Ipsen (IPN) AI Stock Analysis

• Market Cap: €13.30B
• Dividend Yield: 1.17%
• Average Volume (3M): 64.26K
• Price to Earnings (P/E): 30.0
• Beta (1Y): 0.56
• Revenue Growth: 9.57%
• EPS Growth: -34.30%
• Country: FR
• Employees: 5,358
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 6.02
• Shares Outstanding: 83,814,530
• 10 Day Avg. Volume: 52,964
• 30 Day Avg. Volume: 64,259
• PEG Ratio: 0.82
• Price to Book (P/B): 2.29
• Price to Sales (P/S): 2.70
• P/FCF Ratio: 9.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €141.33
• Price Target Upside: -12.11% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 11.93
• Revenue Forecast (FY): €4.06B

• Rating: 67 Neutral
• Price Target: €171.00 ▲(6.34% Upside)
• Action: Downgraded Date: 02/23/26
• Date: Action: Downgraded 02/23/26

The score is driven by solid underlying financial performance (growth with still-healthy profitability and manageable leverage), supported by a strong uptrend in price. These positives are tempered by stretched technical momentum (RSI/Stoch elevated), margin compression and higher debt in 2025, and a relatively high P/E with a low dividend yield.

Positive Factors

Specialty biopharma portfolio

Ipsen's targeted specialty portfolio (oncology, neurology, rare diseases) and established brands such as Somatuline and Dysport create durable therapeutic demand, higher barriers to generic competition and steady commercial channels, supporting repeatable revenue and strategic R&D focus.

Consistent revenue growth and solid margins

Multi-year top-line growth combined with healthy 2025 profitability (net margin ~12%, EBITDA margin ~30%) indicates underlying business strength, enabling investment in R&D and commercialization while supporting resilience through industry cycles and sustaining operational cash generation.

Conservative capital structure

A low debt-to-equity ratio and growing equity base provide financial flexibility for long-term investment, M&A or R&D spending, reducing solvency risk and supporting credit strength relative to peers, which is beneficial for sustaining strategic initiatives over months to years.

Negative Factors

Margin compression since 2021–2023

Meaningful decline in net margins versus prior years implies rising costs or adverse product mix, which reduces the firm's ability to convert revenue into sustainable profits. If structural, this pressures free cash flow, limits reinvestment capacity and can weaken long-term return on capital.

Sharp increase in total debt in 2025

A material step-up in debt levels shortens the runway of conservative leverage and raises interest and refinancing risk. Even from a low base, rising debt can constrain strategic flexibility, increase fixed costs and make funding future R&D or acquisitions more expensive or conditional.

Volatile free-cash-flow conversion

Inconsistent FCF generation and variability versus earnings indicate execution or working-capital volatility. This undermines predictability of funding for R&D, dividends or debt servicing and raises the risk that operational swings could force reactive financing or deferred investments.

Ipsen Business Overview & Revenue Model

Company Description

Ipsen S.A. operates as a biopharmaceutical company worldwide. The company provides drugs in the areas of oncology, neuroscience, gastroenterology, cognitive disorders, and rare diseases. It offers Somatuline for neuroendocrine tumors and acromegaly; Decapeptyl for the treatment of advanced metastatic prostate cancer; Cabometyx for renal cell and second-line hepatocellular carcinoma; Onivyde for second-line metastatic pancreatic cancer; Dysport for motor muscular disorders and medical aesthetics; NutropinAq for growth failure in children due to growth hormone (GH) deficiency, turner syndrome, chronic renal failure, and GH deficiency in adults; and Increlex for growth failure in children and adolescents. The company also offers Smecta for chronic and acute diarrhea, and pain associated with functional bowel diseases; Forlax for constipation; Fortrans/Eziclen for bowel cleansing prior to endoscopy, X-ray examination, and colonic surgery; and Tanakan for cognitive disorders in adults, vertigo of vestibular origin and vestibular rehabilitation, and tinnitus. In addition, it provides Xermelo for the carcinoid syndrome; Cometriq for medullary thyroid cancer; Smebiocta/SmectaFlora Protect, a food supplement; SmectaGas, a medical device used in the symptomatic treatment of gas-related gastrointestinal disorders and relief of gas-related symptoms; and Etiasa for inflammatory bowel diseases. Further, the company offers other consumer healthcare products in the gastro-intestinal area, including Buscopan, Clin4000, Prontalgine, Suppositoria Glycerini, Mucothiol, Floractin, and Mucodyne. Ipsen S.A. has agreements with Debiopharm; Exelixis; Galderma; Blueprint Medicines; TerSera Therapeutics; Rhythm Pharmaceuticals; Teijin; Braintree Laboratories; Ethypharm; Schwabe; BAKX Therapeutics Inc.; and Exicure. The company was founded in 1929 and is headquartered in Boulogne-Billancourt, France.

