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International Flavors & FragrancesWBO:IFF +6.99%64 Return-on-Tangible-Equity is 18.76% as of Jun. 2026, which is 87% below its 10-year median of 146.52. GuruFocus rates WBO:IFF with a GF Score™ of 64/100 and a GF Value™ of €59.67 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 1,570 Chemicals companies, International Flavors & Fragrances ranks better than 97.52% on this metric.
The historical rank and industry rank for International Flavors & Fragrances's Return-on-Tangible-Equity or its related term are showing as below:
WBO:IFF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 99.38 Med: 146.52 Max: 158.76
Current: 99.38
During the past 13 years, International Flavors & Fragrances's highest Return-on-Tangible-Equity was 158.76%. The lowest was 99.38%. And the median was 146.52%.
WBO:IFF's Return-on-Tangible-Equity is ranked better than 97.52% of 1570
companies
in the Chemicals industry
Industry Median: 5.88
vs WBO:IFF: 99.38
International Flavors & Fragrances (WBO:IFF) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
International Flavors & Fragrances Return-on-Tangible-Equity Related Terms
International Flavors & Fragrances Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart
WBO:IFF vs LYB, DD, RPM: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, International Flavors & Fragrances's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, International Flavors & Fragrances's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where International Flavors & Fragrances's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 18.76% mean?
International Flavors & Fragrances (WBO:IFF) has a Return-on-Tangible-Equity of 18.76% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on International Flavors & Fragrances and its competitors. This is 87% below median its historical median of 146.52. Over the past decade, International Flavors & Fragrances' Return-on-Tangible-Equity has ranged from 99.38 to 158.76. According to the industry distribution chart, International Flavors & Fragrances ranks #39 out of 1570 companies in the Chemicals industry, placing it in the top 2.5%.
Is International Flavors & Fragrances' Return-on-Tangible-Equity too high?
International Flavors & Fragrances' current Return-on-Tangible-Equity of 18.76% is 87% below median its 10-year median of 146.52. Over the past 10 years, this metric has ranged from a low of 99.38 to a high of 158.76. The Chemicals industry median Return-on-Tangible-Equity is 5.88. International Flavors & Fragrances' value of 18.76% is 219% above this industry median. Based on the distribution chart, International Flavors & Fragrances ranks #39 out of 1570 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 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does International Flavors & Fragrances' Return-on-Tangible-Equity compare to LYB and DD?
According to the Chemicals industry distribution chart, International Flavors & Fragrances ranks #39 out of 1570 companies for Return-on-Tangible-Equity. This places International Flavors & Fragrances in the top 3% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.88. International Flavors & Fragrances' value of 18.76% is 219% above this benchmark. Historically, International Flavors & Fragrances' own Return-on-Tangible-Equity has ranged from 99.38 to 158.76 over the past decade. While the company's 10-year median is 146.52 vs. the industry median of 5.88, 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 Return-on-Tangible-Equity for a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.88, based on 1,570 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Flavors & Fragrances's current Return-on-Tangible-Equity of 18.76% is 219% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on International Flavors & Fragrances and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Flavors & Fragrances's current Return-on-Tangible-Equity is 18.76%, which is 87% below median its own 10-year median of 146.52. 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 Modestly Overvalued. The stock's GF Value™ is €59.67, compared to a current price of €75.02 — trading 25.7% above its estimated fair value. The current Return-on-Tangible-Equity is 18.76%, which is 87% below median its 10-year median of 146.52 and 219% above the Chemicals industry median of 5.88. International Flavors & Fragrances' overall GF Score™ is 64/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For International Flavors & Fragrances (WBO:IFF), the current Return-on-Tangible-Equity is 18.76% as of Jun. 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 €75.02 is trading 25.7% above its estimated GF Value™ of €59.67.
GuruFocus considers International Flavors & Fragrances to be Modestly Overvalued.
Key valuation signals for WBO:IFF:
Return-on-Tangible-Equity: 18.76% (87% below median its 10-year median of 146.52)
GF Value™: €59.67 vs. price of €75.02 (25.7% above fair value)
Industry Position: 219% above the Chemicals median (#39 of 1570)
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 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.
64GF Score
Get the complete analysis for WBO:IFF
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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