Inter Parfums (IPAR) Is Today's Strong And Under The Radar Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Inter Parfums ( IPAR) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Inter Parfums as such a stock due to the following factors:

  • IPAR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.7 million.
  • IPAR is making at least a new 3-day high.
  • IPAR has a PE ratio of 34.
  • IPAR is mentioned 1.23 times per day on StockTwits.
  • IPAR has not yet been mentioned on StockTwits today.
  • IPAR is currently in the upper 20% of its 1-year range.
  • IPAR is in the upper 35% of its 20-day range.
  • IPAR is in the upper 45% of its 5-day range.
  • IPAR is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on IPAR:

Inter Parfums, Inc., together with its subsidiaries, manufactures, markets, and distributes a range of fragrances and fragrance related products worldwide. It offers its prestige products under the Balmain, Boucheron, Jimmy Choo, Karl Lagerfeld, Lanvin, Montblanc, Paul Smith, S.T. The stock currently has a dividend yield of 1.6%. IPAR has a PE ratio of 34. Currently there are 2 analysts that rate Inter Parfums a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Inter Parfums has been 81,200 shares per day over the past 30 days. Inter Parfums has a market cap of $1.0 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.89 and a short float of 1.9% with 4.64 days to cover. Shares are up 21.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Inter Parfums as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins, solid stock price performance and growth in earnings per share. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • IPAR's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.35, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 95.19% to -$1.31 million when compared to the same quarter last year. In addition, INTER PARFUMS INC has also vastly surpassed the industry average cash flow growth rate of 17.98%.
  • The gross profit margin for INTER PARFUMS INC is rather high; currently it is at 63.93%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.15% trails the industry average.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • INTER PARFUMS INC has improved earnings per share by 10.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, INTER PARFUMS INC reported lower earnings of $0.96 versus $1.27 in the prior year. This year, the market expects an improvement in earnings ($1.01 versus $0.96).

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