DANONE (BN.PA)
FR0000120644 - Common Stock
Overall BN gets a fundamental rating of 3 out of 10. We evaluated BN against 57 industry peers in the Food Products industry. While BN is still in line with the averages on profitability rating, there are concerns on its financial health. BN has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
BN had positive earnings in the past year.
BN had a positive operating cash flow in the past year.
Each year in the past 5 years BN has been profitable.
In the past 5 years BN always reported a positive cash flow from operatings.
1.2 Ratios
BN has a Return On Assets (2.21%) which is in line with its industry peers.
BN has a Return On Equity of 5.99%. This is comparable to the rest of the industry: BN outperforms 48.21% of its industry peers.
BN has a Return On Invested Capital of 5.77%. This is comparable to the rest of the industry: BN outperforms 53.57% 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 6.79%.
The last Return On Invested Capital (5.77%) for BN is above the 3 year average (5.56%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 5.99% | ||
| ROIC | 5.77% |
ROA(3y)2.74%
ROA(5y)3.4%
ROE(3y)7.22%
ROE(5y)8.95%
ROIC(3y)5.56%
ROIC(5y)5.64%
1.3 Margins
BN has a Profit Margin (3.69%) which is in line with its industry peers.
BN's Profit Margin has declined in the last couple of years.
The Operating Margin of BN (12.83%) is better than 75.00% of its industry peers.
In the last couple of years the Operating Margin of BN has declined.
Looking at the Gross Margin, with a value of 48.44%, BN is in the better half of the industry, outperforming 76.79% of the companies in the same industry.
In the last couple of years the Gross Margin of BN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.83% | ||
| PM (TTM) | 3.69% | ||
| GM | 48.44% |
OM growth 3Y-3.56%
OM growth 5Y-2.72%
PM growth 3Y-27.27%
PM growth 5Y-19.71%
GM growth 3Y-0.48%
GM growth 5Y-0.41%
2. Health
2.1 Basic Checks
BN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BN has been increased compared to 1 year ago.
The number of shares outstanding for BN has been reduced compared to 5 years ago.
The debt/assets ratio for BN is higher compared to a year ago.
2.2 Solvency
BN has an Altman-Z score of 2.24. This is not the best score and indicates that BN is in the grey zone with still only limited risk for bankruptcy at the moment.
BN has a Altman-Z score of 2.24. This is comparable to the rest of the industry: BN outperforms 51.79% of its industry peers.
The Debt to FCF ratio of BN is 5.88, which is a neutral value as it means it would take BN, 5.88 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BN (5.88) is comparable to the rest of the industry.
BN has a Debt/Equity ratio of 0.78. This is a neutral value indicating BN is somewhat dependend on debt financing.
BN has a worse Debt to Equity ratio (0.78) than 69.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 5.88 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.98
WACC5.88%
2.3 Liquidity
BN has a Current Ratio of 0.91. 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 0.91. This is amonst the worse of the industry: BN underperforms 80.36% of its industry peers.
BN has a Quick Ratio of 0.91. This is a bad value and indicates that BN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.74, BN is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
BN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.56%.
Measured over the past years, BN shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.22% on average per year.
The Revenue has decreased by -4.54% in the past year.
The Revenue has been growing slightly by 2.30% on average over the past years.
EPS 1Y (TTM)0.56%
EPS 3Y1.96%
EPS 5Y-0.22%
EPS Q2Q%2.27%
Revenue 1Y (TTM)-4.54%
Revenue growth 3Y5.35%
Revenue growth 5Y2.3%
Sales Q2Q%-2.89%
3.2 Future
The Earnings Per Share is expected to grow by 5.95% on average over the next years.
BN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.70% yearly.
EPS Next Y2.72%
EPS Next 2Y4.86%
EPS Next 3Y6%
EPS Next 5Y5.95%
Revenue Next Year-2.02%
Revenue Next 2Y0.51%
Revenue Next 3Y1.55%
Revenue Next 5Y2.7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.90, the valuation of BN can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as BN.
BN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.73.
BN is valuated correctly with a Price/Forward Earnings ratio of 16.46.
