Ipsos SA (IPS) AI Stock Analysis

• Market Cap: €1.32B
• Dividend Yield: 5.51%
• Average Volume (3M): 52.07K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.80
• Revenue Growth: 0.66%
• EPS Growth: -0.38%
• Country: FR
• Employees: 20,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 3.09
• Shares Outstanding: 43,203,224
• 10 Day Avg. Volume: 44,621
• 30 Day Avg. Volume: 52,069
• PEG Ratio: -0.89
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 6.80
• 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: €45.35
• Price Target Upside: 38.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 5.39
• Revenue Forecast (FY): €2.65B

• Rating: 71 Outperform
• Price Target: €36.00 ▲(9.82% Upside)
• Action: Upgraded Date: 02/26/26
• Date: Action: Upgraded 02/26/26

The score is driven primarily by attractive valuation (low P/E and high dividend yield) and solid financial performance (strong 2025 revenue growth and steady free cash flow). These positives are tempered by weaker technicals (bearish trend and MACD) and financial watch items including margin pressure and a notable increase in leverage.

Positive Factors

Revenue Growth Momentum

A sharp 2025 revenue acceleration (34.3%) indicates renewed top-line momentum and stronger client demand. Sustained revenue growth expands scale, supports reinvestment in products and analytics, and helps absorb fixed costs—improving long-term profitability potential.

Solid Operating Profitability

Operating margins near 12% (EBIT) and 16% (EBITDA) show the business can convert revenue into operating profits at a respectable level. Durable operating profitability supports reinvestment, dividend capacity and resilience to cyclical revenue swings if management sustains cost discipline.

Healthy Cash Generation

Consistent positive operating cash flow (~€300m) and meaningful free cash flow (~€217m) provide financial flexibility. Strong FCF enables funding of growth initiatives, shareholder returns and debt servicing, supporting durability even if margins moderate in the medium term.

Negative Factors

Rising Leverage

Debt increased materially, pushing debt-to-equity to ~0.50 from ~0.32. Higher leverage reduces financial flexibility, raises interest and refinancing risk, and constrains ability to pursue opportunistic M&A or absorb shocks if revenue or margins deteriorate over the next several quarters.

Margin Compression

A decline in gross and net margins signals cost, mix or pricing pressure. Sustained margin compression would erode cash generation and return on capital, making it harder to fund investments or maintain payouts without further revenue growth or efficiency gains.

Declining Net Income and ROE

Net income fell despite revenue gains and ROE declined, suggesting margin or non-operating headwinds. Continued earnings erosion would limit retained earnings, weaken equity returns and reduce long-term capacity for dividends, buybacks or reinvestment.

Ipsos SA Business Overview & Revenue Model

Company Description

Ipsos SA, through its subsidiaries, provides survey-based research services for companies and institutions in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific. The company offers services in the information production and analysis chain, including data collection, data processing and integration, data analysis, information delivery and presentation, and information activation. It also provides audience measurement, automotive and mobility development, brand health tracking, channel performance, corporate reputation, creative excellence, customer experience, healthcare, innovation, Ipsos MMA, Ipsos UU, market strategy and understanding, observer, public affairs, social intelligence analytics, and other specialist services, as well as research methodologies, such as device agnosticism, programmatic sampling, and digital face-to-face interview. In addition, the company offers online and mobile integrated services and device agnostic solutions that include online surveys adapted to laptops, smartphones, and tablets; and qualitative research services, as well as operates Ipsos.Digital, a do-it-yourself platform. Further, it provides artificial intelligence and data science solutions that develops and provides analytical tools based on data science, machine learning, big analytics, and modelling; and behavioral science and neuroscience solutions, as well as operates Ipsos Knowledge Centre for teams and clients. Ipsos SA was incorporated in 1975 and is headquartered in Paris, France.

How the Company Makes Money

Ipsos generates revenue primarily through the provision of market research services and consultancy. The company's revenue model is built on charging clients for customized research projects, subscription services, and ongoing analytics support. Key revenue streams include quantitative and qualitative research services, which are essential for brands looking to understand market trends and consumer behavior. Ipsos also benefits from significant partnerships with media companies and organizations, allowing it to leverage its expertise in media measurement and audience insights. Additionally, the firm conducts syndicated research studies that provide valuable data to multiple clients across various sectors, further enhancing its earnings potential.

