IFF:NYSEInternational Flavors & Fragrances, Inc. Analysis
Data as of 2026-06-12 - not real-time
$77.51
Latest Price
5/10Risk
Risk Level: Medium
Executive Summary
International Flavors & Fragrances (IFF) is trading at $77.51, well below its DCF‑derived fair value of $166.12, implying roughly an 18% upside potential. Technicals are supportive: the 20‑day SMA ($74.71) and 50‑day SMA ($73.88) sit beneath the current price, the 14‑day RSI at 57 indicates room for further gains, and the MACD histogram is positive with a bullish signal line. Volume is on an increasing trend, reinforcing the bullish momentum despite a recent 3.6% YoY revenue decline to $10.79 B and guidance that trails analyst expectations. The company offers a 2.06% dividend yield with a payout ratio under 50%, and generates strong free cash flow ($3.70 B), suggesting the dividend is sustainable. With a beta of 0.82 and 30‑day volatility of ~60%, IFF presents a moderate risk profile but appears attractively priced relative to its fundamentals and forward PE of 16.1.
Given the valuation gap, solid cash generation, and defensive dividend, the stock is positioned for upside in the short‑ to long‑term, provided the market digests the modest revenue slowdown and the company can deliver on its guidance.
Given the valuation gap, solid cash generation, and defensive dividend, the stock is positioned for upside in the short‑ to long‑term, provided the market digests the modest revenue slowdown and the company can deliver on its guidance.
Market Outlook
Short Term
< 1 yearPositive
Model confidence: 7/10
Key Factors
- Bullish technical indicators (price above 20‑day SMA, positive MACD)
- Significant valuation upside (~18%) versus current price
- Increasing volume supporting momentum
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Undervaluation relative to DCF fair value
- Forward earnings growth (forward PE 16.1 vs trailing 24)
- Sustainable dividend yield of 2.06% with low payout ratio
Long Term
> 3 yearsPositive
Model confidence: 9/10
Key Factors
- Strong free cash flow generation enabling reinvestment and dividend stability
- Strategic position in specialty chemicals with diversified global exposure
- Long‑term tailwinds from consumer demand for flavors, fragrances, and bioscience ingredients
Key Metrics & Analysis
Financial Health
Revenue Growth-3.60%
Profit Margin7.66%
P/E Ratio24.0
ROE6.05%
ROA2.12%
Debt/Equity45.70
P/B Ratio1.4
Op. Cash Flow$980.0M
Free Cash Flow$3.7B
Technical Analysis
TrendBullish
RSI57.3
Support$71.30
Resistance$81.17
MA 20$74.71
MA 50$73.88
MA 200$69.62
MACDBullish
VolumeIncreasing
Fear & Greed Index86.71
Valuation
Fair Value$166.12
Target Price$91.66
Upside/Downside18.25%
GradeUndervalued
TypeValue
Dividend Yield2.06%
Risk Assessment
Beta0.82
Volatility59.52%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskMedium
Liquidity RiskLow
Similar Tickers
This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.