# International Flavors & Fragrances (IFF.US)

Canonical: https://gigainvestors.com/s/IFF

Analysis as of: 2026-10-16T07:29:17.987Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $90.29 per share; close as of 2026-10-15.

Estimated value: low $1.72 per share, central $1.76 per share, high $1.81 per share. Buy at or below the central value $1.76 per share. Valuation as of 2026-10-16T07:29:17.987Z; scenarios are not confidence intervals.

Expected annual return: 3.0% at the stated quote. About 3.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 3

- Operating margin variation: 1.78×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.18×

- FY2017: 0.16×

- FY2018: 0.15×

- FY2019: 0.13×

- FY2020: 0.11×

- FY2021: 0.05×

- FY2022: -0.11×

- FY2023: -0.18×

- FY2024: 0.07×

- FY2025: 0.08×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 7.6%

- ROIC, second-lowest year: -7.1%

- Typical minus recent gross margin: 2.7 pp

- Typical gross margin (annual median): 38.6%

- Recent gross margin (lower of latest and 3-year median): 35.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.1%

- ROIC including acquisitions, ten-year median: 3.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 26.3%

- FY2017: 20.0%

- FY2018: 9.7%

- FY2019: 11.5%

- FY2020: 9.8%

- FY2021: 2.9%

- FY2022: -7.1%

- FY2023: -11.8%

- FY2024: 4.9%

- FY2025: 5.6%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$1.3B

- Net income, five-year total: -$4.3B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.2 pp

- Working capital / revenue, change between three-year averages: -10.1 pp

- Working capital / revenue, final three-year average: 27.7%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $1.0B

- FY2022: -$1.2B

- FY2023: -$1.9B

- FY2024: $790M

- FY2025: $7.0M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 20.0% vs 4.9%

- Per-share earnings: 5.06 to -1.41 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 12.2%

- Ordinary dilution, 5-year annual growth: 17.6%

- Market cap gain: $7.9B

- Cumulative retained earnings: -$7.2B

- Diluted shares, 10-year annual growth: 12.2%

- Diluted shares, 5-year annual growth: 17.6%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$6.47

- Per-share value, starting three-year median: $5.06

- Per-share value, ending three-year median: -$1.41

- Buybacks concentrated in cheaper years (correlation): 0.61

- Average buyback yield: 0.3%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $26B

- Cumulative net income, 10 years: -$2.4B

- ROIC, first three-year median: 20.0%

- ROIC, last three-year median: 4.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $5.06

- FY2017: $3.73

- FY2018: $3.80

- FY2019: $4.02

- FY2020: $3.20

- FY2021: $1.10

- FY2022: -$7.33

- FY2023: -$10.06

- FY2024: $0.95

- FY2025: -$1.41

### accounting: pass

- Sloan accruals: -4.7%

- Receivables to sales index (DSRI): 1.07×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 10.4%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.6%

- FY2017: -2.1%

- FY2018: -0.8%

- FY2019: -1.8%

- FY2020: -2.6%

- FY2021: -2.9%

- FY2022: -6.3%

- FY2023: -12.9%

- FY2024: -2.9%

- FY2025: -4.7%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Steven Romick](https://gigainvestors.com/FPA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Mark Hillman](https://gigainvestors.com/HCM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Carl Icahn](https://gigainvestors.com/ic): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 40% since Dec 2021 · sales -5.2%

Story as of 2026-10-16T09:58:56.552Z; price observation 2026-10-15.

Price needs cash profits to grow 85.3% a year for ten years

### Sales · FY2024–2025

sales -5.2%; source https://www.sec.gov/Archives/edgar/data/51253/000005125326000006/iff-20251231.htm; observed 2026-02-27.

- FY2016: $3.1B 

- FY2017: $3.4B 

- FY2018: $4.0B 

- FY2019: $5.1B 

- FY2020: $5.1B 

- FY2021: $12B 

- FY2022: $12B 

- FY2023: $11B 

- FY2024: $11B 

- FY2025: $11B 

### Gross margin · FY2025

gross margin 36.2%; source https://www.sec.gov/Archives/edgar/data/51253/000005125326000006/iff-20251231.htm; observed 2026-02-27.

