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Interparfums (FR:ITP)
:ITP

Interparfums (ITP) AI Stock Analysis

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Interparfums

(LSE:ITP)

Rating:78Outperform
Price Target:
€42.00
▲(12.84%Upside)
Interparfums' strong financial performance is the primary driver of the overall score, supported by its robust revenue growth, profitability, and effective cash flow management. Technical analysis indicates moderate market momentum with short-term bullish signals. Valuation is fair with a moderate P/E ratio and a decent dividend yield, making the stock attractive for value-oriented investors.
Positive Factors
Earnings
Favorable earnings momentum is anticipated with +10% topline growth and expected EPS growth to accelerate to the high-single digits.
Financial Performance
The company's fundamentals remain solid and the momentum of forthcoming publications should be positive.
Sales Performance
Interparfums published solid Q3 sales, reflecting a strong performance mainly for Lacoste, Jimmy Choo and Montblanc.
Negative Factors
Project Development
Regarding Moncler, the company had previously mentioned a major distribution expansion that would have led to high revenue development potential, but this project was ceased.

Interparfums (ITP) vs. iShares MSCI France ETF (EWQ)

Interparfums Business Overview & Revenue Model

Company DescriptionInterparfums 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 MoneyInterparfums makes money primarily through the development, production, and distribution of fragrance products under licensing agreements with prestigious brands. These licensing agreements allow Interparfums to create and market perfumes under well-established brand names, which typically involves paying royalties to the brand owners based on sales. The company's revenue streams are driven by wholesale distribution to department stores, specialty retailers, and duty-free shops, as well as direct sales through brand boutiques. Key partnerships with luxury brands enable Interparfums to capitalize on brand equity and consumer loyalty, contributing significantly to its earnings. Additionally, the company's strategic expansion into new markets and collaborations with emerging brands further bolster its revenue potential.

Interparfums Financial Statement Overview

Summary
Interparfums showcases a strong financial position across all verticals. The company enjoys impressive revenue and profit growth, solid profitability margins, and effective cash flow management. A strong balance sheet with low leverage and high equity provides financial stability, making Interparfums well-positioned for future growth.
Income Statement
88
Very Positive
Interparfums has shown robust revenue growth with a 10.3% increase from 2023 to 2024. Gross Profit Margin is strong at 65.6%, and the Net Profit Margin is healthy at 14.7%. The company also maintains strong EBIT and EBITDA margins at 20.2% and 22.8% respectively, indicating strong operational efficiency and profitability.
Balance Sheet
85
Very Positive
The balance sheet is solid with a low Debt-to-Equity Ratio of 0.21, indicating prudent use of leverage. The Return on Equity is impressive at 18.6%, reflecting efficient use of equity capital. The Equity Ratio is high at 67.5%, suggesting a strong equity base relative to assets, which provides stability.
Cash Flow
91
Very Positive
Interparfums demonstrates exceptional cash flow management with a significant Free Cash Flow growth rate of 185.8% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio is 0.83, and the Free Cash Flow to Net Income Ratio is 0.67, highlighting strong cash conversion and financial flexibility.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
880.49M798.48M706.62M560.83M367.37M
Gross Profit
577.79M516.07M472.28M365.64M227.07M
EBIT
178.05M165.56M131.82M98.89M46.91M
EBITDA
200.51M183.51M154.21M117.16M65.14M
Net Income Common Stockholders
129.87M118.74M99.52M71.09M30.70M
Balance SheetCash, Cash Equivalents and Short-Term Investments
190.64M146.21M235.76M257.68M228.16M
Total Assets
1.03B968.19M987.98M822.01M616.79M
Total Debt
147.47M138.11M159.96M125.44M19.99M
Net Debt
-35.61M375.00K-75.80M9.04M-104.97M
Total Liabilities
334.36M324.52M393.33M278.68M122.68M
Stockholders Equity
697.02M641.00M592.46M541.41M492.49M
Cash FlowFree Cash Flow
87.18M30.51M975.00K-50.23M35.32M
Operating Cash Flow
107.71M84.51M78.82M77.17M45.99M
Investing Cash Flow
-18.16M34.02M-74.37M-164.31M-19.27M
Financing Cash Flow
-45.21M-117.54M-24.41M78.58M-817.00K

Interparfums Technical Analysis

Technical Analysis Sentiment
Negative
Last Price37.22
Price Trends
50DMA
36.34
Positive
100DMA
38.66
Negative
200DMA
39.45
Negative
Market Momentum
MACD
0.24
Negative
RSI
49.49
Neutral
STOCH
62.40
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 37.22 is above the 20-day moving average (MA) of 37.13, above the 50-day MA of 36.34, and below the 200-day MA of 39.45, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 49.49 is Neutral, neither overbought nor oversold. The STOCH value of 62.40 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FROR
81
Outperform
€203.10B31.8820.60%1.82%5.60%3.75%
FRITP
78
Outperform
€2.80B20.5719.41%3.13%10.27%8.20%
FRMC
75
Outperform
€238.11B18.7119.53%2.76%-1.71%-17.20%
FRRMS
71
Outperform
$244.87B53.2728.67%1.05%12.98%6.62%
FRCDI
71
Outperform
€80.14B15.2122.73%2.96%-1.71%-17.39%
62
Neutral
$6.83B11.282.95%3.88%2.70%-24.56%
FRKER
62
Neutral
€21.48B18.977.52%3.42%-12.12%-62.09%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:ITP
Interparfums
37.22
-5.48
-12.84%
FR:OR
L'Oreal
381.35
-65.89
-14.73%
FR:CDI
Christian Dior
438.00
-265.28
-37.72%
FR:KER
Kering SA
173.40
-144.77
-45.50%
FR:RMS
Hermes International
2,320.00
141.89
6.51%
FR:MC
LVMH Moet Hennessy Louis Vuitton
471.25
-272.85
-36.67%

Interparfums Corporate Events

Interparfums Acquires Maison Goutal to Expand Haute Parfumerie Portfolio
Mar 18, 2025

Interparfums has announced the acquisition of all intellectual property rights related to the Maison Goutal brand from Amorepacific Europe. This move is part of Interparfums’ strategy to expand its product offerings into the Haute Parfumerie segment, leveraging Goutal’s established reputation for refined and poetic creations. The acquisition is expected to enhance Interparfums’ positioning in the luxury fragrance market, with Camille Goutal continuing to influence the brand’s olfactory direction to maintain its heritage.

Interparfums and Coach Extend Fragrance Partnership to 2031
Mar 14, 2025

Interparfums and Coach have extended their fragrance partnership until June 2031, following a successful collaboration that saw Coach fragrance sales grow significantly. This renewal reflects Interparfums’ strategic focus on expanding its presence in the global perfume market, with plans to launch new products in 2025, reinforcing its commitment to long-term growth and market development.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.