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International Flavors & Fragrances Inc.
NYSE: IFF Materials Chemicals 🔎 Screen
S&P 500
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$21.5B
Market Cap
81.3
P/E
2.68
PEG
4.1%
ROCE
-2.6%
ROE
0.47
D/E
8.2%
OPM
-5.1%
% from 52W High
73
α RS
🔍 IFF is showing a near-52W-high setup because it's within 5.1% of its 52-week high, it matches 2 of 39 tracked screener presets, and RS Rating is 73. Net: Broad signal stack, not a recommendation. ? 52W High Conviction RS Rating
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5.1% from 52W high · Conviction 2/39 · RS Rating 73
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🌏 Global Investor Returns
Currency-adjusted total returns for IFF including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
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By Category
📊 Sector Averages
About

International Flavors & Fragrances Inc., together with its subsidiaries, manufactures and markets food, beverage, health and biosciences, scent, and complementary adjacent products in the United States, and internationally. It operates in through Taste, Food Ingredients, Health & Biosciences, and Scent segments. The Taste segment offers savory products such as soups, sauces, meat, fish, poultry, snacks; beverages consists of juice drinks, carbonated or flavored beverages, spirits; sweets comprising, bakery products, candy, cereal, chewing gum; and dairy products, such as yogurt, ice cream, cheese, and other products, as well as spices and seasoning ingredients for meat, food service, convenience, alternative protein and culinary products. The Food Ingredients segment provides natural, artificial, and plant-based specialty food ingredients; natural antioxidants and anti-microbials used for natural food preservation and shelf-life extension for beverages, cosmetic and healthcare products, pet food and feed additives; and savory solutions, such as spices, marinades, and mixtures, and inclusion products comprising combining flavorings with fruit, vegetables and other natural ingredients, as well as soy and pea protein with value-added formulations, emulsifiers and sweeteners. The Health & Biosciences segment offers enzymes, food cultures, probiotics and specialty ingredients for food and non-food applications, as well as engages in health, food biosciences, home and personal care, animal nutrition and grain processing businesses. The Scent segment creates fragrance compounds, and fragrance ingredients. International Flavors & Fragrances Inc. was incorporated in 1909 and is headquartered in New York, New York.

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📈 Growth Pattern
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 42.7K $3.1M 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$1.95B
+6% YoY (comparable currency-neutral)
Adjusted Operating EBITDA
$408M
+6% YoY
Adjusted EBITDA Margin
20.9%
Not disclosed
Adjusted EPS ex amortization
$0.82
Not disclosed
What Went Right
  • Q2 revenue grew 6% on a comparable currency-neutral basis, with Scent up 8%, Taste up 4%, and Health & Biosciences up 5%.
  • First-half free cash flow reached $378M, up $284M year-over-year, helped by strong working capital improvement.
  • Portfolio transformation advanced with the Food Ingredients divestiture valued at ~$4.3B (~10x EV/EBITDA).
  • Net debt to EBITDA improved to 2.5x, and a $2.5B share repurchase program was announced.
What to Watch
  • Stranded costs of ~$100M remain after the Food Ingredients divestiture; only two-thirds are expected to be eliminated in the first 12 months post-close.
  • Fine Fragrances was impacted by the Middle East conflict, growing low single digits in Q2 with a softer Q3 expected.
  • Input cost inflation, particularly energy and logistics, is expected to increase in the second half, with a pricing lag in Scent.
  • Working capital headwinds of 'a couple hundred million dollars' are expected in H2 2026 due to the Food Ingredients separation and stand-up.
Management Guidance
  • Full-year 2026 sales guidance on continuing operations: $7.4B-$7.6B, implying 2%-4% growth.
  • Full-year 2026 adjusted EBITDA guidance: $1.53B-$1.6B, implying 4%-8% growth.
  • FX expected to add roughly 1ppt to sales growth and about 2% to EBITDA growth for FY2026.
  • Company expects to execute $500M of share repurchases in H2 2026 ahead of the Food Ingredients close.
  • Food Ingredients divestiture expected to close by the end of Q2 2027.
Investor Lens
The thesis strengthened materially this quarter: IFF is now guided as a higher-growth, higher-margin continuing portfolio, with volume growth in all three remaining segments and strong free cash flow generation. The $100M stranded-cost remediation plan and the $2.5B buyback, alongside >$1B debt reduction, should support a meaningfully improved earnings and margin profile. Risks remain around Middle East-driven Fine Fragrance softness, energy/logistics inflation, and separation-related working capital drags. Overall, management's tone and guidance suggest the transformation is on track, but execution on stranded-cost removal and pricing recovery will be key.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG IFF delivers strong 6% sales growth, $408M EBITDA in Q2
Revenue
Continuing operations revenue was just under $2.0B in Q2, up roughly 6% on a comparable currency-neutral basis. Growth was broad-based: Scent +8%, Taste +4%, and Health & Biosciences +5%, led by volume and strong new-win performance.
Profitability
Adjusted operating EBITDA rose 6% to $408M, driven by volume growth and productivity. Reported EPS was $0.13, while adjusted EPS ex amortization was $0.82; reported income before taxes was $64M.
Margins
Adjusted operating EBITDA margin was 20.9%. Margins were temporarily pressured by higher incentive compensation accruals tied to strong first-half performance, and management noted underlying EBITDA growth would have been a couple of points higher excluding that item.
Balance Sheet
Cash and cash equivalents were $569M; first-half free cash flow was $378M, up $284M year-over-year. Net debt to credit-adjusted EBITDA was 2.5x, and gross debt decreased approximately $5.7B, after CapEx of $301M (~5% of sales).
Key Risks
Management flagged Middle East-related volatility, particularly in Fine Fragrances and global demand. Other risks include rising input costs in energy and logistics, pricing recovery lags in Scent, and H2 working capital headwinds from the Food Ingredients separation.
Outlook
For FY2026, IFF expects sales of $7.4B-$7.6B and adjusted EBITDA of $1.53B-$1.6B. Full-year guidance was raised at the low end, with second-half sales growth expected to moderate to low single digits.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-05
Strong Q2 2026 results featured 6% revenue and 8% EBITDA growth, driven by volume and productivity gains. The Food Ingredients divestiture sharpens focus on core segments, with proceeds allocated to debt reduction and a $2.5B share repurchase. Margin expansion is expected as stranded costs are eliminated.
Q1 2026 Q1 2026 2026-05-06
Q1 2026 saw 3% sales growth and 8% adjusted EBITDA growth, led by Health & Biosciences and strong productivity. Full-year guidance is reaffirmed despite inflation and Middle East risks, with pricing actions and innovation expected to support margins.
Q4 2025 Q4 2025 2026-02-12
Solid 2025 results featured sales and EBITDA growth, margin expansion, and a strengthened balance sheet, with divestitures and innovation investments positioning the company for future growth. 2026 guidance calls for 1%–4% sales growth and 3%–8% EBITDA growth, driven by volume and productivity gains.
Q3 2025 Q3 2025 2025-11-05
Q3 results showed steady sales and strong EBITDA growth, with scent and taste offsetting softness in other segments. Full-year guidance was reiterated, and strategic investments and portfolio optimization continued. Fine fragrance and innovation pipelines remain key growth drivers.
Q2 2025 Q2 2025 2025-08-06
Second quarter results showed 3% sales and 7% adjusted EBITDA growth, with strong margin improvement and successful divestitures reducing leverage to 2.5x. Full-year guidance was reiterated, though growth is expected to moderate in the second half due to tough comps and segment-specific headwinds.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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