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1. Company Snapshot

1.a. Company Description

International Flavors & Fragrances Inc., together with its subsidiaries, manufactures and sells cosmetic active and natural health ingredients for use in various consumer products in Europe, Africa, the Middle East, Greater Asia, North America, and Latin America.It operates through Nourish, Scent, Health & Biosciences, and Pharma Solutions segments.The Nourish segment offers natural and plant-based specialty food ingredients, such as flavor compounds, and savory solutions and inclusions.


It also provides natural food protection ingredients consist of natural antioxidants and anti-microbials as well as beverages, sweets , and dairy products.The Scent segment provides fragrance compounds, which include fine fragrances comprising perfumes and colognes, as well as consumer fragrances; fragrance ingredients comprising synthetic and natural ingredients that could be combined with other materials to create fragrance and consumer compounds; and cosmetic active ingredients consisting of active and functional ingredients, botanicals, and delivery systems to support its customers' cosmetic and personal care product lines.The Health & Biosciences segment develops and produces enzymes, food cultures, probiotics, and specialty ingredients.


The Pharma Solutions segment produces and sells cellulosics and seaweed-based pharma excipients.The company sells its products primarily to manufacturers of perfumes and cosmetics, hair and other personal care products, soaps and detergents, cleaning products, dairy, meat and other processed foods, beverages, snacks and savory foods, sweet and baked goods, dietary supplements, infant and elderly nutrition, functional food, and pharmaceutical excipients and oral care products.International Flavors & Fragrances Inc.


was founded in 1833 and is headquartered in New York, New York.

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1.b. Last Insights on IFF

International Flavors & Fragrances Inc.'s recent performance was positively driven by its solid Q4 2025 earnings report, with revenue reaching nearly $2.6 billion and EBITDA increasing 7% to $437 million. The company's Taste and Health segments showed strong growth. IFF also completed the divestiture of its soy crush, concentrates, and lecithin businesses to Bunge. Additionally, the company expanded its Latin American footprint with a new enzyme hub and application lab in Brazil. IFF's dividend declaration of $0.40 per share also highlights its commitment to shareholders. (Source: MarketBeat Ratings)

1.c. Company Highlights

2. International Flavors & Fragrances Inc. Delivers Solid Sales Growth and Expands EBITDA Margin

International Flavors & Fragrances Inc. reported revenue of nearly $2.6 billion in the fourth quarter, with growth in nearly all divisions. For the full year, the company achieved sales growth of 4% on a two-year average basis and 1% for the quarter. EBITDA totaled $437 million for the fourth quarter, a 7% increase, with an EBITDA margin of 16.9%. The company's EPS came in at $0.8, slightly below estimates of $0.85. The results were driven by volume and productivity gains, with the Taste segment growing sales by 4% and EBITDA by 10%.

Publication Date: Feb -22

📋 Highlights
  • 2025 EBITDA Growth:: Consolidated EBITDA grew 7% with 100 bps margin expansion, reaching $437M in Q4 and $1.1B for the full year.
  • Segment Performance:: Taste (4% sales, 10% EBITDA), Health & Biosciences (3% sales, 7% EBITDA), and Food Ingredients (10% EBITDA, 150 bps margin expansion) drove growth.
  • 2026 Guidance:: Sales projected at $10.5B–$10.8B (1–4% growth); EBITDA of $2.05B–$2.15B (3–8% growth), with operating cash flow prioritized.
  • Cost & Innovation Focus:: $6% CapEx of sales; $100M+ annual savings target from Reg G cost reduction; R&D progress in Scent and Health & Biosciences segments.
  • Food Ingredients Divestiture:: Sale process underway with strong early interest; 2026 EBITDA guidance assumes 30–35% incremental margins on volume growth.

Segment Performance

The company's segments performed well, with Health and Biosciences sales improving 3% and EBITDA increasing by 7%. Scent sales grew 3%, with a 2% increase in EBITDA. Food Ingredients achieved 10% EBITDA growth and 150 basis points of EBITDA margin expansion despite soft demand. The strong performance in these segments was driven by volume growth and productivity gains.

Guidance and Outlook

The company expects sales to be in the range of $10.5 billion to $10.8 billion for the full year 2026, representing comparable currency-neutral growth of 1% to 4%. EBITDA is expected to be between $2.05 billion and $2.15 billion, representing comparable currency-neutral growth of 3% to 8%. The guidance is based on volume-driven growth, with pricing expected to be slightly down. Analysts estimate next year's revenue growth at 3.1%, which is within the company's guidance range.

Valuation

International Flavors & Fragrances Inc.'s current P/E Ratio is -59.87, indicating that the company's earnings are not currently driving the stock price. The P/S Ratio is 1.91, and the EV/EBITDA is 29.07, suggesting that the company's valuation is largely dependent on its future growth prospects. With a Net Debt / EBITDA ratio of 5.98, the company's leverage is relatively high, but the expected improvement in cash flow generation should help to reduce this ratio over time.

