One-glance verdict
Undervalued
$157.21 our estimate vs market $117.09
Wall Street consensus: $126.50 (-19.5% lower than our fair-value estimate)
26% below our estimate, below the bear case
Fundamentals snapshot
Interparfums, Inc.
IPAR · NMS · Consumer Defensive · Household & Personal Products
Current price
$117.09
52-week range
$77.21 - $129.29
Market cap
$3.75B
Balance sheet
Healthy
37.30x Strong cushion
Net cash $46.43M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 21.3% last year.
- Reward Returns 19.1% on equity, ahead of 83% of its peers.
- Risk Forward P/E (22.5x) is higher than trailing (22.3x) - earnings are expected to drop.
- Risk Operating margin compressed from 18.6% to 12.3% over 3 years.
What this company does
Interparfums, Inc.
Interparfums makes and sells popular perfumes and other beauty products under designer names like Coach and Guess. Most of their money comes from selling these fragrances in Europe and the United States, which matters because it shows how well their brands are performing in different big markets.
How the company got here
Interparfums started in 1982, founded by Jean Madar and Philippe Benacin. Initially, the company focused on creating affordable versions of designer fragrances. A key turning point came in the early 1990s when its French subsidiary secured the exclusive license for Burberry fragrances. This success paved the way for Interparfums to build a portfolio of luxury licensed brands, leading to a name change to Inter Parfums, Inc. in 1999 to reflect the growing importance of its European operations. The company established a unique dual operating structure with headquarters in New York and a major operational center in Paris.
What it actually does
Interparfums is in the business of creating and selling prestige fragrances and related products. Instead of building its own brand names from scratch, the company partners with well-known fashion, luxury, and lifestyle brands. It licenses these brands to develop, manufacture, and distribute perfumes and other scented products under their names. This strategy allows Interparfums to leverage the existing recognition and appeal of these established brands to reach consumers globally.
European Based Operations
This segment is managed primarily through Interparfums SA, the company's majority-owned subsidiary based in Paris, France. It handles a significant portion of the company's fragrance portfolio and operates much of the European fragrance business infrastructure. This part of the business is responsible for developing and distributing fragrances for many luxury brands, contributing a substantial majority of Interparfums' overall net sales. The brands managed here include names like Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, and Montblanc.
United States Based Operations
This segment is managed under the U.S. parent structure and its related subsidiaries. It is responsible for brands based in the United States and for managing accounts within the U.S. market. While it contributes a smaller portion of the company's total revenue compared to the European operations, it is still a vital part of Interparfums' global reach. Brands managed under this segment include Abercrombie & Fitch, Anna Sui, Donna Karan, DKNY, GUESS, and Oscar de la Renta.
What management is betting on now
Interparfums' current strategy focuses on expanding its portfolio of brands through new licensing agreements and strategic acquisitions. A key priority is building out the fragrance business for brands like Lacoste, following the acquisition of its global license, and developing the Donna Karan and DKNY fragrance platforms. The company is also looking to grow in fast-growing markets and channels, including emerging markets where demand for luxury fragrances is increasing. This approach aims to drive revenue growth and diversify its income streams by leveraging the equity of established names in the prestige fragrance market.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$75.37M
FY2024 Q4
$136.11M
FY2025 Q1
$-8.80M
FY2025 Q2
$-3.32M
FY2025 Q3
$57.63M
FY2025 Q4
$144.98M
FY2026 Q1
$-1.28M
FY2026 Q2
$44.56M
Revenue
—
Net income
$30.49M
Diluted EPS
0.95
Operating cash flow
$45.58M
Free cash flow
$44.56M
Fetching…
Sources
Revenue
—
Net income
$43.37M
Diluted EPS
1.35
Operating cash flow
$85.00K
Free cash flow
$-1.28M
Fetching…
Sources
Revenue
—
Net income
$28.10M
Diluted EPS
0.88
Operating cash flow
$146.53M
Free cash flow
$144.98M
Fetching…
Sources
Revenue
—
Net income
$65.81M
Diluted EPS
2.05
Operating cash flow
$63.86M
Free cash flow
$57.63M
Fetching…
Sources
Revenue
—
Net income
$31.99M
Diluted EPS
0.99
Operating cash flow
$11.87M
Free cash flow
$-3.32M
Fetching…
Sources
Revenue
—
Net income
$42.49M
Diluted EPS
1.32
Operating cash flow
$-7.36M
Free cash flow
$-8.80M
Fetching…
Sources
Revenue
—
Net income
$24.23M
Diluted EPS
0.78
Operating cash flow
$137.96M
Free cash flow
$136.11M
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Sources
Revenue
—
Net income
$62.26M
Diluted EPS
1.93
Operating cash flow
$76.14M
Free cash flow
$75.37M
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Sources
Is it cheap or expensive?
Fair value $157.21 vs current price $117.09
Wall Street consensus is the average analyst price target: $126.50 (-19.5% lower than our fair-value estimate).
Our most-likely fair value is $157.21 a share — about 34.3% above today's price of $117.09, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $46.4M - more cash than debt. Interest coverage 37.3x.
Net debt
$-46.43M
Interest coverage
37.30x
Interparfums, Inc.'s profit covers its interest bill about 37.3 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
IPAR
BASELINE
Interparfums, Inc.
Total debt $164.91M Interest coverage 37.30x This is the baseline the peer rows are being compared against.
Total debt $3.30B Interest coverage 1.53x -96% vs IPAR Carries about 24.4x less debt cushion than IPAR.
Total debt $929.30M Interest coverage 3.22x -91% vs IPAR Carries about 11.6x less debt cushion than IPAR.
Total debt $9.20B Interest coverage 5.02x -87% vs IPAR Carries about 7.4x less debt cushion than IPAR.
Total debt $559.24M Interest coverage 7.01x -81% vs IPAR Carries about 5.3x less debt cushion than IPAR.
Total debt $1.28B Interest coverage 2.67x -93% vs IPAR Carries about 14.0x less debt cushion than IPAR.
What you should know
The case for and against IPAR
3 Rewards
2 Risks
Rewards
-
Revenue grew 21.3% last year.
-
Returns 19.1% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Forward P/E (22.5x) is higher than trailing (22.3x) - earnings are expected to drop.
-
Operating margin compressed from 18.6% to 12.3% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
22.35x
Forward P/E
22.51x
P/B
4.31x
P/S
2.50x
EV/EBITDA
14.17x
PEG ratio
3.20x
Profitability
How much profit each dollar creates
Gross margin
58.4%
Operating margin
12.3%
Net margin
11.2%
ROE
19.1%
ROA
10.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.15x
Current ratio
3.31x
Quick ratio
1.83x
Total debt
$164.91M
Total cash
$211.35M
Growth
How the business has been compounding
Revenue TTM
$3.82B
Revenue 5Y CAGR
16.6%
EPS TTM
5.24
EPS 5Y CAGR
11.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$256.06M
Free CF TTM
$190.49M
FCF margin
5.0%
Dividend
Shareholder payout
Yield
2.7%
Payout ratio
61.1%
Last ex-div date
2026-09-15