| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 40.31 | 57 |
| Intrinsic value (DCF) | 35.26 | 37 |
| Graham-Dodd Method | 1.95 | -92 |
| Graham Formula | 32.02 | 25 |
Interparfums SA (ITP.PA) is a leading French luxury fragrance company specializing in the creation, manufacturing, and distribution of perfumes under prestigious brand licenses. Founded in 1982 and headquartered in Paris, the company operates under renowned names such as Boucheron, Coach, Jimmy Choo, Lanvin, Montblanc, and Van Cleef & Arpels. Interparfums leverages a diversified distribution network, including wholly owned subsidiaries, joint ventures, and duty-free operators, to serve global markets. As a subsidiary of Interparfums Holding SA, the company thrives in the competitive Household & Personal Products sector, capitalizing on strong brand partnerships and a robust portfolio. With a market cap of €2.76 billion and a presence in key luxury markets, Interparfums is well-positioned to benefit from the growing demand for premium fragrances worldwide.
Interparfums SA presents an attractive investment opportunity due to its strong brand portfolio, diversified distribution channels, and solid financial performance. The company reported €880.5 million in revenue and €129.9 million in net income for the latest fiscal year, with a diluted EPS of €1.79. Its operating cash flow of €107.7 million and manageable debt levels (€147.5 million) underscore financial stability. However, the stock's beta of 1.087 indicates higher volatility compared to the market, which may deter risk-averse investors. The luxury fragrance market's cyclical nature and reliance on brand licensing agreements also pose risks. Nonetheless, Interparfums' consistent dividend payout (€1.15 per share) and strategic brand partnerships make it a compelling choice for growth-oriented investors in the Consumer Defensive sector.
Interparfums SA competes in the high-end fragrance market by leveraging exclusive licensing agreements with luxury fashion and jewelry brands, differentiating itself from competitors that rely on in-house brands. Its diversified portfolio, including Coach, Jimmy Choo, and Montblanc, allows it to cater to varied consumer preferences and mitigate dependency on any single brand. The company's strong distribution network, combining owned subsidiaries and third-party operators, ensures global reach and operational flexibility. However, Interparfums faces intense competition from larger players like L'Oréal and Estée Lauder, which have greater resources for marketing and R&D. Additionally, the reliance on licensing agreements exposes it to renewal risks and royalty costs. Despite these challenges, Interparfums' niche focus on luxury fragrances and strategic partnerships provide a competitive edge in a market where brand prestige and exclusivity drive consumer demand.