DANONE (BN.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:BN - FR0000120644 - Common Stock
66 EUR
-1.54 (-2.28%)
Overall BN gets a fundamental rating of 5 out of 10. We evaluated BN against 62 industry peers in the Food Products industry. BN has an excellent profitability rating, but 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
- BN had positive earnings in the past year.
- In the past year BN had a positive cash flow from operations.
- 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
- With a decent Return On Assets value of 4.20%, BN is doing good in the industry, outperforming 64.52% of the companies in the same industry.
- BN has a better Return On Equity (11.59%) than 67.74% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.83%, BN is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
- 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 7.38%.
- 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
- Looking at the Profit Margin, with a value of 6.72%, BN is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
- BN's Profit Margin has been stable in the last couple of years.
- 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.
- In the last couple of years the Operating Margin of BN has declined.
- BN has a better Gross Margin (50.47%) than 83.87% 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.
- The number of shares outstanding for BN has been increased compared to 1 year ago.
- The number of shares outstanding for BN has been reduced compared to 5 years ago.
- Compared to 1 year ago, BN has an improved debt to assets ratio.
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.
- Looking at the Altman-Z score, with a value of 2.40, BN is in line with its industry, outperforming 58.06% 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's Debt to FCF ratio of 5.07 is fine compared to the rest of the industry. BN outperforms 70.97% of its industry peers.
- A Debt/Equity ratio of 0.83 indicates that 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/WACC1.08
WACC6.34%
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 worse Current ratio (0.95) than 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 has a Quick ratio (0.78) which is comparable to the rest of the industry.
| 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.
- Measured over the past years, BN shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.17% on average per year.
- 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
- Based on estimates for the next years, BN will show a small growth in Earnings Per Share. The EPS will grow by 6.09% on average per year.
- 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
- 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
- The Price/Earnings ratio is 17.65, which indicates a rather expensive current valuation of BN.
- BN's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, BN is valued a bit cheaper.
- A Price/Forward Earnings ratio of 15.83 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 (25.98), we can say BN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 15.83 |
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.
- 69.35% of the companies in the same industry are more expensive than BN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.68 | ||
| EV/EBITDA | 9.73 |
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)2.34
PEG (5Y)N/A
EPS Next 2Y7.18%
EPS Next 3Y7.53%
5. Dividend
5.1 Amount
- BN has a Yearly Dividend Yield of 3.15%.
- Compared to an average industry Dividend Yield of 2.38, 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 | 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 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 17.65 and the Price/Book (PB) ratio is 2.84.
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.