olivLaw · US equity research
IFF IFF
Industrial Organic Chemicals · SIC 2860 · Vertical: Industrial Organic Chemicals (SIC 2860)
IFF is a global creator and manufacturer of flavors, food ingredients, biosciences and fragrances, with sales of 10.89 billion USD in fiscal 2025. In the second quarter of 2026, on a continuing operations basis, sales reached 1.954 billion USD, and the company agreed to sell its Food Ingredients business for approximately 3.8 billion USD in net cash proceeds.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, IFF (IFF) stock was 87.67 USD (−4.89% on the day), with market capitalisation 22.0 bn USD, P/E 122.1 on diluted EPS of 0.72 USD over the last 12 months, dividend yield 1.83%, beta 0.64, 52-week range 62.00–94.63 USD. Latest reported quarter (Q3 2026): revenue of 1.9 bn USD (+3.9% YoY), net income of -55.0 m USD (−237.5% YoY), diluted EPS -0.22 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 44.5
- weak (30–45)
- Bollinger (20, 2)
- 84.44 – 96.56
- in the lower half of the band · %B 0.27 · band width 13.4%
- SMA 50 / 200
- 87.18 / 78.84
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 1.53 / 1.89
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +5.3% | −1.1% | +6.4 pp | — |
| 3 months | −0.5% | −0.5% | −0.0 pp | — |
| 6 months | +5.7% | +4.4% | +1.3 pp | — |
| Year to date | +30.1% | +12.3% | +17.8 pp | — |
| 1 year | +42.6% | +13.5% | +29.0 pp | −5.5% |
| 3 years | +20.6% | +76.4% | −55.8 pp | −33.8% |
| 5 years | −38.9% | +63.7% | −102.6 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.8 bn | 2.8 bn | 1.9 bn | 1.9 bn | 5.1 bn | 2.7 bn | 2.0 bn | 1.9 bn |
| Cost of revenue | 1.8 bn | 1.8 bn | 1.1 bn | 1.1 bn | 3.6 bn | 1.7 bn | 1.1 bn | 1.1 bn |
| Gross profit | 980.0 m | 1.0 bn | 824.0 m | 799.0 m | 1.5 bn | 1.0 bn | 853.0 m | 825.0 m |
| Research & development | 170.0 m | 164.0 m | 170.0 m | 162.0 m | 207.0 m | 166.0 m | 170.0 m | 170.0 m |
| SG&A | 517.0 m | 461.0 m | 409.0 m | 348.0 m | 687.0 m | 427.0 m | 437.0 m | 387.0 m |
| Operating income | 127.0 m | -903.0 m | 142.0 m | 191.0 m | -893.0 m | 273.0 m | 158.0 m | 160.0 m |
| Depreciation & amortisation | 243.0 m | 236.0 m | 242.0 m ≈ | 247.0 m ≈ | 237.0 m | 246.0 m | 218.0 m ≈ | 150.0 m ≈ |
| Interest expense | 69.0 m | 71.0 m | 61.0 m | 48.0 m | 49.0 m | 44.0 m | 46.0 m | 46.0 m |
| Pre-tax income | -115.0 m | -994.0 m | 438.0 m | 130.0 m | -1.1 bn | 209.0 m | 64.0 m | -134.0 m |
| Income tax | -55.0 m | 23.0 m | -112.0 m | 31.0 m | 8.0 m | 39.0 m | 31.0 m | -7.0 m |
| Net income | -56.0 m | -1.0 bn | 599.0 m | 40.0 m | 20.0 m | 169.0 m | 50.0 m | -55.0 m |
| Diluted EPS | -0.22 ≈ | -3.98 | 2.33 | 0.16 | 0.08 ≈ | 0.66 | 0.20 | -0.22 |
| Operating cash flow | 389.0 m | 127.0 m | 241.0 m ≈ | 164.0 m ≈ | 318.0 m | 257.0 m | 422.0 m ≈ | 141.0 m ≈ |
| Capex | 160.0 m | 179.0 m | 95.0 m ≈ | 132.0 m ≈ | 188.0 m | 165.0 m | 136.0 m ≈ | 148.0 m ≈ |
| Dividends paid | 103.0 m | 102.0 m | 102.0 m ≈ | 102.0 m ≈ | 103.0 m | 102.0 m | 102.0 m ≈ | 102.0 m ≈ |
