International Flavors & Fragrances (IFF) AI Stock Analysis

• Market Cap: $19.78B
• Dividend Yield: 2.07%
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 83.4
• Beta (1Y): 0.70
• Revenue Growth: 0.68%
• EPS Growth: 66.69%
• Country: US
• Employees: 22,400
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): 1.20
• Shares Outstanding: 255,790,340
• 10 Day Avg. Volume: 1,982,487
• 30 Day Avg. Volume: 1,991,993
• PEG Ratio: 0.70
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.20
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 7.34
• Enterprise Value/Ebitda: -23.87
• 1Y Price Target: $90.36
• Price Target Upside: 16.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

IFF's stock score reflects a mixed performance with strengths in operational improvements and strategic growth highlighted in the earnings call. However, significant profitability challenges and high leverage weigh on the overall score. The technical indicators suggest short-term stability, but valuation metrics remain a concern given the negative P/E ratio.

Positive Factors

Financial Performance

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

Growth Prospects

There is scope for IFF to grow at three times the US Consumer Staples LFL levels over 2025/26, supported by a diversified customer footprint, innovation, and regulatory reformulation tailwinds.

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

Earnings Projections

The adjusted EPS projections for FY25/26/27 have been revised lower, leading to a decrease in the price target for IFF.

Market Sentiment

IFF's share price tumbled -8% on 1Q25 results following comments on the conference call about potential pre-buying and risk of trading softening due to the mixed market/macro backdrop.

Product Vulnerability

IFF estimates that 80% of its products are in core products and 20% are discretionary and more vulnerable to a cyclical shock.

International Flavors & Fragrances Business Overview & Revenue Model

Company Description

International Flavors & Fragrances (IFF) is a leading global creator of flavors and fragrances used in a wide variety of consumer products. The company operates across several sectors including food and beverage, home and personal care, and health and wellness. IFF's core products and services include the development and manufacturing of natural and synthetic flavor compounds, fragrance ingredients, cosmetic actives, and other specialty ingredients that are integral to the consumer goods industry.

How the Company Makes Money

IFF makes money through its diverse portfolio of flavors, fragrances, and specialty ingredients, which are sold to manufacturers of consumer products worldwide. Its revenue model is based on the sale of these compounds to industries such as food and beverage, where it provides flavor solutions, and the personal care and household products sectors, where it offers fragrance and cosmetic solutions. Key revenue streams include long-term contracts with major consumer goods companies, proprietary product formulations, and innovation in sustainable and natural ingredients. Additionally, strategic partnerships and acquisitions enhance its market presence and technological capabilities, contributing significantly to its earnings.

International Flavors & Fragrances Financial Statement Overview

Summary

IFF shows signs of recovery with improved profitability and debt management. However, revenue stagnation and cash flow challenges present potential risks. The company is stabilizing post losses, but growth remains a concern.

Income Statement

The income statement reveals mixed performance. Gross profit margin has improved from 32.06% in 2023 to 35.91% in 2024, indicating better cost management. However, with a net profit margin of 2.12% in 2024, the company still struggles with profitability, though this is an improvement from a significant net loss in 2023. Revenue has slightly increased from $11.48B in 2023 to $11.48B in 2024, showing stagnation. The EBIT margin improved to 6.67% in 2024 from 5.33% in 2023, indicating operational improvements.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.69 in 2024, reduced from 0.74 in 2023, indicating prudent debt management. Return on equity improved to 1.75% in 2024 from a negative in 2023, showing recovery potential. However, the equity ratio decreased to 48.39% in 2024 from 47.17% in 2023, suggesting a slight weakening in equity financing relative to assets.

