Stock Analysis | International Flavors & Fragrances Outlook - Technical Weakness and Mixed Analyst Signals

Market Snapshot

Outlook: Mixed signals with technical indicators suggesting caution. IFF is down -7.52% recently, despite most analysts maintaining a "Buy" or "Neutral" stance.

News Highlights

Recent news impacting the sector includes:

• Safex Chemicals' expansion in Gujarat could indirectly affect demand for fragrance and flavor ingredients.
• U.S. export restrictions on chemicals and tech to China may ripple across global supply chains, potentially affecting IFF's international operations.
• ETF growth in Asia-Pacific to $1.25 trillion highlights continued global interest in diversifying portfolios, but may not directly benefit IFF in the near term.

Analyst Views & Fundamentals

Analysts are divided but cautiously optimistic. The simple average rating is 3.67, while the performance-weighted rating is 4.35. However, the recent price fall contrasts with this optimism, suggesting a mismatch between expectations and reality.

Key fundamental values include:

• PE ratio: 9.55 (internal diagnostic score: 2.42)
• Cash flow per share YoY growth: 9.25% (score: 2.42)
• Quick ratio: 1.12 (score: 3.00)
• Total profit / EBIT ratio: 140.24% (score: 2.42)
• Cash / Market Cap: 0.48% (score: 0.00)

While some fundamentals like the Quick ratio and Cash flow growth are relatively strong, the PE ratio and cash position indicate a need for caution.

Money-Flow Trends

Big money and institutional flows are negative, with an overall inflow ratio of 0.47. However, retail investors are more optimistic, with a positive inflow ratio of 0.50. This contrast suggests a split between short-term and long-term sentiment, with institutions currently showing more skepticism.

Key Technical Signals

Internal technical score: 2.42 — indicating a weak trend and a recommendation to avoid the stock at this time.

• Long Lower Shadow: Internal diagnostic score 1.00 (biased bearish, with an average return of -4.15%)
• WR Oversold: Score 2.82 (neutral rise, win rate 50%)
• Bullish Engulfing: Score 3.12 (neutral bias, win rate 50%)
• RSI Oversold: Score 2.76 (neutral rise, win rate 47.37%)

Over the last five days, bearish signals have dominated, with multiple WR Oversold and RSI Oversold readings from August 6–12. The technical indicators are in a weak state, with 4 bearish vs. 0 bullish signals.

Conclusion

Investors should consider waiting for a pull-back or clearer trend reversal before committing to IFF. While fundamentals are mixed and analyst sentiment is generally positive, the technical picture remains bearish. Keep an eye on the next earnings report for potential catalysts, but for now, the internal diagnostic score of 2.42 suggests a cautious approach.