Stock Analysis | International Flavors & Fragrances Outlook - Mixed Signals Amid Weak Technicals and Strong Fundamentals

Market Snapshot

Headline Takeaway: International Flavors & Fragrances (IFF) faces a mixed outlook with strong fundamentals but weak technical signals, while market analysts show diverging views.

News Highlights

Recent developments in the broader market may indirectly affect IFF:

• Safex Chemicals Expands Manufacturing: A new facility in India, scheduled for 2025-05-29, highlights a broader trend of capacity expansion in the chemical sector, which may influence demand for IFF's raw materials and ingredients.
• U.S. Policy Changes on China Trade: New restrictions on the export of chip design software and chemicals to China, also announced on 2025-05-29, could create supply chain challenges for global chemical and consumer goods firms.
• ETF Growth in Asia Pacific: As of 2025-05-31, ETF assets in the Asia Pacific region (excluding Japan) hit a record $1.25 trillion, suggesting growing investor interest in the region and potentially affecting cross-border flows into IFF.

Analyst Views & Fundamentals

Analysts are divided on IFF. The simple average rating is 4.00, while the performance-weighted rating is 3.26. This suggests divergence in analyst sentiment. The stock is currently down -0.61%, contradicting the generally neutral to positive ratings.

Key fundamental factors and their internal diagnostic scores (0-10) are:

• PE Ratio: 9.55 – score 2.00 (lower is better)
• Quick Ratio: 111.75% – score 3.00 (higher is better)
• Total Profit / EBIT Ratio: 140.24% – score 2.00 (lower is better)
• Current Assets Turnover Ratio: 80.55% – score 2.00 (higher is better)
• Cash-UP: 56.58% – score 3.00 (higher is better)
• CFOA (Operating Cash Flow): 0.92% – score 1.00 (higher is better)
• Cost of Sales Ratio: 63.17% – score 1.00 (lower is better)
• Equity Multiplier (DuPont): 193.73% – score 2.00 (moderate is ideal)
• Current Ratio: 186.24% – score 2.00 (higher is better)
• Cash-MV (Market Cap Cash Ratio): 48.31% – score 0.00 (lower is better)

Money-Flow Trends

Money is flowing out of IFF, with fund-flow patterns showing an overall negative trend. The inflow ratios across all sizes (Small, Medium, Large, Extra-large) are below 50%, with the highest being 48.78% for medium-sized funds.

Big-money investors (Large and Extra-large funds) are more cautious than retail traders, with inflow ratios of 46.95% and 47.44%, respectively, versus 48.71% for small retail inflow.

Key Technical Signals

The technical outlook for IFF is weak. The internal diagnostic technical score is 2.34 (0-10, 10 = best). There are 4 bearish signals and 0 bullish ones over the last 5 days.

• WR Overbought: Score 1.29 – weak signal, suggesting caution.
• WR Oversold: Score 2.82 – neutral to slightly positive but historically underperforms.
• MACD Golden Cross: Score 2.12 – historically weak; mixed results expected.
• Bullish Engulfing: Score 3.12 – neutral to bullish, but again with low historical success.

Recent chart patterns (2025-08-20 to 2025-08-25):

• 2025-08-20: WR Overbought and MACD Golden Cross
• 2025-08-12: WR Oversold and Bullish Engulfing
• 2025-08-22 and 2025-08-25: Repeated WR Overbought signals

These signals suggest unstable momentum and a higher risk of price decline.

Conclusion

Investors are advised to wait for a clearer trend before entering a position in IFF. The fundamentals are strong, but the technical outlook is weak, and the market flow remains negative. A pullback or improved technical signals could present a better entry point. For now, monitor key developments in earnings or macroeconomic policy shifts that could tilt the balance in favor of long-term buyers.