| Share repurchases | — | 0 | 0 ≈ | 0 ≈ | 38.0 m | 35.0 m | 36.0 m ≈ | 513.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 94 percentile of its own 32-quarter history (min 22.5, median 35.5, max 685.7; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 4.0 bn | 5.1 bn | 5.1 bn | 11.7 bn | 12.4 bn | 11.5 bn | 11.5 bn | 10.9 bn |
| Revenue YoY | +17.0% | +29.2% | −1.1% | +129.3% | +6.7% | −7.7% | +0.0% | −5.2% |
| Net income | 339.8 m | 460.0 m | 367.0 m | 279.0 m | -1.9 bn | -2.6 bn | 267.0 m | -359.0 m |
| Net income YoY | +14.9% | +35.4% | −20.2% | −24.0% | −768.1% | unavailable | unavailable | −234.5% |
| Diluted EPS | 3.79 | 4.00 | 3.21 | 1.10 | -7.32 | -10.14 | 1.04 | -1.41 |
| Diluted EPS YoY | +1.9% | +5.5% | −19.8% | −65.7% | −765.5% | unavailable | unavailable | −235.6% |
| net % | 8.5% | 8.9% | 7.2% | 2.4% | -15.0% | -22.5% | 2.3% | -3.3% |
| Free cash flow | 267.5 m | 463.0 m | 522.0 m | 1.0 bn | -107.0 m | 952.0 m | 607.0 m | 256.0 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 347.0 m USD
- Financial debt
- 6.0 bn USD
- Net debt
- 5.6 bn USD
- Equity
- 14.2 bn USD
- Total assets
- 25.5 bn USD
- Debt / equity
- 0.42x
- Current ratio
- 1.42x
- ROE
- -2.6%
- ROA
- -1.3%
- FCF margin
- 2.4%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 5.1 bn | 11.7 bn | 12.4 bn | 11.5 bn | 11.5 bn | 10.9 bn | SEC (XBRL)· 27 Feb 2026verified |
| Cost of revenue | 3.0 bn | 7.9 bn | 8.3 bn | 7.8 bn | 7.4 bn | 7.0 bn | SEC (XBRL)· 27 Feb 2026verified |
| Gross profit | 2.1 bn | 3.7 bn | 4.2 bn | 3.7 bn | 4.1 bn | 3.9 bn | SEC (XBRL)· 27 Feb 2026verified |
| Research & development | 357.0 m | 629.0 m | 603.0 m | 636.0 m | 671.0 m | 694.0 m | SEC (XBRL)· 27 Feb 2026verified |
| SG&A | 949.0 m | 1.7 bn | 1.8 bn | 1.8 bn | 2.0 bn | 1.8 bn | SEC (XBRL)· 27 Feb 2026verified |
| Operating income | 566.0 m | 585.0 m | -1.3 bn | -2.1 bn | 766.0 m | -382.0 m | SEC (XBRL)· 27 Feb 2026verified |
| Depreciation & amortisation | 325.0 m | 1.2 bn | 1.2 bn | 1.1 bn | 1.0 bn | 962.0 m | SEC (XBRL)· 27 Feb 2026verified |
| EBITDA | 891.0 m ≈ | 1.7 bn ≈ | -147.0 m ≈ | -968.0 m ≈ | 1.8 bn ≈ | 580.0 m ≈ | SEC (XBRL)· 27 Feb 2026derived |
| Interest expense | 132.0 m | 289.0 m | 336.0 m | 380.0 m | 305.0 m | 229.0 m | SEC (XBRL)· 27 Feb 2026verified |
| Pre-tax income | 441.0 m | 354.0 m | -1.6 bn | -2.5 bn | 308.0 m | -412.0 m | SEC (XBRL)· 27 Feb 2026verified |
| Income tax | 74.0 m | 75.0 m | 239.0 m | 69.0 m | 41.0 m | -53.0 m | SEC (XBRL)· 27 Feb 2026verified |
| Net income | 367.0 m | 279.0 m | -1.9 bn | -2.6 bn | 267.0 m | -359.0 m | SEC (XBRL)· 27 Feb 2026verified |
| Diluted EPS | 3.21 | 1.10 | -7.32 | -10.14 | 1.04 | -1.41 | SEC (XBRL)· 27 Feb 2026verified |
| Weighted average diluted shares | 114.0 m | 243.0 m | 255.0 m | 255.0 m | 256.0 m | 256.0 m | SEC (XBRL)· 27 Feb 2026verified |
| Dividend per share | 3.04 | 3.12 | 3.20 | 3.24 | 1.60 | 1.60 | SEC (XBRL)· 27 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 650.0 m | 711.0 m | 483.0 m | 703.0 m | 312.0 m | 347.0 m | SEC (XBRL)· 03 Nov 2026verified |
| Inventories | 1.1 bn | 2.5 bn | 3.2 bn | 2.5 bn | 2.1 bn | 1.5 bn | SEC (XBRL)· 04 Aug 2026verified |
