International Flavors & Fragrances Inc. ranks slightly below the peer group median, with valuation as the main structural support while stability remains the clearest constraint. The market setup is mixed, without a clear directional signal.
Peer-relative scores, weakest to strongest
International Flavors & Fragrances develops flavors and fragrances for consumer products worldwide. Its portfolio spans food, beverage, personal care, and household items.
The market prices IFF on recovery and restructuring prospects, not on sustainable earning power or peer-level quality. With a return on invested capital of just 2.1% (well below sector average in FY25) and revenue shrinking by 3.6% year-over-year (Q1 2026 decline), the company’s low capital returns and negative growth keep it locked in a turnaround narrative. Despite portfolio restructuring and a focus on specialty products, the market applies a persistent valuation discount to IFF compared to sector peers with more stable models, penalizing the stock for any signs that it cannot deliver profitability and growth rates in line with the sector. In the flavors and fragrances sector, IFF’s ongoing portfolio cleanup and focus on specialty products currently leave it less profitable and slower-growing than peers with more stable business models, so the market demands visible progress in margins and growth before reconsidering its valuation. Only a sustained rise in return on capital above peer levels and a return to positive revenue growth over multiple quarters could break the turnaround 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.