International Flavors & Fragrances Inc. (IFF)
Valuation Overview•Is International Flavors & Fragrances Inc. Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
Fragile underlying quality score of 36/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street is broadly bullish, projecting solid upside alongside robust expected earnings growth. This is paired with healthy capital returns, anchored by a strong dividend yield, though free cash flow coverage appears tight.
IFF struggles with subpar profitability and pressured margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company is facing top-line contraction (-4.3% 3Y CAGR) paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 8.0%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $2.7B | -5.2% | -4.3% | +16.5% | +13.7% | |
| EBITDA | $419.0M | — | — | — | — | |
| Net Income | $169.0M | -253.9% | +41.5% | — | — | |
| EPS (Diluted) | $0.66 | -253.7% | — | — | — | |
| Free Cash Flow | $92.0M | -57.5% | — | -13.3% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 35.1% | 33.0% | 32.9% | 37.7% |
| Operating Margin | 8.0% | -0.8% | -1.6% | 6.5% |
| Net Margin | 7.8% | -7.9% | -7.3% | 1.0% |
| FCF Margin | 3.7% | 5.2% | 4.8% | 7.1% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.07 | $1.25 | +16.8% | ||
| Q1'26 | $0.83 | $0.80 | -3.4% | ||
| Q4'25 | $1.02 | $1.05 | +2.9% | ||
| Q3'25 | $1.12 | $1.15 | +2.7% | ||
| Q2'25 | $1.13 | $1.20 | +6.2% | ||
| Q1'25 | $0.83 | $0.97 | +16.9% | ||
| Q4'24 | $1.07 | $1.04 | -2.8% | ||
| Q3'24 | $0.99 | $1.16 | +16.7% |
Total return is +5.1% (1Y), lagging the benchmark by -19.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +13.9% | +4.6% | — |
| 1Y | +5.1% | -19.9% | +2.7% |
| 3YCAGR | +1.6% | -18.3% | +8.1% |
| 5YCAGR | -9.2% | -22.0% | +8.8% |
| 10YCAGR | -2.0% | -15.6% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about International Flavors & Fragrances Inc. (IFF) valuation, health, and returns.
International Flavors & Fragrances Inc. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. trading near fair value (DCF: $68.40)
International Flavors & Fragrances Inc. has multiple valuation anchors: DCF Intrinsic Value: $68.40 | Peer Relative Fair Value: $78.37 | Wall Street Analyst Target: $88.13 (implying +14.9% upside). A convergence of these signals offers higher conviction.
International Flavors & Fragrances Inc. displays weak financial health with a composite quality score of 36/100, supported by a Altman Z-Score of 1.1 (distress zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 3.5%.
International Flavors & Fragrances Inc. pays a 2.1% dividend yield, covered by a 0% payout ratio with 0 years of growth, supplemented by a 0.2% buyback yield.
International Flavors & Fragrances Inc.'s current growth trajectory is Stable. The company achieved -5.2% 1Y revenue growth and -253.7% 1Y EPS growth, compared to its 3Y revenue CAGR of -4.3%.
Wall Street consensus is Buy based on 33 analysts, beating EPS expectations in 67% of recent quarters with a 1-quarter streak. The consensus price target represents a +14.9% change from current levels.
Investment risks for International Flavors & Fragrances Inc. include: -23.1% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 0.78x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.