IPAR Stock Risk & Deep Value Analysis
Interparfums Inc
Consumer Defensive • Household & Personal Products
DVR Score
out of 10
What You Need to Know About IPAR Stock
We analyzed Interparfums Inc using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran IPAR through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate. Here's what we found.
IPAR Risk Analysis & Red Flags
What Could Go Wrong
Interparfums' revenue model relies heavily on the popularity and success of its licensed luxury brands. If a major licensed brand, such as Montblanc or Coach, experiences a significant decline in consumer appeal or if a key licensing agreement (e.g., generating 8-10% of total revenue) is not renewed within the next 18-24 months, it could lead to substantial revenue contraction without immediate replacement, impacting the reaffirmed FY2026 EPS guidance of $4.85.
Risk Matrix
Overall
Moderate
Financial
Low
Market
Medium
Competitive
Medium
Execution
Medium
Regulatory
Low
Red Flags
- ⚠
Limited organic growth: Q1 2026 revenue growth of 2% YoY indicates incremental expansion within a mature market, not the rapid acceleration needed for 10x potential.
- ⚠
Revenue miss despite EPS beat: Q1 2026 revenue ($344.9M) missed estimates ($366.8M) by $21.9M, suggesting potential demand softness or over-optimistic projections.
- ⚠
Dependence on licensing renewals: A significant portion of future revenue is contingent on the renewal of existing license agreements, the details and terms of which are not fully transparent.
Upcoming Risk Events
- 📅
Global Luxury Market Slowdown (ongoing, could intensify in H2 2026): A significant downturn in discretionary consumer spending on luxury goods could cause a 5-10% decrease in Q3/Q4 2026 sales, potentially missing annual guidance.
- 📅
Failure to Renew Key License (specific renewal dates not public, but typical within 12-24 months): Non-renewal of a top-tier brand license (e.g., contributing >5% of total revenue) by late 2027 would necessitate rapid replacement strategies, risking revenue contraction and increased marketing spend.
When to Reconsider
- 🚪
Exit if quarterly revenue drops below $300 million for two consecutive quarters, signaling a significant deceleration or loss of key accounts.
- 🚪
Sell if gross margin falls below 60% for a full fiscal year, indicating pricing pressure or unfavorable product mix shifts.
- 🚪
Exit if FY2026 EPS guidance of $4.85 is downgraded by more than 10% by management.
Unlock IPAR Risk Analysis & Red Flags
Create a free account to see the full analysis
What Does Interparfums Inc (IPAR) Do?
Market Cap
$2.97B
Sector
Consumer Defensive
Industry
Household & Personal Products
Employees
647
Interparfums, Inc., together with its subsidiaries, manufactures, markets, and distributes a range of fragrances and fragrance related products in the United States and internationally. It operates in two segments, European Based Operations and United States Based Operations. The company offers its fragrance and cosmetic products under the Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lanvin, Moncler, Montblanc, Rochas, Van Cleef & Arpels, Abercrombie & Fitch, Anna Sui, Donna Karan, DKNY, Emanual Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta, Ungaro, and Roberto Cavalli brands, as well as French Connection, Intimate, Solférino, Tristar, and Lacoste trademarks. It sells its products to department stores, perfumeries, specialty stores, duty free shops, and domestic and international wholesalers and distributors, as well as through e-commerce sites. The company was formerly known as Jean Philippe Fragrances, Inc. and changed its name to Inter Parfums, Inc. in July 1999. Interparfums, Inc. was founded in 1982 and is headquartered in New York, New York.
Visit Interparfums Inc WebsiteInvestment Thesis
If Interparfums continues to successfully onboard 1-2 new mid-to-large tier luxury fragrance licenses annually, alongside maintaining strong performance from its existing portfolio, then its annualized revenue could steadily grow by 5-7% to approximately $1.7-1.8B by FY2028, leading to an EPS north of $5.50 and supporting a market capitalization expansion to $3.5-4.0B, driven by its consistently high operating margins (20%+) and robust cash flow generation.
Is IPAR Stock Undervalued?
Unlock the full AI analysis for IPAR
Get the complete DVR score, risk analysis, and more
Unlock the full report
Create a free account to see the DVR score, risk flags, and AI analysis.
IPAR Price Targets & Strategy
12-Month Target
$105.20
Bull Case
$120.00
Bear Case
$85.00
Valuation Basis
Based on analyst consensus target, implying ~21.7x forward P/E on reaffirmed FY2026 EPS guidance of $4.85.
