Interparfums SA (EPA:ITP): The Best Of Both Worlds

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Attractive stocks have exceptional fundamentals. In the case of Interparfums SA (EPA:ITP), there's is a financially-healthy , dividend-paying company with a strong history of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Interparfums here.

Excellent balance sheet with solid track record and pays a dividend

In the previous year, ITP has ramped up its bottom line by 18%, with its latest earnings level surpassing its average level over the last five years. Not only did ITP outperformed its past performance, its growth also exceeded the Personal Products industry expansion, which generated a 5.9% earnings growth. This paints a buoyant picture for the company. ITP's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. ITP seems to have put its debt to good use, generating operating cash levels of 1.65x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

ENXTPA:ITP Income Statement, August 23rd 2019
ENXTPA:ITP Income Statement, August 23rd 2019

Income investors would also be happy to know that ITP is a great dividend company, with a current yield standing at 1.6%. ITP has also been regularly increasing its dividend payments to shareholders over the past decade.

ENXTPA:ITP Historical Dividend Yield, August 23rd 2019
ENXTPA:ITP Historical Dividend Yield, August 23rd 2019

Next Steps:

For Interparfums, I've put together three fundamental factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for ITP’s future growth? Take a look at our free research report of analyst consensus for ITP’s outlook.

  2. Valuation: What is ITP worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ITP is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ITP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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