International Flavors & Fragrances (WBO:IFF) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
International Flavors & Fragrances had a gross margin of 37.14% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
International Flavors & Fragrances Gross Margin % Related Terms
International Flavors & Fragrances Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
International Flavors & Fragrances Gross Margin % Chart
WBO:IFF vs DD, LYB, ALB: Gross Margin % Comparison
For the Specialty Chemicals subindustry, International Flavors & Fragrances's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
International Flavors & Fragrances Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, International Flavors & Fragrances's Gross Margin % distribution charts can be found below:
* The bar in red indicates where International Flavors & Fragrances's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
International Flavors & Fragrances (WBO:IFF) has a Gross Margin % of 37.14% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on International Flavors & Fragrances and its competitors. This is near median its historical median of 38.60. Over the past decade, International Flavors & Fragrances' Gross Margin % has ranged from 32.04 to 44.78. According to the industry distribution chart, International Flavors & Fragrances ranks #350 out of 1561 companies in the Chemicals industry, placing it in the top 22.4%.
Is International Flavors & Fragrances' Gross Margin % too high?
International Flavors & Fragrances' current Gross Margin % of 37.14% is near median its 10-year median of 38.60. Over the past 10 years, this metric has ranged from a low of 32.04 to a high of 44.78. The Chemicals industry median Gross Margin % is 23.35. International Flavors & Fragrances' value of 37.14% is 59.1% above this industry median. Based on the distribution chart, International Flavors & Fragrances ranks #350 out of 1561 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, International Flavors & Fragrances has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does International Flavors & Fragrances' Gross Margin % compare to DD and LYB?
According to the Chemicals industry distribution chart, International Flavors & Fragrances ranks #350 out of 1561 companies for Gross Margin %. This places International Flavors & Fragrances in the top 22% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 23.35. International Flavors & Fragrances' value of 37.14% is 59.1% above this benchmark. Historically, International Flavors & Fragrances' own Gross Margin % has ranged from 32.04 to 44.78 over the past decade. While the company's 10-year median is 38.60 vs. the industry median of 23.35, International Flavors & Fragrances has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Chemicals company?
The median Gross Margin % among Chemicals companies is 23.35, based on 1,561 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Flavors & Fragrances's current Gross Margin % of 37.14% is 59.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on International Flavors & Fragrances and its competitors. For the Chemicals industry, the median Gross Margin % is 23.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Flavors & Fragrances's current Gross Margin % is 37.14%, which is near median its own 10-year median of 38.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is International Flavors & Fragrances stock overvalued right now?
Based on GuruFocus' analysis, International Flavors & Fragrances (WBO:IFF) is currently considered Fairly Valued. The stock's GF Value™ is €63.11, compared to a current price of €66.24 — trading 5% above its estimated fair value. The current Gross Margin % is 37.14%, which is near median its 10-year median of 38.60 and 59.1% above the Chemicals industry median of 23.35. International Flavors & Fragrances' overall GF Score™ is 63/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For International Flavors & Fragrances (WBO:IFF), the current Gross Margin % is 37.14% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is International Flavors & Fragrances (WBO:IFF) Overvalued in 2026?
Based on GuruFocus' analysis, International Flavors & Fragrances stock appears to be overvalued.
The current stock price of €66.24 is trading 5% above its estimated GF Value™ of €63.11.
GuruFocus considers International Flavors & Fragrances to be Fairly Valued.
Key valuation signals for WBO:IFF:
Gross Margin %: 37.14% (near median its 10-year median of 38.60)
GF Value™: €63.11 vs. price of €66.24 (5% above fair value)
Industry Position: 59.1% above the Chemicals median (#350 of 1561)
No single metric tells the full story. See the WBO:IFF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
International Flavors & Fragrances Business Description
International Flavors & Fragrances is the largest specialty ingredients producer globally. It sells ingredients for the food, beverage, health, household goods, personal care, and pharmaceutical industries. The company makes proprietary formulations and partners with customers to deliver custom solutions. Through its taste and scent segments, which each generate around 25% of profits, IFF is a leading flavor and fragrance producer. The health and biosciences business, which generates 30% of profits, is a global leader in probiotics and enzymes. The remaining profits come from the food ingredients business, which sells texturants, plant-based proteins, and other ingredients, though IFF plans to divest it in a deal expected to close in 2027.
63GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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