Ipsen (IPN) AI Stock Analysis

• Market Cap: €8.36B
• Dividend Yield: 1.18%
• Average Volume (3M): 90.80K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.49
• Revenue Growth: 8.73%
• EPS Growth: -46.34%
• Country: FR
• Employees: 5,358
• Sector: Healthcare
• Sector Strength: 50
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 4.18
• Shares Outstanding: 83,814,530
• 10 Day Avg. Volume: 83,105
• 30 Day Avg. Volume: 90,804
• PEG Ratio: 0.28
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: €121.71
• Price Target Upside: 19.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Ipsen's strong financial performance is overshadowed by bearish technical indicators and a high P/E ratio, signaling potential overvaluation. The company needs to address declining profit margins and free cash flow to enhance its stock appeal.

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 makes money primarily through the development, production, and sale of pharmaceutical products across its key therapeutic areas: oncology, neuroscience, and rare diseases. Revenue is generated from product sales, licensing agreements, and partnerships. The company's oncology segment, which includes treatments for various cancers, is a significant contributor to its earnings. Ipsen also engages in strategic partnerships and collaborations with other pharmaceutical companies to enhance its research capabilities and expand its product offerings. Additionally, the company invests in research and development to innovate and bring new drugs to market, which supports long-term revenue growth.

Ipsen Financial Statement Overview

Summary

Ipsen displays strong revenue growth and operational efficiency with a robust balance sheet. Despite this, declining net profit margins and free cash flow growth indicate areas for improvement.

Income Statement

Ipsen has shown a strong revenue growth rate over the years, with a notable increase from 2023 to 2024. The gross profit margin is healthy, indicating efficient cost management relative to revenue. However, the net profit margin has decreased, suggesting increased expenses or lower profitability. The EBIT and EBITDA margins remain steady, reflecting consistent operational efficiency.

Balance Sheet

Ipsen's balance sheet is robust with a strong equity base and a decreasing debt-to-equity ratio over the years, highlighting financial stability. The return on equity shows effective utilization of shareholder funds, although it has declined recently. The equity ratio is solid, indicating a strong ownership stake in the company.

Cash Flow

The cash flow statement shows a mixed picture with a significant drop in free cash flow in 2024 compared to 2023. However, operating cash flow remains strong, with a high operating cash flow to net income ratio, indicating good cash generation relative to profit. The decline in free cash flow growth rate is a concern that needs addressing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.57B	3.31B	3.16B	2.75B	2.69B
	Gross Profit
2.96B	2.74B	2.63B	2.31B	2.20B
	EBIT
496.70M	816.00M	943.70M	886.20M	759.00M
	EBITDA
1.16B	1.14B	1.13B	1.06B	794.40M
	Net Income Common Stockholders
345.90M	644.40M	648.60M	646.60M	548.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
679.20M	528.40M	1.17B	814.70M	642.50M
	Total Assets
6.44B	6.32B	5.61B	4.99B	4.31B
	Total Debt
426.80M	306.10M	771.60M	786.60M	1.17B
	Net Debt
-251.30M	-222.30M	-397.70M	-28.10M	525.70M
	Total Liabilities
2.26B	2.50B	2.27B	2.25B	2.18B
	Stockholders Equity
4.18B	3.83B	3.34B	2.74B	2.13B
Cash Flow		Free Cash Flow
133.00M	749.70M	700.30M	453.90M	630.60M
	Operating Cash Flow
915.50M	865.90M	953.20M	871.80M	771.30M
	Investing Cash Flow
-676.60M	-1.07B	-458.60M	-332.00M	-163.70M
	Financing Cash Flow
-100.00M	-458.40M	-146.00M	-400.30M	-307.50M

Ipsen Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 101.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:IPN, the sentiment is Neutral. The current price of 101.7 is above the 20-day moving average (MA) of 98.26, below the 50-day MA of 104.54, and below the 200-day MA of 109.78, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 50.49 is Neutral, neither overbought nor oversold. The STOCH value of 58.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:IPN.

Ipsen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPN	63 Neutral	€8.36B	24.19	8.89%	1.18%	8.73%	-46.34%
Sector *	52 Neutral	$5.17B	3.59	-42.19%	2.82%	15.05%	-0.04%