Aureus
FRed Flag

International Flavors & Fragran(IFF)

F

Financial data as of Dec 31, 2025Declining · Materials

FCF Margin1.5%Free Cash Flow / Revenue
Cash Conversion-235.5%Operating CF / Net Income
Free Cash Flow$254.0M
Revenue$10.9B
Net Cash-$6.0BNet debt position
Debt / FCF39.9xElevated debt burden
Current Ratio1.42Adequate short-term liquidity
YoY FCF Growth-40.0%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-2Extreme debt-to-FCF ratio (39.9x)
→
-1Significant YoY FCF decline (-40.0%)
→
-0.5Highly volatile FCF (consistency: 1.29)
→
FinalF

Analysis Summary

Concerns

  • Low FCF margin (1.5%)
  • Heavy debt position ($6.0B net debt, 39.9x FCF)
  • High debt-to-FCF ratio (39.9x)
  • Significant YoY FCF decline (-40.0%)
  • Highly volatile quarterly FCF
SBC-adjusted FCF used — $0.1B stock-based compensation (35% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin1.5%
Net Margin-3.3%
Operating CF Margin7.8%
CapEx Ratio5.5%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$6.0BNet debt position
Debt / FCF39.9xElevated debt burden
Current Ratio1.42Adequate liquidity
Debt / Equity0.47Low leverage

Quarterly FCF Trend

-40.0% YoYDeclining (-40.0%)

Free cash flow per quarter

Sector Comparison — Materials

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameInternational Flavors & Fragran
SectorMaterials
Free Cash Flow$254.0M
Revenue$10.9B
Net Income-$361.0M
Operating Cash Flow$850.0M
Capital Expenditure$596.0M
FCF Margin1.5%
Cash Conversion Rate-235.5%
Net Margin-3.3%
Total Debt$6.6B
Total Cash$590.0M
Net Cash-$6.0B
Current Ratio1.42
Debt / Equity0.47
Debt / FCF39.9x
YoY FCF Growth-40.0%
Positive Quarters4 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeF
Data SourceYahoo Finance