International Flavors & Fragrances (IFF)
NYSE:IFF
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International Flavors & Fragrances (IFF) AI Stock Analysis

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IFF

International Flavors & Fragrances

(NYSE:IFF)

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Neutral 55 (OpenAI - 4o)
Rating:55Neutral
Price Target:
$66.00
▲(0.90% Upside)
IFF's overall stock score reflects significant challenges in financial performance, with declining revenue and profitability being major concerns. The earnings call provided some optimism with strong EBITDA growth and strategic initiatives, but valuation remains a concern due to negative earnings. Technical analysis shows mixed signals, with short-term bullish momentum but longer-term bearish trends.
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 (IFF) vs. SPDR S&P 500 ETF (SPY)

International Flavors & Fragrances Business Overview & Revenue Model

Company DescriptionInternational 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 MoneyIFF generates revenue through the sale of its flavor and fragrance products to a variety of industries, including food and beverage, personal care, household care, and more. The company operates on a B2B model, supplying customized solutions that often include proprietary ingredients, which allows for higher margins. Key revenue streams include long-term contracts with major consumer goods companies, which provide stable and recurring income, as well as project-based work for smaller clients. Significant partnerships with leading brands in various sectors further enhance IFF's market position and contribute to its earnings, alongside ongoing investments in innovation and sustainability initiatives that cater to evolving consumer preferences.

International Flavors & Fragrances Key Performance Indicators (KPIs)

Any
Any
Adjusted Operating EBITDA by Segment
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.
Chart InsightsIFF's Taste segment has rebounded in 2025 after a long period of inactivity, while Nourish has ceased contributing to EBITDA, likely due to strategic divestitures. Health & Biosciences faces ongoing challenges, with expected negative growth due to market pressures in North America and China. Despite these hurdles, IFF's strategic divestitures and share repurchase program signal a focus on strengthening its core operations and financial health, aiming for a mid-teens EBITDA margin in food ingredients. Investors should watch for the impact of these strategic shifts on future performance.
Data provided by:Main Street Data

International Flavors & Fragrances Earnings Call Summary

Earnings Call Date:Nov 04, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Positive
The earnings call highlighted IFF's strong EBITDA growth, strategic investments, and significant partnerships, while also acknowledging challenges in certain segments and market uncertainties.
Q3-2025 Updates
Positive Updates
Adjusted Operating EBITDA Growth
IFF delivered strong adjusted operating EBITDA growth of 7% in the third quarter, with a margin improvement of 130 basis points.
Strategic Investments and Expansions
IFF opened a Scent creative center in Dubai, a Citrus Innovation Center in Florida, and expanded its LMR Natural site in Grasse, France, aimed at advancing innovation offerings.
Notable Partnerships
IFF announced a strategic collaboration with BASF for enzyme and polymer innovation and a joint venture with Kemira for sustainable alternatives to fossil fuel-based ingredients.
Leverage Reduction
IFF reduced its leverage significantly, reaching approximately 2.5x net debt to EBITDA, and announced a $500 million share repurchase authorization.
Strong Scent Business Performance
The Scent segment delivered a 5% year-over-year sales growth, driven by a 20% increase in Fine Fragrance.
Negative Updates
Health & Biosciences Segment Pressure
The Health & Biosciences segment faced expected softness, particularly in North America, attributed to slowdowns in the health business.
Food Ingredients Sales Decline
Sales in the Food Ingredients segment declined by 3% compared to the prior year, with softness primarily in Protein Solutions.
Challenging Global Environment
IFF is operating in a dynamic environment with ongoing macro headwinds, geopolitical challenges, and market uncertainty affecting customer and consumer behavior.
Company Guidance
During the IFF Third Quarter 2025 Earnings Call, the company reiterated its full-year guidance issued in February, expecting sales within a range of $10.6 billion to $10.9 billion and adjusted operating EBITDA between $2 billion and $2.15 billion. The third quarter's adjusted operating EBITDA grew by 7% with a margin increase of 130 basis points. Revenue for the quarter was nearly $2.7 billion, with Scent and Taste businesses showing mid-single-digit and low single-digit growth, respectively. Despite macroeconomic challenges, sales remained flat, aided by strong growth in Scent and Taste, offsetting declines in Food Ingredients and Health & Biosciences. IFF also highlighted significant strategic progress, including a collaboration with BASF and expansions in Dubai, Florida, and France. The company achieved a net debt to EBITDA ratio of approximately 2.5x and announced a $500 million share repurchase authorization. Year-to-date, IFF reported sales growth of 2% and adjusted operating EBITDA growth of 7%.

