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I Smell Deep Value At International Flavors & Fragrances


  • International Flavors & Fragrances is a major player that holds market-leading positions in its fields of expertise.
  • The last couple of years have been hard on the business and the market has derated it considerably both in absolute and relative terms.
  • Storm clouds are clearing, earnings are derisked, and the valuation is compelling.
  • IFF is a deep value turnaround opportunity.
  • With total return potential of 34%, IFF stock is a BUY.

Factory for the production of glass bottles

kurikompany/iStock via Getty Images

The Opportunity

International Flavors & Fragrances (NYSE:IFF) has underperformed the market considerably over the last few years. In fact, since the onset of COVID-19 it has underperformed the S&P500 by about 50%. From 1 Jan 2020 to

Earnings Revisions

Earnings Revisions (Seeking Alpha)

IFF earnings presentation

IFF earnings presentation (Company website)

Cash flow targets

Long Term Targets (Corporate Presentation)

IFF earnings forecasts

IFF earnings forecasts (Seeking Alpha)

Peer group comparison

Peer group comparison (Seeking Alpha)

Discount to peers and long term ave valuation

Discount to peers and long term ave valuation (Author)

PE valuation vs long term ave

PE valuation vs long term ave (Author)

DCF assumptions

DCF assumptions (Author)

Dividend consistency

Dividend consistency (Seeking Alpha)

This article was written by

I'm an optimist. I look forward to a brighter future. As the world evolves so must our investment style. Opportunities are everywhere but having the right mindset, being humble and having a can do, never stop learning attitude is critical to success. We can beat the market but it's likely to come with more volatility. I'm ok with that, I have a plan. Opinions are my own and are not financial or stock advice.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of IFF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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