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International Flavors & Fragrances (IFF): Evaluating Valuation After Recent Net Income Rebound and Stabilizing Share Performance

Simply Wall St · 1d ago

International Flavors & Fragrances (IFF) has been quietly trying to reset expectations after a tough stretch, showing modest revenue growth alongside a sharp rebound in annual net income growth that is catching investors attention.

See our latest analysis for International Flavors & Fragrances.

Despite the latest share price of $65.62 and a modest positive 90 day share price return, longer term total shareholder returns over one, three, and five years remain deeply negative. This suggests sentiment is stabilising but not yet convincingly turning higher.

If IFF has you rethinking the balance between recovery stories and quality, it could be worth exploring fast growing stocks with high insider ownership as another way to spot compelling opportunities.

With annual earnings bouncing and the shares still trading at a sizeable discount to analyst targets, the key question now is whether IFF is quietly undervalued or if the market is already pricing in a full recovery.

Most Popular Narrative: 19.5% Undervalued

With the narrative fair value sitting meaningfully above the last close of $65.62, the valuation hinges on a delayed but powerful profit recovery.

Ongoing investments in R&D and capacity (especially in Health & Biosciences, Taste, and Specialty Fragrance Ingredients) are strengthening the company's innovation pipeline; management expects these initiatives to accelerate revenue and profit growth beginning in 2026 and reaching full impact by 2027.

Read the complete narrative.

Curious how a slow top line and a still negative bottom line can support a double digit upside story, built on sharply higher margins and a richer future earnings multiple, without assuming runaway growth?

Result: Fair Value of $81.49 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent softness in key markets and sustained commoditization in fragrance ingredients could delay margin expansion and undermine the anticipated profit recovery.

Find out about the key risks to this International Flavors & Fragrances narrative.

Build Your Own International Flavors & Fragrances Narrative

If you see the story differently, or would rather dig into the numbers yourself, you can shape a custom view in just minutes: Do it your way.

A great starting point for your International Flavors & Fragrances research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.