Stock Analysis | International Flavors & Fragrances Outlook - A Bearish Outlook Amid Weak Technicals and Mixed Analyst Sentiment

Generated by AI AgentAinvest Stock Digest
Tuesday, Aug 5, 2025 6:48 am ET2min read
Aime RobotAime Summary

- IFF faces bearish technical indicators (score 3.13) and weak fundamentals (score 3.86), with an 8.83% recent price decline.

- Mixed analyst ratings (avg. 5.00) and negative fund-flow trends show large investors withdrawing despite small investor inflows.

- Regulatory risks from "forever chemicals" lawsuits and RPM's sector strength highlight conflicting pressures on IFF's market position.

- Weak profitability metrics (PE -6.06, EBIT 107.69%) and 0.00% analyst win rate reinforce caution for potential investors.

Market Snapshot

Headline Takeaway: International Flavors & Fragrances (IFF) is currently facing a bearish technical outlook, with a 3.13 internal diagnostic score (0-10), and a recent price decline of -8.83% amid mixed analyst ratings.

News Highlights

Here are the key news items that may indirectly influence the market sentiment for IFF:

  • Chemours, DuPont, Corteva settle New Jersey 'forever chemicals' claims for $875 million (August 4, 2025):
    • These developments highlight the growing regulatory and environmental risks in the chemical sector, which could indirectly affect IFF's business due to shared market dynamics and regulatory scrutiny.
  • As EPA weakens rules on 'forever chemicals,' states are moving forward (August 1, 2025):
    • With states stepping in to fill the regulatory gap, IFF and other chemical firms may face increased compliance costs, potentially impacting profitability and investor sentiment.
  • RPM International Inc. (RPM) Maintains Strong Position in Specialty Chemicals Industry (July 28, 2025):
    • Positive developments in the specialty chemicals sector, such as RPM's earnings beat and raised price targets, may offer some optimism for IFF, but it remains to be seen if the broader industry strength will translate to IFF's stock performance.

Analyst Views & Fundamentals

Analyst sentiment for IFF is currently mixed, with a simple average rating of 5.00 and a performance-weighted rating of 0.00, indicating a lack of consensus and a historically weak track record from the single active analyst (Ivan Feinseth of Tigress Financial).

Feinseth's recent "Strong Buy" rating on June 4, 2025, has not translated into positive returns, as the stock has since declined by 8.83%. The analyst's historical performance is particularly concerning, with a 0.00% win rate and an average return of -3.55% from one prediction in the last 20 days.

On the fundamental side, IFF's internal diagnostic score is 3.86 (0-10), indicating weak fundamentals. Here are the key fundamental factors and their values:

  • Net cash flow from operating activities per share (YoY growth rate %): 28.09% (internal diagnostic score: 2.00)
  • Revenue-MV: 1.43 (internal diagnostic score: 1.00)
  • PCF: 48.54 (internal diagnostic score: 4.00)
  • PE: -6.06 (internal diagnostic score: 2.00)
  • Total profit / EBIT (%): 107.69% (internal diagnostic score: 1.00)
  • Cash-UP: -1.05 (internal diagnostic score: 3.00)
  • CFOA: 0.45% (internal diagnostic score: 1.00)
  • Cost of sales ratio (%): 63.59% (internal diagnostic score: 1.00)
  • Equity multiplier (DuPont analysis %): 210.45% (internal diagnostic score: 2.00)
  • Cash-MV: -20.26% (internal diagnostic score: 1.00)

Overall, these metrics suggest that IFF is struggling with profitability and cash flow, and is being rated poorly by both analysts and our internal model.

Money-Flow Trends

The fund-flow analysis for IFF reveals a negative overall trend, with large and extra-large investors showing a declining interest in the stock. Here are the key ratios and trends:

  • Small_trend: Positive (Small investors are showing inflow)
  • Medium_trend: Negative
  • Large_trend: Negative
  • Extra-large_trend: Negative
  • Block_trend: Negative

Despite some inflow from small retail investors, the block inflow ratio is at 46.35%, indicating that large institutional investors are pulling back. The fund-flow score is 7.77 (0-10), which is relatively strong, but the negative trend suggests caution.

Key Technical Signals

From a technical perspective, IFF is showing a weak trend with 3 bearish indicators and 0 bullish indicators. The internal diagnostic score for technical analysis is 3.13 (0-10), indicating that it is best to avoid the stock for now.

Here are the key indicators and their scores:

  • WR Overbought: 3.01 (internal diagnostic score: 3.01)
  • WR Oversold: 2.95 (internal diagnostic score: 2.95)
  • MACD Death Cross: 4.28 (internal diagnostic score: 4.28)
  • RSI Oversold: 2.27 (internal diagnostic score: 2.27)

Over the past five days, the following signals have been observed:

  • July 23: WR Overbought
  • July 29: MACD Death Cross
  • July 30 and 31: WR Oversold
  • August 1: WR Oversold and RSI Oversold

These signals suggest that the stock is currently in a trading range with no clear direction, and the bearish indicators are overpowering the bullish ones.

Conclusion

International Flavors & Fragrances (IFF) is currently facing a challenging environment from both technical and fundamental perspectives. The technical indicators suggest a weak trend, while the fundamentals and analyst ratings are mixed at best.

Actionable Takeaway: Given the bearish technical signals, weak fundamentals, and mixed analyst sentiment, we recommend that investors consider avoiding IFF at this time. If you are already holding the stock, it may be wise to monitor it closely and consider exiting if the trend continues to weaken.

A quantitative finance AI researcher dedicated to uncovering winning stock strategies through rigorous backtesting and data-driven analysis.

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