INTL FLAVORS & FRAGRANCES (IFF) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:IFF • US4595061015
69.75 USD
-0.06 (-0.09%)
At close: Feb 2, 2026
69.75 USD
0 (0%)
After Hours: 2/2/2026, 8:14:32 PM
IFF gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. Both the profitability and financial health of IFF have multiple concerns. IFF has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- IFF had positive earnings in the past year.
- IFF had a positive operating cash flow in the past year.
- In multiple years IFF reported negative net income over the last 5 years.
- IFF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- IFF has a worse Return On Assets (-1.60%) than 60.24% of its industry peers.
- IFF has a Return On Equity of -2.89%. This is comparable to the rest of the industry: IFF outperforms 43.37% of its industry peers.
- IFF has a Return On Invested Capital (3.60%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for IFF is below the industry average of 6.11%.
- The 3 year average ROIC (2.64%) for IFF is below the current ROIC(3.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.6% | ||
| ROE | -2.89% | ||
| ROIC | 3.6% |
ROA(3y)-4.23%
ROA(5y)-1.87%
ROE(3y)-8.79%
ROE(5y)-3.88%
ROIC(3y)2.64%
ROIC(5y)2.78%
1.3 Margins
- In the last couple of years the Profit Margin of IFF has declined.
- The Operating Margin of IFF (7.94%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of IFF has declined.
- IFF has a Gross Margin of 36.38%. This is in the better half of the industry: IFF outperforms 73.49% of its industry peers.
- In the last couple of years the Gross Margin of IFF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.94% | ||
| PM (TTM) | N/A | ||
| GM | 36.38% |
OM growth 3Y11.26%
OM growth 5Y-11.45%
PM growth 3Y-2.73%
PM growth 5Y-24.82%
GM growth 3Y3.87%
GM growth 5Y-2.67%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IFF is destroying value.
- Compared to 1 year ago, IFF has about the same amount of shares outstanding.
- The number of shares outstanding for IFF has been increased compared to 5 years ago.
- IFF has a better debt/assets ratio than last year.
2.2 Solvency
- IFF has an Altman-Z score of 1.38. This is a bad value and indicates that IFF is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.38, IFF is doing worse than 72.29% of the companies in the same industry.
- IFF has a debt to FCF ratio of 18.22. This is a negative value and a sign of low solvency as IFF would need 18.22 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 18.22, IFF is in line with its industry, outperforming 51.81% of the companies in the same industry.
- A Debt/Equity ratio of 0.33 indicates that IFF is not too dependend on debt financing.
- IFF has a better Debt to Equity ratio (0.33) than 71.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 18.22 | ||
| Altman-Z | 1.38 |
ROIC/WACC0.32
WACC11.33%
2.3 Liquidity
- IFF has a Current Ratio of 1.44. This is a normal value and indicates that IFF is financially healthy and should not expect problems in meeting its short term obligations.
- IFF's Current ratio of 1.44 is on the low side compared to the rest of the industry. IFF is outperformed by 73.49% of its industry peers.
- IFF has a Quick Ratio of 1.44. This is a bad value and indicates that IFF is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.87, IFF is doing worse than 74.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- IFF shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.90%.
- IFF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.97% yearly.
- IFF shows a decrease in Revenue. In the last year, the revenue decreased by -3.01%.
- IFF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.44% yearly.
EPS 1Y (TTM)7.9%
EPS 3Y-8.81%
EPS 5Y-6.97%
EPS Q2Q%0.96%
Revenue 1Y (TTM)-3.01%
Revenue growth 3Y-0.49%
Revenue growth 5Y17.44%
Sales Q2Q%-7.9%
3.2 Future
- IFF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.31% yearly.
- The Revenue is expected to decrease by -0.79% on average over the next years.
EPS Next Y0.01%
EPS Next 2Y2.39%
EPS Next 3Y4.39%
EPS Next 5Y3.31%
Revenue Next Year-5.02%
Revenue Next 2Y-3.49%
Revenue Next 3Y-1.35%
Revenue Next 5Y-0.79%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 15.96, which indicates a correct valuation of IFF.
- Compared to the rest of the industry, the Price/Earnings ratio of IFF indicates a somewhat cheap valuation: IFF is cheaper than 67.47% of the companies listed in the same industry.
- IFF is valuated rather cheaply when we compare the Price/Earnings ratio to 28.41, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 15.47, the valuation of IFF can be described as correct.
- Based on the Price/Forward Earnings ratio, IFF is valued a bit cheaper than the industry average as 62.65% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of IFF to the average of the S&P500 Index (25.64), we can say IFF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.96 | ||
| Fwd PE | 15.47 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as IFF.
- The rest of the industry has a similar Price/Free Cash Flow ratio as IFF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.8 | ||
| EV/EBITDA | 12.62 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2571.48
PEG (5Y)N/A
EPS Next 2Y2.39%
EPS Next 3Y4.39%
5. Dividend
5.1 Amount
- IFF has a Yearly Dividend Yield of 2.30%.
- IFF's Dividend Yield is a higher than the industry average which is at 2.27.
- Compared to an average S&P500 Dividend Yield of 1.83, IFF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
5.2 History
- The dividend of IFF decreases each year by -7.24%.
- IFF has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-7.24%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- IFF has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-99.27%
EPS Next 2Y2.39%
EPS Next 3Y4.39%
INTL FLAVORS & FRAGRANCES / IFF FAQ
What is the fundamental rating for IFF stock?
ChartMill assigns a fundamental rating of 3 / 10 to IFF.
Can you provide the valuation status for INTL FLAVORS & FRAGRANCES?
ChartMill assigns a valuation rating of 4 / 10 to INTL FLAVORS & FRAGRANCES (IFF). This can be considered as Fairly Valued.
Can you provide the profitability details for INTL FLAVORS & FRAGRANCES?
INTL FLAVORS & FRAGRANCES (IFF) has a profitability rating of 3 / 10.
What is the valuation of INTL FLAVORS & FRAGRANCES based on its PE and PB ratios?
The Price/Earnings (PE) ratio for INTL FLAVORS & FRAGRANCES (IFF) is 15.96 and the Price/Book (PB) ratio is 1.25.
What is the expected EPS growth for INTL FLAVORS & FRAGRANCES (IFF) stock?
The Earnings per Share (EPS) of INTL FLAVORS & FRAGRANCES (IFF) is expected to grow by 0.01% in the next year.