Interparfums Inc (IPAR) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E below the industry

Interparfums's P/E of 25.1 is below the Soap, Detergents, and Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations median of 29.9.

EV/EBITDA below its 5-year median

Interparfums's EV/EBITDA of 15.6 is below its 5-year median of 16.0.

P/B above the industry

Interparfums's price-to-book of 4.86 is above the Soap, Detergents, and Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations median of 4.86.

Trading below fair value

The share price of $133.19 is below our fair value estimate of $138.78.

Margin of safety under 20%

The price is 4.0% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 11.1% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 11.5% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 3.4% over the last twelve months, against a 5-year average of 34.5% a year.

Growing slower than the industry

Revenue grew 2.6% over the last twelve months; the Soap, Detergents, and Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations median is 5.9%.

Guidance unchanged

The latest outlook (2026 sales, Aug 4, 2026) was maintained, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 64.8% over the last twelve months, against 64.4% a year earlier.

Return on equity over 15%

Return on equity was 19.5% over the last twelve months and averaged 20.6% over five years.

Return on capital over 10%

Return on invested capital was 20.8%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Interparfums's return on equity of 19.5% is above the Soap, Detergents, and Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations median of -1.2%.

Earnings grew over 5 years

Net income grew 34.5% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 11.3% over the last twelve months, against a 5-year average of 11.1%.

Net margin above the industry

Interparfums's net margin of 11.3% is above the Soap, Detergents, and Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations median of 0.2%.

Low debt

Debt is 22.1% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 4.6% five years ago to 22.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 128% of total debt.

Interest well covered

Operating income covers interest expense 44.3 times.

Short-term assets cover short-term debts

Current assets are 3.33 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 8.26; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Interparfums paid dividends worth 2.4% of the share price over the last twelve months.

Yield below Treasuries

The 2.4% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Interparfums yields 2.4%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 60.2% of net income.

Covered by free cash flow

Dividends take 42.1% of free cash flow.