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
45
Neutral
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
55
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.07B11.48B11.48B12.44B11.66B5.08B
Gross Profit4.03B4.12B3.68B4.15B3.73B2.09B
EBITDA698.00M1.60B-996.00M-110.00M1.80B898.00M
Net Income-412.00M243.00M-2.56B-1.87B268.00M365.00M
Balance Sheet
Total Assets25.77B28.67B30.98B35.52B39.66B13.56B
Cash, Cash Equivalents and Short-Term Investments773.00M469.00M703.00M483.00M711.00M650.00M
Total Debt7.14B9.62B10.82B11.74B12.20B4.73B
Total Liabilities11.49B14.76B16.34B17.78B18.44B7.14B
Stockholders Equity14.24B13.88B14.61B17.66B21.08B6.31B
Cash Flow
Free Cash Flow332.00M602.00M936.00M-109.00M1.04B522.00M
Operating Cash Flow900.00M1.07B1.44B397.00M1.44B714.00M
Investing Cash Flow2.17B326.00M574.00M745.00M-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 Price65.41
Price Trends
50DMA
63.04
Positive
100DMA
66.86
Negative
200DMA
72.04
Negative
Market Momentum
MACD
0.24
Negative
RSI
58.68
Neutral
STOCH
68.83
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 65.41 is above the 20-day moving average (MA) of 63.90, above the 50-day MA of 63.04, and below the 200-day MA of 72.04, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 58.68 is Neutral, neither overbought nor oversold. The STOCH value of 68.83 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 30 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$13.85B20.1724.05%1.93%3.09%12.25%
67
Neutral
$7.02B10.2612.24%5.45%-3.33%-19.59%
67
Neutral
$21.53B17.1216.31%2.85%-12.98%-11.34%
66
Neutral
$3.95B28.4112.31%1.73%4.25%56.51%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
58
Neutral
$12.19B-0.21%1.68%-23.92%90.47%
55
Neutral
$16.08B-2.84%2.53%-3.01%82.30%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IFF
International Flavors & Fragrances
65.41
-22.51
-25.60%
ALB
Albemarle
110.32
4.43
4.18%
EMN
Eastman Chemical
60.94
-35.81
-37.01%
PPG
PPG Industries
97.49
-22.75
-18.92%
RPM
RPM International
107.47
-25.64
-19.26%
SXT
Sensient Technologies
94.81
17.05
21.93%

International Flavors & Fragrances Corporate Events

International Flavors & Fragrances Reports Q3 2025 Results
Nov 6, 2025

International Flavors & Fragrances (IFF) is a leading company in the food, beverage, scent, health, and biosciences sectors, known for its innovative solutions that blend science and creativity to enhance consumer products worldwide.

IFF Earnings Call: Strong Growth Amid Challenges
Nov 6, 2025

International Flavors & Fragrances (IFF) recently held its earnings call, revealing a positive sentiment driven by strong EBITDA growth, strategic investments, and significant partnerships. However, the company also acknowledged challenges in certain segments and market uncertainties.

Business Operations and StrategyRegulatory Filings and Compliance
International Flavors & Fragrances Updates Bylaws for Modern Governance
Neutral
Nov 4, 2025

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.

The most recent analyst rating on (IFF) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on International Flavors & Fragrances stock, see the IFF Stock Forecast page.

Executive/Board Changes
International Flavors & Fragrances Appoints New Board Members
Neutral
Oct 22, 2025

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.

The most recent analyst rating on (IFF) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on International Flavors & Fragrances stock, see the IFF Stock Forecast page.

Executive/Board Changes
IFF Appoints New Chief Accounting Officer
Neutral
Aug 7, 2025

On August 7, 2025, International Flavors & Fragrances Inc. announced the appointment of Marc Birenkrant as the new Controller & Chief Accounting Officer, effective August 10, 2025. With over 30 years of experience in finance and accounting, Birenkrant has been with IFF since 2008 and has held several leadership roles. He replaces Beril Yildiz, who will leave the company on December 31, 2025, ensuring a smooth transition of responsibilities. This leadership change is significant for IFF’s financial operations and may impact its strategic positioning within the industry.

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.

IFF Reports Q2 2025 Results and Strategic Moves
Aug 7, 2025

International Flavors & Fragrances (IFF) is a leading company in the food, beverage, scent, health, and biosciences sectors, known for its innovative solutions that combine science and creativity to enhance everyday consumer products.

IFF Earnings Call: Solid Growth Amid Challenges
Aug 7, 2025

International Flavors & Fragrances (IFF) recently held its earnings call, presenting a balanced view of its financial performance. The company reported solid financial results, successful divestitures, and strategic initiatives for share repurchases. However, challenges remain in the Health & Bioscience segment and Fragrance Ingredients, influenced by market dynamics and competitive pressures.

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.Date of analysis: Nov 06, 2025