DANONE (BN.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:BN - FR0000120644 - Common Stock
67.54 EUR
-0.72 (-1.05%)
Overall BN gets a fundamental rating of 5 out of 10. We evaluated BN against 64 industry peers in the Food Products industry. BN has an excellent profitability rating, but there are concerns on its financial health. BN has a correct valuation and a medium growth rate.
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.
- In the past 5 years BN has always 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 of 4.20%. This is comparable to the rest of the industry: BN outperforms 59.38% of its industry peers.
- Looking at the Return On Equity, with a value of 11.59%, BN is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
- BN has a better Return On Invested Capital (6.83%) than 60.94% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BN is in line with the industry average of 7.95%.
- 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 68.75% of its industry peers.
- In the last couple of years the Profit Margin of BN has remained more or less at the same level.
- BN has a better Operating Margin (13.25%) than 76.56% of its industry peers.
- BN's Operating Margin has declined in the last couple of years.
- BN has a Gross Margin of 50.47%. This is amongst the best in the industry. BN outperforms 85.94% of its industry peers.
- 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 | 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BN is creating some value.
- Compared to 1 year ago, BN has more shares outstanding
- The number of shares outstanding for BN has been reduced compared to 5 years ago.
- The debt/assets ratio for BN has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.41 indicates that BN is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.41, BN perfoms like the industry average, outperforming 59.38% 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.
- BN has a better Debt to FCF ratio (5.07) than 68.75% of its industry peers.
- A Debt/Equity ratio of 0.83 indicates that 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: 67.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.07 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.07
WACC6.37%
2.3 Liquidity
- A Current Ratio of 0.95 indicates that BN may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.95, BN is doing worse than 68.75% of the companies in the same industry.
- 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 of 0.78. This is comparable to the rest of the industry: BN outperforms 46.88% of 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%.
- BN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.17% yearly.
- The Revenue has been growing slightly by 0.54% in the past year.
- The Revenue has been growing slightly by 1.60% on average over the past years.
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
- The Earnings Per Share is expected to grow by 6.09% on average over the next years.
- Based on estimates for the next years, BN will show a small growth in Revenue. The Revenue will grow by 2.86% on average per year.
EPS Next Y7.99%
EPS Next 2Y7.4%
EPS Next 3Y7.7%
EPS Next 5Y6.09%
Revenue Next Year0.7%
Revenue Next 2Y1.88%
Revenue Next 3Y2.56%
Revenue Next 5Y2.86%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 18.06 indicates a rather expensive valuation of BN.
- The rest of the industry has a similar Price/Earnings ratio as BN.
- The average S&P500 Price/Earnings ratio is at 27.21. BN is valued slightly cheaper when compared to this.
- BN is valuated correctly with a Price/Forward Earnings ratio of 16.13.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BN is on the same level as its industry peers.
- BN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.06 | ||
| Fwd PE | 16.13 |
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.
- 70.31% of the companies in the same industry are more expensive than BN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.04 | ||
| EV/EBITDA | 9.84 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BN does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of BN may justify a higher PE ratio.
PEG (NY)2.26
PEG (5Y)N/A
EPS Next 2Y7.4%
EPS Next 3Y7.7%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.81%, BN has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.42, BN pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, BN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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.
- BN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP74.99%
EPS Next 2Y7.4%
EPS Next 3Y7.7%
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 18.06 and the Price/Book (PB) ratio is 2.9.
What is the earnings growth outlook for DANONE?
The Earnings per Share (EPS) of DANONE (BN.PA) is expected to grow by 7.99% in the next year.