Interparfums (ITP) AI Stock Analysis

• Market Cap: €2.07B
• Dividend Yield: 3.66%
• Average Volume (3M): 45.52K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.01
• Revenue Growth: 9.68%
• EPS Growth: 19.46%
• Country: FR
• Employees: 353
• Sector: General
• Sector Strength: N/A
• Industry: Household & Personal Products
• EPS (TTM): 0.55
• Shares Outstanding: 83,795,090
• 10 Day Avg. Volume: 41,035
• 30 Day Avg. Volume: 45,522
• PEG Ratio: -5.20
• Price to Book (P/B): 2.77
• Price to Sales (P/S): 2.25
• P/FCF Ratio: 15.96
• 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: €30.00
• Price Target Upside: 19.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.45
• Revenue Forecast (FY): €895.02M

• Rating: 65 Neutral
• Price Target: €27.00 ▲(7.57% Upside)
• Action: Downgraded Date: 02/27/26
• Date: Action: Downgraded 02/27/26

The score is primarily supported by solid underlying financial quality (profitability, low leverage, and improved free cash flow), but is held back by the sharp reported 2025 revenue contraction and weak technical setup (below key moving averages with negative MACD). Valuation is a modest positive due to a reasonable P/E and attractive dividend yield.

Positive Factors

Licensing-based business model

A licensing model that secures long-term rights to develop and sell prestige fragrances provides durable revenue streams tied to established brands. This structure supports stable wholesale and selective DTC sales, lowers need for brand-building capex, and enables predictable product cadence if licenses remain intact.

High and sustainable profitability margins

Persistently strong gross and net margins indicate structural pricing power and favorable product economics in prestige fragrances. Margin resilience cushions earnings through sales volatility, funds marketing and R&D for new launches, and supports returns even when top-line growth slows.

Conservative balance sheet and strong ROE

Low leverage combined with solid ROE provides financial flexibility to invest in product launches, marketing, or selective M&A without stressing liquidity. A sturdy balance sheet reduces refinancing risk and supports steady dividends or buybacks in cyclical periods.

Negative Factors

Sharp 2025 revenue contraction

A sudden, material drop in reported revenue undermines visibility into future franchise health and raises questions about demand for recent launches or channel disruptions. Prolonged top-line weakness can pressure license renewals, marketing ROI, and long-term growth assumptions.

Uneven cash conversion and working-capital swings

Volatile conversion of profits into cash, driven by working-capital swings, makes free cash flow less predictable despite recent improvements. That variability can constrain funding for launches, increase reliance on external financing for timing mismatches, and pressure margins in down cycles.

Dependence on licensed brands and launch cadence

Heavy reliance on a finite set of licensed brands and the timing of new launches concentrates execution risk. Underperformance, delayed releases, or non-renewal of key licenses would have outsized impact on sales and make growth lumpy over multi-quarter horizons.

Interparfums Business Overview & Revenue Model

Company Description

Interparfums SA creates, manufactures, and distributes perfumes through proprietary basis or license agreements with brands in ready-to-wear, fashion, jewelry, and accessories sectors. It serves customers under Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lanvin, Montblanc, Moncler, Paul Smith, Repetto, Rochas, S.T. Dupont, Van Cleef & Arpels, and other brand names. The company distributes its products through wholly owned distribution subsidiaries or joint ventures, independent companies, subsidiaries of luxury good corporations, and duty-free operators worldwide. Interparfums SA was founded in 1982 and is headquartered in Paris, France. Interparfums SA is a subsidiary of Interparfums Holding SA.

How the Company Makes Money

Interparfums generates revenue primarily through the licensing of its fragrance brands. The company partners with well-known fashion houses and celebrities, creating perfumes that align with their brand identities. These partnerships allow ITP to earn royalties based on sales, providing a steady income stream. Additionally, the company sells its products through various channels, including department stores, specialty retailers, and e-commerce platforms, which contribute to direct sales revenue. The success of seasonal launches and limited edition fragrances also plays a significant role in boosting sales during peak shopping periods. Furthermore, ITP's strong brand portfolio and extensive distribution network enhance its market reach, thereby driving profitability.