- FY2016: 44.8% 

- FY2017: 43.3% 

- FY2018: 42.3% 

- FY2019: 41.1% 

- FY2020: 41.0% 

- FY2021: 32.0% 

- FY2022: 33.4% 

- FY2023: 32.1% 

- FY2024: 35.9% 

- FY2025: 36.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty chemicals; annual sales are USD 10.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/51253/000005125326000006/iff-20251231.htm (filed 2026-02-27); FY2025: revenue 10890000000; grossProfit 3938000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); IFF.US: International Flavors & Fragrances Inc., together with its subsidiaries, manufactures and markets food, beverage, health and biosciences, scent, and complementary adjacent products in the United States, and internationally. It operates in through Taste, Food Ingredients, Health & Biosciences, and Scent segments. The Taste segment offers savory products such as soups, sauces, meat, fish, poultry, snacks; beverages consists of juice drinks, carbonated or flavored beverages, spirits; sweets comprising, bakery products, candy, cereal, chewing gum; and dairy products, such as yogurt, ice cream, cheese, and other products, as well as spices and seasoning ingredients for meat, food service, convenience, alternative protein and culinary products. The Food Ingredients segment provides natural, artificial, and plant-based specialty food ingredients; natural antioxidants and anti-microbials used for natural food preservation and shelf-life extension for beverages, cosmetic and healthcare products, pet food and feed additives; and savory solutions, such as spices, marinades, and mixtures, and inclusion products comprising  combining flavorings with fruit, vegetables and other natural ingredients, as well as soy and pea protein with value-added formulations, emulsifiers and sweeteners. The Health & Biosciences segment offers enzymes, food cultures, probiotics and specialty ingredients for food and non-food applications, as well as engages in health, food biosciences, home and personal care, animal nutrition and grain processing businesses. The Scent segment creates fragrance compounds, and fragrance ingredients. International Flavors & Fragrances Inc. was incorporated in 1909 and is headquartered in New York, New York.

### Why customers stay

Margins ranged from 32.1% to 36.2% during 2023–25; it earns 7.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: grossProfit / revenue = 32.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: grossProfit / revenue = 35.9%.

- Source: https://www.sec.gov/Archives/edgar/data/51253/000005125326000006/iff-20251231.htm (filed 2026-02-27); FY2025: grossProfit / revenue = 36.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); 10-year return on capital observations [[2016,0.2627606847692836],[2017,0.1996695423063668],[2018,0.09689619183887441],[2019,0.11461932990109028],[2020,0.09827802304939046],[2021,0.02856979316110412],[2022,-0.0709186920316837],[2023,-0.11825340522133938],[2024,0.04892406971554523],[2025,0.05568223673196049]]; median 0.07628921428541745. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 33% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/51253/000005125326000006/iff-20251231.htm (filed 2026-02-27); Gross margin observations: [[2021,0.32043582704186685],[2022,0.33368167202572346],[2023,0.3206725324505619]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 38 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2016: growth capex 22158629.73098363; upkeep 104253370.26901637; owner earnings 403246629.7309836. Growth capex / owner earnings = 0.05495056399049443.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2017: growth capex 11006000; upkeep 117967000; owner earnings 295665000. Growth capex / owner earnings = 0.03722456158151963.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2018: growth capex 0; upkeep 173420000; owner earnings 334826000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2019: growth capex 0; upkeep 242000000; owner earnings 535000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2020: growth capex 0; upkeep 191794000; owner earnings 498206000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2021: growth capex 0; upkeep 397000000; owner earnings 1027000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: growth capex 0; upkeep 468000000; owner earnings 790000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/51253/000005125326000006/iff-20251231.htm (filed 2026-02-27); FY2025: growth capex 0; upkeep 594000000; owner earnings 7000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Dividend observations: [[2016,184897000],[2017,206118000],[2018,230218000],[2019,314000000],[2020,322584000],[2021,667000000],[2022,810000000],[2023,826000000],[2024,514000000],[2025,409000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/51253/000005125326000006/iff-20251231.htm (filed 2026-02-27); FY2025: cash repurchases 38000000 USD.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); IFF.US SharesStats.PercentInsiders = 0.11299999999999999 percentage points; cache date 2026-10-16.

### What could break it

"We have a substantial amount of indebtedness" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/51253/000005125326000006/iff-20251231.htm (filed 2026-02-27); We have a substantial amount of indebtedness

### What the price says

The price assumes cash profits grow 85.3% yearly over ten years; actual decline was 40.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Ten-year compound average after fade. Initial solved rate 1.299052658538291. Price 90.29; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 5.0415250151438356 → FY2025 0.02734375. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $130.78 per share

