International Flavors & Fragrances (IFF) AI Stock Analysis

• Market Cap: $17.05B
• Dividend Yield: 2.4%
• Average Volume (3M): 2.41M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: -3.01%
• EPS Growth: 82.30%
• Country: US
• Employees: 22,400
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.05
• Shares Outstanding: 256,096,370
• 10 Day Avg. Volume: 3,019,861
• 30 Day Avg. Volume: 2,413,136
• PEG Ratio: -0.81
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 1.88
• P/FCF Ratio: 35.95
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 1.98
• Enterprise Value/Gross Profit: 5.44
• Enterprise Value/Ebitda: 31.40
• 1Y Price Target: $79.04
• Price Target Upside: 19.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 4.26
• Revenue Forecast (FY): $10.83B

• Rating: 61 Neutral
• Price Target: $73.00 ▲(9.99% Upside)

IFF's overall stock score reflects a mixed outlook. The most significant factor is the company's financial challenges, with declining profitability and negative margins. However, technical indicators are positive, suggesting short-term bullish momentum. The earnings call provided optimism with strategic initiatives and growth in key segments, but valuation concerns persist due to negative earnings.

Positive Factors

Strategic Investments and Expansions

These strategic investments and expansions enhance IFF's innovation capabilities and market presence, supporting long-term growth and competitive advantage.

Notable Partnerships

Partnerships with BASF and Kemira position IFF to leverage complementary strengths, fostering innovation and sustainable solutions, which can drive future growth.

Leverage Reduction

Reducing leverage improves financial stability and flexibility, allowing IFF to invest in growth opportunities and weather economic uncertainties more effectively.

Negative Factors

Declining Revenue and Profitability

Continued revenue and profitability declines indicate operational challenges that could hinder IFF's ability to sustain long-term growth and shareholder value.

Health & Biosciences Segment Pressure

Weakness in the Health & Biosciences segment could impact IFF's overall performance, as this area struggles with market demand and competitive pressures.

Food Ingredients Sales Decline

A decline in Food Ingredients sales reflects challenges in maintaining market share and adapting to changing consumer preferences, affecting revenue stability.

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 through the sale of its flavor and fragrance products to manufacturers across various sectors. The company's revenue model is primarily based on a B2B (business-to-business) framework, where it forms long-term partnerships with key clients, including major food and beverage brands, consumer goods companies, and personal care manufacturers. Key revenue streams include the sale of customized flavor compounds, fragrance formulations, and essential oils. Additionally, IFF invests in research and development to innovate and expand its product offerings, which drives growth and allows the company to maintain a competitive edge. Strategic acquisitions and collaborations with other industry players also contribute significantly to its earnings, enabling IFF to enhance its product portfolio and market reach.

International Flavors & Fragrances Financial Statement Overview

Summary

IFF faces significant challenges with declining revenue and profitability, as evidenced by negative margins and net income. While the balance sheet shows some improvement in leverage, the negative return on equity is concerning. Cash flow generation has improved, but the company must address operational inefficiencies and profitability issues to enhance financial health.

Income Statement

The income statement shows a concerning trend with declining revenue and profitability. The TTM data reflects a negative net profit margin of -3.72% and a negative EBIT margin, indicating operational challenges. Revenue growth has been negative, and gross profit margin has slightly decreased over the years. The company needs to address these issues to improve financial performance.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.46 in the TTM, showing some improvement from previous years. However, the return on equity is negative, reflecting poor profitability. The equity ratio is not explicitly calculated, but the company's leverage appears manageable. Stability is a concern due to the negative ROE.

Cash Flow

Cash flow analysis shows a positive trend in free cash flow growth at 16.79% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.27, suggesting some efficiency in converting income to cash. However, the free cash flow to net income ratio indicates reliance on cash flow to cover losses, which is a risk factor.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.07B	11.48B	11.48B	12.44B	11.66B	5.08B
Gross Profit	4.03B	4.12B	3.68B	4.15B	3.73B	2.09B
EBITDA	698.00M	1.60B	-996.00M	-110.00M	1.80B	898.00M
Net Income	-412.00M	243.00M	-2.56B	-1.87B	268.00M	365.00M
Balance Sheet
Total Assets	25.77B	28.67B	30.98B	35.52B	39.66B	13.56B
Cash, Cash Equivalents and Short-Term Investments	773.00M	469.00M	703.00M	483.00M	711.00M	650.00M
Total Debt	7.14B	9.62B	10.82B	11.74B	12.20B	4.73B
Total Liabilities	11.49B	14.76B	16.34B	17.78B	18.44B	7.14B
Stockholders Equity	14.24B	13.88B	14.61B	17.66B	21.08B	6.31B
Cash Flow
Free Cash Flow	332.00M	602.00M	936.00M	-109.00M	1.04B	522.00M
Operating Cash Flow	900.00M	1.07B	1.44B	397.00M	1.44B	714.00M
Investing Cash Flow	2.17B	326.00M	574.00M	745.00M	-18.00M	-187.00M
Financing Cash Flow	-3.05B	-1.61B	-1.85B	-1.23B	-1.30B	-512.00M

International Flavors & Fragrances Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.37
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 66.37 is above the 20-day moving average (MA) of 66.06, above the 50-day MA of 64.65, and below the 200-day MA of 69.49, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 56.04 is Neutral, neither overbought nor oversold. The STOCH value of 77.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IFF.

International Flavors & Fragrances Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMN	72 Outperform	$7.22B	10.42	12.24%	5.33%	-3.33%	-19.59%
RPM	71 Outperform	$13.50B	19.68	24.05%	1.97%	3.09%	12.25%
PPG	67 Neutral	$23.20B	18.32	16.31%	2.69%	-12.98%	-11.34%
SXT	63 Neutral	$4.13B	29.47	12.31%	1.69%	4.25%	56.51%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IFF	61 Neutral	$17.05B	-40.99	-2.84%	2.40%	-3.01%	82.30%
ALB	58 Neutral	$17.11B	-91.87	-0.21%	1.11%	-23.92%	90.47%

International Flavors & Fragrances Corporate Events

International Flavors & Fragrances Updates Bylaws for Modern Governance

On October 29, 2025, International Flavors & Fragrances Inc. announced the adoption of amended and restated bylaws, which include updates to committee nomenclature, revisions to indemnification rights, and the addition of a severability clause. These changes aim to modernize the company’s governance structure and ensure compliance with New York Business Corporation Law, potentially impacting the company’s operational efficiency and legal protections for its directors and officers.

International Flavors & Fragrances Appoints New Board Members

International Flavors & Fragrances Inc. announced changes to its Board of Directors on October 20, 2025, as part of a Cooperation Agreement with the Icahn Group. Brett Icahn and Dr. Richard Mulligan have been appointed to the Board, replacing Vincent Intrieri and Margarita Paláu-Hernández, who stepped down without any disagreements with the company. Brett Icahn will serve on the Audit and Transaction Committees, while Dr. Mulligan will join the Innovation Committee. These appointments are expected to bring strategic insights and expertise to the company’s operations.