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

Market Snapshot

Takeaway: The technical outlook for IFF is weak with three bearish signals and no bullish ones, suggesting investors may want to avoid the stock at this time. Meanwhile, mixed analyst ratings and a recent price decline of -2.87% highlight uncertainty in the market.

News Highlights

• Trump Fast-Tracks Utah Uranium Mine – While unrelated to IFF directly, the broader industrial and energy revival could have long-term implications for chemical and fragrance markets, where IFF operates. However, the uranium industry is still waiting for higher prices to see a true revival.
• China’s Factory Activity Contracts – China’s purchasing managers index (PMI) rose to 49.5 in May, still below the 50 threshold for growth. This contraction in factory activity may slow global demand for IFF's products, which are used in consumer goods and personal care.
• REX Shares Files Ethereum and Solana ETFs – While focused on crypto, the regulatory developments around ETFs and staking could signal a broader appetite for innovation and risk-taking in financial markets, which might indirectly benefit large, stable industrial companies like IFF in the long term.

Analyst Views & Fundamentals

Analysts are split in their assessments of IFF. The simple average rating is 4.00, while the performance-weighted average is 3.26, indicating a slightly more cautious view when accounting for historical accuracy. The ratings are not consistent, with "Strong Buy," "Buy," and "Neutral" all represented in the past 20 days.

This dispersion among analysts is further highlighted by the contrasting track records of participating firms. For example, UBS has a perfect 100% historical win rate with three successful predictions, while Tigress Financial has an unimpressive 0.0% win rate with a negative average return of -2.29%.

Key Fundamental Factors

• Net Cash Flow from Operating Activities per Share (YoY Growth Rate): 9.25% — Internal diagnostic score: 2 (weak)
• Total Operating Revenue (YoY Growth Rate): -3.13% — Internal diagnostic score: 2 (weak)
• Quick Ratio: 111.75% — Internal diagnostic score: 3 (moderate)
• Total Profit / EBIT: 140.24% — Internal diagnostic score: 2 (weak)
• Cash-UP: 56.58% — Internal diagnostic score: 3 (moderate)
• Cost of Sales Ratio: 63.17% — Internal diagnostic score: 1 (weak)
• Current Ratio: 186.24% — Internal diagnostic score: 2 (weak)
• Equity Multiplier (DuPont Analysis): 193.73% — Internal diagnostic score: 2 (weak)

These fundamental scores reflect a mixed bag of signals: while some liquidity metrics are stable, earnings and revenue growth are underperforming.

Money-Flow Trends

Big money is clearly moving away from IFF, with large, extra-large, and block inflow ratios all below 50%. Specifically, the overall inflow ratio stands at 46.48%, indicating a negative trend in institutional and large-cap investor sentiment. Even small and medium investors are pulling back, with inflow ratios of 48.93% and 48.33%, respectively.

The fund-flow score of 7.7 (an internal diagnostic score of "good") seems at odds with the negative flow patterns. This discrepancy might reflect short-term volatility or market noise rather than a definitive trend shift.

Key Technical Signals

The technical outlook is bleak for IFF, with no bullish signals and three bearish indicators. The technical score is a low 2.08 (internal diagnostic score), reflecting a weak market state.

Indicator Scores

• WR Overbought: Internal diagnostic score: 1.29
• WR Oversold: Internal diagnostic score: 2.82
• MACD Golden Cross: Internal diagnostic score: 2.12

These scores show that even signals typically associated with momentum (like the MACD Golden Cross) are not performing well for IFF.

Recent Chart Patterns

Over the past five days, the stock has alternated between WR Overbought and Oversold signals, suggesting high volatility without a clear trend. Notably, on 2025-09-03, the stock briefly entered an Oversold zone, but this appears to have been an isolated bounce rather than a reversal.

According to the technical analysis, the momentum is poor, and the trend lacks quality. Investors are advised to avoid the stock given the imbalance of bearish indicators.

Conclusion

International Flavors & Fragrances is currently at a crossroads. With a weak technical outlook, mixed analyst ratings, and declining revenue and earnings, the stock appears to be in a vulnerable position. Investors should consider holding off on new positions and instead monitor for potential catalysts—such as an earnings beat or a positive surprise from the macroeconomic front—that might reverse the current downtrend.