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 65 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 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.
- BN had positive earnings in each of the past 5 years.
- BN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BN has a Return On Assets (4.20%) which is in line with its industry peers.
- The Return On Equity of BN (11.59%) is better than 65.63% 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 60.94% of its industry peers.
- BN had an Average Return On Invested Capital over the past 3 years of 6.38%. This 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
- BN's Profit Margin of 6.72% is fine compared to the rest of the industry. BN outperforms 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.
- Looking at the Operating Margin, with a value of 13.25%, BN is in the better half of the industry, outperforming 76.56% 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 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
- 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.
- BN has less shares outstanding than it did 5 years ago.
- BN has a better debt/assets ratio than last year.
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.
- 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 Debt to FCF ratio of 5.07. This is in the better half of the industry: BN outperforms 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's Quick ratio of 0.78 is in line compared 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
- 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.
- 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
- The Earnings Per Share is expected to grow by 6.09% 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 2.86% 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.
- 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
- BN is valuated rather expensively with a Price/Earnings ratio of 18.06.
- BN's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, BN is valued a bit cheaper.
- A Price/Forward Earnings ratio of 16.13 indicates a correct valuation of BN.
- 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 (24.26), we can say BN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.06 | ||
| Fwd PE | 16.13 |
4.2 Price Multiples
- BN's Enterprise Value to EBITDA is on the same level as the industry average.
- 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.
- BN has a very decent profitability rating, which 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 3.15%, BN has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.48, 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 1.81.
| 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
- BN pays out 74.99% of its income as dividend. 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.