IFF Stock Analysis — International Flavors & Fragrances
Sector: Consumer staples
AI Verdict
IFF trades at 16.2x next year's earnings while the market expects a dramatic earnings rebound—you're getting cheap growth if the sticky customer moat holds, but the numbers demand a flawless turnaround.
Competitive Moat
IFF formulates proprietary flavors, fragrances, and ingredients for food, beverage, and personal care companies, embedding itself in customers' supply chains with custom formulations and regulatory expertise. Its moat comes from sticky customer relationships and high switching costs, as reformulating products with a new supplier is costly and risky for brand consistency.
Summary
IFF is trading at a sharp discount to its historical earnings multiple as the market waits for a turnaround in its core business.
Where It Stands
IFF is up 5.90% over the past year, trades at 16.2x next year's earnings versus the consumer staples median of 20x, and its RSI of 63.2 signals neutral-to-elevated territory.
Key Metrics
- RSI: 63.2 — Near Overbought
- Trailing P/E: 24.5x
- Forward P/E: 16.2x
- PEG Ratio: 0.48
- Earnings Growth: +0.5%
- Revenue Growth: -0.1%
- Market Cap: $20.7B
- Dividend Yield: 0.02%
- 1-Year Return: 5.90%
- 52-Week High: $84.45
- 52-Week Low: $59.14
Analyst Consensus
15 Buy · 6 Hold · 0 Sell (21 analysts)
Bull Case
With analysts projecting 50.9% EPS growth and a forward P/E of 16.2x, you're getting a much higher growth rate than the sector median for a lower price.
Bear Case
If the forward P/E reverts to the sector median of 20x but earnings disappoint, the stock could see a sharp pullback from its current RSI of 63.2, risking a drop back toward oversold territory.
Catalyst to Watch
Watch for quarterly earnings to confirm the expected 50.9% EPS growth—any miss could quickly erase the valuation discount.