PERNOD RICARD SA (PER.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PER - FR0000120693 - Common Stock
75.62 EUR
-0.82 (-1.07%)
We assign a fundamental rating of 5 out of 10 to PER. PER was compared to 30 industry peers in the Beverages industry. While PER has a great profitability rating, there are quite some concerns on its financial health. PER is valued correctly, but it does not seem to be growing. Finally PER also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year PER was profitable.
- In the past year PER had a positive cash flow from operations.
- In the past 5 years PER has always been profitable.
- In the past 5 years PER always reported a positive cash flow from operatings.
1.2 Ratios
- PER has a Return On Assets of 4.39%. This is in the better half of the industry: PER outperforms 66.67% of its industry peers.
- PER has a better Return On Equity (10.69%) than 66.67% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.69%, PER is in line with its industry, outperforming 46.67% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for PER is in line with the industry average of 8.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.39% | ||
| ROE | 10.69% | ||
| ROIC | 6.69% |
ROA(3y)4.72%
ROA(5y)4.75%
ROE(3y)11.48%
ROE(5y)11.15%
ROIC(3y)6.96%
ROIC(5y)6.8%
1.3 Margins
- The Profit Margin of PER (14.84%) is better than 86.67% of its industry peers.
- PER's Profit Margin has improved in the last couple of years.
- PER's Operating Margin of 26.84% is amongst the best of the industry. PER outperforms 86.67% of its industry peers.
- In the last couple of years the Operating Margin of PER has remained more or less at the same level.
- PER has a Gross Margin of 59.46%. This is amongst the best in the industry. PER outperforms 86.67% of its industry peers.
- PER's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.84% | ||
| PM (TTM) | 14.84% | ||
| GM | 59.46% |
OM growth 3Y-1.67%
OM growth 5Y0.61%
PM growth 3Y-7.34%
PM growth 5Y30.67%
GM growth 3Y-0.57%
GM growth 5Y-0.25%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PER is creating some value.
- PER has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for PER has been reduced compared to 5 years ago.
- PER has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.77, we must say that PER is in the distress zone and has some risk of bankruptcy.
- PER's Altman-Z score of 1.77 is on the low side compared to the rest of the industry. PER is outperformed by 63.33% of its industry peers.
- PER has a debt to FCF ratio of 11.23. This is a negative value and a sign of low solvency as PER would need 11.23 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 11.23, PER is doing worse than 66.67% of the companies in the same industry.
- A Debt/Equity ratio of 0.73 indicates that PER is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.73, PER perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 11.23 | ||
| Altman-Z | 1.77 |
ROIC/WACC1.15
WACC5.83%
2.3 Liquidity
- A Current Ratio of 1.91 indicates that PER should not have too much problems paying its short term obligations.
- PER has a Current ratio of 1.91. This is in the better half of the industry: PER outperforms 76.67% of its industry peers.
- A Quick Ratio of 0.60 indicates that PER may have some problems paying its short term obligations.
- The Quick ratio of PER (0.60) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- PER shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.10%.
- Measured over the past years, PER shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.69% on average per year.
- PER shows a decrease in Revenue. In the last year, the revenue decreased by -5.51%.
- The Revenue has been growing slightly by 5.34% on average over the past years.
EPS 1Y (TTM)-8.1%
EPS 3Y-5.62%
EPS 5Y38.69%
EPS Q2Q%0%
Revenue 1Y (TTM)-5.51%
Revenue growth 3Y0.8%
Revenue growth 5Y5.34%
Sales Q2Q%-4.49%
3.2 Future
- The Earnings Per Share is expected to grow by 2.77% on average over the next years.
- PER is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.49% yearly.
EPS Next Y-13.68%
EPS Next 2Y-5.7%
EPS Next 3Y-2.22%
EPS Next 5Y2.77%
Revenue Next Year-10.43%
Revenue Next 2Y-4.85%
Revenue Next 3Y-2.19%
Revenue Next 5Y1.49%
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 decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- PER is valuated reasonably with a Price/Earnings ratio of 10.42.
- PER's Price/Earnings ratio is rather cheap when compared to the industry. PER is cheaper than 90.00% of the companies in the same industry.
- PER's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- PER is valuated correctly with a Price/Forward Earnings ratio of 12.07.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PER indicates a somewhat cheap valuation: PER is cheaper than 76.67% of the companies listed in the same industry.
- PER is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.42 | ||
| Fwd PE | 12.07 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PER is valued a bit cheaper than 70.00% of the companies in the same industry.
- PER's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.02 | ||
| EV/EBITDA | 8.82 |
4.3 Compensation for Growth
- PER has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as PER's earnings are expected to decrease with -2.22% in the coming years.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y-5.7%
EPS Next 3Y-2.22%
5. Dividend
5.1 Amount
- PER has a Yearly Dividend Yield of 6.18%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.61, PER pays a better dividend. On top of this PER pays more dividend than 93.33% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, PER pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.18% |
5.2 History
- On average, the dividend of PER grows each year by 8.09%, which is quite nice.
Dividend Growth(5Y)8.09%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- 73.86% of the earnings are spent on dividend by PER. This is not a sustainable payout ratio.
- The dividend of PER is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP73.86%
EPS Next 2Y-5.7%
EPS Next 3Y-2.22%
PERNOD RICARD SA / PER.DE FAQ
What is the ChartMill fundamental rating of PERNOD RICARD SA (PER.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PER.DE.
What is the valuation status for PER stock?
ChartMill assigns a valuation rating of 5 / 10 to PERNOD RICARD SA (PER.DE). This can be considered as Fairly Valued.
How profitable is PERNOD RICARD SA (PER.DE) stock?
PERNOD RICARD SA (PER.DE) has a profitability rating of 7 / 10.
How financially healthy is PERNOD RICARD SA?
The financial health rating of PERNOD RICARD SA (PER.DE) is 3 / 10.
Can you provide the expected EPS growth for PER stock?
The Earnings per Share (EPS) of PERNOD RICARD SA (PER.DE) is expected to decline by -13.68% in the next year.