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Monday, 6 October 2003
October 6, 2003 Inter Parfums, Inc. (IPAR)
How about something sweet-smelling for an investment? How about a stock that is making money? Or how about I just tell you about this stock and cut out the nonsense? Now we are talking.

Came across this one today, Inter Parfums, Inc., sounds very French n'est ce pas?....but it is based in New York. IPAR is having a nice day today trading as I write at $10.98 up $.82 or 8.04%. I do not own any shares of this issue.

As you might guess, per money.cnn.com, Inter Parfums (IPAR) "...manufactures and distributes domestic and international brand name and licensed fragrances, alternative designer fragrances and mass market cosmetics."

On August 6, 2003, IPAR reported second quarter 2003 results. As reported on BUSINESS WIRE and picked up by the NYTimes on the Web, net sales increased 51% to $41.4 million from $27.4 million. Adjusting for comparable foreign currency exchange rates, the increase is reduced to a still healthy 38% ahead of last year.

Net Income increased 52% to $2.9 million from $1.9 million last year, and diluted earnings per share rose 50% to $.15 from $.10 per diluted share last year. (I am sure these last figures also need to be reduced slightly due to exchange rates effects).

The Morningstar.com look at the last 5 years looks very nice. Revenues have grown from $89 million in 1998, dropped slightly to $87 million in 1999, then up to $102 million in 2000, $112 million in 2001, $130 million in 2002, and is at $139 million for the trailing twelve months.

Net income has improved steadily from $5 million in 1998 to $10 million in the trailing twelve months.
Free cash flow is also healthy, improving from ($1) million in 2000, $5 million in 2001, $11 million in 2002, and $10 million in the trailing twelve months.

The balance sheet as reported by Morningstar also looks healthy: $40.4 million in cash and $86.5 million in other current assets vs. $38.6 million in current liabilities and only $15.2 million in long-term debt.

This is a small company with a market cap of $211.21 million per yahoo.com. The trailing p/e is nice at 18.82, the PEG ratio is reasonable at 0.99 and the price to sales ratio is also nice at 1.26.

There are 19.03 million shares outstanding with only 5.40 million of them that float. Only 12,000 shares are out short. And guess what? They even pay a small dividend of $0.08/share for a yield of 0.79%.
This stock has something for everyone!

O.K. I will stop the cheerleading....ruin my reputation...my only drawback on suggesting this stock is that is not consistent with my overall macho image. I mean how can real men suggest the purchase of a Perfume Factory? LOL

Hey thanks for stopping by again and I hope my posts are helpful to you and lead to greater not less financial success! Again, if you have any comments, questions, or words of encouragement, drop me a line at bobsadviceforstocks@lycos.com

Bob


Posted by bobsadviceforstocks at 2:17 PM CDT | Post Comment | Permalink

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