International Flavors & Fragrances Inc (IFF) stock analysis
Close on Nov 11, 2026Market cap $21.09BP/E –Yield 1.94%
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed9 of 30 checks passed
International Flavors & Fragrances passes 9 of the 30 checks behind our score; 10 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 2/6
- Growth
- 2/6
- Past performance
- 0/6
- Financial health
- 3/6
- Dividend
- 2/6
What stands out
Trading below fair value
The share price of $82.65 is below our fair value estimate of $86.65.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 20.4% of total debt.
Guidance raised
International Flavors & Fragrances raised its full year 2026 comparable currency neutral sales growth outlook on Aug 4, 2026.
Covered by free cash flow
Dividends take 75.7% of free cash flow.
What to watch
Margin of safety under 20%
The price is 4.6% below fair value, less than the 20% cushion we look for.
Return on capital under 10%
Return on invested capital was 3.0%, below the 10% that usually covers the cost of capital.
High debt
Debt is 40.8% of shareholders' equity, above the 40% we consider low.
Revenue growing under 10% a year
Revenue grew -4.3% a year over the last three fiscal years, short of the 10% we look for.
Valuation2/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA below its 5-year median
International Flavors & Fragrances's EV/EBITDA of 15.4 is below its 5-year median of 22.0.
P/B above the industry
International Flavors & Fragrances's price-to-book of 1.51 is above the Chemicals and Allied Products median of 1.51.
Trading below fair value
The share price of $82.65 is below our fair value estimate of $86.65.
Margin of safety under 20%
The price is 4.6% below fair value, less than the 20% cushion we look for.
Growth2/6
Revenue growing under 10% a year
Revenue grew -4.3% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew -4.6% over the last twelve months; the Chemicals and Allied Products median is 3.5%.
Guidance raised
International Flavors & Fragrances raised its full year 2026 comparable currency neutral sales growth outlook on Aug 4, 2026.
Gross margin improving
Gross margin was 37.5% over the last twelve months, against 37.2% a year earlier.
Past performance0/6
Return on equity
Needs positive equity and five years of results.
Return on capital under 10%
Return on invested capital was 3.0%, below the 10% that usually covers the cost of capital.
Return on equity against the industry
Needs positive equity.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin against its history
Needs five years of revenue and net income.
Net margin against the industry
Needs revenue and net income.
Financial health3/6
High debt
Debt is 40.8% of shareholders' equity, above the 40% we consider low.
Debt falling against equity
Debt to equity fell from 69.9% five years ago to 40.8%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 20.4% of total debt.
Interest not well covered
Operating income covers interest expense 4.0 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 2.06 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is 1.66; above 3 is the safe zone and below 1.8 the distress zone.
Dividend2/6
Pays a dividend
International Flavors & Fragrances paid dividends worth 1.9% of the share price over the last twelve months.
Yield below Treasuries
The 1.9% yield is below the 4.4% on a 1-year Treasury.
Yield below the top quarter
The top quarter of US dividend payers yield 3.8% or more; International Flavors & Fragrances yields 1.9%.
Dividend was cut
The dividend per share fell by more than 10% at least once in the last 10 fiscal years.
Earnings cover
Needs dividends paid and net income.
Covered by free cash flow
Dividends take 75.7% of free cash flow.
Fair value
How we estimate itOur estimate per share
$86.65
The share price is 5% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| EV/EBITDA | 16.3× | 22.0× | 10.4× | $88.33 | 78% |
| P/B | 1.5× | 1.4× | 1.5× | $80.77 | 22% |
| Earnings powerleft out, too far from the others | 9.9% cost of equity | – | – | $24.00 | – |
| Fair value | $86.65 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Chemicals and Allied Products median 25.2
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $211.03M
- Value traded per 1% price move
- $155.32M
Downside
Medium risk
- Typical loss in a bad month
- 15.3%
- Volatility (annualized)
- 36%
- Sharpe ratio, 1 year
- 0.75
- Beta to the S&P 500 (5Y)
- 1.00
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -5.2% | -4.3% | +16.5% | +13.7% | |
| Gross profit | -4.5% | -1.7% | +13.6% | +11.3% | |
| Free cash flow | -57.8% | – | -13.3% | -3.5% | |
| Dividend per share | 0.0% | -20.6% | -12.0% | -2.5% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 25.2% | – | – | |
| Return on assets | 10.5% | – | – | |
| Current ratio | 1.79 | 1.61 | 1.42 | |
| Debt to equity | 0.81 | 0.70 | 0.42 | |
| Net debt to EBITDA | 1.53× | 4.21× | 9.31× | |
| Interest coverage | 10.4× | 4.3× | -1.7× | |
| Inventory turnover | 3.0× | 2.7× | 3.8× | |
| Capex to revenue | 4.1% | 3.8% | 5.5% | |
| Diluted shares | 80M | 114M | 256M |
Where the cash went
Fiscal 2021 to 2025, five years combined
International Flavors & Fragrances generated $5.21B from operations and spent $5.72B on capital expenditure, dividends and share buybacks. 43% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2018 | 8.5% | 0.45× | 2.27× | 8.8% |
| FY2017 | 8.7% | 0.79× | 2.60× | 17.9% |
| FY2016 | 13.0% | 0.81× | 2.40× | 25.2% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero–
- Cash generatingOperating cash flow above zero$850.00M
- Return on assets improvedROA up on the prior year– → –
- Earnings backed by cashOperating cash flow above net income$850.00M vs –
- Less leverageLong-term debt to assets fell26.3% → 18.6%
- Better liquidityCurrent ratio rose1.83 → 1.42
- No dilutionShare count did not rise256M → 256M
- Gross margin improvedGross margin up on the prior year35.91% → 36.16%
- More efficientAsset turnover rose0.37 → 0.38
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