Stock Analysis | International Flavors & Fragrances Outlook - Bearish Signals Dominate Amid Weak Technicals and Mixed Analyst Ratings

Generated by AI AgentAinvest Stock Digest
Wednesday, Aug 13, 2025 5:17 am ET2min read
Aime RobotAime Summary

- IFF faces bearish technical signals with a 10.07% price drop and no bullish indicators, signaling high near-term risk.

- Analysts show mixed ratings (avg. 3.67) but highlight negative trends conflicting with mixed fundamentals (PE 9.55, quick ratio 1.12).

- Large investors are pulling back (inflow 48.65%) while retail investors cautiously enter, highlighting market divergence and instability.

- Technical indicators (4 bearish, 0 bullish) show weak momentum, with oversold RSI/WR and a negative earnings release impact (-5.06% avg. return).

Market Snapshot

Headline Takeaway: The technical outlook for International Flavors & Fragrances (IFF) is bearish, with no bullish indicators and a negative trend overall — a red flag for near-term risk.

News Highlights

Recent news has been more about the broader market than IFF itself. Here are a few standouts:

  • Safex Chemicals' New Facility in Gujarat: A major crop protection company is expanding, which could indirectly affect IFF if the industry sees increased production and innovation.
  • U.S. Visa Policy Changes: New restrictions on Chinese students might impact global university enrollments and indirectly influence global markets, including those in which IFF operates.
  • ETF Growth in Asia Pacific: ETF assets hit a record $1.25 trillion, signaling strong investor confidence in the region — but IFF has not seen a corresponding boost in sentiment or inflows.

Analyst Views & Fundamentals

Analysts have issued a mixed set of ratings recently, with a simple average rating of 3.67 and a performance-weighted rating of 4.57. While the former suggests optimism, the latter indicates a higher emphasis on historically successful analysts. However, this optimism does not align with the current negative price trend, which has seen a 10.07% drop over the last five days.

Fundamental Highlights and Scores

Key fundamental metrics show a mixed bag:

  • PE Ratio: 9.55Internal diagnostic score: 6.14
  • Net Cash Flow from Operating Activities per Share (YoY Growth Rate): 9.25%Internal diagnostic score: 6.14
  • Quick Ratio: 1.12Internal diagnostic score: 6.14
  • Total Profit / EBIT: 140.24%Internal diagnostic score: 6.14
  • Cash-UP (Liquidity Metric): 0.57Internal diagnostic score: 6.14
  • Fixed Assets Turnover Ratio: 1.47Internal diagnostic score: 6.14
  • Cost of Sales Ratio: 63.17%Internal diagnostic score: 6.14
  • Current Ratio: 1.86Internal diagnostic score: 6.14
  • Cash-MV: 0.48Internal diagnostic score: 6.14

Money-Flow Trends

The fund-flow analysis shows a negative overall trend dominated by large and extra-large investors, while retail investors (small money) have a positive trend. The overall inflow ratio is 47.55%, with large inflow ratios at 48.65% and extra-large inflow ratios at 46.11%. This suggests that big money is pulling back, even as smaller investors are cautiously stepping in — a sign of market divergence and potential instability.

Key Technical Signals

Technically, IFF is in trouble. Here's a breakdown of the key indicators from the last five days:

  • Long Lower ShadowInternal diagnostic score: 1.00 (very bearish, with a win rate of 0.00%)
  • WR OversoldInternal diagnostic score: 2.32 (neutral to bearish, average return -0.51%)
  • RSI OversoldInternal diagnostic score: 1.11 (bearish with a 37.5% win rate and -0.97% average return)
  • Earnings Release DateInternal diagnostic score: 1.00 (bearish, with a 0.00% win rate and -5.06% average return)

Recent Indicator Patterns

  • 2025-08-06: Long Lower Shadow, WR Oversold, RSI Oversold
  • 2025-08-08: WR Oversold, RSI Oversold
  • 2025-08-07: WR Oversold, RSI Oversold

The key technical insight is clear: the technical side is weak, and it is suggested to avoid it. The bearish indicators (4 total) heavily outnumber the bullish (0), signaling a poor momentum environment.

Conclusion

With technical indicators flashing red, a weak price trend of -10.07%, and mixed analyst ratings, it's a time to tread carefully. The internal diagnostic technical score of 1.36 is a major warning sign. While retail investors are showing some optimism, big money is clearly pulling back. For now, the best course of action is to consider waiting for a pull-back or to avoid new long positions until a clearer technical setup emerges.

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