Stock Analysis | International Flavors & Fragrances Outlook - Bearish Signals and Mixed Analyst Sentiment

1. Market Snapshot

Headline Takeaway: International Flavors & Fragrances (IFF) is showing signs of technical weakness, with bearish indicators dominating and a current price trend of a 0.50% decline. The internal diagnostic score for technical analysis is just 2.42 (0-10), signaling caution for potential short-term investors.

2. News Highlights

• May 29, 2025: Safex Chemicals Expands Manufacturing Footprint – This development in the chemical industry could indirectly affect IFF’s competitive landscape, particularly if it leads to cost efficiencies in flavor and fragrance raw materials.
• May 31, 2025: ETFGI Reports Record ETF Assets in Asia Pacific – Growing ETF interest could signal broader market optimism, but IFF’s specific performance remains bearish, suggesting it may lag in a rising market.
• May 31, 2025: Genentech's Itovebi Shows Strong Survival Benefits – While unrelated to IFF's core business, this positive biotech news may contribute to an overall market mood that contrasts with IFF’s downward trend.

3. Analyst Views & Fundamentals

Analyst sentiment is mixed but leaning optimistic, with three recent ratings: two "Buy" and one "Neutral". The simple average rating score is 3.67, while the performance-weighted rating is 4.35, both above the midpoint of the 5-point scale. However, this optimism is not reflected in the stock price, which is currently falling.

Key fundamental factors and their model scores:

• PE ratio: 9.55 (Score: 2) – Indicates strong value at a relatively low price-to-earnings ratio.
• Net Cash Flow from Operating Activities per Share (YoY growth rate): 9.25% (Score: 1) – Suggests modest improvement in cash generation.
• Quick Ratio: 1.12 (Score: 3) – Demonstrates good liquidity.
• Net Cash Flow from Operating Activities (YoY growth rate): 9.52% (Score: 2) – Reflects a slight increase in cash flow.
• Total Profit / EBIT: 140.24% (Score: 2) – Highlights efficiency in profit generation relative to EBIT.
• Cash-UP: 0.57 (Score: 3) – Suggests strong cash position relative to market value.
• Current Ratio: 1.86 (Score: 2) – Another positive liquidity indicator.
• Cash-MV: 48.27% (Score: 1) – Indicates that the company has significant cash reserves relative to its market value.

Despite these relatively strong fundamentals, the internal diagnostic fundamental score is 5.8 (0-10), suggesting the stock may be overvalued based on its fundamentals or that its performance is not adequately reflected in the current price.

4. Money-Flow Trends

Big-money investors are currently showing a negative trend, with an overall inflow ratio of 46.93%, meaning more large-scale capital is exiting than entering the stock. Meanwhile, retail investors are slightly more optimistic, with a positive trend and an inflow ratio of 50.17%, though still modest.

The fund-flow score is 7.7 (0-10), indicating that while there is some retail support, institutional capital is trending away — a warning sign for those considering new positions.

5. Key Technical Signals

The technical indicators for IFF paint a clearly bearish picture, with 4 bearish signals and 0 bullish indicators. The internal diagnostic technical score is 2.42 (0-10), reinforcing the negative outlook.

• Long Lower Shadow (Score: 1/10) – This pattern is highly bearish and historically leads to poor returns.
• WR Oversold (Score: 2.82/10) – Suggests a potential rebound, but with a 50% win rate and a negative average return of -0.36%, caution is warranted.
• RSI Oversold (Score: 2.76/10) – Also hints at a possible bounce, but with a low win rate and negative returns, it doesn't strongly support a buy case.
• Bullish Engulfing (Score: 3.12/10) – A neutral signal that doesn’t strongly support reversal.

Recent Chart Patterns (Last 5 Days):

• August 6: Long Lower Shadow, WR Oversold, RSI Oversold
• August 7 & 8: WR Oversold, RSI Oversold
• August 11: WR Oversold, RSI Oversold
• August 12: WR Oversold, Bullish Engulfing

These patterns suggest a continuation of bearish momentum, with no strong reversal signals emerging.

6. Conclusion

While the fundamentals of International Flavors & Fragrances are reasonably strong and analyst sentiment is mixed with a slight lean toward optimism, the technical outlook is clearly bearish, supported by a low internal diagnostic score of 2.42 (0-10).

Actionable Takeaway: Investors should avoid taking new positions in IFF at this time and consider waiting for a clearer reversal signal or a pullback supported by strong volume and multiple bullish indicators.