Interparfums Financial Statement Overview

Summary

Strong profitability (gross margins mid-60% and healthy net margins), a conservatively levered balance sheet with solid ROE, and improved free cash flow in 2023–2025 support quality. Offsetting this, 2025 shows a sharp reported revenue contraction and cash conversion has been uneven historically, increasing near-term uncertainty.

Income Statement

Revenue expanded strongly from 2021–2024, but 2025 shows a sharp reported revenue contraction, which is a major near-term red flag. Profitability remains a clear strength: gross margins stayed in the mid-60% range and net margins were consistently healthy around the mid-teens, with EBIT/EBITDA margins also solid. Net income was relatively stable across 2022–2025 despite the 2025 revenue decline, suggesting resilience, but the latest growth trajectory is negative and increases uncertainty around forward earnings power.

Balance Sheet

Leverage looks conservative with debt-to-equity consistently low (~0.21–0.27 in 2021–2025), supporting financial flexibility. Equity and total assets have generally grown over time, indicating balance-sheet expansion rather than contraction. Returns on equity are strong (roughly mid-teens to high-teens in 2022–2025), though slightly off the 2023–2024 levels in 2025. Overall, the balance sheet appears sturdy, with the main watch item being modestly higher debt versus 2020 (still low in absolute terms).

Cash Flow

Cash generation has improved materially versus earlier years: free cash flow rebounded from negative in 2021 and near-zero in 2022 to meaningfully positive in 2023–2025, with 2025 free cash flow roughly in line with net income. However, cash conversion has been uneven—operating cash flow covered a relatively modest portion of EBITDA across the period (generally below 1.0), pointing to working-capital swings and variability in how profits translate into cash. The latest year is stronger, but the history of volatility keeps the cash-flow score below the balance-sheet score.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	899.38M	880.49M	798.48M	706.62M	560.83M
Gross Profit	582.13M	577.79M	516.07M	474.94M	365.64M
EBITDA	205.87M	200.51M	192.15M	154.21M	117.16M
Net Income	126.57M	129.87M	118.74M	99.52M	71.09M
Balance Sheet
Total Assets	1.05B	1.03B	968.19M	987.98M	822.01M
Cash, Cash Equivalents and Short-Term Investments	204.50M	190.64M	149.40M	235.76M	257.68M
Total Debt	152.29M	147.47M	138.11M	159.96M	125.44M
Total Liabilities	317.70M	334.36M	324.52M	393.33M	278.68M
Stockholders Equity	729.98M	697.02M	641.00M	592.46M	541.41M
Cash Flow
Free Cash Flow	126.55M	87.18M	30.51M	975.00K	-50.23M
Operating Cash Flow	145.41M	107.71M	84.51M	78.82M	77.17M
Investing Cash Flow	-41.60M	-18.16M	34.02M	-74.37M	-164.31M
Financing Cash Flow	-83.11M	-45.21M	-117.54M	-24.41M	78.58M

Interparfums Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ITP, the sentiment is Negative. The current price of 25.1 is below the 20-day moving average (MA) of 25.10, below the 50-day MA of 25.25, and below the 200-day MA of 29.19, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 48.88 is Neutral, neither overbought nor oversold. The STOCH value of 49.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ITP.

Interparfums Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMS	76 Outperform	$214.41B	47.49	25.50%	1.24%	10.31%	0.54%
OR	72 Outperform	€211.59B	34.62	20.13%	1.91%	2.60%	-5.44%
ITP	65 Neutral	€2.07B	15.65	20.31%	3.66%	9.68%	19.46%
CDI	64 Neutral	€93.27B	20.59	19.54%	2.33%	-3.24%	-21.65%
MC	63 Neutral	€270.47B	24.89	16.88%	2.06%	-3.24%	-21.24%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
KER	48 Neutral	€35.05B	484.58	4.91%	2.03%	-14.56%	-64.91%