DANONE (BN.PA) Stock Fundamental Analysis
EPA:BN - Euronext Paris - Matif - FR0000120644 - Common Stock - Currency: EUR
Overall BN gets a fundamental rating of 3 out of 10. We evaluated BN against 60 industry peers in the Food Products industry. While BN is still in line with the averages on profitability rating, there are concerns on its financial health. BN is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BN was profitable.
BN had a positive operating cash flow in the past year.
Each year in the past 5 years BN has been profitable.
In the past 5 years BN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BN (2.21%) is comparable to the rest of the industry.
With a Return On Equity value of 5.99%, BN perfoms like the industry average, outperforming 50.88% of the companies in the same industry.
The Return On Invested Capital of BN (5.77%) is comparable to the rest of the industry.
BN had an Average Return On Invested Capital over the past 3 years of 5.56%. This is in line with the industry average of 6.86%.
The 3 year average ROIC (5.56%) for BN is below the current ROIC(5.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 5.99% | ||
| ROIC | 5.77% |
ROA(3y)2.74%
ROA(5y)3.4%
ROE(3y)7.22%
ROE(5y)8.95%
ROIC(3y)5.56%
ROIC(5y)5.64%
1.3 Margins
BN has a Profit Margin of 3.69%. This is comparable to the rest of the industry: BN outperforms 52.63% of its industry peers.
In the last couple of years the Profit Margin of BN has declined.
Looking at the Operating Margin, with a value of 12.83%, BN is in the better half of the industry, outperforming 75.44% of the companies in the same industry.
BN's Operating Margin has declined in the last couple of years.
BN's Gross Margin of 48.44% is fine compared to the rest of the industry. BN outperforms 77.19% 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 | 12.83% | ||
| PM (TTM) | 3.69% | ||
| GM | 48.44% |
OM growth 3Y-3.56%
OM growth 5Y-2.72%
PM growth 3Y-27.27%
PM growth 5Y-19.71%
GM growth 3Y-0.48%
GM growth 5Y-0.41%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BN is destroying 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 worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.25 indicates that BN is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.25, BN is in line with its industry, outperforming 49.12% of the companies in the same industry.
The Debt to FCF ratio of BN is 5.88, which is a neutral value as it means it would take BN, 5.88 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BN (5.88) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.78 indicates that BN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.78, BN is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 5.88 | ||
| Altman-Z | 2.25 |
ROIC/WACC0.98
WACC5.92%
2.3 Liquidity
A Current Ratio of 0.91 indicates that BN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.91, BN is doing worse than 77.19% of the companies in the same industry.
A Quick Ratio of 0.74 indicates that BN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.74, BN is doing worse than 61.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.56% over the past year.
The Earnings Per Share has been decreasing by -0.22% on average over the past years.
Looking at the last year, BN shows a decrease in Revenue. The Revenue has decreased by -4.54% in the last year.
BN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.30% yearly.
EPS 1Y (TTM)0.56%
EPS 3Y1.96%
EPS 5Y-0.22%
EPS Q2Q%2.27%
Revenue 1Y (TTM)-4.54%
Revenue growth 3Y5.35%
Revenue growth 5Y2.3%
Sales Q2Q%-2.89%
3.2 Future
Based on estimates for the next years, BN will show a small growth in Earnings Per Share. The EPS will grow by 6.00% on average per year.
The Revenue is expected to grow by 2.34% on average over the next years.
EPS Next Y3.64%
EPS Next 2Y5.5%
EPS Next 3Y6.25%
EPS Next 5Y6%
Revenue Next Year-1.96%
Revenue Next 2Y0.76%
Revenue Next 3Y1.77%
Revenue Next 5Y2.34%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BN is valuated rather expensively with a Price/Earnings ratio of 18.21.
Compared to the rest of the industry, the Price/Earnings ratio of BN is on the same level as its industry peers.
BN is valuated rather cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.54, BN is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as BN.
BN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 16.54 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BN.
BN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.62 | ||
| EV/EBITDA | 9.11 |
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.