64.29% of the companies in the same industry are cheaper than BN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BN to the average of the S&P500 Index (22.83), we can say BN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.9 | ||
| Fwd PE | 16.46 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BN.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.33 | ||
| EV/EBITDA | 8.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)6.58
PEG (5Y)N/A
EPS Next 2Y4.86%
EPS Next 3Y6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.23%, BN has a reasonable but not impressive dividend return.
BN's Dividend Yield is a higher than the industry average which is at 3.15.
BN's Dividend Yield is a higher than the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
5.2 History
On average, the dividend of BN grows each year by 24.27%, which is quite nice.
Dividend Growth(5Y)24.27%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
BN pays out 134.40% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP134.4%
EPS Next 2Y4.86%
EPS Next 3Y6%
DANONE
EPA:BN (12/20/2024, 7:00:00 PM)
64.08
-0.36 (-0.56%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners54.49%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap43.55B
Analysts72.94
Price Target68.73 (7.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
Dividend Growth(5Y)24.27%
DP134.4%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.56%
PT rev (3m)4.29%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.9 | ||
| Fwd PE | 16.46 | ||
| P/S | 1.6 | ||
| P/FCF | 16.33 | ||
| P/OCF | 12.36 | ||
| P/B | 2.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.98 |
EPS(TTM)3.58
EY5.59%
EPS(NY)3.89
Fwd EY6.07%
FCF(TTM)3.92
FCFY6.12%
OCF(TTM)5.18
OCFY8.09%
SpS40.04
BVpS24.64
TBVpS-10.05
PEG (NY)6.58
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 5.99% | ||
| ROCE | 11.32% | ||
| ROIC | 5.77% | ||
| ROICexc | 7.09% | ||
| ROICexgc | 48.71% | ||
| OM | 12.83% | ||
| PM (TTM) | 3.69% | ||
| GM | 48.44% | ||
| FCFM | 9.8% |
ROA(3y)2.74%
ROA(5y)3.4%
ROE(3y)7.22%
ROE(5y)8.95%
ROIC(3y)5.56%
ROIC(5y)5.64%
ROICexc(3y)6.63%
ROICexc(5y)6.61%
ROICexgc(3y)38.45%
ROICexgc(5y)35.29%
ROCE(3y)10.43%
ROCE(5y)10.57%
ROICexcg growth 3Y16.02%
ROICexcg growth 5Y3.63%
ROICexc growth 3Y4.15%
ROICexc growth 5Y1.16%
OM growth 3Y-3.56%
OM growth 5Y-2.72%
PM growth 3Y-27.27%
PM growth 5Y-19.71%
GM growth 3Y-0.48%
GM growth 5Y-0.41%
F-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 5.88 | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 52.52% | ||
| Cap/Sales | 3.15% | ||
| Interest Coverage | -6.46 | ||
| Cash Conversion | 68.78% | ||
| Profit Quality | 265.8% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 2.24 |
F-Score6
WACC5.88%
ROIC/WACC0.98
Cap/Depr(3y)60.63%
Cap/Depr(5y)63.35%
Cap/Sales(3y)3.51%
Cap/Sales(5y)3.67%
Profit Quality(3y)215.54%
Profit Quality(5y)176.02%
High Growth Momentum
Growth
EPS 1Y (TTM)0.56%
EPS 3Y1.96%
EPS 5Y-0.22%
EPS Q2Q%2.27%
EPS Next Y2.72%
EPS Next 2Y4.86%
EPS Next 3Y6%
EPS Next 5Y5.95%
Revenue 1Y (TTM)-4.54%
Revenue growth 3Y5.35%
Revenue growth 5Y2.3%
Sales Q2Q%-2.89%
Revenue Next Year-2.02%
Revenue Next 2Y0.51%
Revenue Next 3Y1.55%
Revenue Next 5Y2.7%
EBIT growth 1Y-0.2%
EBIT growth 3Y1.61%
EBIT growth 5Y-0.48%
EBIT Next Year34.37%
EBIT Next 3Y14.41%
EBIT Next 5Y10.04%
FCF growth 1Y27.44%
FCF growth 3Y8.99%
FCF growth 5Y3.65%
OCF growth 1Y14.99%
OCF growth 3Y5.08%
OCF growth 5Y2.05%