International Flavors & Fragrances (IFF)
NYSEMaterialsChemicals - SpecialtySnapshot 2026-09-04
$86.35-0.13%
Close 2026-09-04 · 1-day change
NYSEMaterialsChemicals - SpecialtySnapshot 2026-09-04
Broken: Primary pillar broken — Profit margin near 10% in FY26: FY26 guidance 2.1% vs 10% target; TTM 7.5%.
IFF grows revenue to about $10.65 billion in 2026. Profit margins stay near 10%. Net income rose from $7 million to $169 million in one quarter. The company improves with new products and smart sales.
Revenue fell 4% in the last quarter. Profit margins are thin near 2%. The company may struggle to keep growing. Debt issuance could limit financial flexibility.
The price is about 24% above our fair value near $67. Analysts expect about 2% revenue growth. Our fair value is 26% below the Street median. We see the stock as stretched versus fundamentals.
Breaks if: Net income falls below $7 million in Q1 2026
IFF is working to improve its financial flexibility through strategic divestitures and capital allocation.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment is characterized as a durable compounder, focusing on steady growth through strategic initiatives. The current thesis state is intact, supported by recent strong financial performance and management's commitment to optimizing the portfolio.
The market currently reflects a neutral valuation, with expectations that are slightly above the average. There is a low expectations gap, suggesting that while the stock is priced at a premium compared to peers, the market does not seem to anticipate significant changes in performance.
Fundamentals are likely to improve as management continues to execute on its priorities, such as divestitures and driving financial performance through innovation. Recent results show strong adjusted operating EBITDA growth, indicating a positive trajectory despite the company's current loss-making status.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. The company missed its Q2 earnings expectations, impacting financial flexibility. CFO Michael DeVeau sold shares, signaling potential lack of confidence in management. Oppenheimer raised its estimate for IFF to $95 from $90, indicating some analysts expect higher valuation support.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Operating margin falls below 5% in FY26
Breaks if: Revenue falls below $10.6 billion in FY26
The thesis hinges on several factors, including the potential for inflation to reaccelerate and the performance of sector bellwethers. Additionally, any guidance cuts in future earnings calls could negatively impact sentiment and expectations.
Overall, IFF's multi-year view remains cautiously optimistic, driven by management's strategic focus and recent performance improvements. Not investment advice.