Inter Parfums (IPAR) AI Stock Analysis

• Market Cap: $4.37B
• Dividend Yield: 2.35%
• Average Volume (3M): 224.82K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.93
• Revenue Growth: 10.32%
• EPS Growth: 18.55%
• Country: US
• Employees: 647
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Household & Personal Products
• EPS (TTM): 1.32
• Shares Outstanding: 32,124,000
• 10 Day Avg. Volume: 157,001
• 30 Day Avg. Volume: 224,817
• PEG Ratio: 0.67
• Price to Book (P/B): 4.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -176.01
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 3.38
• Enterprise Value/Ebitda: 2.77
• 1Y Price Target: $134.33
• Price Target Upside: -2.36% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 82 Outperform
• Price Target: $160.00 ▲(16.30%Upside)

Inter Parfums' strong financial performance and positive strategic initiatives are the key drivers of its high stock score. Technical analysis suggests some caution due to overbought signals, and valuation metrics indicate a fair market position. The earnings call and recent corporate events support a positive growth outlook, although external challenges remain a concern.

Positive Factors

Brand Strategy

Interparfums will launch its own niche luxury-price point fragrance called Solferino, signaling diversification efforts.

Market Demand

Management indicating continued strong demand in the fragrance market.

Sales Performance

Interparfums reported their results with sales beating prior guidance, indicating strong performance.

Negative Factors

Geographical Sales Performance

Sales performance saw broad-based strength with the European-based segment seeing sales up +7% and the United States-based segment down -1% (up +3% organically).

Market Uncertainty

Management highlighted uncertainty around tariffs and the macro environment, taking a cautious approach by reiterating guidance instead of raising it.

Tariffs Impact

Management is prepared to handle tariffs with flexible manufacturing strategies and selective price increases to mitigate expected impacts.

Inter Parfums Business Overview & Revenue Model

Company Description

Inter 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 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 demonstrates robust financial health with steady revenue growth, solid profit margins, and effective cash flow management. The balance sheet is strong with prudent leverage management and efficient equity utilization.

Income Statement

Inter Parfums shows strong income statement performance with steady revenue growth and improving profitability. The TTM revenue grew by 1.02% compared to the previous period, reflecting consistent demand. Gross profit margin is solid at 64.12%, while net profit margin has seen a significant improvement to 16.01% in TTM. The company maintains robust EBIT and EBITDA margins at 19.49% and 20.42% respectively, indicating operational efficiency.

Balance Sheet

The balance sheet is stable with a healthy equity ratio of 54.75%, showing strong asset backing by equity. The debt-to-equity ratio has improved to 0.09, reflecting prudent leverage management. ROE stands at an impressive 29.78%, indicating efficient utilization of equity for generating profits. However, total debt remains a consideration for future leverage levels.

Cash Flow

Inter Parfums demonstrates excellent cash flow management with a strong free cash flow growth of 15.17% in TTM. The operating cash flow to net income ratio is high at 0.99, indicating effective conversion of income into cash. The free cash flow to net income ratio is also strong at 0.90, suggesting efficient cash utilization for growth and operations.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.47B	1.45B	1.32B	1.09B	879.52M	539.01M
	Gross Profit
940.93M	927.34M	839.08M	694.42M	556.90M	330.73M
	EBIT
285.90M	278.80M	251.38M	194.30M	148.05M	70.08M
	EBITDA
299.66M	300.57M	280.98M	223.89M	171.65M	79.15M
	Net Income Common Stockholders
234.87M	164.36M	152.65M	120.94M	87.41M	38.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
171.93M	234.74M	182.77M	255.55M	319.63M	296.31M
	Total Assets
1.44B	1.41B	1.37B	1.31B	1.15B	890.14M
	Total Debt
68.76M	192.19M	192.37M	209.67M	184.05M	51.19M
	Net Debt
-27.86M	66.76M	103.91M	104.96M	24.43M	-118.49M
	Total Liabilities
433.01M	468.62M	482.42M	520.40M	407.03M	187.69M
	Stockholders Equity
788.64M	744.87M	699.39M	616.78M	571.92M	535.84M
Cash Flow		Free Cash Flow
210.67M	182.90M	52.41M	-17.47M	-23.23M	52.73M
	Operating Cash Flow
232.24M	187.64M	105.77M	115.15M	119.59M	64.99M
	Investing Cash Flow
-45.24M	-44.83M	7.26M	-132.76M	-187.87M	-22.33M
	Financing Cash Flow
-111.07M	-100.77M	-133.21M	-45.57M	78.19M	-18.64M

Inter Parfums Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 137.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPAR, the sentiment is Positive. The current price of 137.57 is above the 20-day moving average (MA) of 134.67, above the 50-day MA of 120.27, and above the 200-day MA of 125.26, indicating a bullish trend. The MACD of 4.74 indicates Positive momentum. The RSI at 66.18 is Neutral, neither overbought nor oversold. The STOCH value of 53.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IPAR.

Inter Parfums Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPAR	82 Outperform	$4.37B	26.44	22.16%	2.35%	10.32%	18.55%
ELF	75 Outperform	$7.06B	65.22	15.97%	―	28.28%	-14.79%
EPC	65 Neutral	$1.10B	13.61	5.53%	2.59%	-2.11%	-28.79%
Sector *	62 Neutral	$6.88B	11.07	2.77%	4.28%	2.67%	-24.94%
COTY	61 Neutral	$4.13B	40.12	-10.58%	―	-1.68%	-302.11%
EL	59 Neutral	$26.83B	147.29	-17.27%	2.08%	-3.70%	-235.59%
SPB	58 Neutral	$1.32B	25.30	2.79%	3.63%	1.46%	-95.70%

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, driven by strong demand for key brands and new fragrance innovations. The company reaffirmed its 2025 guidance and highlighted plans for future brand expansions, including the launch of its proprietary Solférino collection and the acquisition of Annick Goutal. Despite macroeconomic challenges, Interparfums maintained a strong financial position, with significant improvements in operating income and cash flow, and is actively mitigating potential supply chain impacts.

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.