Inter Parfums (IPAR) AI Stock Analysis

• Market Cap: $2.68B
• Dividend Yield: 3.76%
• Average Volume (3M): 286.93K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.83
• Revenue Growth: 3.12%
• EPS Growth: 9.01%
• Country: US
• Employees: 647
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 2.05
• Shares Outstanding: 32,064,728
• 10 Day Avg. Volume: 295,747
• 30 Day Avg. Volume: 286,926
• PEG Ratio: 3.40
• Price to Book (P/B): 5.66
• Price to Sales (P/S): 2.90
• P/FCF Ratio: 23.04
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: 3.65
• Enterprise Value/Ebitda: 11.08
• 1Y Price Target: $108.60
• Price Target Upside: 29.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 5.12
• Revenue Forecast (FY): $1.47B

• Rating: 69 Neutral
• Price Target: $89.00 ▲(6.27% Upside)

Inter Parfums' strong financial performance and reasonable valuation are key strengths, but technical indicators suggest bearish momentum. The earnings call highlighted both growth opportunities and challenges, particularly in U.S. operations and margin pressures.

Positive Factors

Revenue Growth

The consistent revenue growth, despite challenges, indicates a strong market position and effective sales strategies, supporting long-term business stability.

Strong Brand Portfolio

The success of key brands like Jimmy Choo highlights Inter Parfums' robust brand portfolio, which is crucial for sustaining competitive advantage and market presence.

Strategic Brand Expansion

Strategic brand expansions and new product launches are set to drive future growth, enhancing the company's market reach and consumer engagement.

Negative Factors

Gross Margin Erosion

Erosion of gross margins due to tariffs can pressure profitability, affecting the company's ability to invest in growth and innovation over time.

Decline in U.S. Operations

The decline in U.S. sales suggests challenges in a key market, which could impact overall revenue growth and necessitate strategic adjustments.

Free Cash Flow Decline

A decline in free cash flow could limit the company's ability to fund new projects and respond to market opportunities, affecting long-term growth potential.

Inter Parfums Business Overview & Revenue Model

Company Description

Inter Parfums, Inc. (IPAR) is a leading global player in the fragrance industry, specializing in the development, manufacture, and marketing of a diverse range of fragrance products. The company operates primarily in the luxury and prestige segments, offering a portfolio of well-known brands and fragrances that cater to various demographics. With a focus on innovation and quality, Inter Parfums partners with renowned fashion houses and celebrities to create signature scents that resonate with consumers worldwide.

How the Company Makes Money

Inter Parfums generates revenue through the sale of its fragrance products, which are marketed under both proprietary brands and licensed brands. The company earns significant income from long-term licensing agreements with high-profile fashion and designer brands, allowing it to produce and sell fragrances that carry those brands' identities. Additionally, Inter Parfums benefits from direct sales to retailers and distributors, as well as e-commerce channels. The company's revenue model is further bolstered by its ability to introduce new products and seasonal collections, thereby maintaining consumer interest and driving repeat purchases. Strategic partnerships with key players in the retail and distribution sectors also enhance its market reach and profitability.

Inter Parfums Financial Statement Overview

Summary

Inter Parfums exhibits strong financial health with impressive revenue growth and profitability metrics. The balance sheet is solid with a manageable debt level and high return on equity. Cash flow management is generally effective, though the recent decline in free cash flow growth should be addressed. Overall, the company is well-positioned in its industry, but careful attention to cash flow trends and margin stability is recommended.

Income Statement

Inter Parfums has demonstrated strong revenue growth with a 33.9% increase in TTM, supported by solid gross and net profit margins of 64.5% and 15.8%, respectively. The EBIT and EBITDA margins are healthy at 18.7% and 19.9%, indicating efficient operations. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, which could be a point of concern if the trend continues.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.33, reflecting a balanced approach to leverage. Return on equity is robust at 29.2%, showcasing effective use of shareholders' equity to generate profits. The equity ratio stands at 55.7%, indicating a strong equity base. However, the increase in total debt over the past year warrants monitoring.

