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Inter Parfums (IPAR)
NASDAQ:IPAR
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Inter Parfums
(NASDAQ:IPAR)
76Outperform
Positive Factors
Acquisitions
Interparfums acquires niche fragrance brand Goutal, including worldwide intellectual property rights, reducing licensing risk and building a portfolio of owned brands.
License Extension
Interparfums and Coach announce 5-year license extension, helps de-risk license portfolio further.
Product Launch
Interparfums will launch its own niche luxury-price point fragrance called Solferino, signaling diversification efforts.
Negative Factors
Inventory Management
IPAR has experienced slower inventory replenishment even though the Company’s management asserts sell through has improved.
Profitability
Gross margins deleveraged due to an unfavorable brand and channel mix, impacting profitability.
Sales Performance
Fourth quarter sales suggest a sequential decline in sales much more strongly than IPAR has historically reported.
Inter Parfums (IPAR) vs. S&P 500 (SPY)
Market Cap
$3.66B
Dividend Yield2.86%
Average Volume (3M)337.69K
Price to Earnings (P/E)22.3
Beta (1Y)0.90
Revenue Growth10.22%
EPS Growth7.55%
CountryUS
Employees647
SectorConsumer Cyclical
Sector Strength55
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)5.10
Shares Outstanding32,123,940
10 Day Avg. Volume522,872
30 Day Avg. Volume337,686
Financial Highlights & Ratios
PEG Ratio2.95
Price to Book (P/B)N/A
Price to Sales (P/S)2.68
Price to Cash Flow (P/CF)12.50
P/FCF Ratio12.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$169.80Price Target Upside59.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Inter Parfums Business Overview & Revenue Model
Company DescriptionInter Parfums, Inc. (IPAR) is a renowned company in the fragrance sector, engaged in the design, manufacturing, and marketing of a diverse portfolio of prestige perfumes and personal care products. The company collaborates with leading fashion brands to create signature fragrance lines. With a global presence, Inter Parfums manages a robust portfolio that includes brands like Montblanc, Jimmy Choo, and Coach, delivering luxury scents to a wide array of consumers worldwide.
How the Company Makes MoneyInter Parfums generates revenue primarily through the sale of its fragrance and personal care products. The company establishes licenses with renowned fashion brands to develop and market exclusive fragrances under those brand names, which serves as a key revenue stream. These licensing agreements allow Inter Parfums to create high-end product lines that appeal to brand-loyal customers, resulting in strong sales across department stores, specialty retailers, and duty-free shops. In addition, the company benefits from strategic partnerships and distribution agreements that expand its market reach globally, ensuring a steady flow of income from various geographical regions.
Inter Parfums Financial Statement Overview
Summary
Inter Parfums exhibits strong financial health with consistent revenue and profitability growth, a debt-free balance sheet, and improving cash flow metrics. The high return on equity is notable, though it could suggest potential volatility.Income Statement
Inter Parfums has shown strong financial performance with consistent revenue growth over the years, notably a 10.2% increase from 2023 to 2024. The company maintains high profitability margins with a gross profit margin of 63.9% and a net profit margin of 18.5% in 2024. EBIT and EBITDA margins are also impressive at 18.9%, indicating effective cost management and operational efficiency.88
Very Positive
Balance Sheet
The balance sheet reflects a robust financial position with no debt in 2024, significantly improving the debt-to-equity ratio to 0.0. The equity ratio is strong at 98.2%, highlighting minimal liabilities in relation to total assets. Return on equity is high at 263.9%, driven by substantial net income and low equity base, although this may indicate potential volatility.85
Very Positive
Cash Flow
Inter Parfums demonstrates solid cash flow management with a remarkable 248.8% increase in free cash flow in 2024 compared to the previous year. The operating cash flow to net income ratio stands at 0.70, suggesting efficient conversion of income into cash. However, the free cash flow to net income ratio of 0.68 indicates room for improvement in leveraging net income into free cash flow.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.45B | 1.32B | 1.09B | 879.52M | 539.01M | Gross Profit |
| 927.34M | 839.08M | 694.42M | 556.90M | 330.73M | EBIT |
| 274.80M | 251.38M | 194.30M | 148.05M | 70.08M | EBITDA |
| 304.57M | 280.98M | 223.89M | 171.65M | 79.15M | Net Income Common Stockholders |
| 164.36M | 152.65M | 120.94M | 87.41M | 38.22M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 234.74M | 182.77M | 255.55M | 319.63M | 296.31M | Total Assets |
| 1.41B | 1.37B | 1.31B | 1.15B | 890.14M | Total Debt |
| 192.19M | 192.37M | 209.67M | 184.05M | 51.19M | Net Debt |
| 66.76M | 103.91M | 104.96M | 24.43M | -118.49M | Total Liabilities |
| 468.62M | 482.42M | 520.40M | 407.03M | 187.69M | Stockholders Equity |
| 101.69M | 699.39M | 616.78M | 571.92M | 535.84M |
| Cash Flow | Free Cash Flow | |||
| 182.90M | 52.41M | -17.47M | -23.23M | 52.73M | Operating Cash Flow |
| 187.64M | 105.77M | 115.15M | 119.59M | 64.99M | Investing Cash Flow |
| -44.83M | 7.26M | -132.76M | -187.87M | -22.33M | Financing Cash Flow |
| -100.77M | -133.21M | -45.57M | 78.19M | -18.64M |
Inter Parfums Technical Analysis
Negative
106.69
Price Trends
130.62
Negative
131.15
Negative
126.37
Negative
Market Momentum
-4.68
Positive
32.77
Neutral
8.64
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPAR, the sentiment is Negative. The current price of 106.69 is below the 20-day moving average (MA) of 121.08, below the 50-day MA of 130.62, and below the 200-day MA of 126.37, indicating a bearish trend. The MACD of -4.68 indicates Positive momentum. The RSI at 32.77 is Neutral, neither overbought nor oversold. The STOCH value of 8.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IPAR.
