INTERNATIONAL FLAVORS & FRAGRANCES INC (IFF) Stock Analysis
INTERNATIONAL FLAVORS & FRAGRANCES INC (IFF) Stock Analysis
Analysis from 10-Q filed 2025-11-04. Data as of Q4 2025.
Overall Grade: F (Concerning)
INTERNATIONAL FLAVORS & FRAGRANCES INC faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | -1.5% | Below expectations |
| FCF Margin | 2.4% | Cash flow pressure |
| Debt/Equity | 0.4x | Conservative leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore INTERNATIONAL FLAVORS & FRAGRANCES INC: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: INTERNATIONAL FLAVORS & FRAGRANCES INC earns -1.5% ROIC, Bottom 50% in Materials
INTERNATIONAL FLAVORS & FRAGRANCES INC's trailing-twelve-month ROIC of -1.5% ranks Bottom 50% in Materials companies (sector median: 4.3%), driven by NOPAT margin of -3.1% combined with asset turnover of 0.4x. Source: 10-Q filed 2025-11-04. Gross margin of 36.2% with operating margin at -3.5% reflects a competitive pricing environment.
| Metric | IFF | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -1.5% | Red flag | Below sector median of 4.3% |
| Return on Equity (ROE) | -2.4% | Red flag | Moderate equity returns |
| Gross Margin | 36.2% | Good | Competitive pricing environment |
| Operating Margin | -3.5% | Warning | Moderate operational efficiency |
Cash Flow: INTERNATIONAL FLAVORS & FRAGRANCES INC generates $256.0M FCF at 2.4% margin, positive NaN/8 quarters
INTERNATIONAL FLAVORS & FRAGRANCES INC generated $256.0M in free cash flow (TTM), a 2.4% FCF margin, a margin that ranks Top 50% in Materials. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-04.
| Metric | IFF | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 2.4% | Warning | Thin cash margins |
| Free Cash Flow (TTM) | $256.0M | Good | Positive cash generation |
| OCF/Net Income | -2.6x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: INTERNATIONAL FLAVORS & FRAGRANCES INC at 0.4x leverage
INTERNATIONAL FLAVORS & FRAGRANCES INC's debt-to-equity ratio of 0.4x reflects moderate leverage. Total debt of $6.0B offset by $590.0M in cash. Source: 10-Q filed 2025-11-04.
| Metric | IFF | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.4x | Good | Conservative capital structure |
| Net Cash Position | $-5.4B | Warning | Net debt position |
Valuation: INTERNATIONAL FLAVORS & FRAGRANCES INC trades at -51.4x earnings
INTERNATIONAL FLAVORS & FRAGRANCES INC trades at a P/E of -51.4x. Free cash flow yield of 1.5% reflects market expectations for growth.
| Metric | IFF | Rating | Context |
|---|---|---|---|
| P/E Ratio | -51.4x | Red flag | Reasonable valuation |
| EV/Sales | 2.2x | Good | Attractive revenue multiple |
| FCF Yield | 1.5% | Warning | Lower cash yield |
| Dividend Yield | 2.4% | Adequate | Growth focus over income |
Capital Allocation: INTERNATIONAL FLAVORS & FRAGRANCES INC returns 2.4% shareholder yield
INTERNATIONAL FLAVORS & FRAGRANCES INC's total shareholder yield is 2.4% (dividends 2.4% + buybacks). Source: 10-Q filed 2025-11-04.
| Metric | IFF | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 2.4% | Adequate | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $409.0M | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -1.5% | Bottom 50% | -0.4x below |
| Free Cash Flow Margin | 2.4% | Top 50% | 6.4x above |
| Gross Margin | 36.2% | Top 50% | 1.4x above |
| Operating Margin | -3.5% | Top 5% | -0.5x below |
| Return on Equity (ROE) | -2.4% | Bottom 50% | -0.3x below |
Financial Scorecard
| Metric | IFF | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -1.5% | Red flag | Bottom 50% of sector (median: 4.3%) |
| Free Cash Flow Margin | 2.4% | Warning | Top 50% of sector (median: 0.4%) |
| Gross Margin | 36.2% | Good | Top 50% of sector (median: 25.2%) |
| Debt to Equity Ratio | 42.3% | Good | Moderate leverage |
| Free Cash Flow Yield | 1.5% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is INTERNATIONAL FLAVORS & FRAGRANCES INC's Return on Invested Capital (ROIC)?
INTERNATIONAL FLAVORS & FRAGRANCES INC (IFF) has a trailing twelve-month Return on Invested Capital (ROIC) of -1.5%. This compares below the sector median of 4.3%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is INTERNATIONAL FLAVORS & FRAGRANCES INC's Free Cash Flow Margin?
INTERNATIONAL FLAVORS & FRAGRANCES INC (IFF) has a free cash flow margin of 2.4%, generating $256.0 million in free cash flow over the trailing twelve months. A thin FCF margin may indicate heavy reinvestment or operational challenges.
Q: Is INTERNATIONAL FLAVORS & FRAGRANCES INC stock overvalued or undervalued?
INTERNATIONAL FLAVORS & FRAGRANCES INC (IFF) trades at a P/E ratio of -51.4x, which is above the sector median of N/A. The EV/Sales multiple is 2.2x. Free cash flow yield is 1.5%, reflecting growth expectations priced into the stock.
Q: Does INTERNATIONAL FLAVORS & FRAGRANCES INC pay a dividend?
INTERNATIONAL FLAVORS & FRAGRANCES INC (IFF) currently pays a dividend yield of 2.4%. Including share buybacks, the total shareholder yield is 2.4%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: What is INTERNATIONAL FLAVORS & FRAGRANCES INC's revenue and earnings growth?
INTERNATIONAL FLAVORS & FRAGRANCES INC (IFF) declined revenue by 5.2% year-over-year. Revenue decline may indicate market challenges or industry headwinds.
Q: How does INTERNATIONAL FLAVORS & FRAGRANCES INC compare to competitors in Materials?
Compared to other companies in Materials, INTERNATIONAL FLAVORS & FRAGRANCES INC (IFF) shows: ROIC of -1.5% is below the sector median of 4.3% (Bottom 33%). FCF margin of 2.4% exceeds the sector median of 0.4% (Top 44% of sector). Gross margin at 36.2% is 10.9 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Materials companies with available SEC filings.
Q: What warning signs should I watch for with INTERNATIONAL FLAVORS & FRAGRANCES INC?
Investors in INTERNATIONAL FLAVORS & FRAGRANCES INC (IFF) should monitor these potential warning signs: 1) FCF margin is thin at 2.4%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-04. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.