| Current assets | 3.1 bn | 7.0 bn | 7.4 bn | 6.3 bn | 8.0 bn | 5.6 bn | SEC (XBRL)· 27 Feb 2026verified |
| Property, plant & equipment, net | 1.5 bn | 4.4 bn | 4.2 bn | 4.2 bn | 3.7 bn | 2.7 bn | SEC (XBRL)· 04 Aug 2026verified |
| Goodwill | 5.6 bn | 16.4 bn | 13.4 bn | 10.6 bn | 9.1 bn | 8.2 bn | SEC (XBRL)· 04 Aug 2026verified |
| Intangibles (excl. goodwill) | 2.7 bn | 10.5 bn | 9.1 bn | 8.4 bn | 6.4 bn | 4.0 bn | SEC (XBRL)· 04 Aug 2026verified |
| Total assets | 13.6 bn | 39.7 bn | 35.5 bn | 31.0 bn | 28.7 bn | 25.5 bn | SEC (XBRL)· 27 Feb 2026verified |
| Accounts payable | 556.0 m | 1.5 bn | 1.4 bn | 1.4 bn | 1.3 bn | 933.0 m | SEC (XBRL)· 04 Aug 2026verified |
| Short-term debt | 634.0 m | 308.0 m | 410.0 m | 885.0 m | 1.4 bn | 1.3 bn | SEC (XBRL)· 27 Feb 2026verified |
| Long-term debt | 3.8 bn | 10.8 bn | 10.4 bn | 9.2 bn | 7.6 bn | 4.7 bn | SEC (XBRL)· 04 Aug 2026verified |
| Current liabilities | 1.9 bn | 3.6 bn | 3.7 bn | 3.8 bn | 4.4 bn | 3.9 bn | SEC (XBRL)· 27 Feb 2026verified |
| Equity | 6.3 bn | 21.1 bn | 17.6 bn | 14.6 bn | 13.9 bn | 14.2 bn | SEC (XBRL)· 27 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 714.0 m | 1.4 bn | 397.0 m | 1.5 bn | 1.1 bn | 850.0 m | SEC (XBRL)· 27 Feb 2026verified |
| Capex | 192.0 m | 393.0 m | 504.0 m | 503.0 m | 463.0 m | 594.0 m | SEC (XBRL)· 27 Feb 2026verified |
| Free cash flow | 522.0 m ≈ | 1.0 bn ≈ | -107.0 m ≈ | 952.0 m ≈ | 607.0 m ≈ | 256.0 m ≈ | SEC (XBRL)· 27 Feb 2026derived |
| Investing cash flow | -187.0 m | -18.0 m | 745.0 m | 558.0 m | 326.0 m | 2.3 bn | SEC (XBRL)· 27 Feb 2026verified |
| Financing cash flow | -512.0 m | -1.3 bn | -1.2 bn | -1.9 bn | -1.6 bn | -3.1 bn | SEC (XBRL)· 27 Feb 2026verified |
| Dividends paid | 323.0 m | 667.0 m | 810.0 m | 826.0 m | 514.0 m | 409.0 m | SEC (XBRL)· 27 Feb 2026verified |
| Share repurchases | 0 | — | — | 0 | 0 | 38.0 m | SEC (XBRL)· 27 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 29 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 22.0 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation8
- Returns62
- Quality60
- Balance sheet18
- Growth0
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 4.97 – 28.28 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)7.69 – 27.51 (Mid 15.08)WACC 8.4% · starting FCFF 656.4 m USD · terminal value share of EV 75%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/EBITDAunavailable · insufficient data
- Peers: P/E4.97 – 9.90 (Mid 7.54)7 companies used · median multiple 10.5x · quartiles 6.9x – 13.8xALTO, GPRE, LNZA, LYB, NEU, REX, WLKP
- Dividend discount (DDM)21.03 – 28.28 (Mid 24.12)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 29/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | -1.3% | 40 (vs peers) | 11% |
| Net margin · Quality | 1.6% | 53 (vs peers) | 7% |
| FCF conversion · Quality | 272.3% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | -4.3% | 0 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 10.9x | 0 (vs peers) | 11% |
