Interparfums shares have returned to important technical levels around 41.27 EUR based on weekly price data. The timing seems attractive to be a buyer of this stock.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Strengths
● The company is in a robust financial situation considering its net cash and margin position.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Sales forecast by analysts have been recently revised upwards.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● Analyst opinion has improved significantly over the past four months.
● Over the past twelve months, analysts' opinions have been strongly revised upwards.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 34.7 times its estimated earnings per share for the ongoing year.
● The company's enterprise value to sales, at 3.94 times its current sales, is high.
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
● The valuation of the company is particularly high given the cash flows generated by its activity.
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Interparfums specializes in the design, manufacturing and marketing of luxury fragrances. The group's activity is organized primarily around 2 product families:
- fragrance: Montblanc, Jimmy Choo, Coach, Lanvin, Rochas, Boucheron, Karl Lagerfeld, Van Cleef & Arpels, Paul Smith, Kate Spade, Moncler, Repetto and S.T. Dupont brands;
- women's and men's fashion items: Rochas brand.
Products were being marketed through perfume shops, franchise chains and department stores in France, and through import companies, airports, and airlines abroad.
Net sales are distributed geographically as follows: France (5.4%), Europe (24.5%), North America (40.4%), Asia (14.5%), South America (8.3%), Middle East (6.3%) and Africa (0.6%).