International Flavors & Fragrances Inc. ranks slightly below the peer group median, with profitability as the least supportive dimension. The trend setup is mixed, though short-term momentum remains constructive.
Peer-relative scores, weakest to strongest
International Flavors & Fragrances develops and supplies flavors, fragrances, and cosmetic actives for a range of industries.
The market prices IFF as a cyclically weak laggard, not as a resilient quality peer. With a return on invested capital of just 2.1% and revenue growth at 3%, both well below sector averages, there is no credible catch-up story—because these numbers show that IFF is not closing the gap to its competitors. In the flavors and fragrances sector, the ability to offset pricing pressure and volatile input costs is critical—and the market penalizes IFF for being perceived as less capable on this front than its competitors. The market responds to IFF's higher gross margin volatility by consistently assigning a lower valuation, reflecting skepticism about the company's ability to deliver stable performance. The result is a clear valuation discount: IFF trades below peer levels, not because the market is missing something, but because the business fundamentals do not yet justify a higher multiple. Only a sustained improvement in capital returns and an acceleration of growth relative to peers could break this discount framing.
Break down IFF's position across all dimensions with the full interactive tool.
This analysis is rule-based and descriptive. Peer-relative scores are derived from functional peer group comparisons using publicly available financial data. Scores reflect structural positioning only and do not constitute investment advice, a buy or sell recommendation, or a forecast of future performance. AssetNext peer scores are recalculated periodically as new data becomes available.
AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.
Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.
Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.
Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.