DANONE (BN.PA) Stock Fundamental Analysis
EPA:BN - Euronext Paris - Matif - FR0000120644 - Common Stock - Currency: EUR
Overall BN gets a fundamental rating of 4 out of 10. We evaluated BN against 58 industry peers in the Food Products industry. There are concerns on the financial health of BN while its profitability can be described as average. BN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BN had positive earnings in the past year.
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
With a decent Return On Assets value of 4.46%, BN is doing good in the industry, outperforming 62.07% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.34%, BN is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
BN has a Return On Invested Capital of 6.58%. This is comparable to the rest of the industry: BN outperforms 58.62% 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 7.10%.
The 3 year average ROIC (6.38%) for BN is below the current ROIC(6.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.46% | ||
| ROE | 11.34% | ||
| ROIC | 6.58% |
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
Looking at the Profit Margin, with a value of 7.37%, BN is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
BN's Profit Margin has been stable in the last couple of years.
BN's Operating Margin of 13.00% is fine compared to the rest of the industry. BN outperforms 70.69% of its industry peers.
BN's Operating Margin has declined in the last couple of years.
BN has a better Gross Margin (49.70%) than 79.31% of its industry peers.
BN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13% | ||
| PM (TTM) | 7.37% | ||
| GM | 49.7% |
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.
The number of shares outstanding for BN has been increased compared to 1 year ago.
BN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.43 indicates that BN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of BN (2.43) is better than 60.34% of its industry peers.
BN has a debt to FCF ratio of 4.89. This is a neutral value as BN would need 4.89 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.89, BN is doing good in the industry, outperforming 68.97% of the companies in the same industry.
A Debt/Equity ratio of 0.66 indicates that BN is somewhat dependend on debt financing.
BN has a worse Debt to Equity ratio (0.66) than 60.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.89 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.05
WACC6.26%
2.3 Liquidity
A Current Ratio of 0.93 indicates that BN may have some problems paying its short term obligations.
BN has a worse Current ratio (0.93) than 79.31% of its industry peers.
BN has a Quick Ratio of 0.93. 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 0.77. This is in the lower half of the industry: BN underperforms 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 129.22% over the past year.
BN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.20% yearly.
The Revenue has decreased by -0.88% in the past year.
Measured over the past years, BN shows a small growth in Revenue. The Revenue has been growing by 1.60% on average per year.
EPS 1Y (TTM)129.22%
EPS 3Y2.12%
EPS 5Y1.2%
EPS Q2Q%472.23%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y4.08%
Revenue growth 5Y1.6%
Sales Q2Q%1.24%
3.2 Future
The Earnings Per Share is expected to grow by 6.57% on average over the next years.
The Revenue is expected to grow by 3.75% on average over the next years.
EPS Next Y7.5%
EPS Next 2Y7.65%
EPS Next 3Y7.5%
EPS Next 5Y6.57%
Revenue Next Year4.17%
Revenue Next 2Y3.95%
Revenue Next 3Y3.97%
Revenue Next 5Y3.75%
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.
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 22.95, BN is valued on the expensive side.
Based on the Price/Earnings ratio, BN is valued a bit more expensive than the industry average as 63.79% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 29.35. BN is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.19, which indicates a rather expensive current valuation of BN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BN indicates a slightly more expensive valuation: BN is more expensive than 62.07% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, BN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.95 | ||
| Fwd PE | 18.19 |
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 | 16.79 | ||
| EV/EBITDA | 10.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of BN may justify a higher PE ratio.
PEG (NY)3.06
PEG (5Y)19.11
EPS Next 2Y7.65%
EPS Next 3Y7.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.05%, BN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.37, BN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, BN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
5.2 History
The dividend of BN has a limited annual growth rate of 1.58%.
Dividend Growth(5Y)1.58%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
66.80% 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.
DP66.8%
EPS Next 2Y7.65%
EPS Next 3Y7.5%
EPA:BN (3/7/2025, 7:00:00 PM)
71.82
+1.38 (+1.96%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners54.28%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap48.81B
Analysts72.12
Price Target72.59 (1.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
Yearly Dividend2.1
Dividend Growth(5Y)1.58%
DP66.8%
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)3.83%
PT rev (3m)5.62%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.2%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.95 | ||
| Fwd PE | 18.19 | ||
| P/S | 1.78 | ||
| P/FCF | 16.79 | ||
| P/OCF | 12.74 | ||
| P/B | 2.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.65 |
EPS(TTM)3.13
EY4.36%
EPS(NY)3.95
Fwd EY5.5%
FCF(TTM)4.28
FCFY5.96%
OCF(TTM)5.64
OCFY7.85%
SpS40.29
BVpS26.18
TBVpS-9.15
PEG (NY)3.06
PEG (5Y)19.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.46% | ||
| ROE | 11.34% | ||
| ROCE | 11.27% | ||
| ROIC | 6.58% | ||
| ROICexc | 8.06% | ||
| ROICexgc | 68% | ||
| OM | 13% | ||
| PM (TTM) | 7.37% | ||
| GM | 49.7% | ||
| FCFM | 10.62% |
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-Score7
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.89 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 79.02% | ||
| Cap/Sales | 3.37% | ||
| Interest Coverage | 20.69 | ||
| Cash Conversion | 81.04% | ||
| Profit Quality | 144.05% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.43 |
F-Score7
WACC6.26%
ROIC/WACC1.05
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)129.22%
EPS 3Y2.12%
EPS 5Y1.2%
EPS Q2Q%472.23%
EPS Next Y7.5%
EPS Next 2Y7.65%
EPS Next 3Y7.5%
EPS Next 5Y6.57%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y4.08%
Revenue growth 5Y1.6%
Sales Q2Q%1.24%
Revenue Next Year4.17%
Revenue Next 2Y3.95%
Revenue Next 3Y3.97%
Revenue Next 5Y3.75%
EBIT growth 1Y2.24%
EBIT growth 3Y2.2%
EBIT growth 5Y-1.53%
EBIT Next Year37.33%
EBIT Next 3Y14.67%
EBIT Next 5Y9.76%
FCF growth 1Y11.98%
FCF growth 3Y6.14%
FCF growth 5Y3.12%
OCF growth 1Y11.24%
OCF growth 3Y3.31%
OCF growth 5Y2.15%