Investment Thesis
IFF is experiencing significant operational distress with negative operating and net income despite maintaining reasonable liquidity. The company's revenue decline, negative margins, and deteriorating profitability returns indicate structural challenges that are not offset by adequate cash generation relative to debt obligations.
IFF Strengths
- Positive operating cash flow of $850M demonstrates ability to generate cash despite losses
- Solid current ratio of 1.42x indicates adequate short-term liquidity
- Moderate debt-to-equity ratio of 0.40x provides some financial flexibility
IFF Risks
- Negative operating margin of -3.5% and net margin of -3.3% indicate unprofitable core operations
- Revenue declining 5.2% year-over-year signals weakening demand or market share loss
- Interest coverage ratio of -2.1x shows inability to cover debt service from operating earnings, creating refinancing risk
- Quick ratio of 0.85x below 1.0x suggests potential liquidity stress if current assets cannot be easily converted
Key Metrics to Watch
- Operating margin trajectory and path to profitability
- Revenue growth stabilization and organic growth rates
- Free cash flow sustainability and debt service coverage improvement
- Cash conversion efficiency and working capital management
IFF Financial Metrics
IFF Profitability Ratios
IFF Balance Sheet & Liquidity
IFF 5-Year Financial Trend
5-Year Trend Summary: INTERNATIONAL FLAVORS & FRAGRANCES INC's revenue has remained relatively flat over the 5-year period, with a 1% decline. The most recent EPS of $-10.14 indicates the company is currently unprofitable.
IFF Growth Metrics (YoY)
IFF Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.7B | $40.0M | $0.16 |
| Q2 2025 | $2.8B | $170.0M | $0.66 |
| Q1 2025 | $2.8B | $60.0M | $0.23 |
| Q3 2024 | $2.8B | $25.0M | $0.10 |
| Q2 2024 | $2.9B | $18.0M | $0.07 |
| Q1 2024 | $2.9B | -$9.0M | $-0.04 |
| Q3 2023 | $2.8B | $25.0M | $0.10 |
| Q2 2023 | $2.9B | $18.0M | $0.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
IFF Capital Allocation
IFF SEC Filings
Access official SEC EDGAR filings for INTERNATIONAL FLAVORS & FRAGRANCES INC (CIK: 0000051253)