📊 IFF Key Takeaways
Is International Flavors & Fragrances Inc. (IFF) a Good Investment?
Revenue declining 5.2% YoY with a catastrophic 235.6% EPS collapse indicates severe operational deterioration. Exceptionally poor returns on capital (ROE 1.2%, ROA 0.7%) and weak FCF generation (3.4% margin) suggest structural business challenges. While leverage remains manageable, operational underperformance is unsustainable.
IFF's fundamentals show a business with meaningful scale and still-positive cash generation, but profitability has deteriorated sharply, with negative operating income, negative net income, and weak interest coverage. Revenue is also declining, which suggests current cash flow is not being supported by strong underlying growth quality. Until margins and coverage recover sustainably, the balance of fundamentals remains unfavorable.
Why Buy International Flavors & Fragrances Inc. Stock? IFF Key Strengths
- Reasonable gross margin (37.1%) indicates core product demand remains
- Conservative leverage (0.34x debt/equity) with strong interest coverage (6.2x) provides financial stability
- Established asset base ($25.1B) provides financial cushion against near-term distress
- Large revenue base and solid 36.2% gross margin indicate the core portfolio still has pricing power and product value
- Positive operating cash flow of $850.00M and free cash flow of $256.00M provide some financial flexibility despite earnings pressure
- Balance sheet leverage appears moderate with debt/equity of 0.40x and a current ratio of 1.42x
IFF Stock Risks: International Flavors & Fragrances Inc. Investment Risks
- Top-line revenue declining 5.2% YoY with catastrophic EPS collapse (-235.6%) signals severe profitability crisis
- Critically poor capital returns (ROE 1.2%, ROA 0.7%) indicate fundamental operational inefficiency
- Deteriorating cash conversion (3.4% FCF margin, quick ratio 0.87x) and weak operating cash flow ($257M on $2.7B revenue) raise sustainability concerns
- Operating margin of -3.5% and net margin of -3.3% show the business is currently not converting sales into profits
- Interest coverage of -2.1x is a significant warning sign that earnings are not supporting financing costs
- Revenue declined 5.2% YoY, raising concern that weakness is not only cost-driven but also tied to top-line pressure
Key Metrics to Watch
- Organic revenue growth stabilization and margin expansion recovery
- Return on equity and return on assets trajectory toward industry benchmarks
- Free cash flow margin improvement and operating cash flow conversion ratio
- Operating margin and interest coverage
- Organic revenue growth and free cash flow conversion
International Flavors & Fragrances Inc. (IFF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.4% FCF margin may limit capital allocation flexibility.
IFF Profit Margin, ROE & Profitability Analysis
IFF vs Materials Sector: How International Flavors & Fragrances Inc. Compares
How International Flavors & Fragrances Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is International Flavors & Fragrances Inc. Stock Overvalued? IFF Valuation Analysis 2026
Based on fundamental analysis, International Flavors & Fragrances Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
International Flavors & Fragrances Inc. Balance Sheet: IFF Debt, Cash & Liquidity
IFF Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
IFF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.7B | $169.0M | $0.66 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
International Flavors & Fragrances Inc. Dividends, Buybacks & Capital Allocation
IFF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for International Flavors & Fragrances Inc. (CIK: 0000051253)
📋 Recent SEC Filings
❓ Frequently Asked Questions about IFF
What is the AI rating for IFF?
International Flavors & Fragrances Inc. (IFF) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are IFF's key strengths?
Claude: Reasonable gross margin (37.1%) indicates core product demand remains. Conservative leverage (0.34x debt/equity) with strong interest coverage (6.2x) provides financial stability. ChatGPT: Large revenue base and solid 36.2% gross margin indicate the core portfolio still has pricing power and product value. Positive operating cash flow of $850.00M and free cash flow of $256.00M provide some financial flexibility despite earnings pressure.
What are the risks of investing in IFF?
Claude: Top-line revenue declining 5.2% YoY with catastrophic EPS collapse (-235.6%) signals severe profitability crisis. Critically poor capital returns (ROE 1.2%, ROA 0.7%) indicate fundamental operational inefficiency. ChatGPT: Operating margin of -3.5% and net margin of -3.3% show the business is currently not converting sales into profits. Interest coverage of -2.1x is a significant warning sign that earnings are not supporting financing costs.
What is IFF's revenue and growth?
International Flavors & Fragrances Inc. reported revenue of $2.7B.
Does IFF pay dividends?
International Flavors & Fragrances Inc. pays dividends, with $102.0M distributed to shareholders in the trailing twelve months.
Where can I find IFF SEC filings?
Official SEC filings for International Flavors & Fragrances Inc. (CIK: 0000051253) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is IFF's EPS?
International Flavors & Fragrances Inc. has a diluted EPS of $0.66.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is IFF a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, International Flavors & Fragrances Inc. has a SELL rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is IFF stock overvalued or undervalued?
Valuation metrics for IFF: ROE of 1.2% (sector avg: 14%), net margin of 6.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy IFF stock in 2026?
Our dual AI analysis gives International Flavors & Fragrances Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is IFF's free cash flow?
International Flavors & Fragrances Inc.'s operating cash flow is $257.0M, with capital expenditures of $165.0M. FCF margin is 3.4%.
How does IFF compare to other Materials stocks?
Vs Materials sector averages: Net margin 6.2% (avg: 10%), ROE 1.2% (avg: 14%), current ratio 1.49 (avg: 1.6).