International Flavors & Fragrances (IFF) AI Stock Analysis

• Market Cap: $16.87B
• Dividend Yield: 2.42%
• Average Volume (3M): 2.19M
• Price to Earnings (P/E): 83.4
• Beta (1Y): 0.62
• Revenue Growth: -0.07%
• EPS Growth: 83.36%
• Country: US
• Employees: 22,400
• Sector: Basic Materials
• Sector Strength: 56
• Industry: Chemicals - Specialty
• EPS (TTM): 1.15
• Shares Outstanding: 256,287,080
• 10 Day Avg. Volume: 2,756,813
• 30 Day Avg. Volume: 2,186,965
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 2.21
• Enterprise Value/Gross Profit: 6.09
• Enterprise Value/Ebitda: 30.90
• 1Y Price Target: $84.68
• Price Target Upside: 28.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 50 Neutral
• Price Target: $65.00 ▼(-1.71% Downside)

IFF's overall stock score is primarily impacted by its financial challenges, including declining revenue and profitability. Technical analysis indicates bearish momentum, and valuation metrics are concerning with a negative P/E ratio. The earnings call provides some optimism with strategic improvements and growth in key segments, but ongoing challenges in certain areas temper the outlook.

Positive Factors

Financial Performance

IFF has delivered six sequential quarterly beats compared to consensus, indicating strong performance and consistency.

Strategic Initiatives

New strategic initiatives include divestments and the reinstatement of share repurchases.

Valuation

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

Negative Factors

Competitive Pressure

The more commoditized Fragrance Ingredients business is facing increasing competition.

Earnings Estimate

Earnings estimates have been reset lower due to management expectations and reports of slowing consumer spending, impacting growth forecasts.

Growth Forecast

The slowdown in projected organic growth and some margins pressures are becoming more pronounced.

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 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 Financial Statement Overview

Summary

IFF is facing financial challenges, with declining revenue and profitability impacting its income statement. The balance sheet remains stable with moderate leverage, but profitability issues are evident with a negative ROE. Cash flow generation is weak, with significant declines in free cash flow. The company needs to address operational inefficiencies and improve cash generation to enhance financial health.

Income Statement

The income statement reveals a challenging period for IFF, with declining revenue and profitability. The TTM data shows a negative net profit margin of -7.31% and an EBIT margin of -4.71%, indicating operational inefficiencies. Revenue growth has been negative, with a -1.09% decline in the TTM, reflecting a downturn in sales. The gross profit margin remains moderate at 34.84%, but the overall profitability is under pressure due to high costs and declining sales.

Balance Sheet

IFF's balance sheet shows a moderate debt-to-equity ratio of 0.75 in the TTM, suggesting a balanced approach to leveraging. However, the return on equity is negative at -5.96%, indicating that the company is not generating sufficient returns on shareholder investments. The equity ratio stands at 55.12%, reflecting a stable capital structure, but the negative ROE highlights underlying profitability issues.

Cash Flow

The cash flow statement indicates a significant decline in free cash flow, with a -57.82% growth rate in the TTM. The operating cash flow to net income ratio is 0.24, suggesting that cash generation from operations is not robust enough to cover net losses. The free cash flow to net income ratio is 0.52, indicating some ability to generate cash relative to net income, but overall cash flow health is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.30B	11.48B	11.48B	12.44B	11.66B	5.08B
Gross Profit	4.10B	4.12B	3.68B	4.15B	3.73B	2.09B
EBITDA	808.00M	1.60B	-996.00M	-110.00M	1.80B	897.67M
Net Income	-393.00M	243.00M	-2.56B	-1.84B	268.00M	365.00M
Balance Sheet
Total Assets	26.12B	28.67B	30.98B	35.52B	39.66B	13.56B
Cash, Cash Equivalents and Short-Term Investments	816.00M	469.00M	709.00M	493.00M	715.00M	656.84M
Total Debt	6.85B	9.62B	10.82B	11.74B	12.20B	4.73B
Total Liabilities	11.69B	14.76B	16.34B	17.78B	18.44B	7.14B
Stockholders Equity	14.40B	13.88B	14.61B	17.66B	21.08B	6.31B
Cash Flow
Free Cash Flow	240.00M	607.00M	936.00M	-161.00M	1.04B	522.30M
Operating Cash Flow	889.00M	1.07B	1.44B	345.00M	1.44B	714.10M
Investing Cash Flow	2.13B	326.00M	574.00M	745.00M	-18.00M	-187.46M
Financing Cash Flow	-2.86B	-1.61B	-1.85B	-1.18B	-1.30B	-511.57M

International Flavors & Fragrances Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 66.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 66.13 is below the 20-day moving average (MA) of 68.15, below the 50-day MA of 72.53, and below the 200-day MA of 79.06, indicating a bearish trend. The MACD of -2.29 indicates Negative momentum. The RSI at 37.70 is Neutral, neither overbought nor oversold. The STOCH value of 84.89 is Negative, 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	78 Outperform	$16.21B	23.59	25.42%	1.64%	0.51%	17.21%
SXT	75 Outperform	$4.83B	35.86	12.18%	1.44%	4.95%	53.63%
EMN	65 Neutral	$7.66B	9.37	14.52%	4.95%	1.60%	-3.97%
PPG	63 Neutral	$25.47B	20.01	16.88%	2.45%	-10.59%	-7.79%
LYB	58 Neutral	$17.31B	70.60	1.08%	9.74%	-14.12%	-89.22%
IFF	50 Neutral	$16.87B	83.39	-2.74%	2.42%	-0.07%	83.36%
Sector *	43 Neutral	C$909.73M	-8.58	0.05%	2.69%	23.40%	-43.48%

International Flavors & Fragrances Corporate Events

IFF Appoints New Chief Accounting Officer

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.

IFF Announces $500 Million Share Repurchase Program

On August 5, 2025, IFF announced a $500 million share repurchase program, reflecting confidence in its long-term value and marking a key milestone in its capital allocation strategy. The company reported second-quarter 2025 financial results with net sales of $2.76 billion, a 4% decrease from the previous year, but saw a 3% increase in currency-neutral sales. IFF also reduced leverage to 2.5x, reaffirmed its full-year financial guidance, and announced the divestiture of its soy crush, concentrates, and lecithin business as part of its strategy to focus on more value-added offerings.

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.

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.