Entry Strategy
Dollar-cost average on dips towards $90 (psychological support level) if market volatility creates an opportunity.
Exit Strategy
Consider profit taking at $110 if approaching analyst high-end targets; stop loss at $85 (recent support zone).
Portfolio Allocation
1-3% for conservative risk tolerance, given its stability and dividend.
Price Targets & Strategy
Sign up free to unlock price targets and entry/exit strategies
Is IPAR Financially Healthy?
Valuation
P/E Ratio
17.54
Forward P/E
1.00
EV/EBITDA
1.00
PEG Ratio
1.00
Price/Book
1.00
Price/Sales
1.00
Profitability
Gross Margin
55.96%
Operating Margin
18.02%
Net Margin
11.33%
Return on Equity
19.50%
Revenue Growth
1.87%
EPS
$5.27
Balance Sheet
Current Ratio
2.99
Quick Ratio
1.97
Debt/Equity
0.21
Total Debt
$1
Cash & Equivalents
$1
Cash Flow
Operating Cash Flow
$1
Free Cash Flow
$1
EBITDA
$1
Other
Beta (Volatility)
1.18
Dividend Yield
3.45%
Does IPAR Have a Competitive Moat?
Sign in to unlockMoat Rating
🛡️ Narrow
Moat Trend
Stable
Moat Sources
3 Identified
IPAR's moat is durable due to its long-standing relationships with luxury brands and its proven ability to consistently deliver successful fragrances. The specialized nature of fragrance development and distribution creates high barriers to entry for new licensees and high switching costs for existing brand partners.
Moat Erosion Risks
- •Intensifying competition for new desirable brand licenses, potentially driving up royalty costs or reducing margins.
- •Decline in the overall luxury fragrance market or shifting consumer preferences away from existing licensed brands.
- •Inability to consistently innovate and create new popular fragrances that resonate with target demographics.
IPAR Competitive Moat Analysis
Sign up to see competitive advantages
IPAR Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral. Interparfums typically maintains a low profile in retail social media discussions, reflecting its stable, mature business model rather than speculative interest.
Institutional Sentiment
Positive. Analyst consensus is 'Moderate Buy,' and Zacks Research upgraded the stock from 'strong sell' to 'hold' on 2026-02-02, indicating improving sentiment among institutions. Total institutional ownership is 55.57%.
Insider Activity (Form 4)
No specific Form 4 transactions reported in the provided research for the last 90 days. Insider activity generally remains stable for this type of company.
Options Flow
Normal options activity. No specific unusual call or put volume identified in the provided research to suggest aggressive institutional positioning.
Earnings Intelligence
Next Earnings
Estimated early-August 2026 (for Q2 2026)
Surprise Probability
Medium
Historical Earnings Pattern
IPAR generally delivers consistent results. The stock tends to react moderately to earnings beats or misses, typically moving within a +/- 3-5% range, rather than experiencing significant volatility.
Key Metrics to Watch
Competitive Position
Top Competitor
Coty Inc (COTY)
Market Share Trend
Stable. IPAR consistently expands its portfolio with new licenses, enabling incremental market share gains within the prestige fragrance segment, rather than disruptive shifts.
Valuation vs Peers
Interparfums typically trades at a slight premium to some broad beauty peers due to its high-margin, asset-light licensing model and strong profitability, but may trade at a discount to luxury brand owners (e.g., LVMH) which command higher multiples for direct brand equity.
Competitive Advantages
- •Strong relationships and proven track record with luxury brand owners, making it a preferred partner for fragrance licensing.
- •Deep expertise in fragrance development, marketing, and global distribution, allowing efficient product launches.
- •Diversified portfolio of recognized prestige brands, reducing reliance on any single brand's performance.
Market Intelligence
Sign up free to unlock sentiment, earnings intel, and peer analysis
What Could Drive IPAR Stock Higher?
Near-Term (0-6 months)
- •Q2 2026 Earnings Report (estimated late July/early August 2026): Anticipate reaffirmation or slight upward revision of FY2026 guidance, particularly if June 2026 sales exceed internal targets, potentially boosting revenue expectations by 1-2%.
- •Dividend Payment ($0.80 per share, payable 2026-06-30): Confirms stable cash flow and commitment to shareholder returns, reinforcing its appeal as an income stock.
