Inter Parfums, Inc.
Inter Parfums, Inc. Fundamental Analysis
Inter Parfums, Inc. (IPAR) shows strong financial fundamentals with a PE ratio of 19.83, profit margin of 11.24%, and ROE of 20.29%. The company generates $1.5B in annual revenue with strong year-over-year growth of 10.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 72.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze IPAR's fundamental strength across five key dimensions:
Efficiency Score
ExcellentIPAR demonstrates superior asset utilization.
Valuation Score
ExcellentIPAR trades at attractive valuation levels.
Growth Score
ModerateIPAR shows steady but slowing expansion.
Financial Health Score
ExcellentIPAR maintains a strong and stable balance sheet.
Profitability Score
ModerateIPAR maintains healthy but balanced margins.
Key Financial Metrics
Is IPAR Expensive or Cheap?
P/E Ratio
IPAR trades at 19.83 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IPAR's PEG of -1.13 indicates potential undervaluation.
Price to Book
The market values Inter Parfums, Inc. at 3.75 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.11 times EBITDA. This signals the market has high growth expectations.
How Well Does IPAR Make Money?
Net Profit Margin
For every $100 in sales, Inter Parfums, Inc. keeps $11.24 as profit after all expenses.
Operating Margin
Core operations generate 19.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.29 in profit for every $100 of shareholder equity.
ROA
Inter Parfums, Inc. generates $10.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Inter Parfums, Inc. produces operating cash flow of $206.02M, showing steady but balanced cash generation.
Free Cash Flow
Inter Parfums, Inc. produces free cash flow of $143.11M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.46 in free cash annually.
FCF Yield
IPAR converts 4.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How IPAR Stacks Against Its Sector Peers
| Metric | IPAR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.83 | 23.01 | Better (Cheaper) |
| ROE | 20.29% | 1228.00% | Weak |
| Net Margin | 11.24% | -4010.00% (disorted) | Strong |
| Debt/Equity | 0.26 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 3.27 | 2.35 | Strong Liquidity |
| ROA | 10.51% | -157546.00% (disorted) | Strong |
IPAR outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Inter Parfums, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
99.82%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
167.81%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
140.95%
Industry Style: Defensive, Dividend, Low Volatility
High Growth