DANONE (BN.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:BN - FR0000120644 - Common Stock
67.54 EUR
-0.72 (-1.05%)
BN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 64 industry peers in the Food Products industry. While BN belongs to the best of the industry regarding profitability, there are concerns on its financial health. BN has a decent growth rate and is not valued too expensively.
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.
- Each year in the past 5 years BN has been profitable.
- BN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BN's Return On Assets of 4.20% is in line compared 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 Return On Invested Capital of 6.83%. This is in the better half of the industry: BN outperforms 60.94% 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 7.95%.
- The 3 year average ROIC (6.38%) for BN is below the current ROIC(6.83%), indicating increased profibility in the last year.
| 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.
- BN's Profit Margin has been stable in the last couple of years.
- With a decent Operating Margin value of 13.25%, BN is doing good in the industry, outperforming 76.56% of the companies in the same industry.
- BN's Operating Margin has declined in the last couple of years.
- The Gross Margin of BN (50.47%) is better than 85.94% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BN is creating some value.
- BN has more shares outstanding than it did 1 year ago.
- 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
- BN has an Altman-Z score of 2.41. 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 2.41. This is comparable to the rest of the industry: BN outperforms 59.38% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 5.07, BN is in the better half of the industry, outperforming 68.75% 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.
- BN's Debt to Equity ratio of 0.83 is on the low side compared to the rest of the industry. BN is outperformed by 67.19% of its industry peers.
| 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.
- BN's Current ratio of 0.95 is on the low side compared to the rest of the industry. BN is outperformed by 68.75% 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 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.
- BN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.54%.
- 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 6.09% yearly.
- BN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.86% yearly.
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
- 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
- Based on the Price/Earnings ratio of 18.06, the valuation of BN can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of BN is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.21. BN is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 16.13, BN is valued correctly.
- BN's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, BN is valued a bit cheaper.
| 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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BN indicates a somewhat cheap valuation: BN is cheaper than 70.31% of the companies listed in the same industry.
| 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
- BN has a Yearly Dividend Yield of 2.81%.
- 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
- 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 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.