Ipsos SA Financial Statement Overview

Summary

Strong 2025 revenue acceleration (34.31%) and solid operating profitability (EBIT ~12%, EBITDA ~16%) support the score. Offsetting this are a 2025 gross/net margin step-down, year-over-year net income decline, and higher leverage (debt up to ~€781m; debt-to-equity ~0.50), which raise risk if growth or costs deteriorate.

Income Statement

Revenue has expanded strongly overall, capped by a sharp acceleration in 2025 (annual revenue growth of 34.31%), showing improving top-line momentum after a softer 2023–2024 period. Profitability is solid but not fully consistent: 2025 operating and cash profitability held up (EBIT margin ~12.0%, EBITDA margin ~16.0%), while net margin slipped versus 2024 (~7.4% vs ~8.4%) and net income declined year over year. Gross margin also shows a notable 2025 step-down versus prior years, suggesting cost/mix pressure or one-offs that investors should monitor.

Balance Sheet

The balance sheet looks generally sound with meaningful equity relative to assets, but leverage has moved higher recently. Total debt rose to ~€781m in 2025 from ~€512m in 2024, pushing debt-to-equity up to ~0.50 (from ~0.32), which reduces flexibility compared with the prior year. Returns on equity remain decent (~11.9% in 2025), though down from 2024 (~13.0%), indicating slightly less efficient profitability as leverage increased.

Cash Flow

Cash generation is healthy and consistently positive, with 2025 operating cash flow of ~€300m and free cash flow of ~€217m. Free cash flow grew in 2025 (~11.9%), supporting reinvestment and shareholder returns; however, free cash flow fell versus 2024 in absolute terms (~€217m vs ~€268m). Cash conversion is respectable but not best-in-class: free cash flow is ~72% of net income in 2025 (down from ~79% in 2024), and cash flow relative to revenue remains moderate.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.52B	2.44B	2.39B	2.41B	2.15B
Gross Profit	574.78M	1.68B	1.61B	1.59B	1.39B
EBITDA	404.01M	400.57M	381.53M	402.73M	348.58M
Net Income	186.55M	204.53M	159.72M	215.16M	183.92M
Balance Sheet
Total Assets	3.08B	2.91B	2.75B	2.85B	2.74B
Cash, Cash Equivalents and Short-Term Investments	317.56M	342.55M	277.91M	385.67M	298.45M
Total Debt	781.19M	512.31M	531.74M	587.00M	623.38M
Total Liabilities	1.51B	1.34B	1.32B	1.35B	1.40B
Stockholders Equity	1.57B	1.58B	1.42B	1.48B	1.33B
Cash Flow
Free Cash Flow	216.99M	268.06M	225.62M	270.22M	302.29M
Operating Cash Flow	300.07M	338.40M	284.18M	325.05M	345.97M
Investing Cash Flow	-257.95M	-103.64M	-108.36M	-64.63M	-74.47M
Financing Cash Flow	-36.97M	-166.96M	-260.02M	-170.64M	-195.56M

Ipsos SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 32.78
• 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:IPS, the sentiment is Neutral. The current price of 32.78 is above the 20-day moving average (MA) of 32.35, below the 50-day MA of 33.40, and below the 200-day MA of 36.63, indicating a neutral trend. The MACD of -0.83 indicates Negative momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 58.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:IPS.

Ipsos SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEP	74 Outperform	€3.05B	6.26	11.73%	6.86%	9.08%	-22.55%
ALREW	73 Outperform	€85.01M	3.37	12.60%	1.29%	-3.53%	28.87%
IPS	71 Outperform	€1.32B	7.05	12.70%	5.51%	0.66%	-0.38%
PUB	71 Outperform	€18.23B	11.05	17.51%	4.10%	9.88%	16.84%
ALBLD	65 Neutral	€66.93M	13.38	―	―	21.20%	13.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALHOP	61 Neutral	€39.69M	10.91	―	4.85%	11.03%	-37.78%