Cash Flow

Operating cash flow remains strong, but free cash flow has decreased by 10% in the TTM period, which could impact future investments. The operating cash flow to net income ratio is 0.66, suggesting good cash conversion, while the free cash flow to net income ratio of 0.84 indicates efficient cash management. The decline in free cash flow growth is a potential risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.45B	1.32B	1.09B	879.52M	539.01M
Gross Profit	942.92M	927.34M	839.08M	694.42M	556.90M	330.73M
EBITDA	310.44M	304.57M	278.18M	220.36M	166.54M	80.39M
Net Income	164.52M	164.36M	152.65M	120.94M	87.41M	38.22M
Balance Sheet
Total Assets	1.56B	1.41B	1.37B	1.31B	1.15B	890.14M
Cash, Cash Equivalents and Short-Term Investments	187.86M	234.74M	182.77M	255.55M	319.63M	296.31M
Total Debt	229.87M	192.19M	192.37M	209.67M	184.05M	51.19M
Total Liabilities	460.15M	468.62M	477.16M	520.40M	407.03M	187.69M
Stockholders Equity	870.89M	744.87M	699.39M	616.78M	571.92M	535.84M
Cash Flow
Free Cash Flow	143.33M	182.90M	52.41M	-17.47M	-23.23M	52.73M
Operating Cash Flow	206.33M	187.64M	105.77M	115.15M	119.59M	64.99M
Investing Cash Flow	-58.65M	-44.83M	7.26M	-132.76M	-187.87M	-22.33M
Financing Cash Flow	-119.28M	-100.77M	-133.21M	-45.57M	78.19M	-18.64M

Inter Parfums Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 83.75
• 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 83.75 is above the 20-day moving average (MA) of 81.20, below the 50-day MA of 87.26, and below the 200-day MA of 109.81, indicating a neutral trend. The MACD of -0.95 indicates Negative momentum. The RSI at 55.51 is Neutral, neither overbought nor oversold. The STOCH value of 63.56 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	69 Neutral	$2.68B	16.33	19.95%	3.76%	3.12%	9.01%
ELF	68 Neutral	$4.70B	54.76	8.77%	―	13.80%	-25.02%
SPB	64 Neutral	$1.43B	15.92	4.92%	3.11%	-5.21%	1.96%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EPC	58 Neutral	$843.33M	34.01	1.62%	3.37%	-1.34%	-73.59%
EL	56 Neutral	$37.95B	-41.78	-20.73%	1.33%	-6.36%	-554.84%
COTY	47 Neutral	$2.85B	-7.15	-9.96%	―	-5.68%	-358.36%

Inter Parfums Corporate Events

Inter Parfums Projects Modest Sales Growth for 2026

Interparfums, Inc. announced its initial guidance for 2026, projecting a modest 1% increase in net sales to $1.48 billion, despite a 5% decline in diluted EPS to $4.85, attributed to one-time tax gains in 2025 and investments in new brands. The company plans to focus on consolidating operations and laying the groundwork for long-term growth, with significant brand expansions and new product launches scheduled for 2027. Despite macroeconomic challenges and inventory destocking expected to persist into 2026, Interparfums anticipates foreign exchange gains and strategic brand extensions to offset the impact of the expiration of its Boucheron license. The company is set to introduce new offerings across its European and U.S. operations, including extensions for Coach, Lacoste, Jimmy Choo, Montblanc, and others, while expanding its owned brand Solférino and redesigning Goutal fragrances.

Inter Parfums Reports Modest Q3 2025 Sales Increase

Interparfums, Inc. reported its third-quarter results for 2025, showing a modest increase in net sales and operating income compared to the previous year, despite challenges such as retailer destocking and tariff-related disruptions. The company remains optimistic about its innovation pipeline and marketing strategies to drive sales through the holiday season and into 2026. Additionally, Interparfums plans to streamline its corporate structure by merging its wholly owned French subsidiary into its French operating subsidiary by December 2025, which is not expected to materially impact shareholders.

Inter Parfums Reports 1% Sales Growth in Q3 2025

Interparfums, Inc. reported a 1% growth in net sales for the third quarter and year-to-date periods of 2025, driven by strong performance in European operations and the Jimmy Choo brand. Despite challenges such as selective consumer spending and cautious retailer inventory approaches, the company remains optimistic about future growth, particularly with innovations like Coach Gold and Montblanc Signature Elixir. The company anticipates continued resilience in the fragrance market and plans to release its financial results for the third quarter on November 5, 2025, followed by a conference call on November 6, 2025.

Inter Parfums Approves Key Proposals at Annual Meeting

On September 10, 2025, Interparfums, Inc. held its annual stockholders meeting where shareholders approved all proposals, including the election of two new board members, Patrick Bousquet-Chavanne and Herve Bouillonnec. The meeting also saw the approval of executive compensation and the cancellation of ‘hook shares’ held by a subsidiary, reflecting strategic decisions that could impact the company’s governance and financial structuring.