Does INTERPARFUMS INC (NASDAQ:IPAR) match Peter Lynch’s “Invest in What You Know” philosophy?

Lynch preferred companies with low P/E ratios relative to growth, manageable debt, and strong profitability. In this analysis, we see if INTERPARFUMS INC (NASDAQ:IPAR) fits his winning formula.

Following Peter Lynch’s approach: Does INTERPARFUMS INC (NASDAQ:IPAR) fit the bill?

• IPAR has a healthy Return on Equity(ROE) of 19.34%. This demonstrates the company's efficient utilization of capital and indicates its commitment to driving profitability.
• Maintaining a Debt-to-Equity ratio of 0.18, IPAR demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.
• The 5-year EPS growth of IPAR (22.27) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• IPAR boasts a PEG ratio of 0.98, indicating a reasonable valuation relative to its earnings growth.
• With a Current Ratio of 2.82, IPAR demonstrates solid short-term financial stability.

What else is there to say on the fundamentals of IPAR?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall IPAR gets a fundamental rating of 6 out of 10. We evaluated IPAR against 35 industry peers in the Personal Care Products industry. Both the health and profitability get an excellent rating, making IPAR a very profitable company, without any liquidiy or solvency issues. IPAR has a correct valuation and a medium growth rate. These ratings could make IPAR a good candidate for quality investing.

For an up to date full fundamental analysis you can check the fundamental report of IPAR

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Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.