- 2016-11: $121.05 per share

- 2016-12: $117.83 per share

- 2017-01: $117.21 per share

- 2017-02: $125.70 per share

- 2017-03: $132.53 per share

- 2017-04: $138.59 per share

- 2017-05: $137.89 per share

- 2017-06: $135.00 per share

- 2017-07: $133.18 per share

- 2017-08: $136.85 per share

- 2017-09: $142.91 per share

- 2017-10: $147.42 per share

- 2017-11: $155.44 per share

- 2017-12: $152.61 per share

- 2018-01: $150.30 per share

- 2018-02: $141.25 per share

- 2018-03: $136.91 per share

- 2018-04: $141.26 per share

- 2018-05: $122.13 per share

- 2018-06: $123.96 per share

- 2018-07: $132.76 per share

- 2018-08: $130.29 per share

- 2018-09: $139.12 per share

- 2018-10: $144.66 per share

- 2018-11: $141.63 per share

- 2018-12: $134.27 per share

- 2019-01: $141.78 per share

- 2019-02: $127.50 per share

- 2019-03: $128.79 per share

- 2019-04: $137.79 per share

- 2019-05: $135.42 per share

- 2019-06: $145.09 per share

- 2019-07: $143.99 per share

- 2019-08: $109.75 per share

- 2019-09: $122.69 per share

- 2019-10: $122.01 per share

- 2019-11: $141.23 per share

- 2019-12: $129.02 per share

- 2020-01: $131.11 per share

- 2020-02: $119.78 per share

- 2020-03: $102.08 per share

- 2020-04: $131.03 per share

- 2020-05: $133.19 per share

- 2020-06: $122.46 per share

- 2020-07: $125.95 per share

- 2020-08: $123.79 per share

- 2020-09: $122.45 per share

- 2020-10: $102.66 per share

- 2020-11: $112.10 per share

- 2020-12: $108.84 per share

- 2021-01: $112.38 per share

- 2021-02: $135.51 per share

- 2021-03: $139.61 per share

- 2021-04: $142.17 per share

- 2021-05: $141.67 per share

- 2021-06: $149.40 per share

- 2021-07: $150.64 per share

- 2021-08: $151.50 per share

- 2021-09: $133.72 per share

- 2021-10: $147.45 per share

- 2021-11: $142.17 per share

- 2021-12: $150.65 per share

- 2022-01: $131.92 per share

- 2022-02: $133.00 per share

- 2022-03: $131.33 per share

- 2022-04: $121.30 per share

- 2022-05: $132.17 per share

- 2022-06: $119.12 per share

- 2022-07: $124.05 per share

- 2022-08: $110.48 per share

- 2022-09: $90.83 per share

- 2022-10: $97.61 per share

- 2022-11: $105.82 per share

- 2022-12: $104.84 per share

- 2023-01: $112.46 per share

- 2023-02: $93.20 per share

- 2023-03: $91.96 per share

- 2023-04: $96.96 per share

- 2023-05: $77.29 per share

- 2023-06: $79.59 per share

- 2023-07: $84.61 per share

- 2023-08: $70.45 per share

- 2023-09: $68.17 per share

- 2023-10: $68.35 per share

- 2023-11: $75.38 per share

- 2023-12: $80.97 per share

- 2024-01: $80.68 per share

- 2024-02: $75.50 per share

- 2024-03: $85.99 per share

- 2024-04: $84.65 per share

- 2024-05: $96.18 per share

- 2024-06: $95.21 per share

- 2024-07: $99.48 per share

- 2024-08: $103.99 per share

- 2024-09: $104.93 per share

- 2024-10: $99.43 per share

- 2024-11: $91.36 per share

- 2024-12: $84.55 per share

- 2025-01: $87.09 per share

- 2025-02: $81.81 per share

- 2025-03: $77.61 per share

- 2025-04: $78.46 per share

- 2025-05: $76.56 per share

- 2025-06: $73.55 per share

- 2025-07: $71.03 per share

- 2025-08: $67.51 per share

- 2025-09: $61.54 per share

- 2025-10: $62.97 per share

- 2025-11: $69.48 per share

- 2025-12: $67.39 per share

- 2026-01: $69.81 per share

- 2026-02: $82.23 per share

- 2026-03: $72.55 per share

- 2026-04: $70.20 per share

- 2026-05: $76.05 per share

- 2026-06: $79.22 per share

- 2026-07: $79.22 per share

- 2026-08: $86.33 per share

- 2026-09: $83.48 per share

- 2026-10: $90.29 per share

## Annual estimated value (USD per share)

- FY2016: low $61.95 per share, central $76.23 per share, high $88.40 per share

- FY2017: low $65.11 per share, central $76.11 per share, high $87.94 per share

- FY2018: low $70.48 per share, central $81.42 per share, high $93.67 per share

- FY2019: low $57.97 per share, central $67.53 per share, high $77.85 per share