| Interest coverage · Balance sheet | -1.6x | 0 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 1.9x | 89 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 122.1x | 0 (vs peers) | 11% |
| EV/EBITDA · Valuation | 50.9x | 0 (vs peers) | 11% |
| FCF yield · Valuation | 2.3% | 29 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 4.7% | 67 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | 81.6% | 55 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet18/100 · 3/3 factors with a value
- Growth· partial0/100 · 1/2 factors with a value
- Quality60/100 · 3/3 factors with a value
- Returns62/100 · 2/2 factors with a value
- Valuation8/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
INTERNATIONAL FLAVORS & FRAGRANCES INC (IFF). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 10.9 bn USD in 2025; YoY growth -5.2%; net margin 1.6%; ROE 1.3%; net debt/EBITDA 10.9x.
The estimated value range is 7.69–27.51 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 15.08 USD, the price of 87.67 USD leaves a potential of -82.8% (value / price − 1) and a margin of safety of -481.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 29/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 272.3%
- Current ratio: 1.9x
What contradicts it
- Revenue CAGR 3Y: -4.3%
- Net debt / EBITDA: 10.9x
- Interest coverage: -1.6x
- P/E (TTM): 122.1x
- EV/EBITDA: 50.9x
- FCF yield: 2.3%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): EPS CAGR 3Y.
Versus the vertical median
Industrial Organic Chemicals (SIC 2860) · same industry (4-digit SIC) · compared with 20 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| IFFInternational Flavors & Fragrances Inc | 22.0 bn | 122.1 | 1.3% | 1.6% | −5.2% | +43% / +21% |
| LYBLyondellbasell Industries N.V. | 20.4 bn | 15.6 | 11.9% | 4.1% | −9.7% | +29% / −34% |
| WLKWestlake Corporation | 8.7 bn | — | -4.9% | -3.9% | −8.0% | +2% / −47% |
| NEUNewmarket Corporation | 6.7 bn | 14.7 | 25.3% | 16.5% | −2.2% | −5% / +37% |
| SXTSensient Technologies Corp | 5.4 bn | 31.7 | 13.7% | 9.7% | +3.5% | +29% / +117% |
| MEOHMethanex Corporation | 5.0 bn | 70.1 | 6.4% | 4.0% | −3.5% | +83% / +53% |
| REXRex American Resources Corporation | 1.3 bn | 10.5 | 22.5% | 20.9% | +1.2% | +20% / +62% |
| GPREGreen Plains Inc. | 957.5 m | 8.6 | 15.4% | 6.8% | −14.9% | +32% / −45% |
| WLKPWestlake Chemical Partners LP | 761.8 m | 12.9 | — | 4.8% | +2.7% | +14% / −5% |
| GEVOGevo, Inc. | 316.5 m | — | -57.0% | -119.9% | +849.3% | −40% / +13% |
| ALTOAlto Ingredients, Inc. | 271.5 m | 5.3 | 22.2% | 5.5% | −4.9% | +37% / +43% |
| FFFuturefuel Corp. | 246.5 m | — | -18.3% | -19.9% | −60.7% | +70% / −5% |
| CDXSCodexis, Inc. | 118.3 m | — | -69.4% | -39.6% | +18.6% | −38% / −54% |
| LODEComstock Inc. | 113.3 m | — | -38.2% | -3,680.5% | −48.5% | −58% / −68% |
| AMTXAemetis, Inc | 90.2 m | — | — | -27.4% | −26.2% | −28% / −72% |
| TANHTantech Holdings Ltd | 90.1 m | — | -25.7% | -80.9% | −10.7% | −76% / −100% |
| LNZALanzaTech Global, Inc. | 69.2 m | 0.4 | 146.4% | 295.7% | +12.6% | −63% / −99% |
| SAFXXcf Global, Inc. | 41.0 m | — | -246.1% | — | unavailable | −87% / unavailable |