Cash Flow

Cash flow analysis shows a decrease in free cash flow from $936M in 2023 to $607M in 2024, indicating challenges in cash generation. The operating cash flow to net income ratio improved, reflecting efficient cash generation relative to profit, but free cash flow to net income remains pressured by capital expenditures.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.48B	11.48B	12.44B	11.66B	5.08B
	Gross Profit
4.12B	3.68B	4.15B	3.73B	2.09B
	EBIT
766.00M	612.00M	1.09B	585.00M	566.48M
	EBITDA
1.60B	-996.00M	-110.00M	1.80B	897.67M
	Net Income Common Stockholders
243.00M	-2.56B	-1.84B	268.00M	365.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
469.00M	703.00M	493.00M	715.00M	656.84M
	Total Assets
28.67B	30.98B	35.39B	39.68B	13.56B
	Total Debt
9.59B	10.80B	10.97B	11.40B	4.41B
	Net Debt
9.12B	10.10B	10.48B	10.69B	3.76B
	Total Liabilities
14.76B	16.34B	17.60B	18.45B	7.14B
	Stockholders Equity
13.88B	14.61B	17.73B	21.12B	6.32B
Cash Flow		Free Cash Flow
607.00M	936.00M	-161.00M	1.04B	522.30M
	Operating Cash Flow
1.07B	1.44B	345.00M	1.44B	714.10M
	Investing Cash Flow
326.00M	574.00M	745.00M	-18.00M	-187.46M
	Financing Cash Flow
-1.61B	-1.85B	-1.18B	-1.30B	-511.57M

International Flavors & Fragrances Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 77.88
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 77.88 is above the 20-day moving average (MA) of 76.70, above the 50-day MA of 76.24, and below the 200-day MA of 88.03, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 54.89 is Neutral, neither overbought nor oversold. The STOCH value of 73.05 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
SXT	74 Outperform	$4.01B	31.21	11.87%	1.74%	6.30%	41.01%
RPM	73 Outperform	$14.89B	23.24	25.53%	1.72%	-0.61%	15.06%
EMN	69 Neutral	$9.49B	10.52	16.16%	3.99%	2.78%	1.50%
LYB	66 Neutral	$19.02B	18.48	7.19%	9.06%	-6.53%	-50.08%
PPG	63 Neutral	$25.94B	19.32	18.47%	2.35%	-7.67%	-0.58%
IFF	56 Neutral	$19.78B	83.39	-6.08%	2.07%	0.68%	66.69%
Sector *	50 Neutral	$1.98B	-1.08	-21.29%	3.61%	1.96%	-30.59%

International Flavors & Fragrances Corporate Events

International Flavors & Fragrances Holds Annual Shareholder Meeting

On May 1, 2025, International Flavors & Fragrances Inc. held its Annual Meeting of Shareholders where ten directors were elected, PricewaterhouseCoopers LLP was ratified as the independent auditor for 2025, and executive compensation was approved. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

Spark’s Take on IFF Stock

According to Spark, TipRanks’ AI Analyst, IFF is a Neutral.

IFF’s overall stock score reflects its recovery trajectory, with improved profitability and debt management. However, the stock is currently experiencing bearish technical signals and appears overvalued, leading to a tempered outlook despite positive elements from recent earnings.

To see Spark’s full report on IFF stock, click here.

International Flavors & Fragrances Reorganizes Business Segments

In 2025, International Flavors & Fragrances Inc. reorganized its internal structure, affecting how resources are allocated and financial performance is assessed. This led to the separation of its former Nourish segment into two new segments: Taste and Food Ingredients. The reorganization aims to align with the company’s updated operating model and improve investor transparency by recasting 2024 financial data to reflect these changes. The new reportable segments as of Q1 2025 are Taste, Food Ingredients, Health & Biosciences, Scent, and Pharma Solutions.

Spark’s Take on IFF Stock

According to Spark, TipRanks’ AI Analyst, IFF is a Neutral.

IFF’s overall stock score reflects its recovery trajectory, with improved profitability and debt management. However, the stock is currently experiencing bearish technical signals and appears overvalued, leading to a tempered outlook despite positive elements from recent earnings.

To see Spark’s full report on IFF stock, click here.

IFF Executive Vice President Jennifer Johnson Resigns

On March 12, 2025, Jennifer Johnson, the Executive Vice President, General Counsel, and Corporate Secretary of IFF, announced her resignation. She will remain with the company until July 1, 2025, to facilitate a smooth transition, and her departure is considered a qualifying event under IFF’s executive severance policy.

International Flavors & Fragrances Announces Leadership Change

On February 20, 2025, International Flavors & Fragrances Inc. announced the upcoming departure of Simon Herriott, President of Health & Biosciences, effective March 31, 2025. Leticia Goncalves Lourenço will succeed him as President of the Health & Biosciences division starting March 1, 2025, marking a significant leadership change within the company.