International Flavors & Fragrances Inc. (IFF) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: International Flavors & Fragrances Inc.

Updated on October 20, 2026 · accounts published on August 4, 2026

A low-return business with shrinking sales and a heavily indebted balance sheet

International Flavors & Fragrances trades at a P/E of 86.1× over the last 12 months, 142 % above its ten-year median of 35.6×.

• Is International Flavors & Fragrances expensive or cheap? Its P/E of 86.1× is 142 % above its ten-year median and higher than in 99 % of the past decade.
• How is the business doing? Revenue fell 5.2 % over the last 12 months and the 7.8 % operating margin trails its 2014-2025 average of 8.5 %.
• How strong is the balance sheet? Net debt was $24.57 per share in fiscal 2025, 7.8× EBITDA, and free cash flow covered the dividend only 0.6×.
• Can the balance sheet withstand the bottom of the cycle? International Flavors & Fragrances fails 5 of 8 sector checks, with net debt at 7.8× EBITDA against a healthy level below 3.0×.
• What to expect from the next earnings? Analysts expect EPS of $0.83 on November 3, 2026, after the 2026 EPS consensus fell 3.7 % in the last 30 days.

Is International Flavors & Fragrances expensive or cheap?

Over the last 12 months International Flavors & Fragrances trades at a P/E of 86.1×. Its ten-year median is 35.6× and its decade range runs from 22.3× to 87.4×, so the multiple sits near the top of its own history. The gap to the sector is wider still: the median P/E is 18.8×, which puts the stock 358 % above its peers. Collapsing earnings inflate that multiple, and other measures look calmer. EV/EBITDA of 19.4× is below its five-year average of 22.5×, and P/B is 1.7×. The stock is up 46 % in 12 months and trades within 1 % of its 52-week high of $94.15.

How is the business doing?

Sales shrank 5.2 % over the last 12 months and EPS fell 253.7 % year on year, which explains the stretched P/E. The operating margin of 7.8 % is close to the 7.7 % of fiscal 2025 but below the 8.5 % average for fiscal 2014-2025, so profitability has not recovered. Returns on capital are the weak spot. ROIC is 2.8 % over the last 12 months, 6.6 points below the sector median of 9.4 %. It topped 10 % in only one of the last ten fiscal years and bottomed at −7.5 % in 2023. An ROE of 2.1 % and a 2.9 % net margin point the same way.

How strong is the balance sheet?

On book values, leverage looks moderate: debt to equity was 0.45 and the current ratio 2.06 over the last 12 months. Measured against earnings, the picture changes. In fiscal 2025 net debt came to $24.57 per share, equal to 26 % of the current share price and 7.8× EBITDA. The Altman Z of 1.3 over the last 12 months sits in the danger zone, below the 1.81 threshold, and a Piotroski score of 6 out of 9 is middling. The 1.7 % dividend yield rests on thin cash, since free cash flow covered the payout only 0.6× in fiscal 2025.

Can the balance sheet withstand the bottom of the cycle?

In basic materials, results are tied to raw materials, so P/E alone misleads. Cost position and the durability of the dividend matter more. On that yardstick, the fiscal 2025 gross margin of 36.2 % clears the 30 % bar, but cash generation does not. Free cash flow yield is 1.0 % over the last 12 months against a healthy 8 %. Dividend cover is 0.6× against 1.3×, and in fiscal 2025 capex ran at 0.6× depreciation, below the 0.8× to 1.5× range. With net debt at 7.8× EBITDA and an Altman Z of 1.3, the balance sheet has little room for a downturn.

What to expect from the next earnings?

The last report, on August 4, 2026, delivered EPS of $0.82 against $1.07 expected. That 23.4 % miss was the largest surprise in absolute terms of the last eight quarters, although the company beat EPS estimates in 5 of those 8 quarters. Since then expectations have slipped. Over the last 30 days the 2026 EPS consensus dropped 3.7 %, from $3.44 to $3.32, and the 2026 revenue estimate fell 2.2 %. Analysts remain positive: 25 of 34 recommend buying, 8 holding and 1 selling. The $0.83 expected for the next quarter is barely above the last result.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.