Management expects FY free cash flow to be higher than 2025 despite potential H2 working‑capital headwinds of a “couple hundred million” related to the Food Ingredients stand, plans CapEx of roughly 5%–6% of sales (toward the upper end next 1–2 years), R&D at ~9% of sales, SG&A ~17%–18% of sales, and longer‑term cash conversion (EBITDA–CapEx)/sales in the mid‑to‑high teens. Following the announced Food Ingredients sale (~$4.3B value, ~10x EV/EBITDA), IFF plans to use >$1B to reduce debt, target net debt/EBITDA of 2.0–2.5x by end‑2027, and execute a $2.5B buyback program (≈$500M in H2‑2026, remainder by end‑2027); management also expects to remove ~ two‑thirds of ~$100M stranded costs within 12 months and the remainder by the second full year post‑close.International Flavors & Fragrances Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
62
Positive
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.98B | 10.89B | 11.48B | 11.48B | 12.44B | 11.66B |
| Gross Profit | 3.74B | 3.94B | 4.12B | 3.68B | 4.15B | 3.73B |
| EBITDA | 1.49B | 779.00M | 1.60B | -996.00M | -110.00M | 1.80B |
| Net Income | 290.00M | -361.00M | 243.00M | -2.56B | -1.87B | 268.00M |
Balance Sheet | ||||||
| Total Assets | 25.15B | 25.54B | 28.67B | 30.98B | 35.52B | 39.66B |
| Cash, Cash Equivalents and Short-Term Investments | 569.00M | 590.00M | 469.00M | 703.00M | 483.00M | 711.00M |
| Total Debt | 6.24B | 6.65B | 9.62B | 10.82B | 11.74B | 12.20B |
| Total Liabilities | 11.14B | 11.35B | 14.76B | 16.34B | 17.78B | 18.44B |
| Stockholders Equity | 13.98B | 14.15B | 13.88B | 14.61B | 17.66B | 21.08B |
Cash Flow | ||||||
| Free Cash Flow | 538.00M | 256.00M | 602.00M | 936.00M | -109.00M | 1.04B |
| Operating Cash Flow | 1.16B | 850.00M | 1.07B | 1.44B | 397.00M | 1.44B |
| Investing Cash Flow | -405.00M | 2.27B | 326.00M | 574.00M | 745.00M | -18.00M |
| Financing Cash Flow | -1.00B | -3.09B | -1.61B | -1.85B | -1.23B | -1.30B |
International Flavors & Fragrances Technical Analysis
Positive
75.94
Price Trends
77.86
Positive
75.27
Positive
72.17
Positive
Market Momentum
2.19
Negative
61.70
Neutral
65.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IFF, the sentiment is Positive. The current price of 75.94 is below the 20-day moving average (MA) of 79.78, below the 50-day MA of 77.86, and above the 200-day MA of 72.17, indicating a bullish trend. The MACD of 2.19 indicates Negative momentum. The RSI at 61.70 is Neutral, neither overbought nor oversold. The STOCH value of 65.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IFF.
International Flavors & Fragrances Risk Analysis
International Flavors & Fragrances disclosed 23 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $8.40B | 19.32 | 7.42% | 4.91% | -4.30% | -46.24% | |
69 Neutral | $14.81B | 22.48 | 20.93% | 2.02% | 6.66% | -3.58% | |
69 Neutral | $5.51B | 35.36 | 13.02% | 1.31% | 8.12% | 16.87% | |
66 Neutral | $21.71B | 77.98 | 5.99% | 2.11% | -11.72% | ― | |
62 Neutral | $25.67B | 16.55 | 30.22% | 2.45% | 1.47% | 23.56% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $15.48B | 269.50 | 2.26% | 1.41% | 18.32% | ― |
* Basic Materials Sector Average
IFF
International Flavors & Fragrances
85.00
21.99
34.89%
ALB
Albemarle
129.36
52.42
68.14%
EMN
Eastman Chemical
74.77
14.36
23.77%
PPG
PPG Industries
116.16
10.18
9.61%
RPM
RPM International
116.66
-2.75
-2.30%
SXT
Sensient Technologies
131.90
15.42
13.24%
International Flavors & Fragrances Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
IFF Divests Food Ingredients Business in Strategic Shift
Neutral
Aug 4, 2026
International Flavors Fragrances Inc. is a global producer of flavors, fragrances and specialty ingredients for the food, beverage and consumer products industries. Its Food Ingredients business spans texturants, emulsifiers, plant-based solution...
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
IFF Streamlines Portfolio With Food Ingredients Divestiture
Positive
Aug 4, 2026
On May 29, 2026, IFF agreed to sell substantially all assets of its Food Ingredients business, which includes texturants, emulsifiers, plant-based solutions and other specialty ingredients, to funds advised by CVC Capital Partners, while retaining...
Business Operations and StrategyPrivate Placements and Financing
IFF Secures $1 Billion Term Loan for Refinancing
Positive
Jun 23, 2026
On June 23, 2026, International Flavors Fragrances entered into a $1 billion senior unsecured delayed draw term loan facility with Wells Fargo and other lenders, available for a single U.S. dollar borrowing through September 25, 2026 and maturing...
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
IFF Divests Food Ingredients Unit in Portfolio Shift
Positive
Jun 1, 2026
On May 28, 2026, International Flavors Fragrances agreed to sell its Food Ingredients business to CVC Capital Partners affiliates in a deal valuing the unit at about $4.3 billion, with IFF expecting roughly $3.8 billion in net cash and a minority...
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.