IFF
International Flavors & Fragrances Inc.$75.38
Sell
Target $57.57
Report: Mar 08, 2026Basic Materials • Chemicals - Specialty • Turnaround CandidateSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$75.38-23.6%
Rec: SellConviction: High
Entry Target
N/A
N/A
Fair Value
$57.57
(24% below current)
Stop Loss
N/A
N/A
Position Size
None
Time Horizon
N/A
Key Metrics
Live Snapshot
Market Data
52 Week High$84.45
52 Week Low$59.14
Avg. 3 Month Volume1.81M
Efficiency
LTM Gross Margin36.2%
LTM EBITDA Margin7.4%
LTM EBIT Margin-1.4%
LTM Operating Margin-5.2%
LTM ROA-1.4%
LTM ROE-2.6%
LTM ROIC-1.3%
LTM ROCE-0.8%
Capital Structure
Market Cap (MM)$18.5B
Enterprise Value (MM)$24.5B
Shares Outstanding256.00M
Total Debt (MM)$6.53B
Cash & Equivalents (MM)$590.00M
LTM Net Debt (MM)$5.94B
LTM Net Debt/EBITDA7.6x
Growth
TTM Rev. Growth-5.2%
Last 3-Yr Rev. CAGR-4.3%
Last 3-Yr EBITDA CAGRN/A
Last 3-Yr EPS CAGRN/A
Valuation
Street Target Price$90.38
LTM EV/Revenue2.2x
LTM EV/Gross Profit6.2x
LTM EV/EBIT-157.9x
LTM EV/EBITDA30.3x
LTM P/E-51.3x
LTM EV/FCF88.3x
LTM P/FCF66.9x
LTM P/TB1.7x
LTM P/B1.3x
Dividend Yield2.2%
Payout Ratio-122.1%
Executive SummarySituation: Current price is $75.38 versus fair value $57.57 (-23.6% expected return), and valuation confidence is stable. Debate: Bull case depends on Completion of the Food Ingredients sale process. Bear case centers on Existential liquidity and solvency risk. Conclusion: Recommendation is Sell with no position, pending a materially better risk/reward setup.
Bull Case
Aggressive deleveraging has reduced Net Debt/EBITDA to 2.6x, ahead of management's 3.0x target; Activist involvement from Icahn and Sachem Head provides a catalyst for a full strategic review or sale of the company.
Bear Case
Operating margins have collapsed to -5.2%, and the company is currently destroying shareholder value with a negative ROIC of -2.4%; Negative interest coverage of -0.81x indicates that the company is not generating enough EBIT to service its debt.
Key Catalysts
Mid-Term (6-18 months)Impact: High
Completion of the Food Ingredients sale process. This is the final major step in the portfolio optimization plan and will determine the comp...
Mid-Term (6-18 months)Impact: Critical
Potential credit rating downgrade. If operating margins do not turn positive by H2 2026, the negative interest coverage of -0.81x may force...
Long-Term (18+ months)Impact: Moderate
IFF is at a critical juncture following the February 2026 launch of the Food Ingredients sale, which marks the final phase of its activist-m...
Primary Risks
Concern: High
Existential liquidity and solvency risk. The company is in a race against time to improve operating cash flow before it breaches its net-deb...
Concern: Medium
Operational 'hollowing out' where the remaining core segments lack the scale to compete effectively with larger rivals like Givaudan.
Concern: Medium
The governance outcome tree is currently skewed toward a 'Reset' scenario. 1. Status Quo: Management continues to sell assets to pay down de...
Recent Activity
2026-02-12SEC Filing (8-K)
+5.89%IFF reported Q4 and full year 2025 results, launched sale process for Food Ingredients segment, and provided 2026 guidance.
2025-08-06SEC Filing (8-K)
-6.32%IFF reported Q2 2025 results, reaffirmed full year guidance, reduced leverage to 2.5x, and announced $500M share repurchase.
2025-05-07SEC Filing (8-K)
-7.08%International Flavors & Fragrances Inc. released unaudited segment financial information for Q4 2024 and full year 2024.
2025-02-19SEC Filing (8-K)
-5.16%IFF reported Q4 and full year 2024 results with strong adjusted operating EBITDA growth and updated 2025 guidance.
2024-11-06SEC Filing (8-K)
-11.63%IFF reports strong Q3 2024 results with 9% currency-neutral sales growth and raises full-year guidance.
Valuation Table
9.8/10Decision Grade
Scenario Range
$0
Bear
$86
Bull
$75