DANONE (BN.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:BN - FR0000120644 - Common Stock
66.75 EUR
+0.59 (+0.89%)
Overall BN gets a fundamental rating of 5 out of 10. We evaluated BN against 62 industry peers in the Food Products industry. While BN has a great profitability rating, there are quite some concerns on its financial health. BN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year BN was profitable.
- BN had a positive operating cash flow in the past year.
- In the past 5 years BN has always been profitable.
- BN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.20%, BN is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
- The Return On Equity of BN (11.59%) is better than 67.74% of its industry peers.
- BN has a Return On Invested Capital of 6.83%. This is in the better half of the industry: BN outperforms 64.52% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BN is in line with the industry average of 7.38%.
- The last Return On Invested Capital (6.83%) for BN is above the 3 year average (6.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.2% | ||
| ROE | 11.59% | ||
| ROIC | 6.83% |
ROA(3y)2.83%
ROA(5y)3.44%
ROE(3y)7.34%
ROE(5y)9%
ROIC(3y)6.38%
ROIC(5y)6.21%
1.3 Margins
- The Profit Margin of BN (6.72%) is better than 74.19% of its industry peers.
- In the last couple of years the Profit Margin of BN has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 13.25%, BN is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
- BN's Operating Margin has declined in the last couple of years.
- BN has a better Gross Margin (50.47%) than 83.87% of its industry peers.
- BN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.25% | ||
| PM (TTM) | 6.72% | ||
| GM | 50.47% |
OM growth 3Y-1.81%
OM growth 5Y-3.08%
PM growth 3Y-1.94%
PM growth 5Y-0.54%
GM growth 3Y1.56%
GM growth 5Y0.26%
2. Health
2.1 Basic Checks
- BN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- BN has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, BN has less shares outstanding
- The debt/assets ratio for BN has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.38 indicates that BN is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.38, BN is in line with its industry, outperforming 58.06% of the companies in the same industry.
- The Debt to FCF ratio of BN is 5.07, which is a neutral value as it means it would take BN, 5.07 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 5.07, BN is doing good in the industry, outperforming 70.97% of the companies in the same industry.
- BN has a Debt/Equity ratio of 0.83. This is a neutral value indicating BN is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.83, BN is not doing good in the industry: 67.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.07 | ||
| Altman-Z | 2.38 |
ROIC/WACC1.08
WACC6.34%
2.3 Liquidity
- BN has a Current Ratio of 0.95. This is a bad value and indicates that BN is not financially healthy enough and could expect problems in meeting its short term obligations.
- BN has a Current ratio of 0.95. This is in the lower half of the industry: BN underperforms 67.74% of its industry peers.
- BN has a Quick Ratio of 0.95. This is a bad value and indicates that BN is not financially healthy enough and could expect problems in meeting its short term obligations.
- BN has a Quick ratio (0.78) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
- BN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.47%.
- The Earnings Per Share has been decreasing by -1.17% on average over the past years.
- The Revenue has been growing slightly by 0.54% in the past year.
- Measured over the past years, BN shows a small growth in Revenue. The Revenue has been growing by 1.60% on average per year.
EPS 1Y (TTM)4.47%
EPS 3Y3.12%
EPS 5Y-1.17%
EPS Q2Q%6.11%
Revenue 1Y (TTM)0.54%
Revenue growth 3Y4.08%
Revenue growth 5Y1.6%
Sales Q2Q%-0.15%
3.2 Future
- BN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.09% yearly.
- The Revenue is expected to grow by 2.86% on average over the next years.
EPS Next Y7.53%
EPS Next 2Y7.18%
EPS Next 3Y7.53%
EPS Next 5Y6.09%
Revenue Next Year0.7%
Revenue Next 2Y1.88%
Revenue Next 3Y2.56%
Revenue Next 5Y2.86%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 17.85 indicates a rather expensive valuation of BN.
- BN's Price/Earnings ratio is in line with the industry average.
- BN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.82.
- With a Price/Forward Earnings ratio of 16.01, BN is valued correctly.
- BN's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. BN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.85 | ||
| Fwd PE | 16.01 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BN is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, BN is valued a bit cheaper than the industry average as 69.35% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.85 | ||
| EV/EBITDA | 9.54 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- BN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.37
PEG (5Y)N/A
EPS Next 2Y7.18%
EPS Next 3Y7.53%
5. Dividend
5.1 Amount
- BN has a Yearly Dividend Yield of 3.15%.
- Compared to an average industry Dividend Yield of 2.38, BN pays a bit more dividend than its industry peers.
- BN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
5.2 History
- The dividend of BN has a limited annual growth rate of 1.58%.
Dividend Growth(5Y)1.58%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
- 74.99% of the earnings are spent on dividend by BN. This is not a sustainable payout ratio.
- The dividend of BN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP74.99%
EPS Next 2Y7.18%
EPS Next 3Y7.53%
DANONE / BN.PA FAQ
What is the ChartMill fundamental rating of DANONE (BN.PA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to BN.PA.
What is the valuation status for BN stock?
ChartMill assigns a valuation rating of 4 / 10 to DANONE (BN.PA). This can be considered as Fairly Valued.
How profitable is DANONE (BN.PA) stock?
DANONE (BN.PA) has a profitability rating of 7 / 10.
What are the PE and PB ratios of DANONE (BN.PA) stock?
The Price/Earnings (PE) ratio for DANONE (BN.PA) is 17.85 and the Price/Book (PB) ratio is 2.87.
What is the earnings growth outlook for DANONE?
The Earnings per Share (EPS) of DANONE (BN.PA) is expected to grow by 7.53% in the next year.