Inter Parfums Risk Analysis
Inter Parfums disclosed 10 risk factors in its most recent earnings report. Inter Parfums reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Inter Parfums Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.66B | 22.26 | 22.76% | 2.86% | 10.22% | 7.55% | |
76 Outperform | $404.23B | 27.47 | 31.05% | 2.33% | 0.49% | 5.02% | |
76 Outperform | $148.75B | 23.90 | 30.53% | 2.97% | 1.99% | -10.59% | |
71 Outperform | $198.18M | 27.94 | 25.67% | 1.11% | 0.57% | 155.00% | |
59 Neutral | $12.18B | 11.09 | -1.08% | 3.77% | 1.26% | -19.82% | |
57 Neutral | $4.81B | 40.12 | 0.33% | ― | 1.35% | -99.94% | |
50 Neutral | $24.41B | 147.29 | -14.17% | 3.47% | 0.07% | -249.21% |
* Consumer Cyclical Sector Average
Performance Comparison
IPAR
Inter Parfums
106.69
-21.33
-16.66%
EL
The Estée Lauder Companies
58.19
-82.93
-58.77%
PG
Procter & Gamble
172.39
20.68
13.63%
UL
Unilever
62.55
15.37
32.58%
COTY
Coty
5.21
-5.85
-52.89%
LFVN
LifeVantage
14.36
8.25
135.02%
Inter Parfums Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -22.78% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and growth in key markets, with successful expansion into new brands and innovative product launches planned for 2025. However, challenges in the fashion business, currency fluctuations, and regulatory issues pose potential risks. Despite these, the overall sentiment is optimistic with a focus on continued growth and adaptation.Highlights
Record Fourth-Quarter Sales and Earnings
Inter Parfums, Inc. achieved record fourth-quarter sales and earnings, with sales reaching $1.452 billion and adjusted earnings per share at $5.18, surpassing the guidance of $5.15.
Expansion of Brand Portfolio
The company initiated distribution and sales for new brands Lacoste and Roberto Cavalli and renewed its license agreement with Bank of America. Lacoste achieved over $84 million in sales, and Roberto Cavalli added 2% to the top line with $31 million in sales in less than 11 months.
Global Market Growth
Inter Parfums' major markets, North America, Western Europe, and Asia Pacific, showed gains of 6%, 21%, and 3%, respectively, in 2024 compared to 2023. Travel retail sales increased by 20%.
Innovation and Upcoming Launches
The company plans to launch new blockbusters for Ferragamo, Rochas, and Cavalli in 2025 and introduced its first proprietary brand, Solferino, a collection of ten niche fragrances.
Strong Financial Position
The company closed the year with $235 million in cash and working capital of $582 million, significantly improving its cash conversion cycle with operating cash flow of $188 million in 2024.
Lowlights
Challenges in the Fashion Business
The Rochas fashion business faced challenges, leading to a $4 million nonrecurring noncash impairment charge.
Currency Fluctuations and Foreign Exchange Headwinds
The company is experiencing foreign exchange headwinds for the first time in two years, with the euro reaching 1.02 against the dollar, impacting the first quarter of 2025 by about two points.
Potential Regulatory and Tariff Challenges
The company is facing potential tariffs, regulatory challenges, and currency fluctuations, including the need to reformulate 80% of products due to chemical safety regulations.
Decline in Smaller Brands
Brands like Lanvin declined due to geopolitical issues, and the company is phasing out Dunhill and Boucheron licenses.
Company Guidance
In the Inter Parfums, Inc. 2024 Fourth Quarter and Year End Conference Call, the company provided optimistic guidance with a projected 4% growth in both net sales and earnings per share (EPS) for 2025. The net sales are expected to reach $1.51 billion, and the EPS is predicted to climb to $5.35. This outlook comes despite foreign exchange headwinds and the loss of the Dunhill brand. The company aims to sustain this growth by leveraging strong innovation across its portfolio, including significant launches for brands like Ferragamo, Cavalli, and Guess. The company also plans to maintain its gross margin at around 64% while managing SG&A expenses with a focus on advertising and promotion investments, which were $281 million in 2024. Furthermore, the board approved a 7% increase in the annual dividend to $3.20 per share, reflecting confidence in sustained financial performance.Inter Parfums Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Inter Parfums Reports Record 2024 Financial Results
Positive
Feb 25, 2025
Interparfums, Inc. reported record financial results for the fourth quarter and full year of 2024, with a 10% increase in net sales and a diluted EPS of $5.12, surpassing expectations. The company also announced a 7% increase in its cash dividend and reaffirmed its 2025 guidance, highlighting strong brand performance and expansion plans, including the launch of its first proprietary niche brand, Solférino.
Business Operations and StrategyFinancial Disclosures
Inter Parfums Achieves Record Net Sales in 2024
Positive
Jan 22, 2025
Interparfums, Inc. reported record net sales of $1.45 billion for 2024, marking a 10% increase from the previous year, driven by strong performance across its brand portfolio, including notable growth from GUESS, Jimmy Choo, and new additions like Lacoste and Roberto Cavalli. Despite potential geopolitical and economic challenges, the company remains optimistic about 2025, supported by robust demand for premium products, an expanding e-commerce presence, and a promising product launch pipeline.
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.