PEG (NY)5
PEG (5Y)N/A
EPS Next 2Y5.5%
EPS Next 3Y6.25%
5. Dividend
5.1 Amount
BN has a Yearly Dividend Yield of 3.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.24, BN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, BN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
5.2 History
The dividend of BN is nicely growing with an annual growth rate of 24.27%!
Dividend Growth(5Y)24.27%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
BN pays out 134.40% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP134.4%
EPS Next 2Y5.5%
EPS Next 3Y6.25%
DANONE
EPA:BN (2/5/2025, 10:46:17 AM)
65.19
-0.23 (-0.35%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners54.49%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap44.30B
Analysts72.57
Price Target69.91 (7.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
Yearly Dividend2
Dividend Growth(5Y)24.27%
DP134.4%
Div Incr Years2
Div Non Decr Years3
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)1.09%
PT rev (3m)4.32%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.9%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 16.54 | ||
| P/S | 1.63 | ||
| P/FCF | 16.62 | ||
| P/OCF | 12.58 | ||
| P/B | 2.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.11 |
EPS(TTM)3.58
EY5.49%
EPS(NY)3.94
Fwd EY6.04%
FCF(TTM)3.92
FCFY6.02%
OCF(TTM)5.18
OCFY7.95%
SpS40.04
BVpS24.64
TBVpS-10.05
PEG (NY)5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 5.99% | ||
| ROCE | 11.32% | ||
| ROIC | 5.77% | ||
| ROICexc | 7.09% | ||
| ROICexgc | 48.71% | ||
| OM | 12.83% | ||
| PM (TTM) | 3.69% | ||
| GM | 48.44% | ||
| FCFM | 9.8% |
ROA(3y)2.74%
ROA(5y)3.4%
ROE(3y)7.22%
ROE(5y)8.95%
ROIC(3y)5.56%
ROIC(5y)5.64%
ROICexc(3y)6.63%
ROICexc(5y)6.61%
ROICexgc(3y)38.45%
ROICexgc(5y)35.29%
ROCE(3y)10.43%
ROCE(5y)10.57%
ROICexcg growth 3Y16.02%
ROICexcg growth 5Y3.63%
ROICexc growth 3Y4.15%
ROICexc growth 5Y1.16%
OM growth 3Y-3.56%
OM growth 5Y-2.72%
PM growth 3Y-27.27%
PM growth 5Y-19.71%
GM growth 3Y-0.48%
GM growth 5Y-0.41%
F-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 5.88 | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 52.52% | ||
| Cap/Sales | 3.15% | ||
| Interest Coverage | -6.46 | ||
| Cash Conversion | 68.78% | ||
| Profit Quality | 265.8% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 2.25 |
F-Score6
WACC5.92%
ROIC/WACC0.98
Cap/Depr(3y)60.63%
Cap/Depr(5y)63.35%
Cap/Sales(3y)3.51%
Cap/Sales(5y)3.67%
Profit Quality(3y)215.54%
Profit Quality(5y)176.02%
High Growth Momentum
Growth
EPS 1Y (TTM)0.56%
EPS 3Y1.96%
EPS 5Y-0.22%
EPS Q2Q%2.27%
EPS Next Y3.64%
EPS Next 2Y5.5%
EPS Next 3Y6.25%
EPS Next 5Y6%
Revenue 1Y (TTM)-4.54%
Revenue growth 3Y5.35%
Revenue growth 5Y2.3%
Sales Q2Q%-2.89%
Revenue Next Year-1.96%
Revenue Next 2Y0.76%
Revenue Next 3Y1.77%
Revenue Next 5Y2.34%
EBIT growth 1Y-0.2%
EBIT growth 3Y1.61%
EBIT growth 5Y-0.48%
EBIT Next Year34.37%
EBIT Next 3Y14.41%
EBIT Next 5Y10.46%
FCF growth 1Y27.44%
FCF growth 3Y8.99%
FCF growth 5Y3.65%
OCF growth 1Y14.99%
OCF growth 3Y5.08%
OCF growth 5Y2.05%