International Flavors & Fragrances (IFF)
NYSE:IFF
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International Flavors & Fragrances
(NYSE:IFF)
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Rating:64Neutral
Price Target:
$81.00
▲(6.75% Upside)
Action:Reiterated
Date:06/01/26
IFF scores as a moderate-quality recovery story: improving profitability and a supportive balance sheet are tempered by historical earnings volatility and weak cash conversion. Technicals are constructive, and the latest call plus the Food Ingredients divestiture add confidence in near-term execution and deleveraging, though Q2 margin headwinds and inflation risks keep the score from ranking higher.
Positive Factors
Diversified B2B model & sticky customers
IFF’s core model centers on customized flavors, fragrances and functional ingredients sold to large CPG and food manufacturers. Long-term co‑development, formulation IP and regulatory/quality capabilities create switching costs and repeat revenue, supporting durable revenue visibility.
Negative Factors
Historic earnings volatility and cash conversion
IFF’s P&L and cash conversion have swung substantially over recent years (losses in 2022–2023, weak 2025), and free cash flow has lagged net income. This uneven conversion and earnings volatility make long-term forecasting and capital allocation less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified B2B model & sticky customers
IFF’s core model centers on customized flavors, fragrances and functional ingredients sold to large CPG and food manufacturers. Long-term co‑development, formulation IP and regulatory/quality capabilities create switching costs and repeat revenue, supporting durable revenue visibility.
Read all positive factors
International Flavors & Fragrances Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights revenue contributions from different business segments, indicating which areas drive growth and profitability, and where strategic shifts might be needed.
Highlights revenue contributions from different business segments, indicating which areas drive growth and profitability, and where strategic shifts might be needed.
Data provided by:
The Fly
The FlyInternational Flavors & Fragrances (IFF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.95B
Dividend Yield2.41%
Average Volume (3M)2.14M
Price to Earnings (P/E)22.3
Beta (1Y)0.68
Revenue Growth-5.60%
EPS GrowthN/A
CountryUS
Employees22,400
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)3.28
Shares Outstanding255,303,470
10 Day Avg. Volume2,465,696
30 Day Avg. Volume2,138,673
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)1.22
Price to Sales (P/S)1.58
P/FCF Ratio67.39
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue2.29
Enterprise Value/Gross Profit6.29
Enterprise Value/Ebitda12.37
Forecast
1Y Price Target
$92.53Price Target Upside21.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)4.43
Revenue Forecast (FY)$10.58B
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 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 ...
International Flavors & Fragrances Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial start to 2026: revenue growth, solid volume-led performance across segments, margin expansion (adjusted EBITDA +8% and +110 bps margin improvement), strong YoY free cash flow and a materially reduced gross debt balance. Strategic actions — divestiture completion, ongoing Food Ingredients sale process, and investments in Latin America — support long-term focus. However, near-term risks were emphasized: the Middle East conflict, rising energy/logistics inflation, commodity pressure in Fragrance Ingredients, and anticipated Q2 margin headwinds as pricing actions phase in. Overall the positives (broad-based volume growth, profitability gains, cash/debt improvement, and reaffirmed full-year guidance) materially outweigh the highlighted near-term challenges.Positive Updates
Revenue and Top-Line Growth
Reported revenue of greater than $2.7 billion in Q1 2026, representing consolidated sales growth of 3% year-over-year on a currency-neutral basis driven by volume improvements across all businesses.
Negative Updates
Scent Segment Headwinds — Fragrance Ingredients
Scent segment sales grew only 1% to $651 million. Adjusted operating EBITDA for Scent declined 2% to $148 million as gains from volume and productivity were offset by unfavorable price-to-input costs, with Fragrance Ingredients (commodity portion) notably down due to market softness and price competition.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Top-Line Growth
Reported revenue of greater than $2.7 billion in Q1 2026, representing consolidated sales growth of 3% year-over-year on a currency-neutral basis driven by volume improvements across all businesses.
