DANONE (BN.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:BN - FR0000120644 - Common Stock
65.7 EUR
-1.84 (-2.72%)
We assign a fundamental rating of 5 out of 10 to BN. BN was compared to 62 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.
- BN had a positive operating cash flow in the past year.
- BN had positive earnings in each of the past 5 years.
- Each year in the past 5 years BN had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of BN (4.20%) is better than 64.52% of its industry peers.
- BN has a Return On Equity of 11.59%. This is in the better half of the industry: BN outperforms 67.74% of its industry peers.
- The Return On Invested Capital of BN (6.83%) is better than 64.52% 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 7.38%.
- 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 74.19% 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.
- Looking at the Operating Margin, with a value of 13.25%, BN is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
- BN's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 50.47%, BN belongs to the top of the industry, outperforming 83.87% 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 | 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
- BN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
- BN has a better debt/assets ratio than last year.
2.2 Solvency
- BN has an Altman-Z score of 2.40. 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 (2.40) which is comparable to the rest of the 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.
- The Debt to FCF ratio of BN (5.07) is better than 70.97% of its industry peers.
- BN has a Debt/Equity ratio of 0.83. This is a neutral value indicating BN is somewhat dependend on debt financing.
- The Debt to Equity ratio of BN (0.83) is worse than 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.07 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.07
WACC6.37%
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.
- BN has a Current ratio of 0.95. This is in the lower half of the industry: BN underperforms 67.74% of its industry peers.
- A Quick Ratio of 0.78 indicates that BN may have some problems paying its short term obligations.
- BN's Quick ratio of 0.78 is in line compared to the rest of the industry. BN outperforms 46.77% 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.
- Looking at the last year, BN shows a small growth in Revenue. The Revenue has grown by 0.54% in the last year.
- BN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.60% yearly.
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 Y7.53%
EPS Next 2Y7.18%
EPS Next 3Y7.53%
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
- With a Price/Earnings ratio of 17.57, BN is valued on the expensive side.
- The rest of the industry has a similar Price/Earnings ratio as BN.
- When comparing the Price/Earnings ratio of BN to the average of the S&P500 Index (27.21), we can say BN is valued slightly cheaper.
- A Price/Forward Earnings ratio of 15.76 indicates a correct valuation of BN.
- BN's Price/Forward Earnings is on the same level as the industry average.
- BN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.57 | ||
| Fwd PE | 15.76 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as BN.
- Based on the Price/Free Cash Flow ratio, BN is valued a bit cheaper than the industry average as 69.35% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.6 | ||
| EV/EBITDA | 9.73 |
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)2.33
PEG (5Y)N/A
EPS Next 2Y7.18%
EPS Next 3Y7.53%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.15%, BN has a reasonable but not impressive dividend return.
- BN's Dividend Yield is a higher than the industry average which is at 2.38.
- 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
- 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 2Y7.18%
EPS Next 3Y7.53%
DANONE / BN.PA FAQ
What is the ChartMill fundamental rating of DANONE (BN.PA) stock?
ChartMill assigns a fundamental rating of 4 / 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 6 / 10.
What are the PE and PB ratios of DANONE (BN.PA) stock?
The Price/Earnings (PE) ratio for DANONE (BN.PA) is 17.57 and the Price/Book (PB) ratio is 2.82.
What is the earnings growth outlook for DANONE?
The Earnings per Share (EPS) of DANONE (BN.PA) is expected to grow by 7.53% in the next year.