One-glance verdict
Within fair range
$135.45 our estimate vs market $112.51
Wall Street consensus: $126.67 (-6.5% lower than our fair-value estimate)
17% below our estimate
Fundamentals snapshot
Interparfums, Inc.
IPAR · NMS · Consumer Defensive · Household & Personal Products
Current price
$112.51
52-week range
$77.21 - $129.29
Market cap
$3.60B
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 (21.6x) is higher than trailing (21.5x) - 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 creates and sells perfumes for famous luxury brands like Coach, GUESS, and Jimmy Choo. The company's main business is licensing (paying for the right to use a brand's name on a product), which allows them to sell a wide variety of fragrances in stores worldwide without the cost and risk of building a brand from scratch. This matters because their success is tied to the popularity of many different well-known brands rather than just one.
How the company got here
Interparfums started in 1982 as Jean Philippe Fragrances, originally making affordable versions of popular, expensive perfumes. [6, 9] A major turning point came in 1993 when they signed a licensing agreement (a deal to use another company's brand name on a product in exchange for a fee) with the fashion brand Burberry. [10, 14] This deal shifted their focus from imitation fragrances to creating and selling perfumes for well-known luxury brands, which became the core of their business. The company officially changed its name to Interparfums, Inc. in 1999 and has grown by adding more famous brands to its portfolio one by one. [6, 9]
What it actually does
Interparfums creates, produces, and sells fragrances for famous fashion and luxury brands like Coach, GUESS, and Montblanc. [2, 4] Instead of owning the brands themselves, they sign long-term deals to act as the official perfume maker for these names. [8] The company doesn't own factories; it develops the scent and packaging, then hires other companies to actually make the products, a cost-effective approach known as an asset-light business model. [4, 7] These fragrances are then sold to customers in over 120 countries through department stores, specialty beauty shops, and duty-free stores in airports. [4, 7]
European Based Operations
This is the company's largest business division, making up more than two-thirds of its sales. [7] Run from its office in Paris, this segment manages the fragrance licenses for a host of well-known, primarily European luxury brands. [2, 7] Big names in this group include Jimmy Choo, Montblanc, Coach, and Lacoste. [7, 18] Retailers like department stores and perfumeries pay this division for the finished, branded fragrance products to sell in their stores across the globe.
United States Based Operations
This part of the company accounts for the rest of the business, roughly one-third of total sales. [7] It focuses on creating and selling fragrances for primarily American brands. [2] Shoppers would recognize names like Abercrombie & Fitch, GUESS, Donna Karan (DKNY), and Oscar de la Renta in this portfolio. [7, 18] Just like the European side, this segment sells its finished perfumes to distributors and major retailers, who then sell them to the public.
What management is betting on now
The company's leadership is focused on growing its newest big partnerships, especially with the brands Lacoste and Donna Karan/DKNY. [2] They are also pushing to expand sales in fast-growing markets, with a particular focus on Asia. [3, 4] To avoid being too dependent on any single brand, they are actively looking to sign more licensing deals and even buy some smaller brands outright. [3] Finally, management is investing in selling more directly to consumers online, which allows them to gather valuable customer data and potentially increase their profit margins (the portion of sales revenue that turns into profit). [3]
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
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Net income
$30.49M
Diluted EPS
0.95
Operating cash flow
$45.58M
Free cash flow
$44.56M
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Sources
Revenue
—
Net income
$43.37M
Diluted EPS
1.35
Operating cash flow
$85.00K
Free cash flow
$-1.28M
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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 $135.45 vs current price $112.51
Wall Street consensus is the average analyst price target: $126.67 (-6.5% lower than our fair-value estimate).
Our most-likely fair value is $135.45 a share — about 20.4% away from today's price of $112.51, so the stock currently looks fairly priced.
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 $9.25B 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 (21.6x) is higher than trailing (21.5x) - 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)
21.51x
Forward P/E
21.62x
P/B
4.14x
P/S
2.40x
EV/EBITDA
13.64x
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
5.23
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
2.9%
Payout ratio
61.2%
Last ex-div date
2026-09-15