Inter Parfums (IPAR) AI Stock Analysis

• Market Cap: $3.47B
• Dividend Yield: 2.81%
• Average Volume (3M): 386.23K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.93
• Revenue Growth: 10.22%
• EPS Growth: 7.55%
• Country: US
• Employees: 647
• Sector: Consumer Cyclical
• Sector Strength: 67
• Industry: Household & Personal Products
• EPS (TTM): 5.10
• Shares Outstanding: 32,123,940
• 10 Day Avg. Volume: 257,649
• 30 Day Avg. Volume: 386,230
• PEG Ratio: 2.80
• 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: 1.26
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.72
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $132.86
• Price Target Upside: 20.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Inter Parfums scores highly due to its strong financial foundation and strategic growth plans, despite technical indicators showing bearish trends. The company's valuation is reasonable, and positive sentiment from earnings calls and corporate events supports its growth potential. However, challenges such as currency headwinds and regulatory issues remain concerns.

Positive Factors

Brand Development

Interparfums has brand-building capabilities that could make Goutal a larger contributor in the long term.

Mergers and Acquisitions

Interparfums acquires niche fragrance brand Goutal, including worldwide intellectual property rights, reducing licensing risk and building a portfolio of owned brands.

Sales Performance

1Q25 sales results beating expectations and also reaffirmed their FY25 guidance despite uncertainty in the overall market.

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 Trends

Fourth quarter sales suggest a sequential decline in sales much more strongly than IPAR has historically reported.

Inter Parfums Business Overview & Revenue Model

Company Description

Inter Parfums, Inc., together with its subsidiaries, manufactures, markets, and distributes a range of fragrances and fragrance related products in the United States and internationally. The company operates in two segments, European Based Operations and United States Based Operations. It offers its fragrance and cosmetic products under the Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lily Aldridge, Lanvin, Moncler, Montblanc, Rochas, S.T. Dupont, Van Cleef & Arpels, Abercrombie & Fitch, Anna Sui, babe, Dunhill, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta, French Connection, and Ungaro brand names, as well as under the Intimate and Aziza names. It sells its products to department stores, specialty stores, duty free shops, beauty retailers, and domestic and international wholesalers, and distributors, as well as through e-commerce. The company was formerly known as Jean Philippe Fragrances, Inc. and changed its name to Inter Parfums, Inc. in July 1999. Inter Parfums, Inc. was founded in 1982 and is headquartered in New York, New York.

How the Company Makes Money

Inter 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.

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.

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.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 109.95
• 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 IPAR, the sentiment is Neutral. The current price of 109.95 is above the 20-day moving average (MA) of 106.52, below the 50-day MA of 119.53, and below the 200-day MA of 125.72, indicating a neutral trend. The MACD of -3.03 indicates Negative momentum. The RSI at 48.23 is Neutral, neither overbought nor oversold. The STOCH value of 75.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IPAR.

Inter Parfums Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPAR	78 Outperform	$3.47B	21.13	22.76%	2.81%	10.22%	7.55%
ELF	67 Neutral	$3.50B	36.86	14.24%	―	46.27%	-26.45%
EPC	66 Neutral	$1.49B	16.91	6.02%	1.95%	-1.24%	-10.95%
SPB	66 Neutral	$1.61B	15.08	4.91%	2.84%	2.56%	-91.05%
COTY	62 Neutral	$4.53B	40.12	0.33%	―	1.35%	-99.94%
Sector *	60 Neutral	$6.86B	11.74	3.14%	4.15%	2.37%	-21.95%
EL	50 Neutral	$19.87B	147.29	-14.17%	3.40%	0.07%	-249.21%

Inter Parfums Corporate Events

Inter Parfums Reports 5% Q1 Sales Increase

Interparfums, Inc. reported a 5% increase in net sales for the first quarter of 2025, reaching $339 million, driven by strong demand for key brands like Jimmy Choo and Lacoste. Despite challenges such as tariffs and the discontinuation of the Dunhill license, the company remains optimistic, reaffirming its 2025 guidance of $1.51 billion in net sales and $5.35 earnings per share. The company plans to address these challenges through supply chain adjustments and selective price increases, positioning itself for continued growth in the fragrance market.

Spark’s Take on IPAR Stock

According to Spark, TipRanks’ AI Analyst, IPAR is a Outperform.

Inter Parfums presents a strong financial performance with consistent growth and profitability. Despite current technical analysis indicating bearish trends, the stock’s valuation is reasonable, and positive earnings call sentiment suggests continued growth. Challenges like currency headwinds and regulatory issues exist, but the company is positioned to navigate these with strategic innovations and market expansions.

To see Spark’s full report on IPAR stock, click here.

Inter Parfums Reports Record 2024 Financial Results

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.