INTERPARFUMS SA (ITP.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ITP - FR0004024222 - Common Stock
26.44 EUR
+0.5 (+1.93%)
Taking everything into account, ITP scores 7 out of 10 in our fundamental rating. ITP was compared to 12 industry peers in the Personal Care Products industry. Both the health and profitability get an excellent rating, making ITP a very profitable company, without any liquidiy or solvency issues. ITP is not valued too expensively and it also shows a decent growth rate. Finally ITP also has an excellent dividend rating. This makes ITP very considerable for dividend and quality investing!
1. Profitability
1.1 Basic Checks
- ITP had positive earnings in the past year.
- ITP had a positive operating cash flow in the past year.
- In the past 5 years ITP has always been profitable.
- ITP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 13.41%, ITP belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
- ITP has a Return On Equity (19.58%) which is in line with its industry peers.
- ITP has a better Return On Invested Capital (17.31%) than 75.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ITP is above the industry average of 12.19%.
- The 3 year average ROIC (15.36%) for ITP is below the current ROIC(17.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.41% | ||
| ROE | 19.58% | ||
| ROIC | 17.31% |
ROA(3y)11.64%
ROA(5y)9.71%
ROE(3y)17.98%
ROE(5y)14.66%
ROIC(3y)15.36%
ROIC(5y)12.75%
1.3 Margins
- Looking at the Profit Margin, with a value of 14.71%, ITP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- ITP's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 21.27%, ITP belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
- ITP's Operating Margin has improved in the last couple of years.
- The Gross Margin of ITP (65.62%) is better than 66.67% of its industry peers.
- In the last couple of years the Gross Margin of ITP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.27% | ||
| PM (TTM) | 14.71% | ||
| GM | 65.62% |
OM growth 3Y5.39%
OM growth 5Y6.47%
PM growth 3Y5.18%
PM growth 5Y7.12%
GM growth 3Y0.71%
GM growth 5Y0.91%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ITP is creating value.
- ITP has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ITP has about the same amount of shares outstanding.
- Compared to 1 year ago, ITP has about the same debt to assets ratio.
2.2 Solvency
- ITP has an Altman-Z score of 6.76. This indicates that ITP is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 6.76, ITP is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- ITP has a debt to FCF ratio of 1.59. This is a very positive value and a sign of high solvency as it would only need 1.59 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 1.59, ITP is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.19 indicates that ITP is not too dependend on debt financing.
- ITP has a Debt to Equity ratio of 0.19. This is amongst the best in the industry. ITP outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.59 | ||
| Altman-Z | 6.76 |
ROIC/WACC2.22
WACC7.78%
2.3 Liquidity
- ITP has a Current Ratio of 3.11. This indicates that ITP is financially healthy and has no problem in meeting its short term obligations.
- ITP has a better Current ratio (3.11) than 100.00% of its industry peers.
- ITP has a Quick Ratio of 1.74. This is a normal value and indicates that ITP is financially healthy and should not expect problems in meeting its short term obligations.
- ITP's Quick ratio of 1.74 is amongst the best of the industry. ITP outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.11 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 24.75% over the past year.
- The Earnings Per Share has been growing by 21.95% on average over the past years. This is a very strong growth
- The Revenue has grown by 9.68% in the past year. This is quite good.
- The Revenue has been growing by 12.70% on average over the past years. This is quite good.
EPS 1Y (TTM)24.75%
EPS 3Y24.52%
EPS 5Y21.95%
EPS Q2Q%5.17%
Revenue 1Y (TTM)9.68%
Revenue growth 3Y16.22%
Revenue growth 5Y12.7%
Sales Q2Q%5.76%
3.2 Future
- Based on estimates for the next years, ITP will show a small growth in Earnings Per Share. The EPS will grow by 4.32% on average per year.
- ITP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.80% yearly.
EPS Next Y2.49%
EPS Next 2Y-1.47%
EPS Next 3Y2.4%
EPS Next 5Y4.32%
Revenue Next Year1.22%
Revenue Next 2Y0.98%
Revenue Next 3Y3.33%
Revenue Next 5Y2.8%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- ITP is valuated correctly with a Price/Earnings ratio of 15.11.
- 100.00% of the companies in the same industry are more expensive than ITP, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of ITP to the average of the S&P500 Index (27.21), we can say ITP is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 17.21, the valuation of ITP can be described as rather expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as ITP.
- ITP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 17.21 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ITP indicates a somewhat cheap valuation: ITP is cheaper than 66.67% of the companies listed in the same industry.
- ITP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.93 | ||
| EV/EBITDA | 10.01 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ITP does not grow enough to justify the current Price/Earnings ratio.
- ITP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.08
PEG (5Y)0.69
EPS Next 2Y-1.47%
EPS Next 3Y2.4%
5. Dividend
5.1 Amount
- ITP has a Yearly Dividend Yield of 4.05%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.05, ITP pays a better dividend. On top of this ITP pays more dividend than 91.67% of the companies listed in the same industry.
- ITP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
5.2 History
- On average, the dividend of ITP grows each year by 16.94%, which is quite nice.
Dividend Growth(5Y)16.94%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
- 66.58% of the earnings are spent on dividend by ITP. This is not a sustainable payout ratio.
- ITP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP66.58%
EPS Next 2Y-1.47%
EPS Next 3Y2.4%
INTERPARFUMS SA / ITP.PA FAQ
What is the fundamental rating for ITP stock?
ChartMill assigns a fundamental rating of 7 / 10 to ITP.PA.
Can you provide the valuation status for INTERPARFUMS SA?
ChartMill assigns a valuation rating of 4 / 10 to INTERPARFUMS SA (ITP.PA). This can be considered as Fairly Valued.
Can you provide the profitability details for INTERPARFUMS SA?
INTERPARFUMS SA (ITP.PA) has a profitability rating of 8 / 10.
Can you provide the financial health for ITP stock?
The financial health rating of INTERPARFUMS SA (ITP.PA) is 8 / 10.
What is the earnings growth outlook for INTERPARFUMS SA?
The Earnings per Share (EPS) of INTERPARFUMS SA (ITP.PA) is expected to grow by 2.49% in the next year.