DANONE (BN.PA) Stock Fundamental Analysis
Europe - EPA:BN - FR0000120644 - Common Stock
73.76 EUR
+0.28 (+0.38%)
We assign a fundamental rating of 5 out of 10 to BN. BN was compared to 58 industry peers in the Food Products industry. BN has an excellent profitability rating, but there are some minor concerns on its financial health. BN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BN was profitable.
In the past year BN had a positive cash flow from operations.
In the past 5 years BN has always been profitable.
Each year in the past 5 years BN had a positive operating cash flow.
1.2 Ratios
BN's Return On Assets of 4.20% is fine compared to the rest of the industry. BN outperforms 60.34% of its industry peers.
BN has a Return On Equity of 11.59%. This is in the better half of the industry: BN outperforms 65.52% of its industry peers.
BN's Return On Invested Capital of 6.83% is fine compared to the rest of the industry. BN outperforms 63.79% 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 7.05%.
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
With a decent Profit Margin value of 6.72%, BN is doing good in the industry, outperforming 72.41% of the companies in the same industry.
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 77.59% of its industry peers.
BN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 50.47%, BN is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BN is still 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 2.49 indicates that BN is not a great score, but indicates only limited risk for bankruptcy at the moment.
BN has a Altman-Z score of 2.49. This is in the better half of the industry: BN outperforms 62.07% of its industry peers.
BN has a debt to FCF ratio of 5.07. This is a neutral value as BN would need 5.07 years to pay back of all of its debts.
BN has a better Debt to FCF ratio (5.07) than 65.52% 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: 65.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.07 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.09
WACC6.24%
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.
The Current ratio of BN (0.95) is worse than 75.86% 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.
The Quick ratio of BN (0.78) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.47% over the past year.
The Earnings Per Share has been decreasing by -1.17% on average over the past years.
Looking at the last year, BN shows a small growth in Revenue. The Revenue has grown by 0.54% in the last 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
BN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.54% yearly.
The Revenue is expected to grow by 3.03% on average over the next years.
EPS Next Y7.14%
EPS Next 2Y6.65%
EPS Next 3Y7.05%
EPS Next 5Y5.54%
Revenue Next Year0.87%
Revenue Next 2Y1.88%
Revenue Next 3Y2.55%
Revenue Next 5Y3.03%
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.
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
Based on the Price/Earnings ratio of 19.72, the valuation of BN can be described as rather expensive.
BN's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of BN to the average of the S&P500 Index (27.38), we can say BN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.86, BN is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BN is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of BN to the average of the S&P500 Index (22.86), we can say BN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.72 | ||
| Fwd PE | 17.86 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BN.
The rest of the industry has a similar Price/Free Cash Flow ratio as BN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.52 | ||
| EV/EBITDA | 10.56 |
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)2.76
PEG (5Y)N/A
EPS Next 2Y6.65%
EPS Next 3Y7.05%
5. Dividend
5.1 Amount
BN has a Yearly Dividend Yield of 2.87%. Purely for dividend investing, there may be better candidates out there.
BN's Dividend Yield is a higher than the industry average which is at 3.27.
BN's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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
BN pays out 74.99% of its income as dividend. 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 2Y6.65%
EPS Next 3Y7.05%
EPA:BN (9/19/2025, 7:00:00 PM)
73.76
+0.28 (+0.38%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners48.65%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap50.26B
Analysts72.26
Price Target77.34 (4.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
Yearly Dividend2.1
Dividend Growth(5Y)1.58%
DP74.99%
Div Incr Years3
Div Non Decr Years4
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)0.19%
PT rev (3m)2.71%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-0.76%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.72 | ||
| Fwd PE | 17.86 | ||
| P/S | 1.84 | ||
| P/FCF | 17.52 | ||
| P/OCF | 13.07 | ||
| P/B | 3.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.56 |
EPS(TTM)3.74
EY5.07%
EPS(NY)4.13
Fwd EY5.6%
FCF(TTM)4.21
FCFY5.71%
OCF(TTM)5.64
OCFY7.65%
SpS40.15
BVpS23.28
TBVpS-9.5
PEG (NY)2.76
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.2% | ||
| ROE | 11.59% | ||
| ROCE | 12.02% | ||
| ROIC | 6.83% | ||
| ROICexc | 8.36% | ||
| ROICexgc | 50.58% | ||
| OM | 13.25% | ||
| PM (TTM) | 6.72% | ||
| GM | 50.47% | ||
| FCFM | 10.49% |
ROA(3y)2.83%
ROA(5y)3.44%
ROE(3y)7.34%
ROE(5y)9%
ROIC(3y)6.38%
ROIC(5y)6.21%
ROICexc(3y)7.67%
ROICexc(5y)7.39%
ROICexgc(3y)52.44%
ROICexgc(5y)45.6%
ROCE(3y)10.98%
ROCE(5y)10.58%
ROICexcg growth 3Y19.7%
ROICexcg growth 5Y13.36%
ROICexc growth 3Y4.65%
ROICexc growth 5Y1.26%
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%
F-Score8
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.07 | ||
| Debt/EBITDA | 2.71 | ||
| Cap/Depr | 77.72% | ||
| Cap/Sales | 3.57% | ||
| Interest Coverage | 23.53 | ||
| Cash Conversion | 78.8% | ||
| Profit Quality | 156.01% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.49 |
F-Score8
WACC6.24%
ROIC/WACC1.09
Cap/Depr(3y)59.49%
Cap/Depr(5y)65.43%
Cap/Sales(3y)3.2%
Cap/Sales(5y)3.59%
Profit Quality(3y)220.86%
Profit Quality(5y)178.79%
High Growth Momentum
Growth
EPS 1Y (TTM)4.47%
EPS 3Y3.12%
EPS 5Y-1.17%
EPS Q2Q%6.11%
EPS Next Y7.14%
EPS Next 2Y6.65%
EPS Next 3Y7.05%
EPS Next 5Y5.54%
Revenue 1Y (TTM)0.54%
Revenue growth 3Y4.08%
Revenue growth 5Y1.6%
Sales Q2Q%-0.15%
Revenue Next Year0.87%
Revenue Next 2Y1.88%
Revenue Next 3Y2.55%
Revenue Next 5Y3.03%
EBIT growth 1Y3.81%
EBIT growth 3Y2.2%
EBIT growth 5Y-1.53%
EBIT Next Year35.65%
EBIT Next 3Y14.25%
EBIT Next 5Y9.9%
FCF growth 1Y12.42%
FCF growth 3Y6.14%
FCF growth 5Y3.12%
OCF growth 1Y12.55%
OCF growth 3Y3.31%
OCF growth 5Y2.15%