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

Market Snapshot

Headline Takeaway: International Flavors & Fragrances (IFF) is in a bearish technical pattern with a negative overall trend, but sees strong inflows from large investors. The stock is currently down -6.54% in price, with analysts showing a mixed outlook.

News Highlights

• U.S. Tariffs on EU Goods: New 15% tariffs on EU imports will affect IFF, given its global operations in the fragrance and flavor industry. These tariffs could increase production and sourcing costs, potentially squeezing margins.
• Specialty Chemicals Sector News: The recent spotlight on high-quality dividend stocks in the chemicals sector, including Air Products and Chemicals (APD), could indirectly highlight IFF's fundamentals. However, IFF's stock is currently underperforming in the sector.
• Global Logistics Disruptions: Reports of Russian aviation system failures and European supply chain issues could delay product shipments, affecting IFF’s international logistics and revenue visibility.

Analyst Views & Fundamentals

Analysts are divided on IFF, with only one active analyst — Ivan Feinseth from Tigress Financial — giving a "Strong Buy" rating as of June 4, 2025. Unfortunately, the analyst's historical performance shows a 0.00% win rate and a -3.55% average return over one prediction, suggesting caution in placing too much weight on this recommendation.

• Average (Simple) Rating Score: 5.00
• Weighted (Performance-Adjusted) Rating Score: 0.00
• Rating Consistency: The market is showing strong dispersion in views, with only one analyst active recently.
• Price Trend Alignment: The stock has declined -6.54%, matching the weighted bearish outlook based on historical performance of analysts.

Key Fundamental Factors:

• Total Operating Revenue (YoY growth rate): -1.93% — Internal diagnostic score: 2
• Total Profit / EBIT: 107.69% — Internal diagnostic score: 2
• Current Assets Turnover Ratio: 0.34 — Internal diagnostic score: 3
• Cash-UP: -1.05 — Internal diagnostic score: 3
• Operating Revenue (YoY growth rate): -1.93% — Internal diagnostic score: 2
• Cost of Sales Ratio: 63.59% — Internal diagnostic score: 1
• Equity Multiplier (DuPont): 2.10 — Internal diagnostic score: 2
• Current Ratio: 1.87 — Internal diagnostic score: 2
• Cash-MV: -0.20 — Internal diagnostic score: 1

The fundamental score is 5.98 out of 10, suggesting a moderate outlook with room for improvement. However, the weak growth in operating revenue and high cost of sales ratio are red flags.

Money-Flow Trends

Large institutional money continues to flow out of IFF, with the block trend and large and extra-large trends all being negative. However, retail and small-cap investors are showing a positive trend, with inflow ratios of 51.58% and 48.58% respectively.

• Overall Inflow Ratio: 46.71%
• Block Inflow Ratio: 46.30%
• Small Inflow Ratio: 51.58%
• Medium Inflow Ratio: 48.58%
• Large Inflow Ratio: 48.38%
• Extra-Large Inflow Ratio: 44.92%

While small investors are optimistic, large institutional investors are clearly cautious. The fund-flow score is 7.7 (out of 10), indicating a generally positive flow, but the negative institutional trend suggests caution.

Key Technical Signals

IFF is currently in a weak technical condition, with 3 bearish indicators and 1 neutral indicator. The technical score is a low 3.42 out of 10, and the overall trend is “technical weakness — avoid”.

Internal Diagnostic Scores (0-10):

• WR Overbought: 3.01 — Neutral to slightly bullish
• WR Oversold: 3.08 — Neutral to slightly bullish
• MACD Death Cross: 6.50 — Neutral to slightly bullish
• MACD Golden Cross: 1.09 — Bearish

Recent Chart Patterns (By Date):

• July 23: WR Overbought
• July 22: WR Overbought
• July 18: MACD Golden Cross
• July 29: MACD Death Cross
• July 30: WR Oversold

The recent technical signals are mixed, with overbought conditions and a golden cross followed by a death cross and oversold conditions. This suggests a highly volatile and directionless market over the past five trading days.

Conclusion

International Flavors & Fragrances (IFF) is in a challenging position, with weak technical indicators, mixed analyst ratings, and a bearish price trend. While small investors are showing interest, large institutional investors are pulling back, and the technical score of 3.42 suggests caution.

Actionable Takeaway: Consider waiting for a clearer trend or improved technical signals before entering a position in IFF. With the stock down 6.54% and the technical outlook weak, now may not be the best time to chase this stock. Instead, monitor upcoming sector news and earnings for potential catalysts.