Read all positive updates
Company Guidance
IFF reaffirmed full‑year 2026 guidance of $10.5–$10.8 billion in sales (1%–4% growth) and $2.05–$2.15 billion in adjusted operating EBITDA (3%–8% growth), with foreign exchange expected to add roughly one percentage point to sales and have minimal impact on EBITDA; this reflects a strong Q1 (sales >$2.7B, +3% organic; adjusted EBITDA $568M, +8%; margin 20.7%, +110 bps) and assumes only two months of the soy crush/concentrates/lecithin business (sold to Bunge for $110M) in the outlook. Management warned Q2 EBITDA will be below Q1 due to more moderate growth, unfavorable price‑to‑input cost pressure (energy/logistics) and Fine Fragrance softness in the Middle East, expects inflationary pressure to build through 2026 with pricing surcharges and raw‑material pass‑through over a 12–18 month cadence, and reiterated focus on improving cash conversion (Q1 cash from operations $257M, capex $165M YTD ≈6% of sales, free cash flow $92M, returned $137M to shareholders, cash $562M, gross debt $5.85B, trailing‑12m credit‑adjusted EBITDA ≈$2.1B, net debt/credit‑adjusted EBITDA ~2.5x) while pursuing the Food Ingredients sale (update expected by the Q2 call).International Flavors & Fragrances Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
64
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.79B | 10.89B | 11.48B | 11.48B | 12.44B | 11.66B |
| Gross Profit | 3.92B | 3.94B | 4.12B | 3.68B | 4.15B | 3.73B |
| EBITDA | 2.00B | 779.00M | 1.60B | -996.00M | -110.00M | 1.80B |
| Net Income | 852.00M | -361.00M | 243.00M | -2.56B | -1.87B | 268.00M |
Balance Sheet | ||||||
| Total Assets | 25.14B | 25.54B | 28.67B | 30.98B | 35.52B | 39.66B |
| Cash, Cash Equivalents and Short-Term Investments | 562.00M | 590.00M | 469.00M | 703.00M | 483.00M | 711.00M |
| Total Debt | 5.82B | 6.65B | 9.62B | 10.82B | 11.74B | 12.20B |
| Total Liabilities | 10.99B | 11.35B | 14.76B | 16.34B | 17.78B | 18.44B |
| Stockholders Equity | 14.12B | 14.15B | 13.88B | 14.61B | 17.66B | 21.08B |
Cash Flow | ||||||
| Free Cash Flow | 400.00M | 256.00M | 602.00M | 936.00M | -109.00M | 1.04B |
| Operating Cash Flow | 980.00M | 850.00M | 1.07B | 1.44B | 397.00M | 1.44B |
| Investing Cash Flow | 2.45B | 2.27B | 326.00M | 574.00M | 745.00M | -18.00M |
| Financing Cash Flow | -3.56B | -3.09B | -1.61B | -1.85B | -1.23B | -1.30B |
International Flavors & Fragrances Technical Analysis
Positive
75.88
Price Trends
73.78
Positive
73.86
Positive
69.07
Positive
Market Momentum
-0.05
Positive
49.49
Neutral
22.26
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 75.88 is above the 20-day moving average (MA) of 74.71, above the 50-day MA of 73.78, and above the 200-day MA of 69.07, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 49.49 is Neutral, neither overbought nor oversold. The STOCH value of 22.26 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $5.10B | 35.13 | 12.14% | 1.70% | 5.80% | 12.24% | |
66 Neutral | $17.36B | -74.50 | -2.35% | 1.10% | 7.87% | 69.44% | |
65 Neutral | $8.16B | 20.38 | 6.77% | 5.33% | -7.41% | -56.10% | |
65 Neutral | $25.18B | 15.94 | 31.80% | 2.71% | -3.94% | 18.25% | |
64 Neutral | $18.95B | 22.30 | 5.99% | 2.41% | -5.60% | ― | |
64 Neutral | $13.31B | 19.91 | 21.80% | 1.96% | 5.68% | 3.81% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
IFF
International Flavors & Fragrances
74.23
-2.28
-2.98%
ALB
Albemarle
147.22
85.82
139.76%
EMN
Eastman Chemical
71.34
-3.91
-5.20%
PPG
PPG Industries
112.97
3.85
3.53%
RPM
RPM International
104.28
-8.38
-7.44%
SXT
Sensient Technologies
119.78
26.54
28.47%
International Flavors & Fragrances Corporate Events
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...
Executive/Board ChangesShareholder Meetings
International Flavors & Fragrances Shareholders Back Board, Pay, Auditor
Positive
May 4, 2026
On April 29, 2026, International Flavors Fragrances Inc. held its Annual Meeting of Shareholders, at which ten directors were elected to one-year terms expiring at the 2027 annual meeting, with all nominees receiving substantial support despite s...
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.