With a market cap of around $22 billion, International Flavors & Fragrances Inc. (IFF) is a global leader in high-value ingredients and solutions for the food and beverage, home and personal care, and health and wellness markets. Its diverse portfolio includes flavor compounds, specialty food ingredients, probiotics, enzymes, fragrances, and pharmaceutical excipients, serving industries ranging from food and beverages to cosmetics and pharmaceuticals.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and International Flavors & Fragrances fits this criterion perfectly. With a strong focus on innovation, IFF delivers natural, plant-based, and biotechnology-driven solutions to meet the evolving needs of consumers worldwide.
Despite a 19.7% decline from its 52-week high of $106.77 reached on Oct. 15, shares of this ingredients producer have declined 16.1% over the past three months, underperforming the broader S&P 500 Index’s ($SPX) 4% return over the same time frame.
In the longer term, IFF stock is up 5.9% on a YTD basis, lagging behind SPX’s 24.3% gain. Moreover, shares of IFF have risen 7.7% over the past 52 weeks, compared to SPX’s 26.2% return over the same time frame.
IFF has faced recent market pressure, trading below its 50-day moving average since late October and its 200-day moving average since early November.
Shares of IFF dipped 11.6% following its Q3 earnings release on Nov. 5 due to concerns about mixed financial performance. Although net sales of $2.9 billion exceeded the consensus Estimate of $2.8 billion and marked 3.7% year-over-year growth, adjusted EPS of $1.04 missed the estimate of $1.06, tempering investor confidence. Additionally, lowered pricing expectations and flat growth in the Scent segment's revenues, which fell short of estimates, raised doubts about the sustainability of growth across key business units.
IFF has lagged behind its rival, Ecolab Inc. (ECL), which has experienced an increase of 22.3% over the past 52 weeks and a rise of 20.1% on a YTD basis.
Despite IFF’s underperformance over the past year, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 19 analysts covering the stock, and as of writing, IFF is trading below the mean price target of $103.68.
