Interparfums shares are closing in on important technical levels. The technical chart pattern suggests that the currently tested resistance will be broken and new upside potential arises while volatility is likely to increase. Investors could get ahead of this signal in order to benefit from a better risk/reward ratio.
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.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The opinion of analysts covering the stock has improved over the past four months.
● Consensus analysts have strongly revised their opinion of the company over the past 12 months.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 40.62 times its estimated earnings per share for the ongoing year.
● With an enterprise value anticipated at 4.63 times the sales for the current fiscal year, the company turns out to be overvalued.
● 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.
● The average price target of analysts who are interested in the stock has been significantly revised downwards over the last four months.
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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%).