| TOMZTomi Environmental Solutions, Inc. | 18.2 m | — | -168.8% | -49.8% | −27.2% | −6% / −26% |
| CNEYCn Energy Group. Inc. | 2.5 m | — | -11.2% | -31.3% | −30.2% | −65% / −99% |
| BAKBraskem SA | — | — | — | -14.6% | +9.7% | −61% / −86% |
1- and 3-year price returns: for IFF from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 48.32 Total return -44% · Per year -44% | 85.82 Total return -1% · Per year -1% | 129.81 Total return 49% · Per year 49% |
| 3 years | 38.93 Total return -54% · Per year -23% | 78.53 Total return -8% · Per year -3% | 131.54 Total return 53% · Per year 15% |
| 5 years | 31.37 Total return -62% · Per year -17% | 71.87 Total return -14% · Per year -3% | 133.28 Total return 57% · Per year 9% |
- Exit P/E± 19.63
- Net margin± 13.74
- Annual revenue growth± 12.33
- Annual dilution± 1.15
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 04 Aug 2026; since then the company filed 8-K (03 Nov 2026 · results), 10-Q (03 Nov 2026).
In brief
IFF is a global creator and manufacturer of flavors, food ingredients, biosciences and fragrances, with sales of 10.89 billion USD in fiscal 2025 1. In the second quarter of 2026, on a continuing operations basis, sales reached 1.954 billion USD 2, and the company agreed to sell its Food Ingredients business for approximately 3.8 billion USD in net cash proceeds 3.
SWOT
Strengths
- The company holds global leadership positions in several ingredient categories and serves a broad, diversified customer base.
- Research and development is a core strength, backed by an extensive patent portfolio and a large team dedicated to innovation.
- The second quarter of 2026 showed comparable growth across all continuing segments, supported by volumes and productivity.
Weaknesses
- Reported results were heavily affected by goodwill impairments in earlier years, with a major effect on profit.
- High debt and leverage limit financial flexibility, and stranded costs after the Food Ingredients sale need to be reduced.
- Dependence on a relatively small number of large customers can create pressure on prices and margins.
Opportunities
- Completing the Food Ingredients sale could simplify the portfolio and increase the weight of higher-margin segments.
- Growing demand for natural ingredients, probiotics and health solutions could open new sales opportunities.
- The expanded share repurchase program could support shareholder value if cash generation stays solid.
Threats
- Tariffs, sanctions and geopolitical disruption could affect raw material sourcing and product distribution.
- Strong competition and customers moving to private label products could reduce volumes and pressure margins.
- Stricter rules on safety, the environment and chemicals could raise compliance costs.
Risks
- Dependence on large customershigh
A small group of multinational customers generates a significant share of sales, and losing core supplier status could reduce volumes and margins.
- Execution of portfolio dealshigh
Completing the Food Ingredients sale depends on regulatory approvals and market conditions; complex transactions can bring costs and distraction.
