DANONE (BN.PA) Stock Fundamental Analysis
EPA:BN - Euronext Paris - Matif - FR0000120644 - Common Stock - Currency: EUR
Overall BN gets a fundamental rating of 5 out of 10. We evaluated BN against 57 industry peers in the Food Products industry. BN has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, BN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year BN was profitable.
BN had a positive operating cash flow in the past year.
In the past 5 years BN has always been profitable.
BN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BN has a Return On Assets of 4.46%. This is in the better half of the industry: BN outperforms 64.91% of its industry peers.
BN's Return On Equity of 11.34% is fine compared to the rest of the industry. BN outperforms 66.67% of its industry peers.
BN's Return On Invested Capital of 6.58% is fine compared to the rest of the industry. BN outperforms 61.40% 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 6.98%.
The last Return On Invested Capital (6.58%) for BN is above the 3 year average (6.38%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 7.37%, BN is doing good in the industry, outperforming 73.68% 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 13.00%, BN is in the better half of the industry, outperforming 77.19% of the companies in the same industry.
In the last couple of years the Operating Margin of BN has declined.
The Gross Margin of BN (49.70%) is better than 73.68% 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% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BN is creating some value.
The number of shares outstanding for BN has been increased compared to 1 year ago.
Compared to 5 years ago, BN has less shares outstanding
The debt/assets ratio for BN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.37 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 2.37, BN perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
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.
The Debt to FCF ratio of BN (4.89) is better than 73.68% of its industry peers.
BN has a Debt/Equity ratio of 0.66. This is a neutral value indicating BN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, BN perfoms like the industry average, outperforming 43.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.89 | ||
| Altman-Z | 2.37 |
ROIC/WACC1.07
WACC6.14%
2.3 Liquidity
A Current Ratio of 0.93 indicates that BN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.93, BN is doing worse than 73.68% of the companies in the same industry.
A Quick Ratio of 0.77 indicates that BN may have some problems paying its short term obligations.
With a Quick ratio value of 0.77, BN is not doing good in the industry: 61.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
BN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.54%.
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.
BN shows a decrease in Revenue. In the last year, the revenue decreased by -0.88%.
BN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.60% yearly.
EPS 1Y (TTM)2.54%
EPS 3Y3.12%
EPS 5Y-1.17%
EPS Q2Q%2.81%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y4.08%
Revenue growth 5Y1.6%
Sales Q2Q%1.24%
3.2 Future
BN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.60% yearly.
BN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.05% yearly.
EPS Next Y7.96%
EPS Next 2Y7.64%
EPS Next 3Y7.59%
EPS Next 5Y5.6%
Revenue Next Year1.76%
Revenue Next 2Y2.51%
Revenue Next 3Y2.9%
Revenue Next 5Y3.05%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.60, the valuation of BN can be described as rather expensive.
BN's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.30. BN is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 17.23, BN is valued on the expensive side.
61.40% of the companies in the same industry are cheaper than BN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.06, BN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.6 | ||
| Fwd PE | 17.23 |
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.
BN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.83 | ||
| EV/EBITDA | 10.11 |
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.
The decent profitability rating of BN may justify a higher PE ratio.
PEG (NY)2.34
PEG (5Y)N/A
EPS Next 2Y7.64%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
BN has a Yearly Dividend Yield of 3.15%. Purely for dividend investing, there may be better candidates out there.
BN's Dividend Yield is a higher than the industry average which is at 3.34.
BN's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| 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
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 2Y7.64%
EPS Next 3Y7.59%
EPA:BN (7/16/2025, 7:00:00 PM)
67.52
-0.36 (-0.53%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners48.65%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap46.01B
Analysts72.5
Price Target76.13 (12.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend2.1
Dividend Growth(5Y)1.58%
DP66.8%
Div Incr Years3
Div Non Decr Years4
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)1.11%
PT rev (3m)3.9%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.6 | ||
| Fwd PE | 17.23 | ||
| P/S | 1.68 | ||
| P/FCF | 15.83 | ||
| P/OCF | 12.01 | ||
| P/B | 2.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.11 |
EPS(TTM)3.63
EY5.38%
EPS(NY)3.92
Fwd EY5.8%
FCF(TTM)4.27
FCFY6.32%
OCF(TTM)5.62
OCFY8.32%
SpS40.18
BVpS26.11
TBVpS-9.12
PEG (NY)2.34
PEG (5Y)N/A
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 | 2.37 |
F-Score7
WACC6.14%
ROIC/WACC1.07
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)2.54%
EPS 3Y3.12%
EPS 5Y-1.17%
EPS Q2Q%2.81%
EPS Next Y7.96%
EPS Next 2Y7.64%
EPS Next 3Y7.59%
EPS Next 5Y5.6%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y4.08%
Revenue growth 5Y1.6%
Sales Q2Q%1.24%
Revenue Next Year1.76%
Revenue Next 2Y2.51%
Revenue Next 3Y2.9%
Revenue Next 5Y3.05%
EBIT growth 1Y2.24%
EBIT growth 3Y2.2%
EBIT growth 5Y-1.53%
EBIT Next Year35.65%
EBIT Next 3Y14.25%
EBIT Next 5Y10.75%
FCF growth 1Y11.98%
FCF growth 3Y6.14%
FCF growth 5Y3.12%
OCF growth 1Y11.24%
OCF growth 3Y3.31%
OCF growth 5Y2.15%