Cash Flow and Return on Investment

The company is prioritizing cash flow improvement in 2026, with an expected modestly lower free cash flow due to one-time Reg G costs, working capital, and payables. The introduction of an incentive compensation metric tied to operating cash flow conversion should help to drive cash flow generation. The company's ROIC is currently -1.24%, and the ROE is -2.49%, indicating that the company's returns on investment are not currently positive. However, with the expected improvement in cash flow generation and the focus on driving profitable growth, these metrics are likely to improve over time.

3. NewsRoom

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Exclusive: India probes fragrance giants Givaudan, Firmenich, IFF over deals not to poach workers

Mar -17

Source: reuters.com

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International Flavors & Fragrances Inc. (NYSE:IFF) Receives Average Recommendation of “Moderate Buy” from Brokerages

Mar -14

Source: defenseworld.net

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Dimensional Fund Advisors LP Decreases Stock Position in International Flavors & Fragrances Inc. $IFF

Mar -12

Source: defenseworld.net

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IFF Expands Latin American Footprint With New Enzyme Hub, Brazil Application Lab

Mar -10

Source: businesswire.com

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IFF Declares Dividend for First Quarter 2026

Mar -04

Source: businesswire.com

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IFF Completed the Divestiture of Soy Crush, Concentrates and Lecithin Businesses

Mar -02

Source: businesswire.com

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International Flavors & Fragrances Inc. $IFF Shares Sold by Colonial Trust Co SC

Feb -25

Source: defenseworld.net

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LMR Unveils Tonka Bean CO₂ Absolute: Gourmand Excellence from Planet-Friendly Extraction

Feb -24

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.00%)

6. Segments

Nourish

Expected Growth: 1.0%

The growth is driven by the increasing demand for natural ingredients and flavors in the food and beverage industry, coupled with the segment's ability to innovate and adapt to changing consumer preferences, thus slightly outpacing the global growth hypothesis of 0.0%.

Scent

Expected Growth: 0.5%

The Scent segment is expected to grow at a moderate rate, driven by the increasing demand for premium fragrances and home care products, although the growth is somewhat constrained by the global economic uncertainty, resulting in a growth rate slightly above the global hypothesis.

Health & Biosciences

Expected Growth: 2.0%

The Health & Biosciences segment is expected to be a key growth driver, driven by the increasing demand for health and wellness products, as well as the segment's ability to innovate and develop new solutions, resulting in a growth rate significantly above the global hypothesis.

Pharma Solutions

Expected Growth: 8.0%

The growing demand for pharmaceuticals, coupled with increasing focus on patient adherence, drives the need for innovative solutions, positioning Pharma Solutions for growth.

7. Detailed Products

Flavor Compounds

A wide range of natural and synthetic flavor compounds used in food, beverages, and pharmaceuticals

Fragrance Ingredients

A variety of natural and synthetic fragrance ingredients used in perfumes, cosmetics, and personal care products

Taste Modulation

A range of ingredients that modify or enhance the taste of food and beverages

Sensory Solutions

A range of ingredients and technologies that enhance the sensory experience of food, beverages, and personal care products

Natural Ingredients

A range of natural ingredients, including essential oils, extracts, and botanicals, used in food, beverages, and personal care products

Fragrance Creation

Custom fragrance creation services for perfumes, cosmetics, and personal care products

Flavor Creation

Custom flavor creation services for food and beverages

8. International Flavors & Fragrances Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for International Flavors & Fragrances Inc. is medium due to the presence of natural flavor alternatives and the increasing demand for clean label products.

Bargaining Power Of Customers

The bargaining power of customers for International Flavors & Fragrances Inc. is low due to the company's strong relationships with its customers and its ability to provide customized flavor solutions.

Bargaining Power Of Suppliers

The bargaining power of suppliers for International Flavors & Fragrances Inc. is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for International Flavors & Fragrances Inc. is low due to the high barriers to entry in the flavor and fragrance industry, including the need for significant capital investment and expertise.

Intensity Of Rivalry

The intensity of rivalry for International Flavors & Fragrances Inc. is high due to the presence of several major players in the flavor and fragrance industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.02%
Debt Cost 3.95%
Equity Weight 58.98%
Equity Cost 10.05%
WACC 7.55%
Leverage 69.56%

11. Quality Control: International Flavors & Fragrances Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Ecolab

A-Score: 5.2/10

Value: 1.2

Growth: 5.1

Quality: 6.2

Yield: 2.0

Momentum: 7.0

Volatility: 10.0

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PPG

A-Score: 5.0/10

Value: 4.0

Growth: 2.8

Quality: 6.5

Yield: 5.0

Momentum: 3.0

Volatility: 8.7

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Sherwin-Williams

A-Score: 4.9/10

Value: 1.7

Growth: 6.4

Quality: 6.0

Yield: 2.0

Momentum: 4.0

Volatility: 9.3

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Air Products

A-Score: 4.4/10

Value: 4.8

Growth: 2.9

Quality: 2.1

Yield: 6.0

Momentum: 2.5

Volatility: 8.3

1-Year Total Return ->

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IFF

A-Score: 4.4/10

Value: 5.4

Growth: 2.3

Quality: 3.1

Yield: 6.0

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

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DuPont

A-Score: 3.5/10

Value: 6.9

Growth: 3.7

Quality: 3.7

Yield: 4.0

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

67.34$

Current Price

67.34$

Potential

-0.00%

Expected Cash-Flows