- Debt and financial flexibilitymedium
The level of debt and related covenants could limit investment and the ability to return capital to shareholders, especially if results weaken.
- Regulatory and environmental costsmedium
Requirements on food safety, chemicals and emissions have become stricter, and compliance can require significant investment.
- Antitrust investigationsmedium
Ongoing antitrust and competition investigations and related class actions could lead to fines or additional legal costs.
Investment thesis
What would need to be true (bull case)
- Comparable sales growth in the second quarter of 2026 and better margins could suggest the portfolio strategy is working 23.
- The Food Ingredients sale and the repurchase program could strengthen the balance sheet and raise returns to shareholders 3.
- Leading positions in flavors, fragrances and biotechnology could support long-term growth if innovation keeps attracting customers 1.
What would break the thesis
- Reported results have been heavily affected by impairments and weaker sales in earlier years, which raises questions about past investment quality 1.
- Stranded costs and dependence on large customers could limit the benefits of the sale and reduce margins if not managed quickly 13.
- Tariffs, geopolitical tensions and private label competition could reduce volumes and pressure profitability 12.
What to watch
- Completion of the Food Ingredients sale and use of proceeds2027
- Evolution of adjusted operating EBITDA margin on continuing operationsQ3 2026
- Execution of the share repurchase programend of 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 04 Aug 2026; since then the company filed 8-K (03 Nov 2026 · results), 10-Q (03 Nov 2026).
The business
From 2026 IFF reports three continuing segments: Taste, Health & Biosciences and Scent, while Food Ingredients and the Soy Crush, Concentrates and Lecithin businesses are shown as discontinued operations 2. The Pharma Solutions divestiture was completed in May 2025 1. This portfolio change aims at a company with higher growth and higher margins 3.
Segments
Market context
The market for IFF products has grown with demand for consumer products and their variety, but it is highly competitive 1. Main competitors are large global companies, mid-sized firms, regional manufacturers and consumer product companies making their own products 1.
Demand for ingredients is shaped by consumer trends, stricter regulation and the cost of raw materials and energy 1. Large customers can limit their suppliers through core lists, which makes those customer relationships essential 1.
Trends
- Volume and price growthtailwind
In the second quarter of 2026 comparable currency neutral sales grew 6%, supported by volumes and better prices in Taste and Scent 2. If this trend continues, margins could benefit from further productivity gains 3.
- Consumer demand and regulationheadwind
Demand for customer products depends on consumer preferences, health awareness, labeling transparency and regulation, which can lead to postponed or cancelled orders 1. Rapid shifts could affect volumes.
- Tariffs and supply chainmixed
Trade wars, tariffs and supply chain disruptions could affect raw material sourcing and product distribution 1. In the second quarter of 2026 the company also recognized tariff refunds that supported gross profit 2.
- Portfolio transformationmixed
The sale of Food Ingredients, with net cash proceeds of about 3.8 billion USD, could reduce debt and allow share repurchases 3. However, stranded costs of about 100 million USD could weigh on profitability if they are not removed quickly 3.
Competitive position
Main competitors include Givaudan, Novonesis, DSM-Firmenich, Symrise, Kerry and ADM 1. The company differentiates through customer understanding, vertical integration, innovation and global scale manufacturing 1.
Competitive pressure could lead to lower prices and margins, particularly in segments with intense rivalry and lower-margin products 1. Competition from private label manufacturers is also growing in some markets 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report03 Nov 2026Departure or appointment of officers · Amendments to articles or bylaws · Financial statements and exhibits
- Quarterly report03 Nov 2026
- Current report03 Nov 2026Results of operations · Financial statements and exhibits
- Current report04 Aug 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report04 Aug 2026
- Current report04 Aug 2026Results of operations · Other events · Financial statements and exhibits
- Current report23 Jun 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report01 Jun 2026Material agreement · Other events · Financial statements and exhibits
- Quarterly report05 May 2026
- Current report05 May 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / IFF · 27 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / IFF · 04 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / IFF · 04 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.