How the Company Makes Money

Ipsen generates revenue primarily through the sale of its pharmaceutical products, which are marketed globally across various therapeutic areas. The company earns money from direct sales of its proprietary medications to healthcare providers and hospitals, as well as through partnerships and collaborations with other pharmaceutical companies for product development and commercialization. Key revenue streams include sales from oncology products, particularly Somatuline and Cabometyx, along with revenues from its neurology portfolio that features Dysport. Additionally, Ipsen benefits from royalties and milestone payments from licensing agreements and strategic alliances, which help diversify its income sources and expand its market reach.

Ipsen Financial Statement Overview

Summary

Steady multi-year revenue growth and solid profitability (2025 net margin ~12%, EBITDA margin ~30%) support the score. Offsetting factors include meaningful margin compression versus 2021–2023, a sharp step-up in total debt in 2025, and historically volatile free-cash-flow conversion despite a strong 2025 rebound.

Income Statement

Revenue has grown steadily from 2020 to 2025 (with a strong step-up in 2025), and profitability remains solid with a 2025 net margin of ~12% and EBITDA margin of ~30%. However, margins have compressed meaningfully versus 2021–2023 (net margin down from ~19–24% to ~12% in 2025), indicating higher costs and/or mix pressure despite continued top-line expansion.

Balance Sheet

The capital structure looks conservative overall: debt-to-equity remains low in 2025 (~0.24) and equity has grown over time, supporting balance-sheet resilience. The key watch-out is the sharp increase in total debt in 2025 versus 2024, and returns on equity have trended lower from the 2021–2022 peak, suggesting incremental capital is producing less profitability than in prior years.

Cash Flow

Cash generation improved strongly in 2025, with free cash flow rebounding to ~€1.03B and closely matching earnings (free cash flow to net income ~0.91), which is a healthy quality-of-earnings signal. That said, cash flow has been volatile (notably weak free cash flow in 2024), and the relationship between operating cash flow and profitability has not been consistently strong across years, which raises execution/working-capital variability risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.68B	3.57B	3.31B	3.16B	2.75B
Gross Profit	2.59B	2.96B	2.74B	2.63B	2.31B
EBITDA	1.10B	1.16B	1.14B	1.13B	1.06B
Net Income	444.50M	345.90M	644.40M	648.60M	646.60M
Balance Sheet
Total Assets	6.94B	6.44B	6.32B	5.61B	4.99B
Cash, Cash Equivalents and Short-Term Investments	1.53B	679.20M	528.40M	1.17B	814.70M
Total Debt	1.05B	426.80M	306.10M	771.60M	786.60M
Total Liabilities	2.60B	2.26B	2.50B	2.27B	2.25B
Stockholders Equity	4.34B	4.18B	3.83B	3.34B	2.74B
Cash Flow
Free Cash Flow	1.03B	133.00M	749.70M	700.30M	453.90M
Operating Cash Flow	1.14B	915.50M	865.90M	953.20M	871.80M
Investing Cash Flow	-615.20M	-676.60M	-1.07B	-458.60M	-332.00M
Financing Cash Flow	298.40M	-100.00M	-458.40M	-146.00M	-400.30M

Ipsen Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 160.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:IPN, the sentiment is Positive. The current price of 160.8 is above the 20-day moving average (MA) of 151.84, above the 50-day MA of 138.03, and above the 200-day MA of 119.82, indicating a bullish trend. The MACD of 7.36 indicates Negative momentum. The RSI at 70.82 is Negative, neither overbought nor oversold. The STOCH value of 79.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:IPN.

Ipsen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIRP	75 Outperform	€2.93B	22.00	12.92%	0.41%	6.97%	-5.59%
VETO	72 Outperform	€957.92M	15.92	10.80%	1.06%	-0.95%	27.67%
BIM	68 Neutral	€11.67B	29.32	9.69%	0.82%	8.28%	-8.08%
IPN	67 Neutral	€13.30B	29.97	10.82%	1.17%	9.57%	-34.30%
SAN	66 Neutral	€96.73B	18.73	8.39%	4.77%	-9.82%	119.10%
ERF	64 Neutral	€12.04B	25.04	11.27%	0.97%	6.25%	18.93%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%