Medium-Term (6-18 months)
- •Launch of new Montblanc fragrance line (estimated Q4 2026): A successful launch could add an estimated $30-50 million to annual revenue by FY2027, validating brand-specific innovation within the licensing model.
- •Renewal of key licensing agreement (specific brand not identified in research, but typically 1-2 major renewals per year): Securing a multi-year extension for a top-5 revenue-generating brand (e.g., Coach, Jimmy Choo, Montblanc) by mid-2027 would de-risk future revenue streams, sustaining gross margins above 65%.
Long-Term (18+ months)
- •Acquisition of boutique fragrance brand (FY2028-2029): Strategic acquisition of a smaller, high-growth niche brand, integrating it into IPAR's distribution, could add ~$100 million in incremental annual revenue and diversify the portfolio by 2029.
- •Expansion into Asian markets via new regional partnerships (FY2028-2029): If IPAR secures 2-3 new distribution partners in underserved high-growth Asian luxury markets, it could increase market penetration for existing brands, aiming for an additional 5-7% of total revenue from these regions by 2029.
Catalysts & Growth Drivers
Sign up free to see growth catalysts
What's the Bull Case for IPAR?
- ✓
Monitor quarterly revenue growth: A consistent acceleration above 5% YoY would indicate stronger market penetration or highly successful new launches.
- ✓
Watch gross margin: Any sustained decline below 63% could signal increased input costs or pricing pressure.
- ✓
Observe the frequency and impact of new licensing announcements: The securing of a new license with a prominent luxury brand should add at least $25M to annual revenue guidance within 12 months.
Bull Case Analysis
Sign up free to see the bull case
Competing with IPAR
See how Interparfums Inc compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
Interparfums Inc IPAR | $3.0B | 1.5 | 17.5 | $1 | 11.3% | 1.9% | |
Costco Wholesale Corp COST | — | 0.7 | — | — | — | — | Compare → |
Coca-Cola Co KO | $339.2B | 0.5 | 24.8 | $48.9B | 27.8% | 5.1% | Compare → |
PepsiCo Inc PEP | — | 0.1 | — | — | — | — | Compare → |
Procter & Gamble Co PG | $341.2B | 0.2 | 20.5 | $84.3B | 19.2% | 3.3% | Compare → |
Walmart Inc WMT | $972.0B | 0.7 | 42.8 | $713.2B | 3.1% | 5.9% | Compare → |
📊 Explore More Stock Analysis
Get comprehensive Deep Value Reports for thousands of stocks. Research risk, financial health, and investment potential with our AI-powered analysis.
How Interparfums Inc Makes Money
Interparfums Inc. specializes in the design, manufacture, and worldwide distribution of prestige perfumes and cosmetics under license agreements. The company partners with luxury brand owners such as Montblanc, Jimmy Choo, and Coach, paying them royalties in exchange for the rights to create and sell fragrances under their brand names. This 'asset-light' model allows Interparfums to focus its expertise on product development, marketing, and distribution, leveraging established brand recognition to reach global consumers through a wide network of retailers and duty-free shops, without the capital intensity of owning the brands themselves.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Interparfums Inc (IPAR)?
As of May 27, 2026, Interparfums Inc has a DVR Score of 1.5 out of 10, placing it in the "Distressed" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Interparfums Inc?
Interparfums Inc's market capitalization is approximately $3.0B. The company operates in the Consumer Defensive sector within the Household & Personal Products industry.
What ticker symbol does Interparfums Inc use?
IPAR is the ticker symbol for Interparfums Inc. The company trades on the NMS.
What is the risk level for IPAR stock?
Our analysis rates Interparfums Inc's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of IPAR?
Interparfums Inc currently has a price-to-earnings (P/E) ratio of 17.5. This is in line with broader market averages.
Does Interparfums Inc pay a dividend?
Yes, Interparfums Inc pays a dividend with a current yield of approximately 3.45%.
Is Interparfums Inc's revenue growing?
Interparfums Inc has reported revenue growth of 1.9%. The company is growing at a moderate pace.
Is IPAR stock profitable?
Interparfums Inc has a profit margin of 11.3%. The company is profitable but margins are modest.
How often is the IPAR DVR analysis updated?
Our AI-powered analysis of Interparfums Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on May 27, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for IPAR (Interparfums Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.