International Flavors & Fragrances (IFF)
NYSE:IFF
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International Flavors & Fragrances
(NYSE:IFF)
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Rating:57Neutral
Price Target:
$72.00
â–¼(-2.40% Downside)
Action:ReiteratedDate:02/17/26
The score is driven primarily by uneven financial performance (recent loss despite resilient cash flow and lower debt). Earnings-call commentary is moderately constructive with modest 2026 growth and execution plans, while valuation is constrained by loss-making results. Technicals are supportive but appear overbought, adding near-term risk.
Positive Factors
Operating cash flow resilience
Consistent operating cash flow despite a net loss indicates durable cash-generation capacity. Positive OCF (~$0.85B in 2025) supports necessary CapEx, R&D and working-capital needs, cushions earnings volatility, and provides flexibility to fund deleveraging or share returns over the medium term.
Negative Factors
Profitability volatility and recent net loss
Swinging from modest profit to a 2025 net loss (-3.4% net margin) shows elevated earnings volatility. This reduces retained-earnings runway to self-fund growth, raises the bar on execution for margin recovery, and increases the risk that short-term shocks translate into longer-term cash-generation and investment constraints.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating cash flow resilience
Consistent operating cash flow despite a net loss indicates durable cash-generation capacity. Positive OCF (~$0.85B in 2025) supports necessary CapEx, R&D and working-capital needs, cushions earnings volatility, and provides flexibility to fund deleveraging or share returns over the medium term.
Read all positive factors
International Flavors & Fragrances (IFF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.84B
Dividend Yield2.41%
Average Volume (3M)1.70M
Price to Earnings (P/E)―
Beta (1Y)0.62
Revenue Growth-3.01%
EPS Growth82.30%
CountryUS
Employees22,400
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.80
Shares Outstanding255,437,820
10 Day Avg. Volume1,338,446
30 Day Avg. Volume1,695,181
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)1.22
Price to Sales (P/S)1.58
P/FCF Ratio67.39
Enterprise Value/Market Cap1.32
Enterprise Value/Revenue2.29
Enterprise Value/Gross Profit6.55
Enterprise Value/Ebitda30.79
Forecast
1Y Price Target
$92.30Price Target Upside25.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)4.43
Revenue Forecast (FY)$10.71B
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, an...
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 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 Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call highlights meaningful progress on balance sheet strengthening, disciplined capital allocation, margin expansion and targeted reinvestment in R&D and capacity—supported by solid segment-level wins in Taste, Scent (Fine Fragrance) and pockets of Health & Biosciences. These positives are tempered by continued top-line pressure and profitability volatility in Food Ingredients (notably Q4 weakness), commodity pressure in Fragrance Ingredients, a sizable free cash flow shortfall in 2025 driven by transaction-related charges and working capital builds, and modest near-term 2026 guidance with H1 comparability headwinds. Management has clear remediation plans (portfolio sales, productivity, innovation investments, cash-focused incentives) and expects improvements through 2026 and into 2027.Positive Updates
Improved Leverage and Balance Sheet
Net debt to credit-adjusted EBITDA improved to 2.6x (from 3.8x in 2024); gross debt reduced to ~$6.0B (down nearly $3.0B vs 2024); cash & equivalents of $590M.
Negative Updates
Food Ingredients Revenue Weakness and Q4 Profitability Drop
Q4 Food Ingredients sales $802M, down ~4%; Q4 profitability declined ~11% to $82M driven by volume declines and unfavorable net pricing; full-year sales were down partly due to strategic exits of low-margin business and sanctions-related lost sales in Russia.
Read all updates
Q4-2025 Updates
Positive
Negative
Improved Leverage and Balance Sheet
Net debt to credit-adjusted EBITDA improved to 2.6x (from 3.8x in 2024); gross debt reduced to ~$6.0B (down nearly $3.0B vs 2024); cash & equivalents of $590M.
Read all positive updates
Company Guidance
The company guided 2026 sales of $10,500,000,000 to $10,800,000,000 (comparable currency‑neutral growth of 1%–4%) and EBITDA of $2,050,000,000 to $2,150,000,000 (comparable currency‑neutral EBITDA growth of 3%–8%), noting FX should be roughly +1 percentage point to sales and negligible to EBITDA; growth is expected to be volume‑driven (incremental margins on volume ~30%–35%), led by Taste, Health & Biosciences and Scent, with modest EBITDA growth expected in Q1 versus a like‑for‑like Q1 2025 base of about $55,000,000 (adjusting for divestitures) and progressive improvement thereafter. Management expects CapEx of ~6% of sales, productivity to fund selective reinvestment, higher Reg G/one‑time costs as the Food Ingredients sale process progresses, improved operating cash flow generation excluding those items, an operating cash‑flow‑conversion incentive metric (EBITDA − CapEx − change in net working capital), and intends to use potential sale proceeds to buy back shares and pay down debt while keeping net debt/credit‑adjusted EBITDA below a ~3.0x target (net debt/credit‑adjusted EBITDA was 2.6x at year‑end 2025).International Flavors & Fragrances Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
58
Neutral
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.89B | 11.48B | 11.48B | 12.44B | 11.66B |
| Gross Profit | 3.37B | 4.12B | 3.68B | 4.15B | 3.73B |
| EBITDA | 779.00M | 1.60B | -996.00M | -110.00M | 1.80B |
| Net Income | -374.00M | 243.00M | -2.56B | -1.87B | 268.00M |
Balance Sheet | |||||
| Total Assets | 25.54B | 28.67B | 30.98B | 35.52B | 39.66B |
| Cash, Cash Equivalents and Short-Term Investments | 590.00M | 469.00M | 703.00M | 483.00M | 711.00M |
| Total Debt | 6.65B | 9.62B | 10.82B | 11.74B | 12.20B |
| Total Liabilities | 11.35B | 14.76B | 16.34B | 17.78B | 18.44B |
| Stockholders Equity | 14.15B | 13.88B | 14.61B | 17.66B | 21.08B |
Cash Flow | |||||
| Free Cash Flow | 256.00M | 602.00M | 936.00M | -109.00M | 1.04B |
| Operating Cash Flow | 850.00M | 1.07B | 1.44B | 397.00M | 1.44B |
| Investing Cash Flow | 2.27B | 326.00M | 574.00M | 745.00M | -18.00M |
| Financing Cash Flow | -3.09B | -1.61B | -1.85B | -1.23B | -1.30B |
International Flavors & Fragrances Technical Analysis
Positive
73.77
Price Trends
73.99
Negative
70.50
Positive
68.32
Positive
Market Momentum
-0.43
Negative
55.65
Neutral
67.38
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 73.77 is above the 20-day moving average (MA) of 70.15, below the 50-day MA of 73.99, and above the 200-day MA of 68.32, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 55.65 is Neutral, neither overbought nor oversold. The STOCH value of 67.38 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $13.92B | 21.09 | 22.70% | 1.96% | 3.09% | 12.25% | |
68 Neutral | $8.47B | 15.45 | 8.09% | 5.33% | -3.33% | -19.59% | |
68 Neutral | $24.69B | 14.71 | 33.60% | 2.71% | -12.98% | -11.34% | |
65 Neutral | $3.99B | 29.50 | 11.63% | 1.70% | 4.25% | 56.51% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | $18.84B | -46.13 | -2.49% | 2.41% | -3.01% | 82.30% | |
57 Neutral | $20.91B | -32.60 | -5.13% | 1.10% | -23.92% | 90.47% |
* Basic Materials Sector Average
IFF
International Flavors & Fragrances
73.77
4.08
5.86%
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31.38%
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.