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Examining Inter Parfums, Inc.'s (NASDAQ:IPAR) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess IPAR's latest performance announced on 31 March 2019 and weigh these figures against its longer term trend and industry movements.
How Well Did IPAR Perform?
IPAR's trailing twelve-month earnings (from 31 March 2019) of US$57m has jumped 29% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 19%, indicating the rate at which IPAR is growing has accelerated. How has it been able to do this? Let's see if it is solely a result of industry tailwinds, or if Inter Parfums has seen some company-specific growth.
In terms of returns from investment, Inter Parfums has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. Furthermore, its return on assets (ROA) of 6.7% is below the US Personal Products industry of 13%, indicating Inter Parfums's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Inter Parfums’s debt level, has increased over the past 3 years from 10.0% to 15%.
What does this mean?
Though Inter Parfums's past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Inter Parfums to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for IPAR’s future growth? Take a look at our free research report of analyst consensus for IPAR’s outlook.
- Financial Health: Are IPAR’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures.
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 firstname.lastname@example.org. 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.