With a market cap of $20.4 billion, International Flavors & Fragrances Inc. (IFF) is a global leader in innovative ingredients and solutions serving the food, beverage, home and personal care, health, and wellness markets. Headquartered in New York, IFF combines science and creativity to deliver high-value solutions worldwide.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and IFF fits this criterion perfectly. Operating through four key segments - Nourish, Health & Biosciences, Scent, and Pharma Solutions, IFF offers a diverse portfolio ranging from natural food ingredients and flavors to biotechnology-driven health products and pharmaceutical excipients.
However, the ingredients producer has fallen 26.6% from its 52-week high of $106.77. IFF shares have declined 8.6% over the past three months, a smaller drop compared to the broader Nasdaq Composite's ($NASX) 10.5% decline during the same period.
Longer term, IFF stock has decreased 7.3% on a YTD basis, performing slightly better than NASX's 9.2% decrease over the same period. Nevertheless, International Flavors & Fragrances has dipped 5.9% over the past 52 weeks, lagging behind NASX's 6.9% gain.
Despite few fluctuations, IFF has fallen below its 50-day and 200-day moving averages since late October last year.
Despite reporting better-than-expected Q4 2024 adjusted EPS of $0.97 and revenue of $2.8 billion on Feb. 18, IFF shares fell 5.2% the next day due to weak 2025 guidance, with projected sales of $10.6 billion - $10.9 billion, below 2024’s $11.5 billion. Additionally, rising R&D and selling and administrative expenses pressured margins, with the adjusted EBITDA margin in Q4 slipping slightly to 17%. The significant drop in cash reserves and persistent high debt levels further fueled investor concerns.
In contrast, rival Linde plc (LIN) has outperformed IFF, declining 3% on a YTD basis and saw a rise of 8% on a YTD basis.
Despite International Flavors & Fragrances' weak performance, analysts remain moderately optimistic about its prospects. Among the 19 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $97.78.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
/Quantum%20Computing/Image%20by%20Funtap%20via%20Shutterstock.jpg)
/A%20Palantir%20office%20building%20in%20Tokyo_%20Image%20by%20Hiroshi-Mori-Stock%20via%20Shutterstock_.jpg)
/Nike%2C%20Inc_%20shopping%20by-%20hapabapa%20via%20iStock.jpg)
/Quantum%20Computing/A%20concept%20image%20with%20a%20brain%20on%20top%20of%20a%20blue%20circuit%20board_%20Image%20by%20Gorodenkoff%20via%20Shutterstock_.jpg)