- FY2020: low $53.74 per share, central $61.92 per share, high $71.23 per share

- FY2021: low $49.40 per share, central $57.47 per share, high $66.52 per share

- FY2022: low $47.94 per share, central $54.42 per share, high $63.04 per share

- FY2023: low $45.21 per share, central $51.19 per share, high $59.14 per share

- FY2024: low $34.66 per share, central $39.32 per share, high $45.51 per share

- FY2025: low $1.75 per share, central $1.79 per share, high $1.85 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/51253/000005125326000006/iff-20251231.htm); period 2025-12-31, filed 2026-02-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [David Hoeft](https://gigainvestors.com/DAC): 37,007,037 IFF shares; USD 2,931,697,000 reported position value; 1.54% of portfolio; add; quarter 2026 Q2.
- [Matthew McLennan](https://gigainvestors.com/FE): 9,409,698 IFF shares; USD 745,437,000 reported position value; 1.23% of portfolio; add; quarter 2026 Q2.
- [Steven Romick](https://gigainvestors.com/FPA): 5,455,081 IFF shares; USD 432,152,000 reported position value; 5.43% of portfolio; add; quarter 2026 Q2.
- [Mark Hillman](https://gigainvestors.com/HCM): 62,875 IFF shares; USD 4,981,000 reported position value; 3.61% of portfolio; reduce; quarter 2026 Q2.
- [Carl Icahn](https://gigainvestors.com/ic): 4,275,000 IFF shares; USD 338,666,000 reported position value; 4.1% of portfolio; hold; quarter 2026 Q2.

# IFF — International Flavors & Fragrances Inc.

Held by 5 investors · USD 4,452,933,000 total · 2026 Q2 · reported price USD 79.22 (split-adjusted).
Page: https://gigainvestors.com/s/IFF

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| David Hoeft (https://gigainvestors.com/DAC) | USD 2,931,697,000 | 1.5% | add +1.46% |
| Matthew McLennan (https://gigainvestors.com/FE) | USD 745,437,000 | 1.2% | add +1.02% |
| Steven Romick (https://gigainvestors.com/FPA) | USD 432,152,000 | 5.4% | add +0.83% |
| Carl Icahn (https://gigainvestors.com/ic) | USD 338,666,000 | 4.1% | hold |
| Mark Hillman (https://gigainvestors.com/HCM) | USD 4,981,000 | 3.6% | reduce -13.6% |

## Total held by quarter

- 2017 Q3: USD 1,143,040 · 1 holder · USD 142.88
- 2017 Q4: USD 1,221,040 · 1 holder · USD 152.63
- 2018 Q1: USD 1,369,000 · 1 holder · USD 136.90
- 2018 Q2: USD 4,958,000 · 1 holder · USD 123.95
- 2018 Q3: USD 8,834,120 · 1 holder · USD 139.12
- 2018 Q4: USD 8,526,145 · 1 holder · USD 134.27
- 2019 Q1: USD 8,565,200 · 1 holder · USD 128.80
- 2019 Q2: USD 9,647,820 · 1 holder · USD 145.08
- 2019 Q3: USD 10,367,305 · 1 holder · USD 122.69
- 2019 Q4: USD 13,676,120 · 1 holder · USD 129.02
- 2020 Q1: USD 10,921,490 · 1 holder · USD 102.07
- 2020 Q2: USD 13,103,220 · 1 holder · USD 122.46
- 2020 Q3: USD 13,102,150 · 1 holder · USD 122.45
- 2020 Q4: USD 15,890,640 · 1 holder · USD 108.84
- 2021 Q1: USD 333,807,510 · 3 holders · USD 139.61
- 2021 Q2: USD 413,006,440 · 3 holders · USD 149.40
- 2021 Q3: USD 290,959,209 · 3 holders · USD 133.72
- 2021 Q4: USD 194,443,202 · 3 holders · USD 150.65
- 2022 Q1: USD 586,354,764 · 3 holders · USD 131.33
- 2022 Q2: USD 689,599,370 · 3 holders · USD 119.12
- 2022 Q3: USD 399,129,364 · 3 holders · USD 90.83
- 2022 Q4: USD 357,176,020 · 4 holders · USD 104.84
- 2023 Q1: USD 370,993,279 · 5 holders · USD 91.96
- 2023 Q2: USD 548,637,680 · 5 holders · USD 79.59
- 2023 Q3: USD 406,840,663 · 6 holders · USD 68.17
- 2023 Q4: USD 376,363,750 · 6 holders · USD 80.97
- 2024 Q1: USD 3,241,324,379 · 7 holders · USD 85.99
- 2024 Q2: USD 3,591,419,980 · 7 holders · USD 95.21
- 2024 Q3: USD 3,771,730,665 · 5 holders · USD 104.93
- 2024 Q4: USD 3,324,730,226 · 5 holders · USD 84.55
- 2025 Q1: USD 3,423,931,546 · 5 holders · USD 77.61
- 2025 Q2: USD 3,607,435,609 · 6 holders · USD 73.55
- 2025 Q3: USD 3,300,564,605 · 5 holders · USD 61.54
- 2025 Q4: USD 3,700,370,209 · 5 holders · USD 67.39
- 2026 Q1: USD 4,029,812,241 · 5 holders · USD 72.55
- 2026 Q2: USD 4,452,933,000 · 5 holders · USD 79.22